Kevin Berkins Quality Meats Limited - Limited company accounts 23.1
Kevin Berkins Quality Meats Limited - Limited company accounts 23.1
| REGISTERED NUMBER: 01317690 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| FOR |
| KEVIN BERKINS QUALITY MEATS LIMITED |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 18 |
| KEVIN BERKINS QUALITY MEATS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| and Statutory Auditors |
| Charter House |
| Stansfield Street |
| Nelson |
| Lancashire |
| BB9 9XY |
| BANKERS: | National Westminster Bank plc |
| 2 Leeds Road |
| NELSON |
| Lancashire |
| BB9 9SY |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| The directors present their strategic report of the company and the group for the year ended 31st August 2022. |
| REVIEW OF BUSINESS |
| The directors are pleased to report a return to more normal levels of trading following a period of lockdowns imposed as a consequence of the Covid 19 pandemic. |
| Turnover increased by 48% on the previous year, from £2.5m to £3.7m, this being despite a period of closure of The Eagle at Barrow due to staff shortages. |
| In addition to the increase in turnover, the gross profit margin has also increased very healthily from 60% in the prior year to in excess of 67% this year, due to healthier margins achieved in both the hospitality and retail lines of the business. |
| The profit before tax is lower than the pervious year due to higher than normal employment costs in the year, though these are expected to return to more normal levels in the following financial year. |
| The net asset position of the group has fallen 6.7% from £3,672,372 to £3,426,756 due to restricted trading due to staff shortages as mentioned above, higher than usual employment costs as mentioned above, and due to the restatement of deferred tax liabilities from 19% to 25% due to the increase in corporation tax from April 2023. |
| With all of the above non-recurring issues and charges in mind, the group fully expects to return to much healthier profits in the year to August 2023. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Other than the normal business risks the group faces on a day-to-day basis, the main risk is the continued availability of finance. However the group has significant assets in its freehold and investment property portfolio which gives the directors confidence of their ability to continue to secure finance. |
| FINANCIAL RISK MANAGEMENT |
| The group's operations expose it to a variety of financial risks that include the effects of credit, interest rate and liquidity risk. The directors actively manage these risks by monitoring levels of risk and related costs of mitigating these. |
| EMPLOYEES |
| The directors continue to develop employees using both external and in house resources. Programmes are developed around both business needs and personal development. The group continues to appraise all systems and staff wellbeing to actively promote a positive company culture. |
| ON BEHALF OF THE BOARD: |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| The directors present their report with the financial statements of the company and the group for the year ended 31st August 2022. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of restauranteurs, hotelier and a women's clothing shop. |
| DIVIDENDS |
| Interim dividends totalling £8750 per share were paid on the Ordinary D £1 shares during the year. No dividends were paid on any other classes of shares. |
| The total distribution of dividends for the year ended 31st August 2022 will be £ 17,500 . |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1st September 2021 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| AUDITORS |
| The auditors, Ainsworths Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KEVIN BERKINS QUALITY MEATS LIMITED |
| Opinion |
| We have audited the financial statements of Kevin Berkins Quality Meats Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st August 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31st August 2022 and of the group's loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
| KEVIN BERKINS QUALITY MEATS LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| KEVIN BERKINS QUALITY MEATS LIMITED |
| 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: |
| Based on our understanding of the Group and the nature of the sectors in which they operate, we have identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006 and tax legislation. |
| We have evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to inappropriate journal entries, manipulation of cash takings at prime entry, management bias in accounting estimates and judgements, inappropriate use of the going concern basis and inappropriate disclosure of related party transactions. Our audit procedures designed to address these risks included, but were not limited to: |
| - Enquiries with management, regarding any known or suspected instances of non-compliance with laws and regulations, and fraud; |
| - Agreement of the financial statement disclosures to the underlying supporting documentation; |
| - Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
| - Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to provisions and future performance; |
| - Auditing the risk of management override of controls, including through the testing journal entries and other adjustments for appropriateness; |
| - Cash taking completeness procedures; |
| - Obtaining an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls. |
| Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment by misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
| 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 |
| KEVIN BERKINS QUALITY MEATS 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 |
| Chartered Accountants |
| and Statutory Auditors |
| Charter House |
| Stansfield Street |
| Nelson |
| Lancashire |
| BB9 9XY |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 31.8.22 | 31.8.21 |
| Notes | £ | £ |
| TURNOVER | 3,724,832 | 2,513,384 |
| Cost of sales | 1,199,939 | 1,004,129 |
| GROSS PROFIT | 2,524,893 | 1,509,255 |
| Administrative expenses | 2,407,528 | 1,816,469 |
| 117,365 | (307,214 | ) |
| Other operating income | 59,122 | 551,283 |
| OPERATING PROFIT | 4 | 176,487 | 244,069 |
| Interest payable and similar expenses | 5 | 168,930 | 101,324 |
| PROFIT BEFORE TAXATION | 7,557 | 142,745 |
| Tax on profit | 6 | 84,340 | (74,276 | ) |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
| (Loss)/profit attributable to: |
| Owners of the parent | (76,783 | ) | 217,021 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 31.8.22 | 31.8.21 |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE YEAR | (76,783 | ) | 217,021 |
| OTHER COMPREHENSIVE INCOME |
| Deferred tax movement on revalued assets |
| Income tax relating to other comprehensive income |
(151,333 |
) |
12,490 |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(151,333 |
) |
12,490 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(228,116 |
) |
229,511 |
| Total comprehensive income attributable to: |
| Owners of the parent | (228,116 | ) | 229,511 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONSOLIDATED BALANCE SHEET |
| 31ST AUGUST 2022 |
| 31.8.22 | 31.8.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 | - | - |
| Tangible assets | 10 | 7,093,730 | 7,221,130 |
| Investments | 11 | - | - |
| Investment property | 12 | 513,272 | 513,272 |
| 7,607,002 | 7,734,402 |
| CURRENT ASSETS |
| Stocks | 13 | 195,540 | 128,479 |
| Debtors | 14 | 157,204 | 33,808 |
| Cash at bank and in hand | 1,176,730 | 1,179,060 |
| 1,529,474 | 1,341,347 |
| CREDITORS |
| Amounts falling due within one year | 15 | 1,630,008 | 1,183,417 |
| NET CURRENT (LIABILITIES)/ASSETS | (100,534 | ) | 157,930 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
7,506,468 |
7,892,332 |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
(3,514,126 |
) |
(3,882,433 |
) |
| PROVISIONS FOR LIABILITIES | 19 | (565,586 | ) | (337,527 | ) |
| NET ASSETS | 3,426,756 | 3,672,372 |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 12,001 | 12,001 |
| Revaluation reserve | 21 | 2,744,025 | 2,952,625 |
| Retained earnings | 21 | 670,730 | 707,746 |
| SHAREHOLDERS' FUNDS | 3,426,756 | 3,672,372 |
| The financial statements were approved by the Board of Directors and authorised for issue on 23rd May 2023 and were signed on its behalf by: |
| K Berkins - Director |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| COMPANY BALANCE SHEET |
| 31ST AUGUST 2022 |
| 31.8.22 | 31.8.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| Investment property | 12 |
| CURRENT ASSETS |
| Debtors | 14 |
| Cash in hand |
| CREDITORS |
| Amounts falling due within one year | 15 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | - | - |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1st September 2020 | 11,999 | 425,739 | 3,005,121 | 3,442,859 |
| Changes in equity |
| Issue of share capital | 2 | - | - | 2 |
| Total comprehensive income | - | 282,007 | (52,496 | ) | 229,511 |
| Balance at 31st August 2021 | 12,001 | 707,746 | 2,952,625 | 3,672,372 |
| Changes in equity |
| Dividends | - | (17,500 | ) | - | (17,500 | ) |
| Total comprehensive income | - | (19,516 | ) | (208,600 | ) | (228,116 | ) |
| Balance at 31st August 2022 | 12,001 | 670,730 | 2,744,025 | 3,426,756 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1st September 2020 |
| Changes in equity |
| Issue of share capital | - |
| Balance at 31st August 2021 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Balance at 31st August 2022 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 31.8.22 | 31.8.21 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 794,189 | (116,885 | ) |
| Interest paid | (168,930 | ) | (99,248 | ) |
| Interest element of hire purchase or finance lease rental payments paid |
- |
(2,076 |
) |
| Government grants received | 28,419 | 521,970 |
| Tax paid | (76,894 | ) | 883 |
| Net cash from operating activities | 576,784 | 304,644 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (121,900 | ) | (105,497 | ) |
| Sale of tangible fixed assets | - | 11,125 |
| Net cash from investing activities | (121,900 | ) | (94,372 | ) |
| Cash flows from financing activities |
| New loans in year | 92,729 | 215,173 |
| Loan repayments in year | (370,132 | ) | (36,677 | ) |
| Capital repayments in year | - | (29,292 | ) |
| Amount introduced by directors | 3,000 | 6,000 |
| Amount withdrawn by directors | (210,214 | ) | (86,097 | ) |
| Share issue | - | 2 |
| Equity dividends paid | (17,500 | ) | - |
| Net cash from financing activities | (502,117 | ) | 69,109 |
| (Decrease)/increase in cash and cash equivalents | (47,233 | ) | 279,381 |
| Cash and cash equivalents at beginning of year |
2 |
1,107,650 |
828,269 |
| Cash and cash equivalents at end of year | 2 | 1,060,417 | 1,107,650 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Profit before taxation | 7,557 | 142,745 |
| Depreciation charges | 248,736 | 256,732 |
| Loss on disposal of fixed assets | 564 | 1,546 |
| Loan interest accrued | (5,724 | ) | - |
| Government grants | (28,419 | ) | (521,970 | ) |
| Finance costs | 168,930 | 101,324 |
| 391,644 | (19,623 | ) |
| (Increase)/decrease in stocks | (67,061 | ) | 25,746 |
| (Increase)/decrease in trade and other debtors | (14,747 | ) | 14,346 |
| Increase/(decrease) in trade and other creditors | 484,353 | (137,354 | ) |
| Cash generated from operations | 794,189 | (116,885 | ) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31st August 2022 |
| 31.8.22 | 1.9.21 |
| £ | £ |
| Cash and cash equivalents | 1,176,730 | 1,179,060 |
| Bank overdrafts | (116,313 | ) | (71,410 | ) |
| 1,060,417 | 1,107,650 |
| Year ended 31st August 2021 |
| 31.8.21 | 1.9.20 |
| £ | £ |
| Cash and cash equivalents | 1,179,060 | 828,269 |
| Bank overdrafts | (71,410 | ) | - |
| 1,107,650 | 828,269 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.9.21 | Cash flow | At 31.8.22 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,179,060 | (2,330 | ) | 1,176,730 |
| Bank overdrafts | (71,410 | ) | (44,903 | ) | (116,313 | ) |
| 1,107,650 | (47,233 | ) | 1,060,417 |
| Debt |
| Debts falling due within 1 year | (289,119 | ) | (100,242 | ) | (389,361 | ) |
| Debts falling due after 1 year | (3,882,433 | ) | 383,369 | (3,499,064 | ) |
| (4,171,552 | ) | 283,127 | (3,888,425 | ) |
| Total | (3,063,902 | ) | 235,894 | (2,828,008 | ) |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 1. | STATUTORY INFORMATION |
| Kevin Berkins Quality Meats Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The consolidated financial statements include the company and all its subsidiary undertakings. Inter group sales and profits are eliminated fully on consolidation. |
| Significant judgements and estimates |
| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following estimates have had the most significant effect on amounts recognised in the financial statements: |
| Valuation of property held on a revaluation basis |
| Property accounted for on a revaluation basis is valued by an independent valuer and then subsequently reassessed by the directors in future years. In making their assessment the directors use market and performance data available at the year end. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of turnover 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. |
| Goodwill |
| Goodwill has been fully amortised. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
| 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 Consolidated 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. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 3. | EMPLOYEES AND DIRECTORS |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Wages and salaries | 1,345,220 | 1,030,783 |
| Social security costs | 153,934 | 55,102 |
| Other pension costs | 13,998 | 11,298 |
| 1,513,152 | 1,097,183 |
| The average number of employees during the year was as follows: |
| 31.8.22 | 31.8.21 |
| Management | 3 | 3 |
| Clerical and administration | 2 | 2 |
| Bar and catering | 51 | 58 |
| Shop assistants | 5 | 3 |
| Hotel | 13 | 10 |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Directors' remuneration | 35,136 | 48,583 |
| Directors' pension contributions to money purchase schemes | 575 | 1,038 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 1 | 1 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Hire of plant and machinery | - | 2,252 |
| Depreciation - owned assets | 248,736 | 256,732 |
| Loss on disposal of fixed assets | 564 | 1,546 |
| Auditors' remuneration | 6,250 | 6,000 |
| Foreign exchange differences | - | 391 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Bank interest | - | 186 |
| Bank loan interest | 101,374 | 77,297 |
| Other interest | 67,556 | 21,765 |
| Hire purchase | - | 2,076 |
| 168,930 | 101,324 |
| 6. | TAXATION |
| Analysis of the tax charge/(credit) |
| The tax charge/(credit) on the profit for the year was as follows: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Current tax: |
| UK corporation tax | 7,614 | 42,896 |
| Origination and reversal of |
| short term timing differences | 76,726 | (117,172 | ) |
| Tax on profit | 84,340 | (74,276 | ) |
| Reconciliation of total tax charge/(credit) 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: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Profit before tax | 7,557 | 142,745 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
1,436 |
27,122 |
| Effects of: |
| Expenses not deductible for tax purposes | 570 | - |
| Utilisation of tax losses | (7,401 | ) | (13,389 | ) |
| Adjustments to tax charge in respect of previous periods | (791 | ) | (109,688 | ) |
| Depreciation on non qualifying assets | 25,153 | 22,496 |
| forward |
| Tax rate movement | 69,883 | - |
| Super deduction allowance | (4,510 | ) | (817 | ) |
| Total tax charge/(credit) | 84,340 | (74,276 | ) |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 6. | TAXATION - continued |
| Tax effects relating to effects of other comprehensive income |
| 31.8.22 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax movement on revalued assets | - | (151,333 | ) | (151,333 | ) |
| 31.8.21 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax movement on revalued assets | - | 12,490 | 12,490 |
| 7. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 8. | DIVIDENDS |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Ordinary D shares of £1 each |
| Interim | 17,500 | - |
| 9. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1st September 2021 |
| and 31st August 2022 | 75,000 |
| AMORTISATION |
| At 1st September 2021 |
| and 31st August 2022 | 75,000 |
| NET BOOK VALUE |
| At 31st August 2022 | - |
| At 31st August 2021 | - |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST OR VALUATION |
| At 1st September 2021 | 8,851,068 | 184,839 | 477,169 |
| Additions | 17,331 | 4,476 | 540 |
| Disposals | - | - | - |
| At 31st August 2022 | 8,868,399 | 189,315 | 477,709 |
| DEPRECIATION |
| At 1st September 2021 | 2,249,970 | 180,677 | 363,127 |
| Charge for year | 149,730 | 1,503 | 17,128 |
| Eliminated on disposal | - | - | - |
| At 31st August 2022 | 2,399,700 | 182,180 | 380,255 |
| NET BOOK VALUE |
| At 31st August 2022 | 6,468,699 | 7,135 | 97,454 |
| At 31st August 2021 | 6,601,098 | 4,162 | 114,042 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1st September 2021 | 2,494,974 | 50,779 | 8,713 | 12,067,542 |
| Additions | 99,553 | - | - | 121,900 |
| Disposals | (11,464 | ) | - | - | (11,464 | ) |
| At 31st August 2022 | 2,583,063 | 50,779 | 8,713 | 12,177,978 |
| DEPRECIATION |
| At 1st September 2021 | 2,006,489 | 37,521 | 8,628 | 4,846,412 |
| Charge for year | 76,975 | 3,315 | 85 | 248,736 |
| Eliminated on disposal | (10,900 | ) | - | - | (10,900 | ) |
| At 31st August 2022 | 2,072,564 | 40,836 | 8,713 | 5,084,248 |
| NET BOOK VALUE |
| At 31st August 2022 | 510,499 | 9,943 | - | 7,093,730 |
| At 31st August 2021 | 488,485 | 13,258 | 85 | 7,221,130 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Cost or valuation at 31st August 2022 is represented by: |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| Valuation in 2018 | 3,300,000 | - | - |
| Cost | 5,568,399 | 189,315 | 477,709 |
| 8,868,399 | 189,315 | 477,709 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| Valuation in 2018 | - | - | - | 3,300,000 |
| Cost | 2,583,063 | 50,779 | 8,713 | 8,877,978 |
| 2,583,063 | 50,779 | 8,713 | 12,177,978 |
| If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Cost | 8,543,216 | 8,525,885 |
| Aggregate depreciation | 2,725,010 | 2,585,646 |
| The directors are satisfied that the fair value of freehold land and buildings is consistent with the net book value reported as at 31st August 2022. |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Other |
| investments |
| £ |
| COST |
| At 1st September 2021 |
| and 31st August 2022 |
| NET BOOK VALUE |
| At 31st August 2022 |
| At 31st August 2021 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 11. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Fence Gate, Wheatley Lane Road, Fence, Burnley, Lancashire BB12 9EE |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Aggregate capital and reserves |
| (Loss)/profit for the year | ( |
) |
| Registered office: Fence Gate, Wheatley Lane, Fence, Burnley, Lancashire BB12 9EE |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| (Loss)/profit for the year | ( |
) |
| Registered office: Fence Gate, Wheatley Lane Road, Fence, Burnley BB12 9EE |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Aggregate capital and reserves | ( |
) | ( |
) |
| Loss for the year | ( |
) | ( |
) |
| Registered office: |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 12. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1st September 2021 |
| and 31st August 2022 | 513,272 |
| NET BOOK VALUE |
| At 31st August 2022 | 513,272 |
| At 31st August 2021 | 513,272 |
| Fair value at 31st August 2022 is represented by: |
| £ |
| Valuation in 2022 | 513,272 |
| If investment property had not been revalued it would have been included at the following historical cost: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Cost | 247,203 | 247,203 |
| Investment property was valued on a fair value basis on 31st August 2022 by the directors . |
| 13. | STOCKS |
| Group |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Stocks | 195,540 | 128,479 |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.8.22 | 31.8.21 | 31.8.22 | 31.8.21 |
| £ | £ | £ | £ |
| Trade debtors | 28,159 | 23,983 |
| Amounts owed by group undertakings | - | - |
| Directors' current accounts | 108,649 | - | - | - |
| Prepayments | 20,396 | 9,825 |
| 157,204 | 33,808 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.8.22 | 31.8.21 | 31.8.22 | 31.8.21 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 17) | 447,315 | 311,115 |
| Other loans (see note 17) | 58,359 | 49,414 |
| Trade creditors | 237,624 | 157,728 |
| Tax | 33,922 | 103,202 |
| Social security and other taxes | 22,256 | 18,418 |
| VAT | 127,930 | 160,201 | - | - |
| Other creditors | 482,388 | 195,421 |
| Directors' current accounts | - | 98,565 | - | - |
| Accruals and deferred income | 220,214 | 89,353 |
| 1,630,008 | 1,183,417 |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Bank loans (see note 17) | 3,018,659 | 3,372,136 |
| Other loans (see note 17) | 480,405 | 510,297 |
| Accruals and deferred income | 15,062 | - |
| 3,514,126 | 3,882,433 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | 116,313 | 71,410 |
| Bank loans | 331,002 | 239,705 |
| Other loans | 58,359 | 49,414 |
| 505,674 | 360,529 |
| Amounts falling due between one and two | years: |
| Bank loans | 2,025,745 | 257,303 |
| Other loans | 60,451 | 59,250 |
| 2,086,196 | 316,553 |
| Amounts falling due between two and five | years: |
| Bank loans | 992,914 | 2,383,348 |
| Other loans | 195,096 | 145,681 |
| 1,188,010 | 2,529,029 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans | - | 731,485 |
| Other loans | 224,858 | 305,366 |
| 224,858 | 1,036,851 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Bank overdraft | 116,313 | 71,410 |
| Bank loans | 3,349,661 | 3,611,841 |
| 3,465,974 | 3,683,251 |
| Bank borrowings are secured by a debenture over all assets of the group including first legal charges over the properties. |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 19. | PROVISIONS FOR LIABILITIES |
| Group |
| 31.8.22 | 31.8.21 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowance | 569,721 | 348,070 |
| Loss relief | (4,135 | ) | (10,543 | ) |
| 565,586 | 337,527 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1st September 2021 | 337,527 |
| Charge to Income Statement during year | 76,726 |
| Movement on revalued assets | 151,333 |
| Balance at 31st August 2022 | 565,586 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.8.22 | 31.8.21 |
| value: | £ | £ |
| Ordinary A | £1 | 11,990 | 11,990 |
| Ordinary B | £1 | 6 | 6 |
| Ordinary C | £1 | 3 | 3 |
| Ordinary D | £1 | 2 | 2 |
| 12,001 | 12,001 |
| 21. | RESERVES |
| Group |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1st September 2021 | 707,746 | 2,952,625 | 3,660,371 |
| Deficit for the year | (76,783 | ) | (76,783 | ) |
| Dividends | (17,500 | ) | (17,500 | ) |
| Depreciation charges on revalued assets |
57,267 |
(57,267 |
) |
- |
| Deferred tax movement |
| on revalued assets | - | (151,333 | ) | (151,333 | ) |
| At 31st August 2022 | 670,730 | 2,744,025 | 3,414,755 |
| KEVIN BERKINS QUALITY MEATS LIMITED (REGISTERED NUMBER: 01317690) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST AUGUST 2022 |
| 22. | CONTINGENT LIABILITIES |
| Company |
| Kevin Berkins Quality Meats Limited and its subsidiary undertakings Fence Gate Limited, Fence Gate Lodge Limited, The Eagle at Barrow Limited and Michelle.B Limited have guaranteed each others liabilities to the bank. The aggregate amount of net bank borrowings outstanding at 31st August 2022 was £2,297,290 (2021: £2,511,221). The security given by the company is a floating charge over all the assets of the company. These bank borrowings are included within the consolidated accounts. |
| 23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31st August 2022 and 31st August 2021: |
| 31.8.22 | 31.8.21 |
| £ | £ |
| K Berkins and Mrs M Berkins |
| Balance outstanding at start of year | (98,565 | ) | (178,662 | ) |
| Amounts advanced | 210,214 | 86,097 |
| Amounts repaid | (3,000 | ) | (6,000 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 108,649 | (98,565 | ) |
| The directors' loans are interest free, unsecured and repayable on demand. |
| 24. | ULTIMATE CONTROLLING PARTY |
| In the opinion of the directors the ultimate controlling party of the company is the majority shareholder of the parent company K Berkins. K Berkins is also a director of the company. |