Registered number:
02938070
MAINSTREAM INTERNATIONAL FOODS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2022
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MAINSTREAM INTERNATIONAL FOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
The principle activity of the Company is that of a wholesale meat supplier.
Within this report, the directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of risks and uncertainties we face.
The Company operates in an extremely competitive industry and profit margins are traditionally very thin. The current year has shown a bounce back from the impacts of COVID-19 and performance is beginning to return to pre-pandemic levels.
Principal risks and uncertainties
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Considering the risks and uncertainties the Company has identified, we are aware that any plans for the future development of the business may be subject to unforseen events outside of our control. This is an activity which the directors continually consider for the best future benefit of the Company.
Financial key performance indicators
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We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole. Turnover has risen to £10.1m from £8.4m. We have been able to maintain the gross margin at 20.0% by continuously reviewing our sales prices against the costs of goods.
This report was approved by the board on 29 March 2023
and signed on its behalf.
................................................
M Pick
Director
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MAINSTREAM INTERNATIONAL FOODS LIMITED
REGISTERED NUMBER:
02938070
BALANCE SHEET
AS AT
30 JUNE 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The Company's
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
29 March 2023
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................................................
M Pick
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The notes on pages 5 to 14 form part of these financial statements.
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MAINSTREAM INTERNATIONAL FOODS LIMITED
REGISTERED NUMBER:
02938070
BALANCE SHEET
(CONTINUED)
AS AT
30 JUNE 2022
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MAINSTREAM INTERNATIONAL FOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2022
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 5 to 14 form part of these financial statements.
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Mainstream International Foods Limited is a private company, limited by shares and incorporated in England in the United Kingdom. The address of the registered office is St Peter's Building, Stonebroom estate, Stonebroom, Derbyshire, United Kingdom, DE55 6LQ. The Company's registration number is 02938070.
The nature of the Company's operations and principal activities is that of wholesale meat suppliers.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The following principal accounting policies have been applied:
The Directors believe the Company's financial statements should be prepared on a going concern basis and have considered a period of twelve months from the date of approval of these financial statements.
After reviewing the most recent management accounts and their experience within the business, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. As such the Company continues to adopt the going concern basis in preparing its financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
∙
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the transaction; and
∙
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Turnover is recognised on dispatch of goods.
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit and loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. Land held by the Company is not depreciated.
Depreciation is provided on the following basis:
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Straight line over 50 years
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10%-33% reducing balance or straight line
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Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
Page 7
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.
Accounting policies (continued)
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Financial instruments (continued)
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third parties, loans to related parties and investments in ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Administration and leadership
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Charge for the year on owned assets
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Page 9
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Plant and machinery and equipment
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of land and buildings may be further analysed as follows:
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Included in freehold property is land with a cost price of £89,022 (2021: £89,022).
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Page 10
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Finished goods and goods for resale
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Stock recognised in cost of sales during the period as an expense was £8,197,658 (2021: £6,749,440)
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Prepayments and accrued income
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An impairment against trade debtors has been recognised totaling £10,060 (2021: £30,707).
Included within other debtors is the director loan accounts. See note 26 for further detail.
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Cash and cash equivalents
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Page 11
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The following liabilities were secured:
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Details of security provided:
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The bank overdraft is secured against a fixed and floating charge over the assets of the company.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Lease agreements are secured against the assets to which they relate.
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Page 12
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Credited to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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100
(2021 -
100
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Ordinary A
shares of £
1.00
each
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1
(2021 -
1
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Ordinary B
share of £
1.00
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The share capital figure for the previous period has been restated to recognise the Ordinary B share which is in issue.
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Profit and loss account
Profit and loss account - includes all current and prior period distributable retained profits and losses.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £
37,519
(2021 - £
37,723
). Contributions totalling £nil (2021 - £nil) were payable to the fund at the balance sheet date and are included in creditors.
Page 13
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MAINSTREAM INTERNATIONAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The auditors' report on the financial statements for the year ended 30 June 2022 was unqualified.
The audit report was signed on
29 March 2023
by
James Delve
(Senior statutory auditor) on behalf of
PKF Smith Cooper Audit Limited
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