Company No:
Contents
| DIRECTORS | Mr P David |
| Mr J Evans | |
| Mr A Rall | |
| Mr J Skuse (Resigned 12 September 2025) |
| REGISTERED OFFICE | Hillside Farm Sutton Wick |
| Bishop Sutton | |
| Bristol | |
| BS39 5XR | |
| United Kingdom |
| COMPANY NUMBER | 02059424 (England and Wales) |
| AUDITOR | Old Mill Audit Limited |
| Statutory Auditor | |
| Maltravers House | |
| Petters Way, Yeovil | |
| Somerset | |
| BA20 1SH | |
| United Kingdom |
The directors present their Strategic Report for the financial year ended 31 January 2026.
STRATEGIC OVERVIEW
The year represented a period of trading pressure, operational change and renewed focus on sustainable profitability for the Company. Revenue was broadly maintained in a competitive foodservice market; however, gross margin reduced as the business continued to manage customer cost pressures, labour and distribution cost inflation, and the need to remain competitive while protecting service levels.
Against this backdrop, the Board and management team have focused on strengthening the commercial and operational disciplines required to improve future performance. The Company has continued to prioritise high levels of customer service, product quality and supply reliability, while increasing focus on customer profitability, route efficiency, labour productivity, working capital control and cash generation.
The strategic priorities for the business are centred on restoring margin, improving operational efficiency and protecting long-term resilience. This includes margin improvement through procurement and sales strategy, stronger pricing and rebate governance, better customer and product mix management, improved transport route density and greater utilisation of the existing fleet, controlled overheads and embedded labour efficiencies across warehousing and order fulfilment, and a continued review of renewable energy opportunities to help offset future energy cost increases.
FINANCIAL AND OPERATIONAL REVIEW
Turnover for the financial year was £56.7m compared with £57.6m in the prior year, a decrease of approximately 1.5%. Gross profit decreased to £18.1m from £19.2m, with gross profit margin reducing to 31.9% from 33.3%. The Company reported a loss before taxation of £0.3m compared with a profit before taxation of £0.3m in the prior year. The loss after taxation was £0.3m compared with a profit after taxation of £0.2m in 2025.
The results reflect the challenging trading environment across the foodservice sector, including continued customer cost pressures, labour and distribution cost inflation, competitive pricing conditions and the impact of customer profitability across the portfolio. Whilst food inflation moderated compared with the more volatile periods experienced in prior years, margin recovery remained a key area of management focus.
Administrative expenses reduced slightly year on year; however, profitability was impacted by the reduction in gross profit, higher interest costs and exceptional restructuring costs of £0.1m. Management continued to review the operating model, cost base and profitability of customer arrangements, with particular focus on procurement and sales strategy, pricing discipline, rebate control, customer mix, transport route density, fleet utilisation, overhead control and order fulfilment productivity.
The Company generated positive operating cash flow during the year and cash at bank and in hand increased to £1.3m at the year end. The Company reported net current liabilities of £0.6m at 31 January 2026 compared with net current assets of £0.1m in 2025. Net assets remained positive at £3.9m.
LONGER-TERM STRATEGIC OUTLOOK
Whilst economic conditions remain uncertain, the directors remain confident in the long-term prospects of the Company. The business continues to benefit from an established market position, strong customer relationships, an experienced workforce and long-standing supplier partnerships.
The Company remains focused on profitable growth, operational efficiency, employee development and targeted investment in infrastructure, facilities and technology. Particular emphasis continues to be placed on improving gross margin through procurement and sales strategy, strengthening pricing and rebate controls, improving customer profitability, increasing transport route density, improving utilisation of the fleet, controlling overheads and embedding labour efficiencies across warehousing and order fulfilment.
The directors also recognise the importance of managing energy exposure over the longer term. The Company will continue to review commercially viable renewable energy opportunities and other efficiency projects that may help reduce future energy costs, improve resilience and support the wider environmental responsibilities of the business.
The directors remain committed to investing in the business where returns are appropriate while maintaining financial discipline and strong cash management. The Board believes the Company is well positioned to respond to market conditions and to take advantage of future opportunities as trading conditions stabilise.
KEY PERFORMANCE INDICATORS ('KPIS')
The Company uses a range of financial and operational measures to monitor performance. The key financial performance indicators during the year were as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Turnover (£m) | 57 | 58 | |
| Turnover growth (%) | (2) | 2 | |
| Gross profit (£m) | 18 | 19 | |
| Gross profit margin (%) | 32 | 33 | |
| Operating (loss) /profit (£k) | (248) | 288 | |
| (Loss)/profit before tax (£k) | (300) | 311 |
The directors will continue to monitor these key performance indicators, together with operational measures including customer profitability, service levels, gross margin, route density, fleet utilisation, warehouse and order fulfilment productivity, working capital, cash generation and energy usage, to assess progress against strategic objectives and support the long-term success of the business.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the Company continue to include economic uncertainty, inflationary cost pressures, labour availability, customer insolvency risk, supply chain disruption, regulatory compliance, fuel and energy cost volatility and increased competition within the foodservice sector.
Changes in employment legislation, increases in National Minimum Wage and Employer National Insurance costs, together with continued wage inflation, have the potential to impact profitability if not carefully managed. The Company continues to review productivity levels, labour deployment, pricing and operational efficiency to mitigate these pressures, with particular focus on warehousing, order fulfilment and transport operations.
Margin pressure remains a key commercial risk. The Company mitigates this through ongoing review of supplier terms, pricing discipline, rebate arrangements, product mix, customer profitability and the alignment of procurement and sales activity. Management continues to focus on ensuring that customer arrangements remain commercially sustainable and reflect the cost to serve.
Distribution costs remain a significant area of operational risk and opportunity. The Company continues to monitor delivery efficiency, route density, vehicle utilisation and customer delivery requirements to ensure that the transport fleet is used as effectively as possible while maintaining service standards.
The hospitality sector continues to experience financial pressure, which increases the risk of customer failures and bad debts. The Company mitigates this risk through credit control procedures, regular review of customer creditworthiness, active management of overdue balances and the use of trade credit insurance where appropriate.
Supply chain risk remains an area of continued focus. The Company manages this through close supplier relationships, regular review of availability and pricing, and monitoring of stock levels and product demand. The directors also continue to monitor wider economic, regulatory and operational risks and implement appropriate mitigating actions where required.
Energy cost volatility remains a risk to the business because of the Company’s chilled, frozen, warehousing and distribution requirements. Management continues to review energy usage, efficiency projects and the potential for renewable energy investment where this can support long-term cost control and operational resilience.
GOING CONCERN
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving the financial statements. This assessment includes expected trading performance, working capital requirements, customer receipts, supplier payments, operating costs, capital expenditure and the availability of banking facilities.
Based on this review, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least twelve months from the date of signing the financial statements. Accordingly, the financial statements have been prepared on the going concern basis.
SECTION 172 STATEMENT
This section describes how we have engaged with and had regard to the interests of our key stakeholders when exercising our duty to promote the success of the Company under section 172(1) of the Companies Act 2006. Sometimes decisions must be made based on competing priorities of stakeholders. We describe below how the Directors seeks to understand what matters to stakeholders and carefully considers all the relevant factors when selecting the appropriate course of action.
LONG-TERM STRATEGY AND DECISION MAKING
The Board continues to take decisions with the long-term sustainability of the Company in mind. During the year, management focused on protecting service levels, improving profitability, strengthening cash discipline and investing in operational capability where appropriate. Investment and operating decisions are assessed against expected return, customer service, operational resilience, cash generation and the long-term interests of the business.
The Company’s longer-term plan is focused on improving sustainable profitability and cash generation. Key priorities include clearer procurement and sales alignment, stronger pricing and rebate controls, improved customer profitability and product mix, higher transport route density, better utilisation of the vehicle fleet, continued overhead control, labour efficiency across warehousing and order fulfilment, and the assessment of renewable energy options where commercially viable.
EMPLOYEES AND WORKFORCE ENGAGEMENT
Employees remain central to the Company’s ability to deliver high levels of customer service. The Company continued to communicate with employees through formal and informal meetings, operational briefings and management engagement. The directors remain focused on training, development, health and safety, retention and succession planning, particularly in areas where labour availability remains challenging.
Management is also focused on embedding clearer processes and labour efficiency measures across warehousing and order fulfilment. The aim is to improve productivity and service quality while supporting employee development and creating a more structured operating model for the future.
CUSTOMERS, SUPPLIERS AND COMMERCIAL RELATIONSHIPS
The Company works closely with customers and suppliers to support product availability, service reliability, quality and value. The directors recognise the importance of maintaining fair and constructive relationships across the supply chain while ensuring that commercial arrangements remain sustainable for the Company.
A key area of focus is the alignment of procurement and sales strategy to improve margin performance. This includes strengthening supplier terms, reviewing product mix, improving pricing discipline, managing rebates and discounts, and ensuring that customer arrangements reflect the true cost to serve. The Company continues to review customer profitability and service requirements to support long-term trading relationships and sustainable returns.
COMMUNITY, ENVIRONMENT AND ENERGY RESILIENCE
The Company recognises its role as a local employer and contributor to the communities in which it operates. Management continues to consider the environmental impact of the business, including energy usage, fuel consumption, waste, recycling and delivery efficiency. The directors remain committed to improving operational efficiency and reducing unnecessary waste while maintaining the service standards required by customers.
Given the energy required across chilled, frozen, warehousing and distribution activities, the directors continue to consider opportunities to improve energy resilience and efficiency. This includes reviewing renewable energy sources and other energy efficiency projects, where commercially viable, to help offset future increases in energy costs and reduce the Company’s environmental impact over time.
GOVERNANCE, BUSINESS CONDUCT AND FINANCIAL CONTROL
The directors are committed to maintaining high standards of business conduct, governance and financial control. The Company continues to operate through established procedures covering credit control, supplier relationships, health and safety, food safety, regulatory compliance and financial reporting. The directors receive regular management information and continue to monitor key risks and controls across the business.
SHAREHOLDERS
The directors consider the interests of shareholders through regular review of financial performance, liquidity, investment requirements and the long-term strategy of the business. The Board remains focused on protecting the financial strength of the Company and positioning the business for sustainable future performance.
Approved by the Board of Directors and signed on its behalf by:
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Mr P David
Director |
The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 January 2026.
PRINCIPAL ACTIVITIES
REVIEW OF THE BUSINESS
Turnover for the financial year amounted to £56,709,238 (2025: £57,591,158). The Company incurred a loss after taxation totalling £368,814 (2025: profit £169,384).
The net current liability position of the Company as at the financial year end amounted to £559,988 (2025: net current asset £123,481).
The net asset position of the Company as at the financial year end amounted to £3,872,282 (2025: net asset £4,241,096).
DIVIDENDS
No dividend was paid for the current financial year (2025: £143,000).
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Company's policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The Company does not use derivative financial instruments for speculative purposes.
Cash flow risk
The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Credit risk
The Company's principal financial assets are bank balances and cash, trade debtors and other receivables, and investments.
The Company's credit risk is primarily attributable to its trade debtors. The amounts presented in the Balance Sheet are net of allowances for doubtful trade debtors. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Resigned 12 September 2025) |
DIRECTORS' INDEMNITIES
DISABLED EMPLOYEES
EMPLOYEE CONSULTATION
Information of matters of concern to employees is given through newsletters and staff meetings which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
ENERGY AND CARBON REPORT
Energy efficiency actions
The Company has taken the following measures to increase energy efficiency:
| 2026 | 2025 | ||
| kWh | kWh | ||
| Energy consumption used to calculate emissions | 10,457,145 | 11,663,333 | |
| TCO₂e | TCO₂e | ||
| Emissions from combustion of gas | 2,423 | 3,143 | |
| Emissions from combustion of fuel for transport purposes | 33,995 | 35,356 | |
| Emissions from purchased electricity | 244 | 21 | |
| 36,662 | 38,520 |
Intensity Ratio
Intensity metrics of tCO2e per £m of sales and per 1,000 "packages" delivered has been employed as the two most efficient measures of relative performance. In the year to 31 January 2026 the tCO2e/£m of sales was 646 (2025: 669) and the tCO2e/1,000 packages delivered was 4.09 (2025: 4.26)
Methodology
Energy efficiency measures adopted by Arthur David (Food With Service) Limited during the reporting period are as follows:
During the year, the Company continued to monitor electricity consumption through its energy monitoring systems to identify trends, unusual consumption and opportunities to improve operational efficiency. Energy efficiency measures included the ongoing review and maintenance of warehouse doors and shutter systems, together with alerts to identify doors being left open for extended periods, helping to minimise unnecessary energy usage within temperature-controlled areas.
The Company also continued to review working practices and the operation of warehouse equipment to reduce unnecessary energy consumption where practicable. During the year, feasibility work commenced in relation to the installation of solar photovoltaic panels on the Company's warehouse roofs. The proposed installation did not impact energy consumption or emissions during the year ended 31 January 2026 but forms part of the Company's future energy-efficiency plans.
Scope 1, 2 & 3 consumption and CO2 emissions data has been calculated in line with requirements of the GHG Reporting Protocol Corporate Standard and ISO 14064. The carbon emission factors used to convert each activity that gives rise to GHG emissions are consistent with the latest UK Government conversion factors for company reporting.
Estimations undertaken to cover both instances of missing billing periods and/or data not being available for the entirety of the reporting period, have been calculated using a pro-rata methodology, based on the closest available piece of verifiable data.
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Old Mill Audit Limited have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.
Approved by the Board of Directors and signed on its behalf by:
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Mr P David
Director |
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that financial period.
In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Arthur David (Food With Service) Limited for the financial year ended 31 January 2026, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 20, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements of Arthur David (Food With Service) Limited (the ‘Company’):
* Give a true and fair view of the state of the Company's affairs as at 31 January 2026 and of its loss for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)). Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
* The information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
* The financial statements are not in agreement with the accounting records and returns; or
* Certain disclosures of directors’ remuneration specified by law are not made; or
* We have not received all the information and explanations we require for our audit;
Responsibilities of directors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquires with management and review of quality inspection reports. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluation whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Statutory Auditor
Petters Way, Yeovil
Somerset
BA20 1SH
United Kingdom
| Note | 2026 | 2025 | ||
| £ | £ | |||
| Turnover | 3 |
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| Exceptional costs due to business restructure activities during the year | 6 | (
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| Interest receivable and similar income | 4 |
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| Interest payable and similar expenses | 4 | (
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| (Loss)/profit before taxation | 5 | (
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| Tax on (loss)/profit | 10 | (
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| Other comprehensive income | 0 | 0 | ||
| Total comprehensive (loss)/income | (
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| £ | £ | |||
| Fixed assets | ||||
| Tangible assets | 12 |
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| 4,841,186 | 4,457,535 | |||
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| Stocks | 13 |
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| Debtors | 14 |
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| Cash at bank and in hand |
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| 9,703,282 | 9,429,231 | |||
| Creditors: amounts falling due within one year | 15 | (
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| Net current (liabilities)/assets | (559,988) | 123,481 | ||
| Total assets less current liabilities | 4,281,198 | 4,581,016 | ||
| Provision for liabilities | 16 | (
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| Net assets | 3,872,282 | 4,241,096 | ||
| Capital and reserves | 17 | |||
| Called-up share capital |
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| Profit and loss account |
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| Total shareholders' funds | 3,872,282 | 4,241,096 |
The financial statements of Arthur David (Food With Service) Limited (registered number:
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Mr P David
Director |
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| Repayment of loans | 0 | (43,312) | |
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| Dividends paid | 0 | (143,000) | |
| Proceeds from invoice discounting facility | 980,655 | 0 | |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Arthur David (Food With Service) Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Hillside Farm Sutton Wick, Bishop Sutton, Bristol, BS39 5XR, United Kingdom.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that, despite the losses incurred in the year, the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution schemes
For defined contribution schemes the amounts charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.
Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
When the amount that can be deducted for tax for an asset that is recognised in a business combination is less (more) than the value at which it is recognised, a deferred tax liability (asset) is recognised for the additional tax that will be paid (avoided) in respect of that difference. Similarly, a deferred tax asset (liability) is recognised for the additional tax that will be avoided (paid) because of a difference between the value at which a liability is recognised and the amount that will be assessed for tax.
Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and associates, except where the Company is able to control the reversal of the timing difference and it is probable that it will not reverse in the foreseeable future.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.
Where items recognised in the Statement of Comprehensive Income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the Company and the Company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
| Leasehold improvements |
|
| Plant and machinery etc. |
|
| Assets in the course of construction |
not depreciated |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The Company as lessee
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
The Company as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.
Critical judgements in applying the Company’s accounting policies
The following judgements (apart from those involving estimates) have made the most significant effect on amounts recognised in the financial statents:
- Doubtful debts, The directors have reviewed all significant debts on a case by case basis and have made a provision for doubtful debts based on their knowledge of both specific customer and the current economic conditions within the industry. Despite an increase in bad debts in the period, the directors are satisfied that the control procedures and cash collections strategies are good enough to mean that the bad debt provision in 2026 of £200,000 can be reduced from the 2025 provision of £300,000.
Impairments - The directors have reviewed the fixed assets, item by item, and have considered their carry value and a carrying impairment was processed based upon their assessment of the value of the assets in the context of the company's business plan.
Key source of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
- Depreciation, The directors use their knowledge of the business and the industry to estimate the useful life and residual value of property, plant and equipment in order to arrive at applicable depreciation rates. In accordance with section 17 of FRS 102, the directors review and update these estimates if there are indicators that current estimates should change.
It must be noted that there is inherent uncertainty within these estimates as factors such as unexpected wear and tear, technological advancement and changes in market prices mar result in future changes to the appropriate rate of depreciation. The carrying value of property, plant and equipment at the year end is set out in the notes to these financial statements.
Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.
Breakdown by business class
An analysis of the Company's turnover by class of business is set out below.
| 2026 | 2025 | ||
| £ | £ | ||
| Sale of fruit, vegetables and fine foods | 56,709,238 | 57,591,158 |
Breakdown by geographical market:
An analysis of the Company's turnover by geographical market is set out below.
| 2026 | 2025 | ||
| £ | £ | ||
| United Kingdom | 56,709,238 | 57,591,158 |
| 2026 | 2025 | ||
| £ | £ | ||
| Interest receivable and similar income |
|
|
|
| Interest payable and similar expenses | (
|
(
|
|
| (52,186) | 23,034 |
(Loss)/profit before taxation is stated after charging/(crediting):
| 2026 | 2025 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 12) |
|
|
|
| Impairment of tangible fixed assets (note 12) |
|
|
|
| Operating lease rentals |
|
|
|
| (Gain)/loss on disposal of fixed assets | (
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Exceptional costs due to business restructure activities during the year | 136,622 | 485,923 |
As part of an ongoing operational and management review, the company decided to close its Preparation Room in August 2024. Exceptional costs include the impairment losses of the Preparation Room assets, holiday and redundancy costs of the staff affected.
An analysis of the auditor's remuneration is as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 22,548 | 21,100 | |
| Fees payable to the Company’s auditor and its associates for other services: | |||
| All other non-audit services | 9,501 | 16,453 | |
| Total audit fees |
|
|
|
| 2026 | 2025 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Administration and support staff |
|
|
|
| Production and distribution staff |
|
|
|
|
|
|
Their aggregate remuneration comprised:
| 2026 | 2025 | ||
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other retirement benefit costs |
|
|
|
| 13,677,083 | 14,193,408 |
| 2026 | 2025 | ||
| £ | £ | ||
| Directors' emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
| 802,041 | 795,650 |
| 2026 | 2025 | ||
| Number | Number | ||
| Members of a money purchase pension scheme |
|
|
Remuneration of the highest paid director
| 2026 | 2025 | ||
| £ | £ | ||
| Director's emoluments | 313,055 | 252,712 | |
| Company contributions to money purchase schemes | 7,096 | 7,477 | |
| 320,151 | 260,189 |
| 2026 | 2025 | ||
| £ | £ | ||
| Current tax on (loss)/profit | |||
| UK corporation tax |
|
|
|
| Total current tax |
|
|
|
| Deferred tax | |||
| Origination and reversal of timing differences |
|
|
|
| Total deferred tax |
|
|
|
| Total tax on (loss)/profit |
|
|
The tax assessed for the year is higher than (2025: higher than) the standard rate of corporation tax in the UK:
| 2026 | 2025 | ||
| £ | £ | ||
| (Loss)/profit before taxation | (299,818) | 311,423 | |
| Tax on (loss)/profit at standard UK corporation tax rate of 25% (2025: 25%) | (
|
|
|
| Effects of: | |||
| Expenses not deductible for tax purposes |
|
|
|
| Change in unrecognised deferred tax assets |
|
(
|
|
| Depreciation on assets not qualifying for tax allowances | 97,737 | 56,333 | |
| Other differences | 1,645 | 20,997 | |
| Total tax charge for year | 68,996 | 142,039 |
| 2026 | 2025 | ||
| £ | £ | ||
| Amounts recognised as distributions to equity holders in the financial year: | |||
| Interim dividend | 0 | 143,000 | |
| Leasehold improve- ments |
Plant and machinery etc. | Assets in the course of construction |
Total | ||||
| £ | £ | £ | £ | ||||
| Cost | |||||||
| At 01 February 2025 |
|
|
|
|
|||
| Additions |
|
|
|
|
|||
| Disposals | (
|
(
|
|
(
|
|||
| Transfers |
|
|
(
|
|
|||
| At 31 January 2026 |
|
|
|
|
|||
| Accumulated depreciation | |||||||
| At 01 February 2025 |
|
|
|
|
|||
| Charge for the financial year |
|
|
|
|
|||
| Disposals | (
|
(
|
|
(
|
|||
| At 31 January 2026 |
|
|
|
|
|||
| Net book value | |||||||
| At 31 January 2026 | 4,086,390 | 754,796 | 0 | 4,841,186 | |||
| At 31 January 2025 | 2,599,015 | 907,627 | 950,893 | 4,457,535 |
| 2026 | 2025 | ||
| £ | £ | ||
| Stocks |
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Trade debtors |
|
|
|
| VAT recoverable |
|
|
|
| Other debtors |
|
|
|
| Prepayments |
|
|
|
| Deposits |
|
|
|
| Amounts owed by directors (note 20) |
|
|
|
|
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Directors loans (note 20) |
|
|
|
| Trade creditors |
|
|
|
| Payroll taxes payable |
|
|
|
| Taxation and social security |
|
|
|
| Accruals |
|
|
|
| Other creditors |
|
|
|
|
|
|
Other creditors of £1,344,832 (2025: £364,177) are secured against a fixed and floating charge over the assets of the company,.
| Deferred taxation | Total | ||
| £ | £ | ||
| At 01 February 2025 |
|
339,920 | |
| Charged to the Profit and Loss Account |
|
68,996 | |
| At 31 January 2026 |
|
408,916 | |
Deferred tax
| 2026 | 2025 | ||
| £ | £ | ||
| Accelerated capital allowances |
|
|
|
| Tax losses available | (
|
(
|
|
| Other timing differences | (
|
(
|
|
| Provision for deferred tax |
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 50,000 | 50,000 | ||
| Presented as follows: | |||
| Called-up share capital presented as equity | 50,000 | 50,000 |
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Within one year |
|
|
|
| Between one and five years |
|
|
|
|
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Operating (loss)/profit | (
|
|
|
| Adjustment for: | |||
| Depreciation and amortisation |
|
|
|
| (Profit)/loss on sale of plant and equipment | (
|
|
|
| Increase in provisions |
|
|
|
| Operating cash flows before movement in working capital |
|
|
|
| Decrease/(increase) in stocks |
|
(
|
|
| (Increase)/decrease in debtors | (
|
|
|
| (Decrease)/increase in creditors | (
|
|
|
| Cash generated by operations |
|
|
|
| Income taxes (paid)/received | (
|
|
|
| Interest paid | (
|
(
|
|
| Net cash flows from operating activities |
|
|
Transactions with related parties or connected persons
Transactions with the entity’s directors (or members of its governing body)
Amounts owed by directors
| 2026 | 2025 | ||
| £ | £ | ||
| Directors Loan | 328,481 | 321,160 | |
| Director Loan | 0 | 30,133 | |
| Director Loan | 0 | 6,185 | |
|
|
|
During the year a Director maintained a Director's Loan Account with the company. Advances of £7,321 (2025: £Nil) and repayments of £Nil (2025: £Nil) were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest. At the balance sheet date, the Director owed the company £328,481 (2025: £321,160). The loan is repayable on demand.
During the year a Director maintained a Director's Loan Account with the company. Advances of £Nil (2025: £Nil) and repayments of £30,133 (2025: £Nil) were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest. At the balance sheet date, the Director owed the company £Nil (2025: £30,133). The loan is repayable on demand.
During the year a Director maintained a Director's Loan Account with the company. Advances of £Nil (2025: £Nil) and repayments of £6,185 (2025: £Nil) were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest. At the balance sheet date, the Director owed the company £Nil (2025: £6,185). The loan is repayable on demand.
Amounts owed to directors
| 2026 | 2025 | ||
| £ | £ | ||
| Director Loan |
|
|