Registered number |
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Company Information |
Directors |
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Auditors |
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Unit 4 |
17 Plumbers Row |
London |
E1 1EQ |
Bankers |
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50-52 Kilburn High Road |
London |
NW6 4HJ |
Registered office |
Unit 10b, Beaver Industrial Park |
Brent Road |
Southall |
Middlesex, England |
UB2 5FB |
Registered number |
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Registered number: |
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Directors' Report | |||||||
The directors present their report and financial statements for the year ended |
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Principal activities | |||||||
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Directors | |||||||
The following persons served as directors during the year: | |||||||
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Dividends | |||||||
No dividends will be distributed for the year ended 31 March 2020. | |||||||
Going concern | |||||||
Forecasts and cashflow projections for the period and beyond have been stressed-tested for severe constraints. The financial projections included the assessment on the impact on the liquidity (the ability of the business to meet all its financial obligations). Reasonable adjustments to how the business is ran have been implemented and all types of scenario considered, we believe that the company is sustainable. It will be able to meet its obligations as they fall due and continue in operating for the foreseeable future. |
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Events since the balance sheet date | |||||||
Considering the impact of Brexit and especially COVID-19 on Sales and revenues, most discretionary expenditures have been revised or in some cases, put back. The only capital expenditure we have undertaken was the creation of an extra office for the Invoicing team and an extension of our storage facility. This had already began before COVID-19 started and so we proceeded to completion. It has enabled us to have a larger storage base, therefore we will not need to use overseas warehouse as much. Sales were very slow during the first half of the period, it started recovering during the third quarter but have since been hit again by the government's lockdown and also the surge in the COVD-19 cases. We are hopeful the final quarter would be stronger as vaccines have been found. We have maintained almost all of our staff during this difficult times and employees are grateful for that. We have lost a few of our larger customers as a direct result to COVID-19, however, bad debts still remain very low, in fact, it's under 0.5% of Sales. We believe we can maintain or even improve on that as the trend looks encouraging. |
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Directors' responsibilities |
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 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. |
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he 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 auditor is aware of that information. |
This report was approved by the board on |
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B Jung | |||||||
Director | |||||||
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Strategic Report | ||
The directors present their strategic report for the year ended 31 March 2020 | ||
Review of Business | ||
TWF (UK) Ltd has had a very strong and encouraging year until the final month when COVID-19 issues set in. We still recorded nearly 12% rise in turnover over the previous year. Growth have stuttered somewhat this current year as Brexit and COVID-19 issues have hit hard. We have however, invested well especially in human resources and also upgraded our machinery base which has led to great efficiency. We have also expanded our storage facility as a result, we've reduced the need to use overseas warehouse and storage. We achieved our growth mostly from acquiring newer customers mainly with the premium-end restaurants and also by securing bigger product portfolio in supplying to the small and medium-sized takeaway groups. In addition, we achieved a higher level of Food Safety standard with SALSA and MSC certifications. These have enabled us to approach major customers which require suppliers to be equipped with a higher standard of traceability and food safety standard. We were able to achieve Gross Profit and Net Income of over 23% and 9% respectively. |
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Principal risks and uncertainties | ||
Our main areas of concern still remain in relation to the current uncertainties in the economic climate especially with regards to Brexit and its related issues and the COVID-19 pandemic. In addition to all these, we have to deal with competition from few major seafood product suppliers who are trying to break into the niche market of supplying to Japanese-themed restaurants. |
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Risk Management | ||
We have put measures in place to mitigate against any potential risk we may face in the next few years. For instance, we have invested in defroster machinery which helps to defrost super-frozen Yellowfin tuna which has allowed us to compete effectively and also helping to drive up growth by reducing cost. We have also created an additional storage facility thereby reducing the need for the use external storage and warehouse facilities. |
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KPI and the future | ||
With the achievement of the SALSA and MSC certifications, the outlook is more positive as we now have the ability and opportunity to bid for seafood supply contracts with retailers and major contract caterers. This is one area which could potentially drive and help sustain our growth for the next few years. We have also maintained a very strong cashflow position even with the current adverse economic conditions. We have also maintained positive debtor collection strategies and so our bad debt is very low, in fact, under 0.2% of total turnover to date. |
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Impact of current issues | ||
Other issues impacting on our performance presently are COVID-19, Brexit and so on. | ||
Covid-19 | ||
The advent of COVID-19 has led to a fall in Sales as a number of our major customers have either shut-down, reduced trading or in some cases, closed down altogether. Profitability has been impacted and this trend is set to continue into the foreseeable future. It has also affected the way we work. We now have staff working in different and staggered forms as we are trading at lower levels than we normally do, and also to comply with social distancing measures. We expect to achieve something in the region of up to 70% of last year's turnover. The COVID-19 pandemic is still on-going, in fact, the figures of infected people are rising. It's quite difficult to make any conclusive projections on a long term basis. We are making tactical decisions and reviewing on a quarterly basis. |
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Brexit | ||
Brexit has been an on-going process for a while now so great lessons have been learned, however, the next stage is all new to all of us so the real impact cannot be firmly analysed until it has happened. Therefore, we have followed the government's guidelines on what to do to prepare for the UK leaving the EU. We have also considered greatly how we will operate and appropriate measures have been put in place to counter any negativity. Importing from the EU for instance, have been reviewed. However, we cannot at this moment, say with all certainty that all would be well. We will continue to monitor and assess any impact and make appropriate decisions as and when we need to. |
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This report was approved by the board on 22 December 2020 and signed on its behalf. | ||
B Jung | ||
Director | ||
True World Foods (UK) Ltd | ||
Independent auditor's report | ||
to the members of True World Foods (UK) Ltd | ||
Opinion |
We have audited the financial statements of True World Foods (UK) Ltd for the year ended 31 March 2020 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows 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 the 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 March 2020 and of its profit for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
● | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis of 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 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. | |
Other information | ||
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 the audit: | ||
● | the information given in the strategic report and the directors’ report for the financial year 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. | |
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 directors’ report. | ||
We have nothing to report in respect of the following matters in relation to which 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; or |
Responsibilities of directors | ||
As explained more fully in the directors’ responsibilities statement, 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. |
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(Senior Statutory Auditor) | Unit 4 | |
for and on behalf of | 17 Plumbers Row | |
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London | |
Accountants and Statutory Auditors | ||
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E1 1EQ | |
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Income Statement | ||||||||
for the year ended |
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Notes | 2020 | 2019 | ||||||
£ | £ | |||||||
Turnover | 2 |
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Cost of sales | ( |
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Gross profit |
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Administrative expenses | ( |
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Other operating income |
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Operating profit | 3 |
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Profit/(loss) on sale of fixed assets |
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Interest receivable |
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Interest payable | 5 | ( |
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Profit on ordinary activities before taxation |
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Tax on profit on ordinary activities | 6 | ( |
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Profit for the financial year |
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Statement of Financial Position | |||||||
as at |
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Notes | 2020 | 2019 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 7 |
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Current assets | |||||||
Stocks | 8 |
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Debtors | 9 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 10 | ( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year | 11 | ( |
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Provisions for liabilities | |||||||
Deferred taxation | 14 | ( |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 15 |
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Share premium | 16 |
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Profit and loss account | 17 |
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Total equity |
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B Jung | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | |||||||||
for the year ended |
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Share | Share | Profit | Total | ||||||
capital | premium | and loss | |||||||
account | |||||||||
£ | £ | £ | £ | ||||||
At 1 April 2018 |
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Profit for the financial year | 1,866,741 | 1,866,741 | |||||||
At 31 March 2019 | 3 | 164,157 | 5,511,492 | 5,675,652 | |||||
At 1 April 2019 |
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Profit for the financial year |
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At 31 March 2020 |
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True World Foods (UK) Ltd | |||||||||
Notes to the Accounts | |||||||||
for the year ended 31 March 2020 | |||||||||
1 | Summary of significant accounting policies | ||||||||
Basis of preparation | |||||||||
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Turnover | |||||||||
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Going concern | |||||||||
The directors have strategically assessed the ability of the company to continue as a going concern, and it's reviewed on a regular basis. Forecasts and cashflow projections for the period and beyond have been stressed-tested for severe constraints. The financial projections included the assessment on the impact on the liquidity (the ability of the business to meet all its financial obligations). Reasonable adjustments to how the business is ran have been implemented and all types of scenario considered, we believe that the company is sustainable. It will be able to meet its obligations as they fall due and continue in operating for the foreseeable future. |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: | |||||||||
Freehold buildings | 2% on costs | ||||||||
Plant and machinery | 20% reducing balance; 10% straight line | ||||||||
Fixtures, fittings, tools and equipment | 25% reducing balance |
Investment property | |||||||||
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Stocks | |||||||||
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Taxation | |||||||||
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Foreign currency translation | |||||||||
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. |
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Leased assets | |||||||||
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Pensions | |||||||||
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2 | Analysis of turnover | 2020 | 2019 | ||||||
£ | £ | ||||||||
Sale of goods |
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By geographical market: | |||||||||
UK |
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Europe |
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3 | Operating profit | 2020 | 2019 | ||||||
£ | £ | ||||||||
This is stated after charging: | |||||||||
Depreciation of owned fixed assets |
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Auditors' remuneration for audit services |
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Carrying amount of stock sold |
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4 | Staff costs | 2020 | 2019 | ||||||
£ | £ | ||||||||
Wages and salaries |
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Other pension costs |
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Average number of employees |
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5 | Interest payable | 2020 | 2019 | ||||||
£ | £ | ||||||||
Bank loans and overdrafts |
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Finance charges payable under finance leases and hire purchase contracts |
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6 | Taxation | 2020 | 2019 | ||||||
£ | £ | ||||||||
Analysis of charge in period | |||||||||
Current tax: | |||||||||
UK corporation tax on profits of the period |
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Deferred tax: | |||||||||
Origination and reversal of timing differences |
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Tax on profit on ordinary activities |
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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: | |||||||||
2020 | 2019 | ||||||||
£ | £ | ||||||||
Profit on ordinary activities before tax |
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£ | £ | ||||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax |
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Effects of: | |||||||||
Expenses not deductible for tax purposes |
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Capital allowances for period in excess of depreciation | ( |
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Current tax charge for period |
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Factors that may affect future tax charges | |||||||||
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 2019 |
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Additions |
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Disposals | ( |
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At 31 March 2020 |
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Depreciation | |||||||||
At 1 April 2019 |
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Charge for the year |
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On disposals | ( |
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At 31 March 2020 |
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Carrying amount | |||||||||
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At 31 March 2019 |
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8 | Stocks | 2020 | 2019 | ||||||
£ | £ | ||||||||
Finished goods and goods for resale |
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9 | Debtors | 2020 | 2019 | ||||||
£ | £ | ||||||||
Trade debtors |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Other debtors |
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10 | Creditors: amounts falling due within one year | 2020 | 2019 | ||||||
£ | £ | ||||||||
Obligations under finance lease and hire purchase contracts |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Corporation tax |
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Other taxes and social security costs |
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Other creditors |
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11 | Creditors: amounts falling due after one year | 2020 | 2019 | ||||||
£ | £ | ||||||||
Bank loans |
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Obligations under finance lease and hire purchase contracts | - |
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12 | Loans | 2020 | 2019 | ||||||
£ | £ | ||||||||
Loans not wholly repayable within five years: | |||||||||
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The bank loans are secured on the trading premises. | |||||||||
13 | Obligations under finance leases and hire purchase | 2020 | 2019 | ||||||
contracts | £ | £ | |||||||
Amounts payable: | |||||||||
Within one year |
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Within two to five years | - |
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14 | Deferred taxation | 2020 | 2019 | ||||||
£ | £ | ||||||||
Accelerated capital allowances |
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2020 | 2019 | ||||||||
£ | £ | ||||||||
At 1 April |
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Charged to the profit and loss account |
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At 31 March |
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15 | Share capital | Nominal | 2020 | 2020 | 2019 | ||||
value | Number | £ | £ | ||||||
Allotted, called up and fully paid: | |||||||||
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16 | Share premium | 2020 | 2019 | ||||||
£ | £ | ||||||||
At 1 April |
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At 31 March |
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17 | Profit and loss account | 2020 | 2019 | ||||||
£ | £ | ||||||||
At 1 April |
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Profit for the financial year |
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At 31 March |
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18 | Events after the reporting date | ||||||||
The only capital expenditure we have undertaken was the creation of an extra office for the Invoicing team and an extension of our storage facility. This had already began before COVID-19 started and so we proceeded to completion. It has enabled us to have a larger storage base, therefore we will not need to use overseas warehouse as much. Sales were very slow during the first half of the period, it started recovering during the third quarter but have since been hit again by the government's lockdown and also the surge in the COVD-19 cases. We are hopeful the final quarter would be stronger as vaccines have been found. |
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19 | Defined benefit pension plans | ||||||||
The pension charge amounted to £27,513 (2019: £14,946) during the year. Contributions amounting to £11,949 (2019 £2,990) were payable to the fund at the balance sheet date and are included in creditors. |
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20 | Related party transactions | ||||||||
True World Foods Limited | |||||||||
Parent company | |||||||||
Amount due to the related party | (7,835) | (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 | 110,529 | 1,085,833 | |||||||
Amount due (to)/from the related party | (28,728) | (255,307) | |||||||
True World Foods Spain S.L. | |||||||||
Fellow subsidiary | |||||||||
Sale of wholesale fish | 320,231 | 91,394 | |||||||
Amount due (to)/from the related party | 338,268 | 184,779 | |||||||
21 | Controlling party | ||||||||
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22 | Presentation currency | ||||||||
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23 | Legal form of entity and country of incorporation | ||||||||
True World Foods (UK) Ltd is a private company limited by shares and incorporated in England. | |||||||||
24 | Principal place of business | ||||||||
The address of the company's principal place of business is: | |||||||||
Unit 10b, Beaver Industrial Park | |||||||||
Brent Road | |||||||||
Southall | |||||||||
Middlesex, England | |||||||||
UB2 5FB |