Crop's Foods Limited - Limited company accounts 22.3
Crop's Foods Limited - Limited company accounts 22.3
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
FOR |
CROP'S FOODS LIMITED |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
CROP'S FOODS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
BANKERS: |
10 Harewood Avenue |
London |
NW1 6AA |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
The directors present their strategic report for the year ended 30 June 2022. |
REVIEW OF BUSINESS |
The reduction in turnover for the year was in part due to some re-organisation within the Group. The overall position was positive with realisation of previous work to expand the product and category area within the existing customer portfolios. |
Product development will continue to be a key focus, as the company innovates within the sectors. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Crop's Foods Limited ('the company') uses various financial instruments including bank guarantees, cash and other items, such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks. |
The main risks arising from the company's financial instruments are market risk, currency risk, credit risk and liquidity risk. The directors review and agree policies, which remain unchanged from previous years, for managing each of these risks, summarised below. |
Market risk |
Market risk encompasses both currency risk and price risk. The company's policies for managing currency risk are considered along with those for managing cash flow. |
Currency risk |
The company is exposed to transaction foreign exchange risk. Transaction exposures, including those associated with forecast transactions, are monitored with daily market expectations and forecasts and are hedged when known, principally using forward currency contracts or options. |
Credit risk |
The company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors. |
In order to manage credit risk, the directors set credit limits for customers, based on a combination of payment history and third party credit references. These limits are reviewed by the Financial Director on a regular basis in conjunction with debt aging, collection history and market awareness of the company's customers. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
FINANCIAL KEY PERFORMANCE INDICATORS |
Financial |
The company reports on a number of key performance indicators and ratios on a monthly basis and measures its financial performance using the following main measures: |
i) Turnover is an important measure of the company's success in winning new business and retaining existing customers. The turnover between 2021 and 2022 decreased due to re-organisation. |
ii) Cash collection is an important part of effective capital and treasury measurement. At the financial year end debtor days were in line with target at 55 days (2021: 42 days). |
iii) Operating profit of £1,810,590 (2021: £1,561,793) which includes £60,000 of accrued bad debt. |
Non-financial |
The company measures its non-financial performance in several areas, as follows: |
i) The securing of new business is a critical area if the company is to continue to grow. The number of new customers won during the year is therefore closely monitored against targets set by the directors. During the financial year the market place presented many challenges to possible growth, however progress was made in this area and was therefore considered satisfactory by the directors. |
ii) The level of business loss is also measured. Business loss is categorised into two areas - those under our control and those outside of our control (customers going into receivership, closing site, etc). The level of business loss in both areas was as expected. |
iii) Quality control is a further critical area of the business. A key measurement is the number of customer complaints per packs of produce. The level of customer complaints continued to fall in line with the expectation of directors. |
FUTURE DEVELOPMENTS |
Product development will continue to be a key focus across all sectors |
POSITION OF THE COMPANY AT THE YEAR END |
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future. |
ON BEHALF OF THE BOARD: |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
The directors present their report with the financial statements of the company for the year ended 30 June 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the provision of frozen fruit, vegetables and ready meals to the Retail and Manufacturing industry. |
DIVIDENDS |
During the year a dividend of £748,000 (2021: £780,000) was paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2021 to the date of this report. |
CHARITABLE DONATIONS |
The company made charitable contributions of £21,657 in the year (2021: £14,550). |
DISABLED EMPLOYEES |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate. |
STREAMLINED ENERGY AND CARBON REPORTING |
Environmental Matters and Streamlined Energy and Carbon Reporting (SECR) |
The group takes environmental matters seriously and continues to improve its impact on the local and wider environment. |
From 1 August 2019 we are required to report under the new SECVR regulations which provides increased transparency on our energy efficiency and emissions as a business. |
Reporting methodology |
The information has been provided using the GHG Protocol Corporate Accounting and Reporting Standard and the 2019 UK Government Environmental Reporting Guidelines. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
Intensity Ratio |
The intensity ratio chosen was tC02e per full time employee. This was chosen as it was deemed to be the best metric which could be constantly used over time and would best reflect changes in our energy consumption, but also reflect changes in our operations. |
Miles / Staff |
numbers | Kwh | tC02e | % of total |
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
Gas - total KWh Used for the year |
20,042 |
23,730 |
3.67 |
177.35 |
2 |
39 |
Electricity - total KWh Used for the year |
996,273 |
1,378,271 |
211.54 |
248.49 |
88 |
55 |
Transport - Mileage for the year |
25,585 |
23,245 |
25.59 |
23.25 |
6 |
5 |
Number of staff / total C02 |
41 |
41 |
5.87 |
Tonnes of C02e per Employee |
Energy Efficiency and Environmental Actions |
The group has started to move its motor fleet away from diesel/petrol cars to hybrid models to help cut emissions. The business has been looking at ways to reduce plastic usage with our customers and suppliers during the year and we have made significant progress to date in reducing usage. This is an ongoing project. |
The business has also acquired food recycling (compost) bins so we can dispose of certain produce used in our daily food testing and quality control processes as well as utilising various recycling bins. |
DISCLOSURE IN THE STRATEGIC REPORT |
Details of items required under Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Report Regulations) 2008 are provided in the Strategic Report on pages 2 to 4. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CROP'S FOODS LIMITED |
Opinion |
We have audited the financial statements of Crop's Foods Limited (the 'company') for the year ended 30 June 2022 which comprise the Statement of 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 June 2022 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CROP'S 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 pages five and six, 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 identified the laws and regulations applicable to the company through discussions with directors and from our knowledge and experience of the frozen food sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation; |
Additionally, we assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding how fraud might occur by: |
- making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
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 |
CROP'S 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 |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,169,593 | 3,043,148 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,873,620 | 1,561,793 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
BALANCE SHEET |
30 JUNE 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
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 |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
1. | STATUTORY INFORMATION |
Crop's Foods Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of Crop's & Partners UK Limited as at 30 June 2021and these financial statements may be obtained from 254 Capability Green Beds, Luton, United Kingdom, United Kingdom, LU1 3LU. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The only items in the financial statements where these judgements and estimates have been made is in the depreciation rate of tangible fixed assets a bad debt provision in connection with trade debtors and a dilapidations provision in connection with operating leases.. |
Turnover and revenue recognition |
Turnover represents amounts receivable for the sale of frozen foods, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised as and when the company satisfies a performance obligation and the significant risks and rewards of ownership have been transferred to the customer, which may be upon shipment, acceptance of the goods by the customer, or the product being ready for delivery, based on specific contract terms. |
Tangible fixed assets |
Office equipment and furniture | - |
Computer equipment | - |
Stocks |
Stock is stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each reporting date, stock is assessed for obsolescence. If stock is impaired or slow moving, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in profit or loss. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
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. |
Financial instruments |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are losses relating to financial liabilities are included in the Statement of Comprehensive Income. Financepresented as such in the Statement of Financial Position. Finance costs and gains or costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited directly to equity. |
Financial instruments that are derivatives are valued at each period end, and the movement in value is taken to the Statement of Comprehensive Income. |
Foreign currency translation |
The company's functional and presentational currency is GBP. |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and when fair value was determined. non-monetary items measured at fair value are measured using the exchange rate |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
2. | ACCOUNTING POLICIES - continued |
Operating leases |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit and loss on a straight-line basis over the period of the lease. |
Defined contribution pension plan |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The funds.assets of the plan are held separately from the company in independently administered |
Invoice discounting |
Trade Debtors are subject to an invoice discounting facility whereby an advance is received based upon, and secured upon, trade debtors. The company has retained significant risks and rewards relating to the discounted debts and separate presentation has been adopted whereby the gross debt and a corresponding liability in respect of the advance received is shown separately on the Balance Sheet. The interest element of the invoice discounter's charge is recognised as it accrues and is included in the Profit and Loss Account. |
Going concern |
In preparing the financial statements the directors are required to assess the company's ability to continue to trade as a going concern for the foreseeable future. |
In undertaking this assessment, the directors have given due consideration to the company's banking facilities, historical and current trading, together with the forward-looking projections. The company has prepared detailed cashflow forecasts and undertaken scenario modelling given the current COVID-19 pandemic. |
The company has significant financial resources and is in a strong position to deal with the possible economic impact of COVID-19. The situation is evolving and it is not possible at this stage to determine with full certainty the impact on the company, its customers, employees and suppliers until the crisis ends. If there is a reduction in revenue due to an exceptional extended closure of certain customers, there are a range of steps the company can take to mitigate the impact. |
The directors have reviewed the cash flow forecasts and based on their best assessment therefore believe that the company will have sufficient financing in place to ensure cash flow requirements are satisfied and that there are no material uncertainties. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
2. | ACCOUNTING POLICIES - continued |
Borrowing costs |
All borrowing costs are recognised in the Statement of Comprehensive income in the year in which they are incurred. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Finance costs |
Finance costs are charged to the Statement of Comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised when approved by the shareholders at an annual general meeting. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Debtors |
Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure to settle the obligation, taking into account relevant risk and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the statement of Financial Position. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom |
Rest of the world | 1,391,984 | 2,573,378 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Directors | 2 | 2 |
Administration | 27 | 32 |
Sales | 11 | 5 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2021. |
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: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Total tax charge | 378,002 | 276,696 |
8. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
9. | TANGIBLE FIXED ASSETS |
Office |
equipment |
and | Computer |
furniture | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2021 |
Additions |
At 30 June 2022 |
DEPRECIATION |
At 1 July 2021 |
Charge for year |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 30 June 2021 |
10. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments |
Trade debtors at 30 June 2022 include £13,810,549 (2021: £9,400,361) pledged as security against amounts advanced in respect of the 'with recourse' Invoice Discounting Agreement. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Accruals and deferred income |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
The bank overdraft is secured by fixed and floating charges over the assets of the company. |
14. | LEASING AGREEMENTS |
At the 30 June 2022 the company had future minimum lease payments under non-cancellable operating leases as follows: |
2022 | 2021 |
£ | £ |
Land and buildings |
Within 1 year | 78,526 | 78,526 |
Between 2 and 5 years | 78,526 | 235,578 |
157,052 | 314,104 |
2022 | 2021 |
£ | £ |
Other |
Within 1 year | 29,203 | 21,299 |
Between 2 and 5 years | 31,716 | 24,086 |
60,919 | 45,385 |
15. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Other provisions | 75,000 | - |
Other provisions represent a provision in connection with that estimated dilapidation costs of operating leases that may become due at the end of the lease term. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 50,000 | 50,000 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2021 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2022 |
18. | OTHER FINANCIAL COMMITMENTS |
At 30 June 2022 the company has a commitment to purchase foreign currency amounting to £21,450,895 (2021: £25,601,838) |
19. | RELATED PARTY DISCLOSURES |
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. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
19. | RELATED PARTY DISCLOSURES - continued |
During the year the company purchased goods to the value of £12,836,742 from Crop's Vegetables NV (Crop's VEG), and sold goods to the value of £590,442, a company in which Crop's NV has a 100% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £1,514,257 to Crop's VEG and Crop's VEG owed the company £44,964. |
During the year the company purchased goods to the value of £5,982,876 from Crop's Fruits NV (Crop's Fruits), and sold goods to the value of £899, a company in which Crop's NV has a 100% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £534,376 to Crop's Fruits. |
During the year the company purchased goods to the value of £15,745,182 from Crop's Ready Meals NV (Crop's RM), and sold goods to the value of £38,204, a company in which Crop's NV has a 100% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £2,174,189 to Crop's RM and Crop's RM owed the company £14,019.. |
During the year the company purchased goods to the value of £58,022 from Crop's NV on normal commercial terms. At the year end, in respect of trading balances, the company owed £5,426 to Crop's NV and Crop's Cold NV owed the company £Nil. |
During the year the company purchased goods to the value of £13,074 from Crop's Coldstore, and sold goods to the value of £1,450, a company in which Crop's NV has a 100% interest, on normal commercial terms. |
During the year the company purchased goods to the value of £2,096,137 (2021:£2,915,268) from Monliz Portugal SA, and sold goods to the value of £Nil (2021: £25,212), a company in which Crop's VEG has a 50% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £115,000 (2021: £179,304) to Monliz Portugal SA and Monliz Portugal SA owed the company £Nil (2021: £40). |
During the year the company purchased goods to the value of £Nil (2021: £75,259) from Monliz Spain SA, a company in which Monliz Portugal SA has a 100% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £Nil (2021: £25,086) to Monliz Spain SA. |
As at 30 June 2022, Crop's VEG had a 50% interest in SA Hesbayefrost NV from which the company purchased goods to the value of £9,155,485 (2021: £10,756,529) and sold goods to the value of £881,114. (2021:£212,562) under normal commercial terms. At the year end the company owed £2,046,123 (2021: £1,882,004) to SA Hesbayefrost NV and SA Hesbayefrost NV owed the company £411,618 (2021: £609). |
During the year the company purchased goods to the value of £14,608 (2021: £3,931) from Agram, a company in which Crops NV has a 100% interest, on normal commercial terms. At the year end, in respect of trading balances, the company owed £11,388 to Agram.. |
Key management personnel includes all persons, who are not directors, who have authority and responsibility for planning,directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £328,000. |
CROP'S FOODS LIMITED (REGISTERED NUMBER: 02368785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
20. | CONTROLLING PARTY |
The immediate parent company is Crop's & Partners UK Limited, a company incorporated in the United Kingdom. |
The ultimate parent company is Crop's NV, a company incorporated in Belgium. The ultimate parent undertaking is Crop's NV, a company that is beneficially owned by M Delbaere. |
The smallest group of undertakings for which group accounts are drawn up is the Crop's & Partners UK Limited group in the United Kingdom. The largest group of undertakings for which group accounts are drawn up is the Crop's NV group in Belgium. |
The immediate parent's registered office is 254 Capability Green, Luton, Bedfordshire, LU1 3LU, UK. Copies of group accounts for the smallest group can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |