Pickstock Telford Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04642496 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2018

for

Pickstock Telford Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

D G McDonald

G V Pickstock

Mrs D Pickstock

E Schoettl

REGISTERED OFFICE:

Hortonwood 45

Hortonwood

Telford

Shropshire

TF1 7FA

REGISTERED NUMBER:

04642496 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited, (Statutory Auditors)

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report for the year ended 31 December 2018.

REVIEW OF BUSINESS

Turnover was £96.7m, an increase by 6.1% from the prior year primarily due to increased volumes. The meat

prices remain aligned but hide sales prices have almost halved impacting the gross profit and resulting in a £111k

decrease on prior year.

The Company has invested in the site with the completion of the extension to the building and successful trials in

the new Food Service Area enabling the start of production of steaks for 2019 and we take pride in the results

from the new Customers audits. The Anaerobic Digester is running at full potential and further investment has

been made in a Water Treatment Plant and stand alone Maintenance Building releasing capacity within the

production building and still been able to improve the working capital.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors plan to continually mitigate and minimise the risks inherent within the abattoir industry. However,

there are many substantial risks outside of our control which could affect our business.

The principal risks are:

Economic

The abattoir industry is sensitive to changes such as the price of animals and customer demand. Any

deterioration in economic conditions could decrease demand which could have a material effect on our business,

revenues or profits.

Laws and regulations

Our business is subject to planning, environmental and health and safety laws. Our obligations to comply with

legislation can result in the business incurring additional costs.

Financial instruments

The Company's principal financial instruments comprise cash at bank, short term deposits and a bank overdraft.

The main purpose of these financial instruments is to raise finance for the Company's operations. The Company

has various other financial instruments such as trade debtors and trade creditors, which arise directly from its

operations.

It is, and has been throughout the period under review, the Company's policy that no trading in financial

instruments shall be undertaken. The main risks arising from the company's financial instruments are liquidity

risk, interest rate risk, credit risk and foreign currency risk.

Liquidity

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable

needs and to invest cash assets safely and profitably.

Interest rate risk

The Company finances its operations through a mixture of retained profits, cash and overdraft facilities. Cash at

bank attracts interest at a floating rate. The Company's trade creditors do not attract interest and therefore are

not subject to fair value interest rate risk.

Credit risk

The Company trades with only recognised, creditworthy third parties. It is Company policy that all customers

who wish to trade on credit terms are subject to vetting procedures. Balances are monitored on an ongoing basis

with the result that the Company's exposure to bad debts is not significant.

Foreign currency risk

The Company can be exposed in its trading operations to the risk of changes in foreign currency exchange rates.

The main foreign currency in which the group operates is the Euro. The Company uses derivative financial

instruments in its management of this risk as well as monitoring movements in the exchange rate.

FINANCIAL KEY PERFORMANCE INDICATORS

Turnover and profit before taxation are the principal performance indicators which the Directors use to monitor

the effect of changes in the business. For a year on year comparison turnover has increased by 6.1% (2017:

increase of 15.6%) and profit before taxation has decreased by 13.3% (2017: increase of 3.9%) during the year

ended 31 December 2018.

OTHER KEY PERFORMANCE INDICATORS

Production volumes and efficiencies are measured daily to meet Customer delivery schedules and capacity

planning. For a year on year comparison the production volumes have increased by 7.3% (2017: decrease of

5.1%).

ON BEHALF OF THE BOARD:

G V Pickstock - Director

30 September 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an abattoir operator.

DIVIDENDS

The profit for the year, after taxation, amounted to £5,189,944 (2017 - £5,928,330).

During the year dividends of £2,003,228 were paid.

FUTURE DEVELOPMENTS

The Company continues to invest in improved production facilities, enabling it to maintain its reputation for high

standards and to satisfy current legislation. The new Food Service Area will expand the product range during

2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of

this report.

D G McDonald

G V Pickstock

Mrs D Pickstock

E Schoettl

POST BALANCE SHEET EVENTS

There have been no significant events affecting the company since the year end.

EMPLOYEE INVOLVEMENT

Our working culture is changing to openly communicating, listening carefully and fully understanding the team’s

requirements and ideas. We are accomplishing this by holding “work council” meetings to share the success and

opportunities. This information is filtered to all team members via the elected representatives and

communication boards.

DISABLED EMPLOYEES

The Company recognises its obligations towards all of its employees to ensure that people with disabilities are

afforded equal opportunities to enter employment and progress. Training, continuous improvement and

promotion opportunities are available to all, regardless of disability. When an employee becomes incapable of

carrying out their normal duties because of a disability, the Company will arrange for their capabilities to be

assessed with a view to identify suitable alternative work for that individual.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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). 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 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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. They

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.

DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that

he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Mitten Clarke Audit Limited, (Statutory Auditors), will be proposed for re-appointment in

accordance with section 485 of the Companies Act.

ON BEHALF OF THE BOARD:

G V Pickstock - Director

30 September 2019

Opinion

We have audited the financial statements of Pickstock Telford Limited (the 'company') for the year ended

31 December 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial

Statements, including a summary of 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:

-	give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable

law. Our responsibilities under those standards are further described in the Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of

the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report

of the Auditors.

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 a Report of the Auditors 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.

Ashley M Conway (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited, (Statutory Auditors)

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

30 September 2019

TURNOVER

4

96,659,998

91,139,906

Cost of sales

82,252,539

76,621,324

GROSS PROFIT

14,407,459

14,518,582

Distribution costs

4,593,988

3,591,686

Administrative expenses

4,219,330

4,084,303

8,813,318

7,675,989

5,594,141

6,842,593

Other operating income

5

849,868

589,496

OPERATING PROFIT

8

6,444,009

7,432,089

Interest payable and similar expenses

10

4,229

5,724

PROFIT BEFORE TAXATION

6,439,780

7,426,365

Tax on profit

11

1,249,836

1,498,035

PROFIT FOR THE FINANCIAL YEAR

5,189,944

5,928,330

FIXED ASSETS

Tangible assets

13

14,726,191

12,873,732

Investments

14

-

1

14,726,191

12,873,733

CURRENT ASSETS

Stocks

15

6,107,749

3,202,683

Debtors

16

7,925,132

8,464,626

Cash in hand

17

6,038,051

7,009,379

20,070,932

18,676,688

CREDITORS

Amounts falling due within one year

18

3,202,690

3,142,704

NET CURRENT ASSETS

16,868,242

15,533,984

TOTAL ASSETS LESS CURRENT LIABILITIES

31,594,433

28,407,717

PROVISIONS FOR LIABILITIES

20

113,474

113,474

NET ASSETS

31,480,959

28,294,243

CAPITAL AND RESERVES

Called up share capital

21

3

3

Retained earnings

22

31,480,956

28,294,240

SHAREHOLDERS' FUNDS

31,480,959

28,294,243

The financial statements were approved by the Board of Directors on 30 September 2019 and were signed on its behalf by:

G V Pickstock - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

3

22,365,910

22,365,913

Changes in equity

Total comprehensive income

-

5,928,330

5,928,330

Balance at 31 December 2017

3

28,294,240

28,294,243

Changes in equity

Dividends

-

(2,003,228

)

(2,003,228

)

Total comprehensive income

-

5,189,944

5,189,944

Balance at 31 December 2018

3

31,480,956

31,480,959

Cash flows from operating activities

Cash generated from operations

1

5,899,485

8,147,256

Tax paid

(1,225,066

)

(1,733,347

)

Net cash from operating activities

4,674,419

6,413,909

Cash flows from investing activities

Purchase of tangible fixed assets

(3,705,940

)

(2,919,124

)

Sale of tangible fixed assets

67,650

39,332

Net cash from investing activities

(3,638,290

)

(2,879,792

)

Cash flows from financing activities

Interest paid

(4,229

)

(5,724

)

Equity dividends paid

(2,003,228

)

-

Net cash from financing activities

(2,007,457

)

(5,724

)

(Decrease)/increase in cash and cash equivalents

(971,328

)

3,528,393

Cash and cash equivalents at beginning of year

2

7,009,379

3,480,986

Cash and cash equivalents at end of year

2

6,038,051

7,009,379

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

6,439,780

7,426,365

Depreciation charges

1,656,607

1,344,039

Profit on disposal of fixed assets

(23,650

)

(13,083

)

Finance costs

4,229

5,724

8,076,966

8,763,045

(Increase)/decrease in stocks

(2,905,066

)

432,642

Decrease/(increase) in trade and other debtors

539,494

(1,656,999

)

Increase in trade and other creditors

188,091

608,568

Cash generated from operations

5,899,485

8,147,256

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect

of these Balance Sheet amounts:

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

6,038,051

7,009,379

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

7,009,379

3,480,986

1.	GENERAL INFORMATION

Pickstock Telford Limited is a private company limited by shares, incorporated and domiciled in England

and Wales. The registered office is Hortonwood 45, Hortonwood, Telford, Shropshire, England, TF1 7FA.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise

specified within these accounting policies and in accordance with Financial Reporting Standard 102, the

Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act

2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical

accounting estimates. It also requires management to exercise judgment in applying the Company's

accounting policies (see note 3).

The following principal accounting policies have been applied:

Going concern

The Directors assess whether the use of going concern is appropriate, i.e. whether there are any material

uncertainties related to events or conditions that may cast significant doubt on the ability of the company

to continue as a going concern. The Directors make this assessment in respect of a period of at least one

year from the date of authorisation for issue of the financial statements and have concluded that the

company has adequate resource to continue in operational existence for the foreseeable future and there

are no material uncertainties about the company's ability to continue as a going concern, thus they

continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the

Company and the revenue can be reliably measured. Revenue is measured as the fair value of the

consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated

with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and

any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to

bringing the asset to the location and condition necessary for it to be capable of operating in the manner

intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less

their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property

- 2% straight line

Plant and machinery

- 5% - 20% straight line

Motor vehicles

- 25% straight line

Office equipment

- 20% straight line

Property improvements

- 10% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted

prospectively if appropriate, or if there is an indication of a significant change since the last reporting

date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are

recognised in the Statement of Comprehensive Income.

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure

on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the

depreciation on the assets to which the grant relates. The deferred element of grants is included in

creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period

as the related expenditure.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured

to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the

Statement of Comprehensive Income for the period. Where market value cannot be reliably determined,

such investments are stated at historic cost less impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs

to complete and sell. The cost of livestock and packaging is based on purchase price. The cost of

carcasses and boxed meat is measured using the retail method, whereby cost is estimated at selling price

less a margin. The formulas for cost measurement use a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount

is reduced to its selling price less costs to complete and sell. The impairment loss is recognised

immediately in profit or loss.

Financial instruments

The Company enters into basic financial instruments transactions that result in the recognition of

financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third

parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and

other accounts receivable and payable, are initially measured at present value of the future cash flows

and subsequently at amortised cost using the effective interest method. Debt instruments that are

payable or receivable within one year, typically trade debtors and creditors, are measured, initially and

subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or

received. However, if the arrangements of a short-term instrument constitute a financing transaction,

like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest

that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial

asset or liability is measured, initially, at the present value of the future cash flow discounted at a

market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting

period for objective evidence of impairment. If objective evidence of impairment is found, an impairment

loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference

between an asset's carrying amount and the present value of estimated cash flows discounted at the

asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate

for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference

between an asset's carrying amount and best estimate of the recoverable amount, which is an

approximation of the amount that the Company would receive for the asset if it were to be sold at the

balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is

an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or

to realise the asset and settle the liability simultaneously.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial

instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered

into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are

recognised in profit or loss in finance costs or income as appropriate. The company does not currently

apply hedge accounting for interest rate and foreign exchange derivatives.

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, except that a charge attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or

substantively enacted by the balance sheet date in the countries where the Company operates and

generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not

reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be

recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax

allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of

business combinations, when deferred tax is recognised on the differences between the fair values of

assets acquired and the future tax deductions available for them and the differences between the fair

values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined

using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest

method.

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at

the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary

items measured at historical cost are translated using the exchange rate at the date of the transaction

and non-monetary items measured at fair value are measured using the exchange rate when fair value

was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation

at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognised in the Statement of Comprehensive Income except when deferred in other comprehensive

income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented

in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange

gains and losses are presented in the Statement of Comprehensive Income within 'other operating

charges'.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on

notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more

than three months from the date of acquisition and that are readily convertible to known amounts of cash

with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are

repayable on demand and form an integral part of the Company's cash management.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are

measured initially at fair value, net of transaction costs, and are measured subsequently at amortised

cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the

effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue

costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are

recognised when paid. Final equity dividends are recognised when approved by the shareholders at an

annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and

classified within interest payable.

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a

pension plan under which the Company pays fixed contributions into a separate entity. Once the

contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall

due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are

held separately from the Company in independently administered funds.

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION

The preparation of the financial statements requires management to make judgments, estimates and

assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the

amounts reported as revenue and expenditure during the year. However, the nature of estimates means

that actual outcomes could differ from those estimates. Information about the significant judgments and

estimates required in the provision of the financial statements is provided below.

Useful lives of depreciable assets

Management reviews the useful economic lives of depreciable assets at each reporting date so as to

allocate the cost of assets, less their residual value, over their estimated useful lives. Uncertainties in

these estimates relate to technological obsolescence and physical deterioration.

Valuation of inventory

Management have used the retail method for measuring the cost of carcass and boxed meat stocks,

whereby stock cost is determined by reference to selling price less a gross margin. Selling price is

estimated for individual stock lines. Gross margin is estimated based on the average percentage margin

achieved on all sales in the previous year.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2018

2017

£

£

United Kingdom

62,640,042

61,016,023

Europe

32,910,297

29,103,842

Rest of World

1,109,659

1,020,041

96,659,998

91,139,906

5.	OTHER OPERATING INCOME

2018

2017

£

£

Management charges

183,827

-

Energy income receivable

616,391

510,716

Government grants

26,000

65,697

Profit on sale of tangible fixed assets

23,650

13,083

849,868

589,496

6.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

7,794,584

6,246,862

Social security costs

721,956

567,232

Other pension costs

101,900

46,438

8,618,440

6,860,532