David Wood Baking Limited - Limited company accounts 11.4

REGISTERED NUMBER: 06541251 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 31 MARCH 2013 TO 29 MARCH 2014

FOR

DAVID WOOD BAKING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTORS:

David Anthony Wood

Mrs Karen Wood

SECRETARY:

Mrs Karen Wood

REGISTERED OFFICE:

1 Calverley Road

Oulton

Leeds

West Yorkshire

LS26 8JD

REGISTERED NUMBER:

06541251 (England and Wales)

AUDITORS:

WHS Accountants Limited

Chartered Accountants

Elmville House

305 Roundhay Road

Leeds

West Yorkshire

LS8 4HT

The directors present their strategic report for the period 31 March 2013 to 29 March 2014.

REVIEW OF BUSINESS

At commencement of this reporting period, the trading of David Wood Baking UK Limited and Peter Hunt's Bakery

Limited were transferred into David Wood Baking Limited.

Sales have increased during the year due to the acquisition of a bakery, development of new products and winning new

customers.

PRINCIPAL RISKS AND UNCERTAINTIES

Commercial risks include:

- Cost increases in raw materials or energy. Where possible these are managed by means of longer term contracts or

contracts with customers that provide a margin of profit over actual costs.

- Contracts can be lost due to competition from other suppliers.

KEY PERFORMANCE INDICATORS

KPIs used to monitor the performance of the business include:

- Detailed weekly and monthly operating reports for each site

- Health & safety - accidents, both reportable and other, trend analysis

- Food safety - regular site audits by customers and external auditors

ON BEHALF OF THE BOARD:

David Anthony Wood - Director

23 December 2014

The directors present their report with the financial statements of the company for the period 31 March 2013 to

29 March 2014.

PRINCIPAL ACTIVITIES

The principal activities of the company are that of the manufacture of breads, confectionary items and savoury products

such as frozen pies and ready meals.

DIVIDENDS

Interim dividends amounting to 0.95146p per share were paid during the year. The director recommends that no final

dividend be paid.

The total distribution of dividends for the year ended 29th March 2014 will be £47,573 (2013 - £43,609).

RESEARCH AND DEVELOPMENT

The company spent £473,825 on research and development in this period, and it is anticipated that this level of

expenditure will be maintained.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 March 2013 to the date of this

report.

David Anthony Wood

Mrs Karen Wood

EMPLOYEES

The company is committed to equality of opportunity in all employment practices, policies and procedures. This means

that no employee or potential employee will receive less favourable treatment due to race, religion, nationality, age, sex,

sexuality or disability.

In the event of employees becoming disabled, every effort is made to ensure that their employment with the company

continues, and appropriate training is given, as well as the offer of a role that might suit that person's new level of ability.

All employees are trained for several roles, and encouraged to move up to a higher grade.

Employees are kept informed about company matters through internal media and through managers.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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

company's auditors are aware of that information.

AUDITORS

The auditors, WHS Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

David Anthony Wood - Director

23 December 2014

We have audited the financial statements of David Wood Baking Limited for the period ended 29 March 2014 on pages

six to seventeen. 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 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.

Respective responsibilities of directors and auditors

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. 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.

Scope of the audit of the financial statements

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 Strategic Report and the Report of the Directors 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.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 29 March 2014 and of its profit for the period 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and the Report of the Directors for the financial year for

which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Christopher Hill FCA (Senior Statutory Auditor)

for and on behalf of WHS Accountants Limited

Chartered Accountants

Elmville House

305 Roundhay Road

Leeds

West Yorkshire

LS8 4HT

23 December 2014

TURNOVER

59,696,343

16,057,690

Cost of sales

49,915,401

12,622,633

GROSS PROFIT

9,780,942

3,435,057

Distribution costs

2,929,500

743,718

Administrative expenses

6,624,662

1,602,852

9,554,162

2,346,570

226,780

1,088,487

Other operating income

69,325

-

OPERATING PROFIT

3

296,105

1,088,487

Interest payable and similar charges

4

283,037

28,291

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

13,068

1,060,196

Tax on profit on ordinary activities

5

(102,785

)

251,339

PROFIT FOR THE FINANCIAL PERIOD

115,853

808,857

CONTINUING OPERATIONS

None of the company's activities were acquired or discontinued during the current period or previous period.

TOTAL RECOGNISED GAINS AND LOSSES

The company has no recognised gains or losses other than the profits for the current period or previous period.

FIXED ASSETS

Intangible assets

7

-

500

Tangible assets

8

9,967,000

9,277,061

9,967,000

9,277,561

CURRENT ASSETS

Stocks

9

3,189,881

2,564,256

Debtors

10

9,961,139

7,679,633

Cash at bank and in hand

940,949

715,735

14,091,969

10,959,624

CREDITORS

Amounts falling due within one year

11

16,053,324

12,607,175

NET CURRENT LIABILITIES

(1,961,355

)

(1,647,551

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,005,645

7,630,010

CREDITORS

Amounts falling due after more than one year

12

(976,084

)

(4,406,023

)

PROVISIONS FOR LIABILITIES

16

(344,159

)

(337,538

)

ACCRUALS AND DEFERRED INCOME

17

(457,608

)

(526,933

)

NET ASSETS

6,227,794

2,359,516

CAPITAL AND RESERVES

Called up share capital

18

5,000,000

1,200,002

Profit and loss account

19

1,227,794

1,159,514

SHAREHOLDERS' FUNDS

23

6,227,794

2,359,516

The financial statements were approved by the Board of Directors on 23 December 2014 and were signed on its behalf by:

David Anthony Wood - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and are in accordance with

applicable accounting standards.

Financial Reporting Standard number 1

Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes

the subsidiary in its published financial statements.

Turnover

Turnover represents the amount of goods supplied and bakery services chargeable in the period, net of relevant

discounts and value added tax. Turnover of goods supplied is recognised within the profit and loss account at the

point that goods are delivered to the customer.

Patents and licences

Amortisation is provided at an annual rate of 20% of cost in order to write these assets off over their estimated

useful life.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

50% on cost

Stocks

Stocks are valued at the lower of cost, including an addition for production overheads where appropriate, and net

realisable value.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

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 commitments

Assets obtained under hire purchase contracts are capitalised in the balance sheet and depreciated over their

estimated useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to the profit and loss account in the period to which they relate.

Government grants

Government grants received are treated as deferred credits and credited to profit and loss account over the

estimated useful life of the relevant fixed assets.

2.	STAFF COSTS

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Wages and salaries

14,184,286

3,261,596

Social security costs

1,161,668

252,860

Other pension costs

63,845

113,499

15,409,799

3,627,955

The average monthly number of employees during the period was as follows:

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

Total employees

706

150

3.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Hire of plant and machinery

76,154

6,126

Rent

1,173,018

172,333

Depreciation - owned assets

1,300,341

198,589

Depreciation - assets on hire purchase contracts and finance leases

37,632

8,733

Profit on disposal of fixed assets

(6,936

)

-

Patents and licences amortisation

500

1,000

Auditors' remuneration

36,250

7,200

Auditors' remuneration included above re the holding company

2,000

-

Auditors' fees included above re non-audit services

9,250

-

Director's pension contributions

-

99,040

Directors' benefits

3,023

-

Directors' remuneration

66,000

9,157

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

4.

INTEREST PAYABLE AND SIMILAR CHARGES

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Bank interest

1,180

-

Bank loan interest

53,174

934

Invoice finance interest

189,462

20,996

Asset finance interest

3,398

6,361

Director's loan interest

35,823

-

283,037

28,291

5.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit on ordinary activities for the period was as follows:

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Current tax:

UK corporation tax

(109,406

)

208,803

Deferred tax

6,621

42,536

Tax on profit on ordinary activities

(102,785

)

251,339

Factors affecting the tax (credit)/charge

The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Profit on ordinary activities before tax

13,068

1,060,196

Profit on ordinary activities

multiplied by the standard rate of corporation tax

in the UK of 23% (2013 - 24%)

3,006

254,447

Effects of:

Expenses not deductible for tax purposes

3,270

2,145

Income not taxable for tax purposes

(15,945

)

-

Capital allowances in excess of depreciation

(52,616

)

(47,789

)

Adjustments to tax charge in respect of previous periods

(109,406

)

-

Losses

63,734

-

Expenses allowable

(1,449

)

-

Current tax (credit)/charge

(109,406

)

208,803

6.

DIVIDENDS

Period

Period

31.3.13

1.4.12

to

to

29.3.14

30.3.13

£

£

Ordinary shares of £1 each

Interim

47,573

43,609

7.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 31 March 2013

and 29 March 2014

5,000

AMORTISATION

At 31 March 2013

4,500

Amortisation for period

500

At 29 March 2014

5,000

NET BOOK VALUE

At 29 March 2014

-

At 30 March 2013

500

8.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 31 March 2013

53,449

10,001,216

1,596,739

Additions

482,251

1,297,941

69,441

At 29 March 2014

535,700

11,299,157

1,666,180

DEPRECIATION

At 31 March 2013

34,703

2,157,114

311,509

Charge for period

20,150

1,058,478

165,497

Eliminated on disposal

-

-

-

At 29 March 2014

54,853

3,215,592

477,006

NET BOOK VALUE

At 29 March 2014

480,847

8,083,565

1,189,174

At 30 March 2013

18,746

7,844,102

1,285,230

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 31 March 2013

167,600

267,174

12,086,178

Additions

133,417

50,090

2,033,140

Disposals

(83,863

)

-

(83,863

)

At 29 March 2014

217,154

317,264

14,035,455

DEPRECIATION

At 31 March 2013

104,242

201,549

2,809,117

Charge for period

39,717

54,131

1,337,973

Eliminated on disposal

(78,635

)

-

(78,635

)

At 29 March 2014

65,324

255,680

4,068,455

NET BOOK VALUE

At 29 March 2014

151,830

61,584

9,967,000

At 30 March 2013

63,358

65,625

9,277,061

Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as

follows:

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 31 March 2013

88,450

52,949

24,094

165,493

Additions

-

133,417

-

133,417

Disposals

-

(15,500

)

-

(15,500

)

At 29 March 2014

88,450

170,866

24,094

283,410

DEPRECIATION

At 31 March 2013

33,675

26,595

24,094

84,364

Charge for period

8,845

28,787

-

37,632

Eliminated on disposal

-

(14,849

)

-

(14,849

)

At 29 March 2014

42,520

40,533

24,094

107,147

NET BOOK VALUE

At 29 March 2014

45,930

130,333

-

176,263

At 30 March 2013

54,775

26,354

-

81,129

9.

STOCKS

2014

2013

£

£

Raw materials and consumables

1,479,792

1,121,086

Finished goods

1,710,089

1,443,170

3,189,881

2,564,256