Cumberland Meat Packers Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01341075 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

CUMBERLAND MEAT PACKERS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

H R J Leman

A P Shelswell

R J W Leman

SECRETARY:

Mrs G M Leman

REGISTERED OFFICE:

Units 1-5 Barlow Road

Aldermans Green

Coventry

CV2 2LD

REGISTERED NUMBER:

01341075 (England and Wales)

AUDITORS:

Flint & Thompson

Statutory Auditors

2-6 Manor Square

Solihull

West Midlands

B91 3PX

The directors present their strategic report for the year ended 30 September 2021.

REVIEW OF BUSINESS

The directors are pleased to report another satisfactory year despite the continued impact of Covid-19. The company has continued to build on the achievements from previous years and has maintained it's profitable position. The turnover has increased from last year and the company has a stable gross profit and margin.

The directors acknowledge that trading conditions remain challenging but remain optimistic about the prospects for the forthcoming year. Generally the results are considered to be very encouraging and reflect the effort of the directors and staff during the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors believe that the principal risks and uncertainties facing the company remain similar to those in the previous period:

- Price volatility of beef supplies

- Exposure to new legislation and regulatory requirements

- Recruitment and retention of a skilled workforce

- Uncertainties arising from the UK's departure from the EU and its impact on the economy

- The impact on the economy of the global pandemic Covid-19

- These risks are mitigated by ensuring training is offered to staff, a competitive employment package and good relationships are maintained with key suppliers and customers.

KEY PERFORMANCE INDICATORS

The board regularly monitor the management information available to them and use a number of key performance indicators to enable them to do this. These include:

- Sales within a period

- Gross margin

- Wages costs

- Working capital movements

This year has seen:

- An increase in turnover of 16.5% on the previous year

- A reduction in gross profit of £104k to £2.85m and a reduction in gross margin achieved from 11.7% to 9.7%

- An increase in administrative costs by £224k

- A decrease of £328k in profit before tax

- An overall increase in net assets of £655k and a £908k increase in net current assets

ON BEHALF OF THE BOARD:

H R J Leman - Director

20 April 2022

The directors present their report with the financial statements of the company for the year ended 30 September 2021.

DIVIDENDS

An interim dividend of £2.76 per share was paid on 30 September 2021. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2021 will be £ 276,000 .

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 October 2020 to the date of this report.

H R J Leman

A P Shelswell

R J W Leman

CHARITABLE DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £875 (2020: £7,370)

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, Flint & Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

H R J Leman - Director

20 April 2022

Opinion

We have audited the financial statements of Cumberland Meat Packers Limited (the 'company') for the year ended 30 September 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 30 September 2021 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

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.

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 three, 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:

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:

- discussion with directors and management of the nature of the industry, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we have identified having reviewed the company's procedures for complying with laws and regulations and whether they were aware of any instances of non-compliance. The key laws we considered in this context included the Companies Act 2006, taxation legislation, data protection and health and safety legislation.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

- reviewing balance sheet control accounts to ensure properly reconciled;

- addressing the risks of fraud through management override of controls by performing journal entry testing;

- performing analytical procedures to identify any unusual or unexpected relationships that may include risks of material misstatement due to fraud;

- enquiring with management concerning actual and potential litigation claims

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Peter Georgiades BA FCA (Senior Statutory Auditor)

for and on behalf of Flint & Thompson

Statutory Auditors

2-6 Manor Square

Solihull

West Midlands

B91 3PX

20 April 2022

TURNOVER

29,507,426

25,329,183

Cost of sales

26,652,747

22,370,407

GROSS PROFIT

2,854,679

2,958,776

Administrative expenses

1,648,726

1,424,724

1,205,953

1,534,052

Other operating income

2,500

2,500

OPERATING PROFIT

4

1,208,453

1,536,552

Interest payable and similar expenses

5

9,509

9,880

PROFIT BEFORE TAXATION

1,198,944

1,526,672

Tax on profit

6

268,077

180,268

PROFIT FOR THE FINANCIAL YEAR

930,867

1,346,404

PROFIT FOR THE YEAR

930,867

1,346,404

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

930,867

1,346,404

FIXED ASSETS

Tangible assets

8

1,867,785

2,172,104

Investments

9

100

100

1,867,885

2,172,204

CURRENT ASSETS

Stocks

10

602,967

668,201

Debtors

11

5,021,378

3,910,573

Cash at bank and in hand

889,935

546,252

6,514,280

5,125,026

CREDITORS

Amounts falling due within one year

12

2,799,988

2,318,775

NET CURRENT ASSETS

3,714,292

2,806,251

TOTAL ASSETS LESS CURRENT LIABILITIES

5,582,177

4,978,455

CREDITORS

Amounts falling due after more than one year

13

(217,684

)

(268,829

)

PROVISIONS FOR LIABILITIES

17

(118,000

)

(118,000

)

NET ASSETS

5,246,493

4,591,626

CAPITAL AND RESERVES

Called up share capital

18

100,000

100,000

Retained earnings

19

5,146,493

4,491,626

SHAREHOLDERS' FUNDS

5,246,493

4,591,626

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2022 and were signed on its behalf by:

H R J Leman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2019

100,000

3,745,222

3,845,222

Changes in equity

Dividends

-

(600,000

)

(600,000

)

Total comprehensive income

-

1,346,404

1,346,404

Balance at 30 September 2020

100,000

4,491,626

4,591,626

Changes in equity

Dividends

-

(276,000

)

(276,000

)

Total comprehensive income

-

930,867

930,867

Balance at 30 September 2021

100,000

5,146,493

5,246,493

1.	STATUTORY INFORMATION

Cumberland Meat Packers 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.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Cumberland Meat Packers Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Barlow Properties Limited, Units 1-5 Barlow Road, Aldermans Green Industrial Estate, Coventry, CV2 2LD

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.

Significant judgements and estimates

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

It is the opinion of the directors that there are no material estimates or judgements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sales of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Long leasehold

-

Straight line over 20 years

Plant and machinery

-

10% per annum of cost

Fixtures and fittings

-

10% per annum of cost

Motor vehicles

-

20% per annum of cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

2,277,636

1,986,537

Social security costs

208,584

184,190

Other pension costs

66,250

61,858

2,552,470

2,232,585

The average number of employees during the year was as follows:

2021

2020

Indirect

8

8

Production

75

64

Directors

3

3

86

75

2021

2020

£

£

Directors' remuneration

197,924

192,869

Directors' pension contributions to money purchase schemes

10,000

10,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

£

£

Depreciation - owned assets

243,002

197,046

Depreciation - assets on hire purchase contracts

3,660

3,660

Loss on disposal of fixed assets

8,444

-

Auditors' remuneration

7,150

7,150

Foreign exchange differences

(5,912

)

16,180

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Bank loan interest

7,059

9,707

Hire purchase

2,450

173

9,509

9,880

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

264,330

262,268

Under/(over) provision in prior years

3,747

-

Total current tax

268,077

262,268

Deferred tax

-

(82,000

)

Tax on profit

268,077

180,268

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

1,198,944

1,526,672

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

227,799

290,068

Effects of:

Expenses not deductible for tax purposes

141

1,945

Income not taxable for tax purposes

(475

)

(475

)

Capital allowances in excess of depreciation

-

(29,270

)

Depreciation in excess of capital allowances

36,865

-

Adjustments to tax charge in respect of previous periods

3,747

-

Deferred tax

-

(82,000

)

Total tax charge

268,077

180,268

7.

DIVIDENDS

2021

2020

£

£

Ordinary shares of £1 each

Interim

276,000

600,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 October 2020

1,340,204

2,546,887

166,081

534,073

4,587,245

Additions

-

58,691

-

63,500

122,191

Disposals

-

(3,301

)

(2,000

)

(155,948

)

(161,249

)

Impairments

-

(541,799

)

-

-

(541,799

)

Reclassification/transfer

(21,788

)

61,775

(31,143

)

-

8,844

At 30 September 2021

1,318,416

2,122,253

132,938

441,625

4,015,232

DEPRECIATION

At 1 October 2020

237,522

1,673,294

119,652

384,673

2,415,141

Charge for year

65,890

120,570

2,098

58,104

246,662

Eliminated on disposal

-

(237

)

(66

)

(152,502

)

(152,805

)

Impairments

-

(361,622

)

-

-

(361,622

)

Reclassification/transfer

(765

)

2,652

(1,816

)

-

71

At 30 September 2021

302,647

1,434,657

119,868

290,275

2,147,447

NET BOOK VALUE

At 30 September 2021

1,015,769

687,596

13,070

151,350

1,867,785

At 30 September 2020

1,102,682

873,593

46,429

149,400

2,172,104

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 October 2020

and 30 September 2021

36,600

DEPRECIATION

At 1 October 2020

5,795

Charge for year

3,660

At 30 September 2021

9,455

NET BOOK VALUE

At 30 September 2021

27,145

At 30 September 2020

30,805

9.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 October 2020

and 30 September 2021

100

NET BOOK VALUE

At 30 September 2021

100

At 30 September 2020

100

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Steak Direct Limited

Registered office: Units 1-5 Barlow Road, Aldermans Green Industrial Estate, Coventry, CV2 2LD

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

2021

2020

£

£

Aggregate capital and reserves

100

100

10.

STOCKS

2021

2020

£

£

Stocks

602,967

668,201