PACIFIC_PRODUCE_LIMITED - Accounts

The principle activity of the company during the year was that of importers and wholesalers of fresh fruit and vegetables. The directors are pleased with the increase in turnover of £4,758,043 (15%) to £35,744,176 from£30,986,133 in 2014. The increase was driven by increased sales with existing and new clients, this was achieved in what was predicted to be a difficult year and on the back of a very successful 2014.

Market conditions are likely to remain extremely competitive in 2016 though we remain confident that we can outperform against our peers as we have in 2015. Both the effects of El Nino on yields/timing and quality and the fluctuations in the GBP/USD rates will cause higher cost and missed opportunities. New plantations and others coming to maturity will help with volume that could offset these external factors.

Principal risks and uncertainties:

The industry seems to be in a permanent state of change and that brings a number of risks to the company.

The main risks outside our control (and that of our competitors) are currency fluctuations and weather patterns.

Where possible currency is purchased forward and the majority of our supply base is from more stable climates (Peru).

The company is in a good position to deal with supply chain savings that are being implemented by key customers and as a young company our strategy from inception was a very lean business model.

The company is exposed to changes in consumer behavior, in terms of preference for certain varieties or products driven by flavour/health benefits / health scares.

Remaining close to the market and making good predictions and changing crops early enough is part of every strategic meeting that take place twice per year, where future plantations are discussed. This is part of modern agriculture and our suppliers are world experts.

Financial key performance indicators:

Turnover increased by 15%

Profit after tax decreased by 34% this was expected as 2014 was an outstanding year and even with the decrease the result was in-line with expectations.

Continued profit retention to aid with cash-flow is the objective.

An interim ordinary dividend was paid amounting to £343,444. The directors do not recommend payment of a final dividend.

The directors are to continue building supplier and client relationships and to expand produce on offer by securing new supplies of produce where there is a identified gap in the market for new produce product lines.

We have audited the financial statements of Pacific Produce Limited for the year ended 30 November 2015 set out on pages 6 to 18. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 an auditors' report 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.

As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

In our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 30 November 2015 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. In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

give a true and fair view of the state of the company's affairs as at 30 November 2015 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.

In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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

The financial statements are prepared under the historical cost convention.

The company's underlying performance has met the expectations of the directors, with sales increasing significantly during the year. The company is expected to continue making similar sales, profits and matching positive cash inflows for the foreseeable future, and see no adverse events or circumstances that would change the directors' assessment over the company's ability to trade over the next 12 months. Therefore the directors have adopted the going concern basis of accounting.

Turnover represents amounts receivable for wholesale produce and related services net of VAT.

Stock is valued at the lower of cost and net realisable value. Where the nature of the agreement with the supplier confers the benefits and the associated risk of ownership to the company on assignment, the value of this stock and the corresponding creditor less payments in advance are included on the balance sheet although legal title still remains with the supplier until the goods have been sold.

Included in other creditors is a loan balance of £2,548 (2014: £2,548) owed to Diamond Bridge Limited BVI, the controlling party.

During the year 2,082 ordinary C shares of £1 each were issued and fully paid by employees at a deemed market value of £32 per share totalling £66,603.

The parent company is Diamond Bridge Limited, a company registered in the British Virgin Islands. The ultimate controlling party is Estuardo Masias, a director the company.

During the year the following director was paid a dividend of:

During the year Pacific Produce Limited bought supplies from Prolan Procesadora Laran Sac, which is part of the La Calera group of which Pacific Produce is an indirect related party via Diamond Bridge Limited BVI. The purchases from Prolan Procesadora Laran Sac during the year amounted to £6,756,055(2014: £6,815,081). At 30 November 2015, Prolan Procesadora Laran Sac was owed £464,921 (2014: £208,984) for goods purchased.