DEBM Investments Limited - Limited company accounts 23.2

REGISTERED NUMBER: 06379193 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2022

FOR

DEBM INVESTMENTS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

A M E Murphy

D Browne

SECRETARY:

P Duplock

REGISTERED OFFICE:

31 Central Markets

West Market Building

Smithfield

London

EC1A 9PS

REGISTERED NUMBER:

06379193 (England and Wales)

AUDITORS:

Clemence Hoar Cummings

Chartered Accountants and Statutory Auditor

Riverside House

1-5 Como Street

Romford

Essex

RM7 7DN

The directors present their strategic report of the company and the group for the year ended 31st December 2022.

REVIEW OF BUSINESS

The company's principal activity during the year continued to be the wholesaling of beef, chicken, pork and offal from Smithfield Meat Market in London. Turnover for the year increased from £32.7 million to £34.8million. The trading results were in line with expectation due to the opening up of the economy following the Covid-19 pandemic restrictions being lifted during the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

Under UK Company Law (Section 414(C)(2)(b) - Companies Act, 2006) the company is required to give a description of the principal risks and uncertainties faced, as well as a listing of the key performance indicators used to monitor performance.

- The principal risks and uncertainties that the business faces include over capacity in the sector & pressure on margins by major customers.

- The key performance indicators focused on by management are EBITDA, operating profit and profit before taxation. Achievement of these key performance indicators is driven by business specific key performance indicators.

DEVELOPMENT AND PERFORMANCE

The directors review the performance of the Company, assessing any significant events such as Brexit and other regulatory changes on the future financial performance and funding of the business. The directors monitor very closely the financial performance to ensure the business has sufficient resources to operate and deliver the strategic goals of the Company. The directors then make any relevant and appropriate decisions in a collaborative manner.

FINANCIAL KEY PERFORMANCE INDICATORS

The Financial Key Performance Indicators during the financial year were as follows:

2022

2021

£

£

Turnover

34,801,376

32,679,827

Profit before taxation

7,481,509

1,706,141

Shareholders' funds

10,970,428

4,925,154

DISCLOSURE OF INFORMATION TO THE AUDITORS

Having made the requisite enquiries, 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 the directors have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

EMPLOYEES

The directors recognise the importance of the Company's employees in the future success of the Company and has introduced a number of initiatives to ensure that the Employees of the Company can give feedback and be kept abreast of business developments. All employees have been informed and involved of the various decisions that impacted any job roles.

ON BEHALF OF THE BOARD:

A M E Murphy - Director

31st July 2023

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report.

A M E Murphy

D Browne

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Clemence Hoar Cummings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A M E Murphy - Director

31st July 2023

Opinion

We have audited the financial statements of DEBM Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 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 December 2022 and of the group's 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 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.

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.

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.

- We have designed our work to ensure that laws and regulations have been adhered to, and the transactions undertaken by the Company are properly reflected in the financial statements.

- We have obtained a detailed understanding of the Company's internal control systems and we have used the knowledge gained to identify any areas of risk of mis-statement or fraud. We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Belbin BSc FCA DChA (Senior Statutory Auditor)

for and on behalf of Clemence Hoar Cummings

Chartered Accountants and Statutory Auditor

Riverside House

1-5 Como Street

Romford

Essex

RM7 7DN

31st July 2023

TURNOVER

34,801,376

32,679,827

Cost of sales

30,921,875

28,905,744

GROSS PROFIT

3,879,501

3,774,083

Distribution costs

1,702,317

1,561,095

Administrative expenses

908,929

596,373

2,611,246

2,157,468

1,268,255

1,616,615

Other operating income

-

59,000

OPERATING PROFIT

4

1,268,255

1,675,615

Profit on disposal of short

leasehold

5

6,173,646

-

7,441,901

1,675,615

Interest receivable and similar income

39,608

30,526

PROFIT BEFORE TAXATION

7,481,509

1,706,141

Tax on profit

6

1,436,235

348,796

PROFIT FOR THE FINANCIAL YEAR

6,045,274

1,357,345

Profit attributable to:

Owners of the parent

6,045,274

1,357,345

PROFIT FOR THE YEAR

6,045,274

1,357,345

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

6,045,274

1,357,345

Total comprehensive income attributable to:

Owners of the parent

6,045,274

1,357,345

FIXED ASSETS

Intangible assets

9

189,408

211,912

Tangible assets

10

20,244

774,295

Investments

11

-

-

209,652

986,207

CURRENT ASSETS

Stocks

12

289,484

243,691

Debtors

13

9,342,603

4,651,129

Cash at bank and in hand

5,423,219

1,513,106

15,055,306

6,407,926

CREDITORS

Amounts falling due within one year

14

4,294,530

2,330,703

NET CURRENT ASSETS

10,760,776

4,077,223

TOTAL ASSETS LESS CURRENT LIABILITIES

10,970,428

5,063,430

PROVISIONS FOR LIABILITIES

16

-

138,276

NET ASSETS

10,970,428

4,925,154

CAPITAL AND RESERVES

Called up share capital

17

1,002

1,002

Revaluation reserve

18

-

583,200

Capital redemption reserve

18

9,000

9,000

Retained earnings

18

10,960,426

4,331,952

SHAREHOLDERS' FUNDS

10,970,428

4,925,154

The financial statements were approved by the Board of Directors and authorised for issue on 31st July 2023 and were signed on its behalf by:

A M E Murphy - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

3,255,750

3,255,750

3,255,750

3,255,750

CURRENT ASSETS

Debtors

13

2

2

CREDITORS

Amounts falling due within one year

14

-

1,738,287

NET CURRENT ASSETS/(LIABILITIES)

2

(1,738,285

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,255,752

1,517,465

CAPITAL AND RESERVES

Called up share capital

17

1,002

1,002

Capital redemption reserve

18

9,000

9,000

Retained earnings

18

3,245,750

1,507,463

SHAREHOLDERS' FUNDS

3,255,752

1,517,465

Company's profit for the financial year

1,738,287

1,820,625

The financial statements were approved by the Board of Directors and authorised for issue on 31st July 2023 and were signed on its behalf by:

A M E Murphy - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1st January 2021

1,002

3,167,732

510,300

Changes in equity

Dividends

-

(313,125

)

-

Total comprehensive income

-

1,357,345

-

Other movements in equity

-

120,000

72,900

1,002

4,331,952

583,200

Acquisition of non-controlling interest

-

-

-

Balance at 31st December 2021

1,002

4,331,952

583,200

Changes in equity

Total comprehensive income

-

6,045,274

-

Other movements in equity

-

583,200

(583,200

)

Balance at 31st December 2022

1,002

10,960,426

-

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1st January 2021

9,000

3,688,034

1,452,561

5,140,595

Changes in equity

Dividends

-

(313,125

)

-

(313,125

)

Total comprehensive income

-

1,357,345

-

1,357,345

Other movements in equity

-

192,900

-

192,900

9,000

4,925,154

1,452,561

6,377,715

Acquisition of non-controlling interest

-

-

(1,452,561

)

(1,452,561

)

Balance at 31st December 2021

9,000

4,925,154

-

4,925,154

Changes in equity

Total comprehensive income

-

6,045,274

-

6,045,274

Balance at 31st December 2022

9,000

10,970,428

-

10,970,428

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2021

1,002

(37

)

9,000

9,965

Changes in equity

Dividends

-

(313,125

)

-

(313,125

)

Total comprehensive income

-

1,820,625

-

1,820,625

Balance at 31st December 2021

1,002

1,507,463

9,000

1,517,465

Changes in equity

Total comprehensive income

-

1,738,287

-

1,738,287

Balance at 31st December 2022

1,002

3,245,750

9,000

3,255,752

Cash flows from operating activities

Cash generated from operations

1

(2,586,515

)

718,978

Tax paid

(336,026

)

(278,683

)

Net cash from operating activities

(2,922,541

)

440,295

Cash flows from investing activities

Purchase of intangible fixed assets

-

(54,939

)

Purchase of tangible fixed assets

-

(28,681

)

Sale of tangible fixed assets

6,793,046

-

Interest received

39,608

30,526

Net cash from investing activities

6,832,654

(53,094

)

Cash flows from financing activities

Equity dividends paid

-

(313,125

)

-

(1,452,561

)

Net cash from financing activities

-

(1,765,686

)

Increase/(decrease) in cash and cash equivalents

3,910,113

(1,378,485

)

Cash and cash equivalents at beginning of year

2

1,513,106

2,891,591

Cash and cash equivalents at end of year

2

5,423,219

1,513,106

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Profit before taxation

7,481,509

1,706,141

Depreciation charges

174,519

175,207

Profit on disposal of fixed assets

(6,191,010

)

-

Finance income

(39,608

)

(30,526

)

1,425,410

1,850,822

Increase in stocks

(45,793

)

(32,533

)

Increase in trade and other debtors

(4,690,557

)

(1,244,120

)

Increase in trade and other creditors

724,425

144,809

Cash generated from operations

(2,586,515

)

718,978

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 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

5,423,219

1,513,106

Year ended 31st December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

1,513,106

2,891,591

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

1,513,106

3,910,113

5,423,219

1,513,106

3,910,113

5,423,219

Total

1,513,106

3,910,113

5,423,219

1.	STATUTORY INFORMATION

DEBM Investments 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

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

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

Short leasehold

-

10% on cost

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

Straight line over 5 years

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.

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.

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

(i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Annual bonus plans

The company recognises a provision and an expense for bonuses where the company has a legal or constructive obligation as a result of past events and a reliable estimate can be made.

(iii) Defined contribution pension plans

The Company operates a defined contribution plan. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate fund. Under defined contribution plans, the company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans, the company pays contributions to privately administered pension plans on a contractual or voluntary basis. The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Basis of consolidation

The consolidated financial statements include he financial statements of the holding company and all of its subsidiary companies made up to 31 December 2022.

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

1,350,616

1,282,666

Social security costs

153,766

114,685

Other pension costs

120,503

90,751

1,624,885

1,488,102

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

2022

2021

Administration

7

9

Selling

17

16

24

25

2022

2021

£

£

Directors' remuneration

80,000

80,000