Northgate Foods Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 02642455 (England and Wales)

Financial Statements

for the Year Ended 30 September 2022

for

Northgate Foods Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

M A Graham

J P Graham

M Theobald

K J Burn

SECRETARY:

M A Graham

REGISTERED OFFICE:

St Georges House

Anderson Centre

Olding Road

Bury St Edmunds

Suffolk

IP33 3TA

REGISTERED NUMBER:

02642455 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

FIXED ASSETS

Tangible assets

4

89,979

68,910

CURRENT ASSETS

Stocks

5

1,800,584

1,209,378

Debtors

6

2,093,839

1,695,184

Cash at bank and in hand

156,544

1,217,142

4,050,967

4,121,704

CREDITORS

Amounts falling due within one year

7

1,810,846

1,984,256

NET CURRENT ASSETS

2,240,121

2,137,448

TOTAL ASSETS LESS CURRENT LIABILITIES

2,330,100

2,206,358

CAPITAL AND RESERVES

Called up share capital

10

44,744

44,744

Share premium

47,196

47,196

Retained earnings

2,238,160

2,114,418

SHAREHOLDERS' FUNDS

2,330,100

2,206,358

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2023 and were signed on its behalf by:

M A Graham - Director

J P Graham - Director

M Theobald - Director

1.	STATUTORY INFORMATION

Northgate Foods 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company'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.

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

Turnover

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to leasehold property

-

the remaining term of the lease

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

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.

Pension costs and other post-retirement benefits

The company operates defined contribution pension schemes for the directors and some of its employees. Contributions payable for the year are charged in the profit and loss account.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans from banks or other related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account as incurred.

Share-based payments

The Company issues equity-settled share options to certain employees. Equity settled share-based payment transactions are measured at fair value at the date of grant. The fair value determined at the date of grant is expensed on a straight line basis over the vesting period, based on the Company's estimate of how many shares will eventually vest.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2021 - 18 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 October 2021

8,673

174,704

183,377

Additions

-

73,784

73,784

Disposals

-

(86,247

)

(86,247

)

At 30 September 2022

8,673

162,241

170,914

DEPRECIATION

At 1 October 2021

8,673

105,794

114,467

Charge for year

-

17,152

17,152

Eliminated on disposal

-

(50,684

)

(50,684

)

At 30 September 2022

8,673

72,262

80,935

NET BOOK VALUE

At 30 September 2022

-

89,979

89,979

At 30 September 2021

-

68,910

68,910

5.

STOCKS

2022

2021

£

£

Goods for resale

1,800,584

1,209,378

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

2,057,716

1,666,802

Other debtors

36,123

28,382

2,093,839

1,695,184

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

-

462,963

Trade creditors

1,394,820

1,192,527

Taxation and social security

121,428

145,269

Other creditors

294,598

183,497

1,810,846

1,984,256

Other creditors includes directors loans.

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

45,810

34,964

Between one and five years

13,488

8,216

59,298

43,180

9.	SECURED DEBTS

The bank holds a debenture from the company which incorporates a fixed and floating charge over all current and future assets of the company.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

Value:

£

£

44,440

Ordinary 'A'

£1

44,440

44,440

100

Ordinary 'C'

£1

100

100

100

Ordinary 'D'

£1

100

100

100

Ordinary 'E'

£1

100

100

4

Ordinary 'F'

£1

4

4

44,744

44,744

Only the 'A' and 'F' ordinary shares have full voting rights. The other classes of shares have no voting rights, but they do carry rights on winding up and to dividends when specifically voted to an individual class of shares.

Share Options

At 30 September 2022 there are 2,340 equity settled, 'A' Share options that were issued on 1 October 2020. These share options have a vesting period with service conditions and maximum term, expiring on 31 December 2023. These options have an exercise price of £23.40. In the year to 30 September 2022, none of these options were forfeited or exercised. These options were exercisable at 30 September 2022 as conditions of exercise have been met.

A formal valuation of the share options was conducted at grant date.

The total expense recognised in the income statement, in relation to the above, for the year ended 30 September 2022 was nil (2021: nil). The cumulative liability arising from the above at 30 September 2022 was nil (2021 : nil).

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

James Knights ACA BSc (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited