Company No: 02775011 (England and Wales)

Contents

• Company Information
• Statement of Financial Position
• Notes to the Financial Statements

DIRECTOR

Mrs M J Symonds

REGISTERED OFFICE	Chy Nyverow
	Newham Road
	Truro
	Cornwall
	TR1 2DP
	United Kingdom

COMPANY NUMBER

02775011 (England and Wales)

CHARTERED ACCOUNTANTS	Bishop Fleming LLP
	Chy Nyverow
	Newham Road
	Truro
	TR1 2DP

	Note	2021		2020
		£		£
Fixed assets
Tangible assets	3	163,419		171,824
		163,419		171,824
Current assets
Stocks	4	117,717		89,969
Debtors	5	167,039		100,161
Cash at bank and in hand		71,888		89,220
		356,644		279,350
Creditors
Amounts falling due within one year	6	( 346,213)		( 299,170)
Net current assets/(liabilities)		10,431		(19,820)
Total assets less current liabilities		173,850		152,004
Creditors
Amounts falling due after more than one year	7	( 45,706)		( 66,603)
Provision for liabilities		( 18,338)		( 15,550)
Net assets		109,806		69,851
Capital and reserves
Called-up share capital	8	1,000		1,000
Profit and loss account		108,806		68,851
Total shareholder's funds		109,806		69,851

For the financial year ending 31 December 2021 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 Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Portreath Bakery Limited (registered number: 02775011) were approved and authorised for issue by the Director on 30 September 2022. 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, unless otherwise stated.

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 director has assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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:

Land and buildings	not depreciated
Leasehold improvements	10 years straight line
Plant and machinery	15 % reducing balance
Computer equipment	4 years straight line

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.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, 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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	44		38

3. Tangible assets

	Land and buildings		Leasehold improve- ments		Plant and machinery		Computer equipment		Total
	£		£		£		£		£
Cost
At 01 January 2021	54,931		5,128		302,314		10,374		372,747
Additions	0		0		16,119		2,913		19,032
Disposals	0		0		( 5,500)		0		( 5,500)
At 31 December 2021	54,931		5,128		312,933		13,287		386,279
Accumulated depreciation
At 01 January 2021	0		5,128		189,120		6,675		200,923
Charge for the financial year	0		0		21,425		1,684		23,109
Disposals	0		0		( 1,172)		0		( 1,172)
At 31 December 2021	0		5,128		209,373		8,359		222,860
Net book value
At 31 December 2021	54,931		0		103,560		4,928		163,419
At 31 December 2020	54,931		0		113,194		3,699		171,824

4. Stocks

	2021		2020
	£		£
Stocks	117,717		89,969

5. Debtors

	2021		2020
	£		£
Trade debtors	87,381		26,957
Other debtors	79,658		73,204
	167,039		100,161

6. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans	8,178		7,980
Trade creditors	93,619		48,056
Amounts owed to associates	215,410		181,109
Other creditors	11,708		13,358
Corporation tax	6		13,062
Other taxation and social security	4,754		24,079
Obligations under finance leases and hire purchase contracts	12,538		11,526
	346,213		299,170

The bank loans above of £8,178 (2020 - £7,980) are secured over the company's assets. The obligations under finance lease and hire purchase contracts of £12,538 (2020 - £11,526) are secured on the assets to which they relate.

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

	2021		2020
	£		£
Bank loans	29,718		38,078
Obligations under finance leases and hire purchase contracts	15,988		28,525
	45,706		66,603

The bank loans above of £29,718 (2020 - £38,078) are secured over the company's assets. Included in this is an amount of £nil (2020 - £6,158) due by instalments after more than five years from the reporting date. The obligations under finance lease and hire purchase contracts of £15,988 (2020 - £28,525) are secured on the assets to which they relate.

8. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
1,000 Ordinary shares of £ 1.00 each	1,000		1,000

9. Related party transactions

At the year end, the company owed £215,410 (2020 - £181,109) 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 (2020 - £40,191) 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.

10. 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.