N.H. Case Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01904912 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

FOR

N.H. CASE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

N H Case

T H Case

SECRETARY:

T H Case

REGISTERED OFFICE:

21, Bennetts Field

Wincanton

Somerset

BA9 9DS

REGISTERED NUMBER:

01904912 (England and Wales)

AUDITORS:

Andrews and Palmer Limited

Statutory Auditor

32 The Square

Gillingham

Dorset

SP8 4AR

The directors present their strategic report for the year ended 31 March 2020.

N H Case Limited operate 3 separate sites manufacturing and wholesaling food including frozen foods. The sites are

located in Wincanton, Warminster and Grimsby.

REVIEW OF BUSINESS

In the strategic review last year we noted that tough times and thin margins would be the norm for the next few years in

the food industry. That was spot on.

The year ended March 31st 2020 was a difficult year for profitability as a result of rising raw material prices, increased

energy and production costs, and the difficulty in a highly competitive market of passing costs on. Sterling fluctuating

between 1.35 and 1.14 didn't help.

Turnover decreased from £32m to £30m because of a conscious decision to reduce low margin sales in SE Asia. Sales

into the UK dropped marginally from £26M to £25M and sales into continental Europe increased from £3M to £4m.

Gross Margin increased from 18% to 19.3% as a result of shedding low margin business.

Net profit declined from £339K to £98K as a result of a tough trading environment and our deciding to maintain skilled

staff and infrastructure levels at a high level in readiness for better times ahead.

The directors consider profitability and cash to be key performance indicators in the current climate, and these are

reviewed on a weekly basis throughout the year. The financial position of the company, including liquidity and

solvency, is strong as seen in the balance sheet on page 8.

The company's principal financial instruments comprise bank accounts, trade creditors and trade debtors supported

where necessary by the use of invoice discounting. The main purpose of these instruments is to provide working capital

for the company's day-to-day operations. Trade debtors are managed in respect of credit and cashflow risk by policies

concerning the credit offered to customers and the regular monitoring of amounts outstanding. Trade creditors consist of

the amounts owed to suppliers. Liquidity risk is managed by ensuring sufficient funds are available to meet amounts

due.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk over the next year has to be the fall out from Covid 19. The company is managing the health risk to

its employees as best it can by following relevant government guidelines to try and ensure that none of our factories are

closed down by an outbreak.

There will be fallout in terms customers and suppliers ceasing to trade as a result of the pandemic. We insure all of our

debts and know our customer and supply base well and are confident that this will mitigate any downside in this area.

Commercially sales have held steady in the first quarter of the Financial Year ending March 31st 2021 and margins have

improved.

The broad customer base that we serve means that whilst some business sectors we serve have collapsed others have

tripled . Losses in one sector have been more than balanced by gains in others.

The company maintained high levels of stock throughout the last year due to uncertainty over the excise and regulatory

regime on imports post Brexit. This meant that in April and May 2020 we had plenty of stock in Europe and the UK at a

point when international transport and shipping links were not functioning. This will hold us in good stead for the

coming year.

FUTURE DEVELOPMENTS

No major developments in the business are planned. The company will continue to focus on current markets with a view

to maximising the profitability of the company, despite the risks and uncertainties in the general worldwide economy.

ON BEHALF OF THE BOARD:

T H Case - Director

26 June 2020

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2020.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

N H Case

T H Case

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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.

STATEMENT AS TO 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 ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Andrews and Palmer Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

T H Case - Director

26 June 2020

Opinion

We have audited the financial statements of N.H. Case Limited (the 'company') for the year ended 31 March 2020 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 March 2020 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 Statement of Directors' Responsibilities set out on page four, 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.

Christopher Jarratt BA(Hons) ACA (Senior Statutory Auditor)

for and on behalf of Andrews and Palmer Limited

Statutory Auditor

32 The Square

Gillingham

Dorset

SP8 4AR

26 June 2020

TURNOVER

3

29,929,021

32,072,965

Cost of sales

24,163,254

26,309,805

GROSS PROFIT

5,765,767

5,763,160

Administrative expenses

5,638,583

5,512,315

127,184

250,845

Other operating income

25,235

165,275

OPERATING PROFIT

5

152,419

416,120

Interest receivable and similar income

11,149

1,526

163,568

417,646

Interest payable and similar expenses

6

65,234

78,325

PROFIT BEFORE TAXATION

98,334

339,321

Tax on profit

7

30,132

74,145

PROFIT FOR THE FINANCIAL YEAR

68,202

265,176

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

68,202

265,176

FIXED ASSETS

Tangible assets

8

1,935,978

1,392,085

Investment property

9

542,153

542,153

2,478,131

1,934,238

CURRENT ASSETS

Stocks

10

8,017,684

6,931,510

Debtors

11

4,616,595

4,900,755

Cash at bank and in hand

263,576

729,206

12,897,855

12,561,471

CREDITORS

Amounts falling due within one year

12

4,168,566

3,590,737

NET CURRENT ASSETS

8,729,289

8,970,734

TOTAL ASSETS LESS CURRENT LIABILITIES

11,207,420

10,904,972

CREDITORS

Amounts falling due after more than one year

13

(142,241

)

-

PROVISIONS FOR LIABILITIES

18

(219,911

)

(127,906

)

NET ASSETS

10,845,268

10,777,066

CAPITAL AND RESERVES

Called up share capital

19

30,000

30,000

Retained earnings

10,815,268

10,747,066

SHAREHOLDERS' FUNDS

10,845,268

10,777,066

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 26 June 2020 and were signed on its behalf by:

T H Case - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

30,000

10,481,890

10,511,890

Changes in equity

Total comprehensive income

-

265,176

265,176

Balance at 31 March 2019

30,000

10,747,066

10,777,066

Changes in equity

Total comprehensive income

-

68,202

68,202

Balance at 31 March 2020

30,000

10,815,268

10,845,268

Cash flows from operating activities

Cash generated from operations

1

534,610

697,647

Interest paid

(61,436

)

(61,040

)

Interest element of hire purchase payments paid

(3,798

)

(17,285

)

Tax paid

(77,988

)

(59,769

)

Net cash from operating activities

391,388

559,553

Cash flows from investing activities

Purchase of tangible fixed assets

(419,858

)

(179,377

)

Purchase of investment property

-

(9,265

)

Sale of tangible fixed assets

10,917

-

Interest received

11,149

1,526

Net cash from investing activities

(397,792

)

(187,116

)

Cash flows from financing activities

New loans in year

31,138

29,724

Hire purchase capital agreements in year

(83,611

)

(222,362

)

Amount withdrawn by directors

(406,753

)

(12,948

)

Net cash from financing activities

(459,226

)

(205,586

)

(Decrease)/increase in cash and cash equivalents

(465,630

)

166,851

Cash and cash equivalents at beginning of year

2

729,206

562,355

Cash and cash equivalents at end of year

2

263,576

729,206

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

31.3.20

31.3.19

£

£

Profit before taxation

98,334

339,321

Depreciation charges

330,238

315,279

Loss on disposal of fixed assets

12,433

-

Loss on revaluation of fixed assets

-

9,265

Finance costs

65,234

78,325

Finance income

(11,149

)

(1,526

)

495,090

740,664

(Increase)/decrease in stocks

(1,086,174

)

675,113

Decrease in trade and other debtors

171,647

123,084

Increase/(decrease) in trade and other creditors

954,047

(841,214

)

Cash generated from operations

534,610

697,647

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 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

263,576

729,206

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

729,206

562,355

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.19

Cash flow

changes

At 31.3.20

£

£

£

£

Net cash

Cash at bank

and in hand

729,206

(465,630

)

263,576

729,206

(465,630

)

263,576

Debt

Finance leases

(11,113

)

83,611

-

(230,643

)

Debts falling due

within 1 year

(1,001,145

)

(31,138

)

-

(1,032,283

)

(1,012,258

)

52,473

-

(1,262,926

)

Total

(283,052

)

(413,157

)

-

(999,350

)

1.	STATUTORY INFORMATION

N.H. Case Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

The financial statements are presented in £ Sterling, which is the functional currency of the company.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

On 11 March 2020 the World Health Organisation declared the coronavirus Covid-19 outbreak a pandemic. As

referred to in the strategic report, this is the principal risk the business faces over the next year. The company

has taken steps to mitigate this risk and has assessed expected cashflow and profitability for more than 12

months ahead. On this basis the directors consider that the going concern basis for the preparation of the

accounts remains appropriate.

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

accounting estimates. It also requires management to exercise its judgement in the process of applying the

company's accounting policies. The area involving a higher degree of judgement nor complexity, or areas where

assumptions and estimates are significant to the financial statements are disclosed below.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

Significant accounting estimates and assumptions

i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic

lives of the assets.The useful economic lives are re-assessed annually and amended when necessary to reflect

current estimates based on technological advancement, future investments, economic utilisation and the physical

condition of the assets.

ii) Stocks include perishable items. As a result it is necessary to consider the recoverability of cost of the stocks

and the associated provisioning required. When calculating any stock provision management considers the

nature and age of the stock as well as applying assumptions around anticipated saleability of items and usage of

raw materials.

iii) The company makes an estimate of the recoverable value of trade and other debtors. When assessing

impairment of trade and other debtors, management considers factors including the current credit rating or the

debtor, ageing profile and historical experience.

Turnover and revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount

receivable for goods supplied, net of returns, discounts, rebates and value added taxes.

The company recognises revenue when a) the significant risks and rewards of ownership have been transferred

to the buyer; b) the company retains no continuing involvement or control over the goods; c) the amount of

revenue can be measured reliably and d) it is probable that future economic benefits will flow to the entity.

Sales are normally made with a credit term of 30 days. The element of financing is deemed immaterial and is

disregarded in the measurement of revenue.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Freehold land - not depreciated

Freehold property - 4% on cost

Leasehold property - 4% on cost

Plant & machinery - 25% on reducing balance and at varying rates

Motor vehicles - 25% on reducing balance

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

Investment property

Investment property for which fair value can be measured reliably without undue cost or effort are measured at

fair value annually with any change recognised in the income statement.

Stocks

Stocks bought in directly from suppliers and not subject to further work before sale are valued at purchase cost.

Where items are subject to further processing, these items are valued at purchase cost plus an element of directly

attributable overheads.

Where the stock carrying cost is in excess of net realisable value, due allowance is made to write down these

items to the lower of cost and net realisable value.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and

duties and transport and handling directly attributable to bringing the stock to its present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured using tax

rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to

the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to

the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other

future taxable profits.

Foreign currencies

In preparing the financial statements, transactions in currencies other than sterling are recognised at the spot rate

at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of

the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are

retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost

in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in

which they arise.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday

arrangements and defined contribution pension plans.

i) Short term benefits

Short term benefits including holiday pay and other similar non-monetary benefits are recognised as an expense

in the period in which the service is received.

ii) Annual bonuses

Where applicable, an expense is recognised in the profit and loss account when the company has a legal or

constructive obligation to make payments as a result of past events and a reliable estimate of the obligation can

be made.

iii) Pension costs

The company operates a defined contribution pension scheme 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 when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the

plan are held separately from the company in independently administered funds.

Operating leases

Rentals under operating leases are charged on a straight line basis over the lease term.

Financial instruments

A) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at

transaction price unless the arrangement constitutes a financing transaction where the transaction is measured at

the present value of future receipts discounted at a market rate of interest. Such assets are carried at amortised

cost using the effective interest method. At the end of each reporting period financial assets measured at

amortised cost are assessed for objective evidence of impairment, with any impairment loss recognised in profit

and loss.

B) Financial liabilities

Basic financial liabilities, including trade and other payables and bank loans 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 receipts discounted at a market rate of interest.

Invoice discounting loans, which are secured on trade debtors, are recognised at the transaction price and

subsequently measured at amortised cost.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts payable are classified as current liabilities if payment is due in one year or

less and are recognised initially at transaction price and subsequently measured at amortised cost using the

effective interest rate method.

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 at the balance sheet date. Changes in the fair value of derivatives

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

hedge accounting for foreign exchange derivatives.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.3.20

31.3.19

£

£

Sales of goods

29,929,021

32,072,965

29,929,021

32,072,965

An analysis of turnover by geographical market is given below:

31.3.20

31.3.19

£

£

United Kingdom

25,687,201

26,578,351

Europe

4,179,340

3,138,841

Asia

62,480

2,355,773

29,929,021

32,072,965