Nortech Foods Limited - Limited company accounts 20.1
Nortech Foods Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
Nortech Foods Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 December 2021 |
Nortech Foods Limited (Registered number: 01685437) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
Nortech Foods Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Accountants |
Statutory Auditors |
No.2 Silkwood Office Park |
Fryers Way |
Wakefield |
West Yorkshire |
WF5 9TJ |
BANKERS: |
City Office |
33 Park Row |
Leeds |
West Yorkshire |
LS1 1LD |
SOLICITORS: |
7 King Street |
Mirfield |
West Yorkshire |
WF14 8AW |
Nortech Foods Limited (Registered number: 01685437) |
Strategic Report |
for the Year Ended 31 December 2021 |
Business Overview |
Nortech Foods Limited (Nortech) is a wholly owned subsidiary of SARIA Limited (SARIA): SARIA operates in a wide range of sectors associated with the food chain, renewable energy, and recycling. |
Nortech is involved in the production and sale of animal fats for use in the fast food and baking industry primarily in the UK, and the packing of vegetable fats for sale to the same outlets and for sale to the major retailers. |
The company has established a range of strategies as follows: |
As the UK's largest producer, refiner and packer of edible animal and poultry fats, Nortech is well placed to provide 'added-value' markets for co-products generated from the primary meat production sector in the UK. |
Nortech has a long-term strategy to reduce its exposure to the market for animal fat consumption by expanding its range of products to include white vegetable fats. In addition, the company has expanded its range of 'toll processing' for third parties to dilute the high fixed costs of operating a dedicated melting/refining/packing plant. |
The principal challenge faced by the company during the period related to ongoing market difficulties brought about by the global Coronavirus pandemic, the measures brought in by the UK government to deal with the public health impact and the knock-on effects to raw material and finished product markets. |
Following the re-introduction of national lockdown measures first introduced by the government in March 2020, the company experienced significant potentially adverse impacts which required the introduction of appropriate contingency measures. |
The company responded to the challenges by implementing a multi-layered contingency response, ensuring the health and safety of our staff and their families were addressed in the first instance whilst also ensuring the business operations remained "COVID-safe" in line with the advice issued by UK Government. |
The company also accessed funding from the Government's Job Retention Scheme to support the costs of staff furloughed due to a reduction in business operations. |
Key Performance Indicators (KPIs) |
As shown in the company's income statement on page 8, the company's performance has decreased to a loss of £462,055 from a profit of £494,857 in the previous period. At the year end the shareholder's funds were £1,457,527 (2020 - £1,919,582). |
SARIA manages its operations on a divisional basis. For this reason, the company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance, or position of the business. |
Risk |
With businesses active across a wide variety of sectors and operating large-scale processing operations always entails risks. Beside market developments, we are also affected by global events such as commodity market price changes driven by weather patterns; such events entail risks but also present us with new opportunities. |
The Group is faced with challenges when conducting analyses and making decisions. If we do not incorporate market developments or if we evaluate them incorrectly, they may pose serious business risks. The risks affecting Nortech Foods Limited are largely dealt with on a group basis, apart from the ones highlighted below: |
Nortech Foods Limited (Registered number: 01685437) |
Strategic Report |
for the Year Ended 31 December 2021 |
Business Unit/ Area | Risk | Mitigation Factor |
Food manufacturing - Nortech | Market moves away from animal fats. | Expand range of vegetable-based fats to benefit from increased consumption. |
Legislative changes to animal by-product categorisation |
High risk moves to low risk. | Operate category 3 rendering plants to benefit from switch from Category 1 (high risk). |
Low risk moves to edible co-product. | Operate edible co-product production/ trading businesses to benefit from switch from animal by-product to food status. |
Health & Safety | Health & safety incidents could result in harm to the company's employees, contractors or local communities. Ensuring safety and wellbeing is an ethical obligation for the company. Poor safety records or serious accidents could have a serious impact on the company's production and reputation. |
The company focuses on identifying, mitigating and managing the safety risks inherent across its operations. The company's objective is to create a safety culture through regular training and awareness campaigns for employees and contractors. The company operates a 'best practice' system of in-house training to develop an embedded health & safety culture. |
Environment and Employees |
The company operates in accordance with and contributes fully to group environmental policies and works within its IPPC permit with the Environment Agency. |
Employee numbers are outlined on page 16 of the accounts. |
The company participates in the group's policies and practices about Health and Safety at work, pension, and health care schemes. The good working relationships between Nortech, its employees and the Trade Unions continue. |
Future developments |
The directors anticipate that they will continue to develop the company's established activities and will closely monitor the effect of 'Brexit' on the business following the United Kingdom's withdrawal from the European Union. |
ON BEHALF OF THE BOARD: |
Nortech Foods Limited (Registered number: 01685437) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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; |
- | 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, Paylings, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Nortech Foods Limited |
Opinion |
We have audited the financial statements of Nortech Foods Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other 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 2021 and of its loss 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 |
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 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 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 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. |
Report of the Independent Auditors to the Members of |
Nortech Foods Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- reviewed the nature of the industry and sector, the control environment and business performance for the year. |
- identifying the laws and regulations the company operates within and enquiring with management if they are aware of any |
non compliance issues. |
- discussed how and where fraud may occur with all members of the audit engagement team. |
- in line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. |
We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any |
bias, and assessed the rationale behind any significant or unusual transactions. |
- reviewed directors' minutes to assess if any indications of fraud or non compliance. |
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. |
Report of the Independent Auditors to the Members of |
Nortech Foods Limited |
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. |
for and on behalf of |
Accountants |
Statutory Auditors |
No.2 Silkwood Office Park |
Fryers Way |
Wakefield |
West Yorkshire |
WF5 9TJ |
Nortech Foods Limited (Registered number: 01685437) |
Income Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Changes in stocks of finished goods and work in progress |
(260,909 |
) |
126,503 |
17,504,923 | 19,838,729 |
Other operating income |
17,565,494 | 19,990,110 |
Raw materials and consumables |
Other external expenses |
13,799,431 | 14,206,332 |
3,766,063 | 5,783,778 |
Staff costs | 4 |
Depreciation |
Other operating expenses |
4,399,897 | 5,183,326 |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income | 6 |
(631,830 | ) | 607,638 |
Interest payable and similar expenses | 7 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 8 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
Nortech Foods Limited (Registered number: 01685437) |
Other Comprehensive Income |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Nortech Foods Limited (Registered number: 01685437) |
Balance Sheet |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Nortech Foods Limited (Registered number: 01685437) |
Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 |
Nortech Foods Limited (Registered number: 01685437) |
Cash Flow Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 3,909 |
Cash and cash equivalents at end of year | 2 | 30,001 | 24,597 |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2021 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 4,631 | - |
Finance income | (2,004 | ) | (7,186 | ) |
(503,048 | ) | 745,040 |
Decrease/(increase) in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 30,001 | 24,597 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 24,597 | 3,909 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 24,597 | 5,404 | 30,001 |
24,597 | 30,001 |
Total | 24,597 | 5,404 | 30,001 |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
Nortech Foods Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers. |
Turnover is recognised on the performance of services, as and when those services are carried out. |
Other income arises from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies. |
Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Plant & machinery - 10% on cost, or 50% on cost (Dolavs) |
Office machinery - 20% on cost |
Computer hardware & software - 33.3% on cost |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company contributes to the SARIA Group Pension Schemes, funded defined benefit schemes. |
The above defined benefit schemes have been closed to new members. Alternative provision is made for new employees in the form of a defined contribution scheme. |
The pension charge represents contributions payable to the funds in respect of the accounting period. |
3. | TURNOVER |
The turnover and loss (2020 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2021 | 2020 |
£ | £ |
United Kingdom |
Europe |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2021 | 2020 |
Office & management | 4 | 5 |
Collection & processing | 40 | 47 |
2021 | 2020 |
£ | £ |
Directors' remuneration |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2020 - operating profit) is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
Operating leases |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2021 | 2020 |
£ | £ |
Intercompany interest |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Intercompany interest |
Other interest |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Deferred tax | ( |
) |
Under(over) provision | - | (3,344 | ) |
Total deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Change in rate from previous year | (49,737 | ) | (3,344 | ) |
Superdeduction | (4,634 | ) | - |
Total tax (credit)/charge | (174,406 | ) | 112,781 |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 |
AMORTISATION |
At 1 January 2021 |
and 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
10. | TANGIBLE FIXED ASSETS |
Fixtures | Assets |
Plant & | and | under |
machinery | fittings | construction | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2021 |
Additions |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
Transfers of assets between group companies have been done using gross cost and gross depreciation, rather than using net book value as the cost to the acquirer. This has been done in order to preserve historical information in relation to the properties of the group, in particular previous revaluations. This is considered to be the most appropriate method both from an accounting and tax perspective. |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
11. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials & consumables |
Raw materials |
Goods for resale |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Retention account | 56,743 | - |
VAT |
Deferred tax asset |
Prepayments |
Deferred tax asset |
2021 | 2020 |
£ | £ |
Accelerated capital allowances | 13,035 | 26,060 |
Other timing differences | 4,414 | 3,355 |
Tax losses | 186,372 | - |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Other creditors |
Accrued expenses |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | DEFERRED TAX |
£ |
Balance at 1 January 2021 | ( |
) |
Provided during year | ( |
) |
Change of rate | (49,737 | ) |
Balance at 31 December 2021 | ( |
) |
Deferred Tax has been provided for at 19% on balances expected to unwind in the next 12 months and at 25% on balances expected to unwind thereafter. The current rate of corporation tax is 19%, however it is legislated to increase to 25% from 1st April 2023. |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | 1 | 10,000 | 10,000 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2021 |
Deficit for the year | ( |
) |
At 31 December 2021 |
18. | EMPLOYEE BENEFIT OBLIGATIONS |
The company pays contributions to two defined benefit arrangements operated by the SARIA Limited group. The payments are made to independent trusts. |
The company is unable to identify its share of the underlying assets and liabilities of the schemes and therefore company pension contributions to the schemes are accounted for as if they were of a defined contribution type. |
The schemes are valued triennially by a qualified independent actuary. The most recent actuarial valuation was to 5 April 2019. |
At the balance sheet date the FRS 102 value of the liabilities was £118,227,000 (2020 - £124,821,000) and the market value of the assets was £151,594,000 (2020 - £156,020,000) giving a net asset of £33,367,000 (2020 - £31,199,000 ). |
The above schemes have been closed to new members. The group has made alternate provision, in the form of a defined contribution scheme, for new employees or those not eligible to join the other schemes. This scheme is also administered on a group basis independently of any group company or director. |
Total contributions payable by the company to the schemes during the year amounted to £159,115 (2020 - £197,630). There were no accrued or prepaid pension contributions at the balance sheet date (2020 - £nil). |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
19. | ULTIMATE PARENT COMPANY |
The company is a wholly owned subsidiary of SARIA Limited, which is registered in England and Wales. |
SARIA Limited is a subsidiary of SARIA International GmbH which is owned by Rethmann SE & Co. KG These two companies are incorporated in Germany. |
20. | CAPITAL COMMITMENTS |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
21. | RELATED PARTY DISCLOSURES |
APC (GB) Ltd |
A company in which Saria Limited has a shareholding. |
Sales of packaging and recharge of costs associated with the group, £nil (2020 - £38,151). |
2021 | 2020 |
£ | £ |
Amount due from related party at the balance sheet date | - | 1,053 |
SPF (United Kingdom) Limited |
A company in which Saria Limited has a shareholding. |
Sales of products and services amounting to £nil (2020 - £325). |
2021 | 2020 |
£ | £ |
Amount due from related party at the balance sheet date | - | 75 |
Remondis Doncaster Ltd |
Fellow member company of the Rethmann Group |
Purchases of goods and services £6,516 (2020: £7,307). |
2021 | 2020 |
£ | £ |
Amount due to related party at the balance sheet date | 1,283 | 722 |
Nortech Foods Limited (Registered number: 01685437) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
22. | ULTIMATE CONTROLLING PARTY |
The controlling party is SARIA Limited. |
The ultimate controlling party is |
The ultimate controlling entity owned by the Rethmann family is Rethmann SE & Co. KG |