Company No: 02775011 (England and Wales)

Contents

• Company Information
• Accountant's Report
• Statement of Financial Position
• Notes to the Unaudited Financial Statements

DIRECTOR	Mrs M J Symonds
REGISTERED OFFICE	Chy Nyverow
	Newham Road
	Truro
	Cornwall
	United Kingdom
	TR1 2DP
	United Kingdom
COMPANY NUMBER	02775011(England and Wales)
CHARTERED ACCOUNTANTS	Bishop Fleming LLP
	Chy Nyverow
	Newham Road
	Truro
	TR1 2DP

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Portreath Bakery Limited for the financial year ended 31 December 2020 which comprises the Statement of Financial Position and the related notes 1 to 11 from the Company’s accounting records and from information and explanations you have given us.

We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance/_.

It is your duty to ensure that Portreath Bakery Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Portreath Bakery Limited. You consider that Portreath Bakery Limited is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Portreath Bakery Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Director of Portreath Bakery Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Portreath Bakery Limited and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Portreath Bakery Limited and its Director as a body for our work or for this report.

Bishop Fleming LLP
Chartered Accountants

Chy Nyverow
Newham Road
Truro
TR1 2DP

10 May 2021

		2020		2019
	Note	£		£
Fixed assets
Tangible assets	3	171,824		154,030
		171,824		154,030
Current assets
Stocks	4	89,969		99,240
Debtors	5	100,161		78,752
Cash at bank and in hand	6	89,220		23,989
		279,350		201,981
Creditors
Amounts falling due within one year	7	( 299,170)		( 219,378)
Net current liabilities		(19,820)		(17,397)
Total assets less current liabilities		152,004		136,633
Creditors
Amounts falling due after more than one year	8	( 66,603)		( 72,480)
Provisions for liabilities		( 15,550)		( 10,979)
Net assets		69,851		53,174
Capital and reserves
Called-up share capital	9	1,000		1,000
Profit and loss account		68,851		52,174
Total shareholder's funds		69,851		53,174

For the financial year ending 31 December 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Portreath Bakery Limited (registered number: 02775011) were approved and authorised for issue by the Director on 04 May 2021. They were signed on its behalf by:

Mrs M J Symonds Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year.

General information and basis of accounting

Portreath Bakery 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, registered number 02775011. The address of the Company's registered office is Chy Nyverow, Newham Road, Truro, Cornwall, United Kingdom, TR1 2DP, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.

The functional currency of Portreath Bakery Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates. The financial statements are rounded to the nearest £1 throughout.

Going concern

The financial statements have been prepared on a going concern basis, which assumes the continuing support of an associated company, its principal creditor.

The directors have also assessed the impact of COVID-19 on the company's ability to continue as a going concern. Given that the company's income arises from the manufacture and sale of food, the directors have discussed and assessed the impact of COVID-19 to be minimal, and do not consider any long term drop in demand for its produce. The financial impact of COVID-19 has been assessed by the directors and they believe there are sufficient resources to address any financial impact. On this basis, the directors have concluded it is appropriate that the financial statements have been prepared on a going concern basis.

The directors’ assumptions and outlook assumes that COVID-19 causes no long-term material unanticipated changes to the business model. The financial statements do not reflect any adjustments that would be necessary should the long-term ability of the company be jeopardised due to the current COVID-19 situation.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Where a contract has only been partially completed at the Statement of Financial Position date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Statement of Financial Position date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Deferred tax assets and liabilities are not discounted.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than freehold property at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life, as follows:

Freehold property - not depreciated
Improvements to property - 10% on cost
Fixtures, fittings and equipment - 15% reducing balance
Computer equipment - 25% on cost

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial in such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position 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.

2. Employees

	2020	2019
	Number	Number
Monthly average number of persons employed by the Company during the year, including director	38	39

3. Tangible assets

	Land and buildings	Leasehold improvements	Plant and machinery	Computer equipment	Total
	£	£	£	£	£
Cost/Valuation
At 01 January 2020	54,931	5,128	268,863	6,586	335,508
Additions	0	0	33,451	3,788	37,239
At 31 December 2020	54,931	5,128	302,314	10,374	372,747
Accumulated depreciation
At 01 January 2020	0	5,128	170,415	5,935	181,478
Charge for the financial year	0	0	18,705	740	19,445
At 31 December 2020	0	5,128	189,120	6,675	200,923
Net book value
At 31 December 2020	54,931	0	113,194	3,699	171,824
At 31 December 2019	54,931	0	98,448	651	154,030

4. Stocks

	2020	2019
	£	£
Stocks	89,969	99,240
	89,969	99,240

5. Debtors

	2020	2019
	£	£
Trade debtors	26,957	9,288
Other debtors	73,204	69,464
	100,161	78,752

6. Cash and cash equivalents

	2020	2019
	£	£
Cash at bank and in hand	88,810	23,445
	88,810	23,445

7. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	7,980	7,391
Trade creditors	48,056	37,934
Amounts owed to associates	181,109	122,523
Other creditors	13,358	10,510
Corporation tax	13,062	13,150
Other taxation and social security	24,079	22,023
Obligations under finance leases and hire purchase contracts	11,526	5,847
	299,170	219,378

The bank loans above of £7,980 (2019 - £7,391) are secured over the company's assets. The obligations under finance lease and hire purchase contracts of £11,526 (2019 - £5,847) are secured on the assets to which they relate.

8. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans	38,078	46,545
Obligations under finance leases and hire purchase contracts	28,525	25,935
	66,603	72,480

The bank loans above of £38,078 (2019 - £46,545) are secured over the company's assets. Included in this is an amount of £6,158 (2019 - £16,981) due by instalments after more than five years from the reporting date. The obligations under finance lease and hire purchase contracts of £28,525 (2019 - £25,935) are secured on the assets to which they relate.

9. Called-up share capital and reserves

	2020	2019
	£	£
Allotted, called-up and fully-paid
1,000 Ordinary shares of £ 1.00 each (2019: 1,000 shares of £ 1.00 each)	1,000	1,000
	1,000	1,000

10. Related party transactions

At the year end, the company owed £181,109 (2019 - £122,523) to an associated company. The account was interest free. The company also occupied premises owned by the associated company on a rent free basis.

At the year end, the company was owed £40,191 (2019 - £40,461) by Mrs M J Symonds, a director. The opening balance was the maximum amount owed during the year, and there was no interest charged on the account.

11. Ultimate controlling party

The company is a 100% subsidiary of Pull Tuck Pinch Limited, a company incorporated in England and Wales, registered number 10885991. Pull Tuck Pinch Limited's registered office is Chy Nyverow, Newham Road, Truro, Cornwall, TR1 2DP.