Company Registration No. 02129857 (England and Wales)
BILLINGTON FOODSERVICE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 AUGUST 2020
BILLINGTON FOODSERVICE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
BILLINGTON FOODSERVICE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 AUGUST 2020
- 1 -
The directors present the strategic report for the period ended 30 August 2020.
Fair review of the business
The company’s principal activities during the
period
continued to be the manufacture of recipe dish
meals, sauces, soups and desserts for the pub and restaurant food service sector.
Sales volumes were affected by Covid-19. The business acted speedily to flex its cost base to the new volumes and remains committed to the foodservice sector and its key customer partnerships.
The key financial and other performance indicators during the period were as follows:
52 week period ended
52 week period ended
30 August 2020
1 September 2019
£'000
£'000
Turnover
36,944
55,873
Operating (loss)/profit (pre exceptional item)
(687)
2,424
Loss/(profit) after taxation
(2,304)
1,971
Shareholders funds
10,437
12,741
Current assets % current liabilities
119%
104%
Average number of employees
471
515
Principal risks and uncertainties
The directors meet regularly to discuss the risks facing the business. The principal risks and uncertainties facing the company are broadly competitive and legislative risks:
Competitive and Consumer Risks
The company operates in a competitive environment which is driven by customer and consumer tastes. Continual product innovation is conducted by the company to offer its customers high quality premium products that meet customer and consumer tastes.
Legislative Risks
The company’s operations are governed by UK and EU legislative requirements on food production, hygiene and safety that must be met to comply with the law. Furthermore, the company’s customers have requirements for food production, hygiene and safety standards. The company strives to be a leader in its production, hygiene and safety standards and procedures to ensure compliance with relevant laws and regulations and customer expectations.
Commercial Risks
The company has established a risk and financial management framework to monitor and limit normal commercial risks such as credit control, counter party exposure, customer concentration and cost control, in order to protect the company from such risks.
Use of Derivatives
The company uses forward exchange contracts and forward purchase contracts to reduce exposure to the variability of foreign exchange rates or commodity prices by fixing the rate of any material payments in a foreign currency or providing certainty to raw material prices.
BILLINGTON FOODSERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 2 -
Employees
The company has continued to follow the requirements of Health & Safety at Work Act with concern for the welfare of its employees.
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.
The company provides employees with information about the company through internal media methods and newsletters.
Policy on payments to creditors
Creditors are paid in accordance with terms of business agreed with suppliers.
Given the nature of the company’s activities and agreed terms with suppliers, the directors have not calculated an average creditor day figure as a whole on the basis that such a statement would not be beneficial.
Climate change
The company is committed to reducing carbon emissions wherever possible and is working with The Carbon Trust to ensure that the company makes optimum use of energy at all the factories.
S172 statement
The Board of directors consider, both individually and collectively, that they have acted in ways that they believe in good faith to be most likely to promote the success of the Company for the benefit of its shareholders as a whole in the decisions they made during the period ended 30 August 2020.
We recognise our people as our most important asset and aim to be a responsible employer. The health, safety and wellbeing of our people is of the highest importance. Ensuring a safe working environment is paramount in our day to day operations.
Customers are at the heart of everything we do.
This is demonstrated in our
passion for food and food development in partnership with our foodservice partners.
We seek to develop long term partnerships with our suppliers which are mutually beneficial and ultimately deliver our customer value and a high quality product.
As the Board of Directors, our intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve profitable growth for the benefit of all our stakeholders in the future.
D Marshall
Secretary
19 May 2021
BILLINGTON FOODSERVICE LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 AUGUST 2020
- 3 -
The directors present their annual report and financial statements for the period ended 30 August 2020.
Principal activities
The principal activity of the company continued to be the manufacture of recipe dish meals, sauces, soups, pies and other bakery products for the pub and restaurant food service sector.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
G M Blake
P A Richards
(Resigned 30 October 2020)
H Blyth
J Griffiths
A Kemp
(Resigned 3 September 2019)
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Business relationships
For more information on stakeholder relationships and engagement, see the Section 172 (1) statement on page 2.
Auditor
The auditor, Mitchell Charlesworth LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
BILLINGTON FOODSERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report 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 UK 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 the company’s strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic Report on pages 1 and 2.
By order of the board
D Marshall
Secretary
19 May 2021
BILLINGTON FOODSERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BILLINGTON FOODSERVICE LIMITED
- 5 -
Opinion
We have audited the financial statements of Billington Foodservice Limited (the 'company') for the period ended 30 August 2020 which comprise the statement of comprehensive income, the balance sheet, the 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 FRS 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 30 August 2020 and of its loss 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.
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
Auditor's
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial period for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BILLINGTON FOODSERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BILLINGTON FOODSERVICE LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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 an auditor’s report 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
BILLINGTON FOODSERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BILLINGTON FOODSERVICE LIMITED
- 7 -
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 auditor's 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.
Philip Griffiths (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth LLP
19 May 2021
Chartered Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
BILLINGTON FOODSERVICE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 AUGUST 2020
- 8 -
Period
Period
ended
ended
30 August
1 September
2020
2019
Notes
£
£
Turnover
3
36,943,743
55,873,415
Cost of sales
(31,613,169)
(44,253,625)
Gross profit
5,330,574
11,619,790
Distribution costs
(2,062,412)
(2,471,334)
Administrative expenses
(6,413,834)
(6,724,356)
Other operating income
2,458,963
Exceptional item
4
(2,187,986)
Operating (loss)/profit
5
(2,874,695)
2,424,100
Interest payable and similar expenses
8
(10,752)
(65,242)
(Loss)/profit before taxation
(2,885,447)
2,358,858
Tax on (loss)/profit
9
581,000
(387,590)
(Loss)/profit for the financial period
(2,304,447)
1,971,268
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BILLINGTON FOODSERVICE LIMITED
BALANCE SHEET
AS AT
30 AUGUST 2020
30 August 2020
- 9 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
11
14,049
10,609
Tangible assets
12
8,059,697
12,451,979
Investments
13
42,487
42,487
8,116,233
12,505,075
Current assets
Stocks
15
5,934,362
6,736,916
Debtors
16
11,197,658
10,494,487
Cash at bank and in hand
167,998
19,860
17,300,018
17,251,263
Creditors: amounts falling due within one year
17
(14,492,473)
(16,651,113)
Net current assets
2,807,545
600,150
Total assets less current liabilities
10,923,778
13,105,225
Provisions for liabilities
19
(487,000)
(364,000)
Net assets
10,436,778
12,741,225
Capital and reserves
Called up share capital
22
62,500
62,500
Share premium account
96,094
96,094
Profit and loss reserves
10,278,184
12,582,631
Total equity
10,436,778
12,741,225
The financial statements were approved by the board of directors and authorised for issue on 19 May 2021 and are signed on its behalf by:
G M Blake
Director
Company Registration No. 02129857
BILLINGTON FOODSERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 AUGUST 2020
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 3 September 2018
62,500
96,094
11,611,363
11,769,957
Period ended 1 September 2019:
Profit and total comprehensive income for the period
-
-
1,971,268
1,971,268
Dividends
10
-
-
(1,000,000)
(1,000,000)
Balance at 1 September 2019
62,500
96,094
12,582,631
12,741,225
Period ended 30 August 2020:
Loss and total comprehensive income for the period
-
-
(2,304,447)
(2,304,447)
Balance at 30 August 2020
62,500
96,094
10,278,184
10,436,778
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 AUGUST 2020
- 11 -
1
Accounting policies
Company information
Billington Foodservice Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2nd Floor, Cunard Building, Liverpool, Merseyside, L3 1EL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Edward Billington and Son Limited
. These consolidated financial statements are available from its registered office
2nd Floor, Cunard Building, Liverpool, Merseyside, L3 1EL
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
despite the losses incurred, and having due regard to the impact of COVID-19 as referred to in the strategic report,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
,
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The business was impacted, like so many, by the COVID-19 pandemic. The directors took swift measures to ensure it is well positioned to face future challenges and believe it is well placed to take advantage of future market opportunities.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade and settlement discounts.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
1
Accounting policies
(Continued)
- 12 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue 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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
10 - 15% per annum
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the term of the lease
Plant and machinery
10% - 15% per annum
Fixtures, fittings & equipment
10% - 20% per annum
Motor vehicles
25% per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
1
Accounting policies
(Continued)
- 13 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less tax.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet date.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Contributions in respect of defined contribution pension schemes are charged to the Profit and Loss Account when they become payable.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
1.18
Details of transactions with fellow group undertakings where control is wholly within the group are not disclosed in these accounts as they are included in the consolidated accounts of Edward Billington and Son Limited.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover (all within the United Kingdom) is as follows:
2020
2019
£
£
Other significant revenue
Grants received
2,458,963
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
36,943,743
55,873,415
4
Exceptional item
2020
2019
£
£
Expenditure
Exceptional item
2,187,986
-
In addition to the trading impact of Covid-19, the pandemic has also caused the
company
to incur one-off exceptional business costs. This includes stock obsolescence, staff costs, restructuring and impairment of
trade
debtors
and other loans
.
5
Operating (loss)/profit
2020
2019
Operating (loss)/profit for the period is stated after charging/(crediting):
£
£
Government grants
(2,458,963)
Fees payable to the company's auditor for the audit of the company's financial statements
22,750
22,000
Depreciation of owned tangible fixed assets
867,929
1,282,668
Amortisation of intangible assets
760
Operating lease charges
832,270
740,137
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
5
Operating (loss)/profit
(Continued)
- 18 -
Remuneration paid to the company's auditor for services other than the statutory audit of the company are not analysed in these accounts, since the consolidated accounts of the ultimate parent undertaking, Edward Billington and Son Limited are required to disclose non-audit fees on a consolidated basis.
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
2019
Number
Number
Production
371
412
Administration
97
100
Management
3
3
Total
471
515
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
10,407,015
11,309,879
Social security costs
911,518
1,061,400
Pension costs
490,900
555,885
11,809,433
12,927,164
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
419,864
362,297
Company pension contributions to defined contribution schemes
40,055
36,220
459,919
398,517
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2019 - 3).
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
176,633
163,218
Company pension contributions to defined contribution schemes
17,150
12,483
Directors' emoluments stated above reflects 3 directors (201
9
-
3
directors) employed and remunerated by the company. The other directors are employed and remunerated by the ultimate parent undertaking.
8
Interest payable and similar expenses
2020
2019
£
£
Interest on bank overdrafts and loans
10,752
65,242
9
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
(684,000)
326,825
Adjustments in respect of prior periods
(20,000)
(58,235)
Total current tax
(704,000)
268,590
Deferred tax
Origination and reversal of timing differences
79,000
119,000
Changes in tax rates
44,000
Total deferred tax
123,000
119,000
Total tax (credit)/charge
(581,000)
387,590
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
9
Taxation
(Continued)
- 20 -
The actual (credit)/charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
(Loss)/profit before taxation
(2,885,447)
2,358,858
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(548,235)
448,183
Tax effect of expenses that are not deductible in determining taxable profit
2,000
3,000
Depreciation on assets not qualifying for tax allowances
12,000
12,000
Research and development tax credit
(85,000)
Adjustments in respect of prior periods
(20,000)
(58,235)
Adjustment to reflect effective tax rate
44,235
(17,358)
Deferred tax previously not recognised
14,000
Taxation (credit)/charge for the period
(581,000)
387,590
10
Dividends
2020
2019
£
£
Interim paid
1,000,000
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 21 -
11
Intangible fixed assets
Software
£
Cost
At 2 September 2019
10,609
Additions
4,200
At 30 August 2020
14,809
Amortisation and impairment
At 2 September 2019
Amortisation charged for the period
760
At 30 August 2020
760
Carrying amount
At 30 August 2020
14,049
At 1 September 2019
10,609
12
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 2 September 2019
10,639,593
12,508,381
1,119,144
36,175
24,303,293
Additions
240,732
528,894
260,791
1,030,417
Disposals
(4,636,362)
(305,744)
(4,942,106)
Transfers
(221,227)
221,227
At 30 August 2020
6,243,963
12,510,304
1,601,162
36,175
20,391,604
Depreciation and impairment
At 2 September 2019
4,732,244
6,555,257
531,734
32,079
11,851,314
Depreciation charged in the period
180,104
579,129
108,026
670
867,929
Eliminated in respect of disposals
(166,003)
(221,333)
(387,336)
At 30 August 2020
4,746,345
6,913,053
639,760
32,749
12,331,907
Carrying amount
At 30 August 2020
1,497,618
5,597,251
961,402
3,426
8,059,697
At 1 September 2019
5,907,349
5,953,124
587,410
4,096
12,451,979
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 22 -
13
Fixed asset investments
2020
2019
Notes
£
£
Investments in subsidiaries
14
42,487
42,487
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 2 September 2019 & 30 August 2020
42,487
Carrying amount
At 30 August 2020
42,487
At 1 September 2019
42,487
14
Subsidiaries
Details of the company's subsidiaries at 30 August 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Cuisine Sans Frontieres Limited
England and Wales
Dormant
Ordinary
100.00
0
Love Pies Limited
England and Wales
Dormant
Ordinary
100.00
0
Love Puds Limited
England and Wales
Dormant
Ordinary
100.00
0
Love Soup Limited
England and Wales
Dormant
Ordinary
100.00
0
Moo Co (UK) Ltd
Engaland and Wales
Dormant
A Ordinary
100.00
0
15
Stocks
2020
2019
£
£
Raw materials and consumables
1,532,021
2,842,497
Finished goods and goods for resale
4,402,341
3,894,419
5,934,362
6,736,916
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
15
Stocks
(Continued)
- 23 -
Amounts
recognised
in cost of sales during the period in respect of stock losses and obsolescence were £237,262 (2019 £83,163).
16
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
4,260,804
7,449,496
Corporation tax recoverable
675,376
245,761
Amounts owed by group undertakings
5,301,983
1,100,392
Other debtors
577,573
1,227,690
Prepayments and accrued income
381,922
471,148
11,197,658
10,494,487
During the period there was an impairment loss amounting to £
600,908
(201
9
:
£nil
) recognised against trade debtors.
17
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Bank loans and overdrafts
18
51,280
1,401,526
Trade creditors
1,563,832
2,928,304
Amounts owed to group undertakings
9,646,862
9,615,486
Taxation and social security
422,577
113,328
Other creditors
277,238
253,855
Accruals and deferred income
2,530,684
2,338,614
14,492,473
16,651,113
18
Loans and overdrafts
2020
2019
£
£
Bank overdrafts
51,280
1,401,526
Payable within one year
51,280
1,401,526
The company has provided a fixed and floating charge over all assets of the company to Barclays Bank plc.
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 24 -
19
Provisions for liabilities
2020
2019
Notes
£
£
Deferred tax liabilities
20
487,000
364,000
20
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
487,000
364,000
2020
Movements in the period:
£
Liability at 2 September 2019
364,000
Charge to profit or loss
123,000
Liability at 30 August 2020
487,000
21
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
490,900
555,885
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
62,500 Ordinary shares of £1 each
62,500
62,500
BILLINGTON FOODSERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 AUGUST 2020
- 25 -
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2020
2019
£
£
Within one year
475,009
588,998
Between two and five years
199,558
377,614
674,567
966,612
24
Ultimate parent undertaking
The ultimate parent undertaking is Edward Billington and Son Limited, which is incorporated in England and Wales.
2020-08-30
2019-09-02
false
CCH Software
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