REGISTERED NUMBER: |
GB INGREDIENTS LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 January 2023 |
REGISTERED NUMBER: |
GB INGREDIENTS LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 January 2023 |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Contents of the Financial Statements |
for the year ended 31 January 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 7 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 | to | 17 |
GB INGREDIENTS LIMITED |
Company Information |
for the year ended 31 January 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Strategic Report |
for the year ended 31 January 2023 |
The directors present their strategic report for the year ended 31 January 2023. |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
Review of business |
The Russian invasion of Ukraine caused uncertainty and significant increases in key material prices. The volume of products sold was stable, but the business grew revenues for the 2022/23 period by 38% on the prior period to GBP 43.9 million as selling prices were increased to recover significant cost increases. Operating profits decreased in the year from a GBP 0.3 million profit in the prior year to a loss of GBP 0.1 million profit in the current period. |
Financial key performance indicators |
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, profitability, net assets and liquidity. |
Development and performance |
Turnover increased by some 37.8% on the previous year to £43.9m (2022: £31.8m). Direct production costs increased proportionally more than sales meaning the gross profit margin achieved for the year fell to 12.4% (2022: 17.3%). Increases were seen in distribution costs and there was a reduction in administrative costs which resulted in an operating loss for the year of £0.1m (2022: operating profit of £0.3m). After interest and tax, the net loss for the year was £0.25 m which has been deducted from the reserves brought forward. Net assets therefore stood at £4.4m as at 31 January 2023. The company continues to report a position of net current liabilities owing to the £12m loan from the parent company (see note 11) which, though technically repayable on demand and therefore included in creditors falling due less than one year, is not planned to be called for repayment in the foreseeable future (see note 2). Inclusive of the group loan facility, net current liabilities deteriorated to £4.6m at 31 January 2023 (2022: £3.6m). Excluding the group loan, the company has net current assets of £7.4m (2022: £8.4m). |
2023/24 outlook |
Despite the further uncertainty caused by the Russo-Ukrainian War bread consumption is expected to remain static therefore limiting growth of yeast consumption in the domestic market. The directors expect another challenging year with fluctuations in costs of energy and key raw materials that impact operating costs. |
Principal risks and uncertainties |
The business remains exposed to a competitive tender market, and in addition faces increasing costs because of both raw material and energy price increases. |
Research and development |
The company has a continuing commitment to research and development. These activities are targeted to improve existing processes and to identify and exploit new product opportunities. The Company remains committed to identifying and developing, through an ongoing research and development programme, alternative products that will form a platform for the future long term sustainable growth of the Company. |
On behalf of the board: |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Report of the Directors |
for the year ended 31 January 2023 |
The directors present their report with the financial statements of the company for the year ended 31 January 2023. |
Principal activity |
The principal activity of the company in the year under review was that of the production and distribution of yeast. |
Dividends |
No dividends will be distributed for the year ended 31 January 2023. |
Directors |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Financial instruments |
The company uses financial instruments including cash and borrowings, the main purpose of which are to raise finance for the Company's activities. It is the Company's policy not to enter into trading of a speculative nature in respect of financial instruments. |
Price risk |
The company is exposed to price risk on its raw material purchases. |
Credit risk |
Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the Company. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit, using information supplied by independent rating agencies where available. At the balance sheet date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. |
Cash flow and liquidity risk |
Liquidity risk is the risk that the Company may not be able to meet its financial obligations as they fall due. The Company ensures that there are sufficient levels of committed facilities, cash and cash equivalents to ensure that the Company is, at all times, able to meet its financial commitments. Liquidity risk is managed by continuous monitoring of forecast and actual cash flows and matching the maturity profile of financial assets and liabilities. The Company has no significant interest bearing assets and consequently, its income and cash flows are largely independent of changes in market interest rates. The interest bearing intercompany loan has a variable interest rate based upon the bank base rate and is therefore subject to fluctuations in such rates. The Company does not use interest rate swaps or other instruments to manage its interest rate exposure. |
Disclosure in the strategic report |
Certain disclosures required in the Report of the Directors have been covered in the Strategic Report on page 2. |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Report of the Directors |
for the year ended 31 January 2023 |
Statement of directors' responsibilities |
The directors are responsible for preparing the 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 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; |
- | 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, Haines Watts Birmingham LLP, will be deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
GB Ingredients Limited |
Opinion |
We have audited the financial statements of GB Ingredients Limited (the 'company') for the year ended 31 January 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 January 2023 and of its 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 company 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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. |
Report of the Independent Auditors to the Members of |
GB Ingredients Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but not limited to: |
- | making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; |
- | obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- | assessing the risk of management override including identifying and testing journal entries; |
- | challenging the assumptions and judgements made by management in its significant accounting estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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 |
GB Ingredients 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 |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Statement of Comprehensive |
Income |
for the year ended 31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
Operating (loss)/profit | 5 | ( |
) |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
(Loss)/profit before taxation | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
Loss for the financial year | ( |
) | ( |
) |
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) | ( |
) |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Balance Sheet |
31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 | £'000 | £'000 |
Fixed assets |
Tangible assets | 8 |
Current assets |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
Creditors |
Amounts falling due within one year | 11 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Provisions for liabilities | 14 |
Net assets |
Capital and reserves |
Called up share capital | 15 |
Share premium | 16 |
Retained earnings | 16 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Statement of Changes in Equity |
for the year ended 31 January 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£'000 | £'000 | £'000 | £'000 |
Balance at 1 February 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 January 2023 |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements |
for the year ended 31 January 2023 |
1. | Statutory information |
GB Ingredients Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The presentational currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000. |
The company's immediate parent Lallemand UK Limited includes the company in its consolidated financial statements prepared under FRS 102. The company's ultimate parent undertaking, Lallemand Inc also includes the company in its ultimate group consolidated financial statements which are prepared in accordance with Canadian GAAP Reporting Standards. |
Going concern |
The company's business activities, with the factors likely to affect its future development, performance and position are set out in the business review on page 2. |
The directors have considered the financial resources, performance, and future development of the company in order to determine the appropriate basis of preparation of these financial statements. The company is funded via a £12 million promissory note from its immediate parent company, Lallemand UK Limited. Whilst this is repayable on demand, Lallemand UK Limited has indicated that it will not call this for payment for at least 12 months from the date of approval of these financial statements. As with any company placing reliance on other group entities for financial support, the directors' acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. |
The directors have assessed the cash needs of the company for the foreseeable future based on the company's expected revenue and cost base and consider that the company can operate within the available facilities for the foreseeable future. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements requires the use of certain accounting estimates. It also requires the Directors' to exercise judgement in applying the Company's accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or estimates are most significant to the financial statements, are disclosed below: |
Stock provisions |
A provision is incorporated into the financial statements to reflect obsolete and slow moving stock. This is calculated on a line by line basis based on management's knowledge of the items and the results of quality testing. |
Depreciation |
Depreciation is calculated based on an estimate of the useful life of each category of tangible fixed assets. The directors review the period and method of depreciation when events and circumstances indicate that the useful economic life may have changed since the last reporting date. |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
2. | Accounting policies - continued |
Turnover |
Turnover represents amounts invoiced to customers, net of value added tax and trade discounts, for products and services supplied. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually at the point that the customer or delivery company has signed for the delivery of the goods. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows: |
Land and buildings | - | 40 years or over the lease term if this is less |
Plant and machinery | - | 3 to 15 years |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is based on the weighted average principle for all products except one which is based on the first in first out principle, and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. |
Basic financial instruments |
Trade and other debtors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Trade and other creditors |
Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Interest-bearing borrowings classified as basic financial instruments |
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
2. | Accounting policies - continued |
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 |
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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | Turnover |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£'000 | £'000 |
United Kingdom |
Other | 12,913 | 9,746 |
4. | Employees and directors |
2023 | 2022 |
£'000 | £'000 |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production, selling and administration |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
4. | Employees and directors - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
All directors other than two were remunerated by Lallemand Group Companies during the current and previous years. |
5. | Operating (loss)/profit |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£'000 | £'000 |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | Interest payable and similar expenses |
2023 | 2022 |
£'000 | £'000 |
Interest payable |
7. | Taxation |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£'000 | £'000 |
Current tax: |
UK corporation tax | ( |
) | ( |
) |
Adjustment in respect of |
prior periods | 72 | (43 | ) |
Total current tax | ( |
) |
Deferred tax: |
Deferred tax |
Adjustment in respect of prior periods | (95 | ) | 43 |
Total deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 19% (2022 - 19%). |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
7. | Taxation - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£'000 | £'000 |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Fixed asset differences |
Other timing differences |
Total tax (credit)/charge | (73 | ) | 255 |
8. | Tangible fixed assets |
Freehold | Plant and |
property | machinery | Totals |
£'000 | £'000 | £'000 |
Cost |
At 1 February 2022 |
Additions |
At 31 January 2023 |
Depreciation |
At 1 February 2022 |
Charge for year |
At 31 January 2023 |
Net book value |
At 31 January 2023 |
At 31 January 2022 |
9. | Stocks |
2023 | 2022 |
£'000 | £'000 |
Raw materials and consumables |
Finished goods and goods for |
resale |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
10. | Debtors: amounts falling due within one year |
2023 | 2022 |
£'000 | £'000 |
Trade debtors |
Amounts owed by group undertakings |
VAT |
Prepayments |
11. | Creditors: amounts falling due within one year |
2023 | 2022 |
£'000 | £'000 |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Tax | ( |
) | ( |
) |
Social security and other taxes |
Accruals and deferred income |
Included within amounts owed to group undertakings is a £12,000,000 intercompany loan from Lallemand UK Limited repayable on demand. This loan accrues interest at SONIA + 0.85%. |
12. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£'000 | £'000 |
Amounts falling due within one year or on demand: |
Bank overdrafts |
13. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£'000 | £'000 |
Within one year |
Between one and five years |
In more than five years |
14. | Provisions for liabilities |
2023 | 2022 |
£'000 | £'000 |
Deferred tax |
Accelerated capital allowances |
Other timing differences | (28 | ) | (33 | ) |
679 | 773 |
GB INGREDIENTS LIMITED (REGISTERED NUMBER: 00269810) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
14. | Provisions for liabilities - continued |
Deferred tax |
£'000 |
Balance at 1 February 2022 |
Provided during year |
Prior year adjustment | (95 | ) |
Balance at 31 January 2023 |
15. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £'000 | £'000 |
Ordinary | 1 | 199 | 199 |
16. | Reserves |
Retained | Share |
earnings | premium | Totals |
£'000 | £'000 | £'000 |
At 1 February 2022 | 4,462 |
Deficit for the year | ( |
) | ( |
) |
At 31 January 2023 | 4,213 |
17. | Pension commitments |
The company makes contributions to personal defined contribution pension schemes in respect of certain employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension charge represents contributions payable by the company to the fund and amounted to £248,000 during the year (2022: £244,000). There was no balance outstanding payable to the schemes as at 31 January 2023 or 31 January 2022. |
18. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
19. | Ultimate parent company and parent company of larger group |
The company is a subsidiary undertaking of Lallemand UK Limited. The ultimate controlling party is Lallemand Incorporated, a company incorporated in Canada, which the directors regard as the ultimate holding company and controlling party. Lallemand Incorporated is the largest group to consolidate these financial statements and Lallemand UK Limited is the smallest group in which they are consolidated. The consolidated financial statements of Lallemand UK Limited are available to the public and may be obtained at Companies House. |