True World Foods (UK) Ltd
|
Statement of Cash Flows |
for the year ended 31 March 2019
|
|
Notes |
|
2019 |
|
2018 |
£ |
£ |
Operating activities |
Profit for the financial year |
1,866,741 |
|
950,603 |
|
Adjustments for: |
Loss on sale of fixed assets |
2,836 |
|
18,700 |
Interest receivable |
(190) |
|
(101) |
Interest payable |
32,097 |
|
31,615 |
Tax on profit on ordinary activities |
450,637 |
|
233,885 |
Depreciation |
257,692 |
|
260,988 |
Increase in stocks |
(1,061,099) |
|
(491,256) |
Increase in debtors |
(795,033) |
|
(315,422) |
Increase in creditors |
485,122 |
|
78,093 |
|
|
|
1,238,803 |
|
767,105 |
|
Interest received |
190 |
|
101 |
Interest paid |
|
|
(29,570) |
|
(29,889) |
Interest element of finance lease payments |
(2,527) |
|
(1,726) |
Corporation tax paid |
(534,000) |
|
(263,304) |
|
Cash generated by operating activities |
672,896 |
|
472,287 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(250,857) |
|
(183,650) |
Proceeds from sale of tangible fixed assets |
1,200 |
|
5,022 |
|
Cash used in investing activities |
(249,657) |
|
(178,628) |
|
|
|
|
|
|
Financing activities |
Repayment of loans |
(164,217) |
|
(164,950) |
Capital element of finance lease payments |
(15,258) |
|
40,227 |
|
Cash used in financing activities |
(179,475) |
|
(124,723) |
|
|
|
|
|
|
Net cash generated |
Cash generated by operating activities |
672,896 |
|
472,287 |
Cash used in investing activities |
(249,657) |
|
(178,628) |
Cash used in financing activities |
(179,475) |
|
(124,723) |
|
Net cash generated |
243,764 |
|
168,914 |
|
Cash and cash equivalents at 1 April |
1,093,967 |
|
925,053 |
Cash and cash equivalents at 31 March |
1,337,731 |
|
1,093,967 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
1,337,731 |
|
1,093,967 |
|
|
|
|
|
|
|
|
|
Investment property |
|
Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss.
|
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
|
|
|
Debtors
|
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
|
|
|
Creditors
|
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
|
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
|
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
|
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
|
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate.
|
|
|
2 |
Analysis of turnover |
2019 |
|
2018 |
£ |
£ |
|
|
Sale of goods |
22,655,568 |
|
17,662,942 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
22,135,930 |
|
17,411,578 |
|
Europe |
462,778 |
|
251,364 |
|
Rest of world |
56,860 |
|
- |
|
|
|
|
|
|
22,655,568 |
|
17,662,942 |
|
|
|
|
|
|
|
|
|
|
3 |
Operating profit |
2019 |
|
2018 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
257,692 |
|
260,988 |
|
Auditors' remuneration for audit services |
9,000 |
|
9,000 |
|
Carrying amount of stock sold |
16,386,618 |
|
13,430,944 |
|
|
|
|
|
|
|
|
|
|
4 |
Staff costs |
2019 |
|
2018 |
£ |
£ |
|
|
Wages and salaries |
1,922,590 |
|
1,561,506 |
|
Other pension costs |
14,946 |
|
9,249 |
|
|
|
|
|
|
1,937,536 |
|
1,570,755 |
|
|
|
|
|
|
|
|
|
|
5 |
Interest payable |
2019 |
|
2018 |
£ |
£ |
|
|
Bank loans and overdrafts |
29,570 |
|
29,889 |
|
Finance charges payable under finance leases and hire purchase contracts |
|
2,527 |
|
1,726 |
|
|
|
|
|
|
32,097 |
|
31,615 |
|
|
|
|
|
|
|
|
|
|
6 |
Taxation |
2019 |
|
2018 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
435,747 |
|
234,750 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
14,890 |
|
(865) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
450,637 |
|
233,885 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2019 |
|
2018 |
£ |
£ |
|
Profit on ordinary activities before tax |
2,317,378 |
|
1,184,488 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK
|
19% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
440,302 |
|
225,053 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
47,293 |
|
4,187 |
|
Capital allowances for period in excess of depreciation |
(51,848) |
|
5,510 |
|
|
Current tax charge for period |
435,747 |
|
234,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2018 |
1,533,275 |
|
1,469,397 |
|
339,526 |
|
3,342,198 |
|
Additions |
- |
|
87,202 |
|
163,655 |
|
250,857 |
|
Disposals |
- |
|
- |
|
(28,845) |
|
(28,845) |
|
At 31 March 2019 |
1,533,275 |
|
1,556,599 |
|
474,336 |
|
3,564,210 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2018 |
136,381 |
|
915,744 |
|
103,062 |
|
1,155,187 |
|
Charge for the year |
29,360 |
|
176,147 |
|
52,185 |
|
257,692 |
|
On disposals |
- |
|
- |
|
(24,809) |
|
(24,809) |
|
At 31 March 2019 |
165,741 |
|
1,091,891 |
|
130,438 |
|
1,388,070 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2019 |
1,367,534 |
|
464,708 |
|
343,898 |
|
2,176,140 |
|
At 31 March 2018 |
1,396,894 |
|
553,653 |
|
236,464 |
|
2,187,011 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Stocks |
2019 |
|
2018 |
£ |
£ |
|
|
Finished goods and goods for resale |
3,136,892 |
|
2,075,793 |
|
|
|
|
|
|
|
|
|
|
9 |
Debtors |
2019 |
|
2018 |
£ |
£ |
|
|
Trade debtors |
2,866,738 |
|
2,334,683 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
384,794 |
|
159,372 |
|
Other debtors |
137,772 |
|
100,216 |
|
|
|
|
|
|
3,389,304 |
|
2,594,271 |
|
|
|
|
|
|
|
|
|
|
Included in trader debtors is an amount of £180,483 due from True World foods Spain S.L., a group undertaking. |
|
10 |
Creditors: amounts falling due within one year |
2019 |
|
2018 |
£ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
16,490 |
|
15,258 |
|
Trade creditors |
1,805,491 |
|
1,372,391 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
1,218,500 |
|
1,193,982 |
|
Corporation tax |
62,605 |
|
160,858 |
|
Other taxes and social security costs |
65,720 |
|
49,152 |
|
Other creditors |
42,036 |
|
31,100 |
|
|
|
|
|
|
3,210,842 |
|
2,822,741 |
|
|
|
|
|
|
|
|
|
|
11 |
Creditors: amounts falling due after one year |
2019 |
|
2018 |
£ |
£ |
|
|
Bank loans |
1,042,023 |
|
1,206,240 |
|
Obligations under finance lease and hire purchase contracts |
8,709 |
|
25,199 |
|
|
|
|
|
|
1,050,732 |
|
1,231,439 |
|
|
|
|
|
|
|
|
|
|
12 |
Obligations under finance leases and hire purchase |
2019 |
|
2018 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
16,490 |
|
15,258 |
|
Within two to five years |
8,709 |
|
25,199 |
|
|
|
|
|
|
25,199 |
|
40,457 |
|
|
|
|
|
|
|
|
|
|
|
13 |
Deferred taxation |
2019 |
|
2018 |
£ |
£ |
|
|
Accelerated capital allowances |
102,841 |
|
87,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
£ |
£ |
|
|
At 1 April |
87,951 |
|
88,816 |
|
Charged/(credited) to the profit and loss account |
14,890 |
|
(865) |
|
|
At 31 March |
102,841 |
|
87,951 |
|
|
|
|
|
|
|
|
|
|
|
14 |
Share capital |
Nominal |
|
2019 |
|
2019 |
|
2018 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares
|
£1 each |
|
3 |
|
3 |
|
3 |
|
|
|
|
|
|
|
|
|
|
15 |
Share premium |
2019 |
|
2018 |
£ |
£ |
|
|
At 1 April |
164,157 |
|
164,157 |
|
|
At 31 March |
164,157 |
|
164,157 |
|
|
|
|
|
|
|
|
|
|
16 |
Profit and loss account |
2019 |
|
2018 |
£ |
£ |
|
|
At 1 April |
3,644,751 |
|
2,694,148 |
|
Profit for the financial year |
1,866,741 |
|
950,603 |
|
|
At 31 March |
5,511,492 |
|
3,644,751 |
|
|
|
|
|
|
|
|
|
|
17 |
Pension commitments |
|
|
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge amounted to £14,946 (2018 £9,249) during the year. Contributions amounting to £2,990 (2018 £1,402) were payable to the fund at the balance sheet date and are included in creditors.
|
|
|
18 |
Related party transactions |
|
|
True World Foods Limited |
|
Parent company |
|
|
|
Amount due to the related party |
(963,193) |
|
(963,193) |
|
|
|
|
|
|
|
|
|
|
True World Foods Holdings LLC |
|
Ultimate parent company |
|
|
|
Amount due from the related party |
380,498 |
|
- |
|
|
|
|
|
|
|
|
|
|
True World Japan Inc |
|
Fellow subsidiary |
|
Purchase of fresh food and wholesale fish |
|
1,085,833 |
|
82,187 |
|
|
|
|
|
|
|
|
|
|
Amount due (to)/from the related party |
(255,307) |
|
(230,137) |
|
|
|
|
|
|
|
|
|
|
True World Foods NY LLC |
|
Fellow subsidiary |
|
|
Amount due (to)/from the related party |
- |
|
(652) |
|
True World Foods Spain S.L. |
|
Fellow subsidiary |
|
Sale of wholesale fish |
|
91,394 |
|
7,001 |
|
|
|
|
|
|
|
|
|
|
Amount due (to)/from the related party |
184,779 |
|
159,372 |
|
|
|
19 |
Ultimate parent company |
|
|
The company is wholly owned subsidiary of True World Foods Limited a company registered in the Republic of Ireland, company number 393077. The ultimate parent company is True World Holdings LLC incorporated in the United States which is controlled by Family Federation for World Peace & Unification, a not for profit organisation based in the USA.
|
|
|
20 |
Presentation currency |
|
|
The financial statements are presented in Sterling.
|
|
|
21 |
Legal form of entity and country of incorporation |
|
|
True World Foods (UK) Ltd is a private company limited by shares and incorporated in England. |
|
|
22 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Unit 10b, Beaver Industrial Park |
|
Brent Road |
|
Southall |
|
Middlesex. England |
|
UB2 5FB |