Company Registration No. 03174495 (England and Wales)
THE REAL YORKSHIRE PUDDING CO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
THE REAL YORKSHIRE PUDDING CO LIMITED
COMPANY INFORMATION
Directors
Mr P G Airey
Mr C R Payne
Mr P Simmonds
Mr R Davies
Company number
03174495
Registered office
Coulman Road Industrial Estate
Thorne
Doncaster
South Yorkshire
DN8 5JS
Auditor
Henton & Co LLP
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
Business address
Coulman Road Industrial Estate
Thorne
Doncaster
South Yorkshire
DN8 5JS
THE REAL YORKSHIRE PUDDING CO LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
THE REAL YORKSHIRE PUDDING CO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 2020.
Principal activity
The principal activity of company is that of a food manufacturer, specialising in Yorkshire Puddings and associated products.
Fair review of the business
The Group delivered sales growth of 20% year on year underpinned by its core chilled and gluten free Yorkshire pudding range. The group currently supplies the major multiple retailers with whom we have also been able to secure the distribution of a wider range of products with increased penetration. Along with this organic growth the Group secured a major new customer part way through the year and intend to build on this relationship in the coming year.
The Group has continued to focus on the development of ‘The Real Yorkshire Pudding Co.’ brand through new product development and social media content. Branded products are available in multiple retailers, showed year on year growth of almost 50% and now accounts for 10% of total sales (8% - 2018/19). This includes a new improved gluten free Yorkshire Pudding recipe and a variety of Toad in the Holes, with further developments anticipated.
During Q4 the UK also faced the challenge presented by COVID-19. As a food manufacturer we enhanced our already rigorous hygiene standards and implemented a series of additional measures including the introduction of PPE, hand sanitisers and social distancing in order to keep colleagues safe. The health of our colleagues remains our number one priority and the implementation of these additional measures resulted in a low overall level of absence, albeit at a cost to the business.
The demand for our product at the end of March was exceptionally high as consumers stocked up whilst retail supply chains came increasingly under pressure. We have seen this high demand continue into 2020/21 with our customers eating more meals at home rather than eating out in restaurants, pubs, cafés, places of work and education. We anticipate this high level of demand will continue while restrictions on out-of-home eating remain in place. The Group has maintained supply throughout this period and we are proud of our operational colleagues who have responded to this challenge with great energy and commitment.
The Group’s overall growth strategy remains the development of new products which are set to leverage off our existing capacity and into areas that complement our range and brand. We have therefore continued to invest in our people, research and development and in our own products and facility.
During this financial year to 31 March 2020 The Real Yorkshire Pudding Co Limited has also invested over £350,000 in capital items required to support growth.
Principal risks and uncertainties
The Group operates in an environment which is continually changing and as a result the risks it faces will also change over time.
The principal risks facing the food industry continue to revolve around the price of raw materials and other input costs. We continue to monitor price inflation and are looking to offset these where possible, in part through increased efficiency and productivity throughout our operations and the reduction of raw material wastage.
The current macroeconomic environment and uncertainty over Brexit also presents a further risk to the cost of raw materials. Whilst the Group has no control over fluctuations in the longer-term price, import tariffs and the availability of ingredients resulting out of Brexit the Group has continued to develop its UK based supply chain in order to protect itself from a no deal scenario.
Compliance with the technical manufacturing standards expected by retailers also continues to be a business priority. We encourage relevant and proactive dialogue across key functions with our customers and suppliers in order to develop relationships and ensure satisfactory results with the service and products we deliver.
THE REAL YORKSHIRE PUDDING CO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
Future outlook
The Group continues to build on new and existing customer relationships focussing on product quality and excellent service into the food retail market.
Through an ongoing programme in branded and non-branded product development several new lines have been developed this year setting the business well for continued growth in 2020/21.
Continued investment in our People and the 2020/21 Capital Plan also provides a great foundation for the year ahead.
Mr P G Airey
Director
12 August 2020
THE REAL YORKSHIRE PUDDING CO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2020.
Principal activities
The principal activity of the company continued to be that of
the manufacture and sale of Yorkshire puddings.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P G Airey
Mr C R Payne
Mr P Simmonds
Mr R Davies
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
The auditor, Henton & Co LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
Mr P G Airey
Director
12 August 2020
THE REAL YORKSHIRE PUDDING CO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
The directors are responsible for preparing the annual 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;
-
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.
THE REAL YORKSHIRE PUDDING CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE REAL YORKSHIRE PUDDING CO LIMITED
- 5 -
Opinion
We have audited the financial statements of The Real Yorkshire Pudding Co Limited (the 'company') for the year ended 31 March 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 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; 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 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.
THE REAL YORKSHIRE PUDDING CO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE REAL YORKSHIRE PUDDING CO 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.
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.
Chris Howitt (Senior Statutory Auditor)
for and on behalf of Henton & Co LLP
12 August 2020
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
THE REAL YORKSHIRE PUDDING CO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
2020
2019
Notes
£
£
Turnover
3
15,260,662
12,770,412
Cost of sales
(10,981,186)
(9,042,085)
Gross profit
4,279,476
3,728,327
Administrative expenses
(3,210,206)
(2,825,304)
Other operating income
678
163
Operating profit
4
1,069,948
903,186
Interest receivable and similar income
6
569
1,885
Interest payable and similar expenses
7
(18,654)
(21,453)
Profit before taxation
1,051,863
883,618
Tax on profit
8
(343,903)
(294,045)
Profit for the financial year
707,960
589,573
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE REAL YORKSHIRE PUDDING CO LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 8 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,407,985
2,298,703
Current assets
Stocks
10
719,917
575,598
Debtors
11
2,434,123
2,875,056
Cash at bank and in hand
1,647,596
806,259
4,801,636
4,256,913
Creditors: amounts falling due within one year
12
(2,072,033)
(2,070,393)
Net current assets
2,729,603
2,186,520
Total assets less current liabilities
5,137,588
4,485,223
Creditors: amounts falling due after more than one year
13
(649,993)
(716,661)
Provisions for liabilities
15
(120,064)
(108,991)
Net assets
4,367,531
3,659,571
Capital and reserves
Called up share capital
18
40
40
Profit and loss reserves
4,367,491
3,659,531
Total equity
4,367,531
3,659,571
The financial statements were approved by the board of directors and authorised for issue on 12 August 2020 and are signed on its behalf by:
Mr P G Airey
Director
Company Registration No. 03174495
THE REAL YORKSHIRE PUDDING CO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2018
40
3,069,958
3,069,998
Year ended 31 March 2019:
Profit and total comprehensive income for the year
-
589,573
589,573
Balance at 31 March 2019
40
3,659,531
3,659,571
Year ended 31 March 2020:
Profit and total comprehensive income for the year
-
707,960
707,960
Balance at 31 March 2020
40
4,367,491
4,367,531
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 10 -
1
Accounting policies
Company information
The Real Yorkshire Pudding Co Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Coulman Road Industrial Estate, Thorne, Doncaster, South Yorkshire, DN8 5JS.
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.
The company has applied the disclosure exemptions available within FRS 102 as a result of it being a subsidiary of Go2 Foods Limited, a company which has prepared consolidated accounts to 31 March 2020. As a result, these financial statements do not include a statement of cash flows.
1.2
Going concern
A
true
t the time of approving the financial statements
,
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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 discounts, settlement discounts and volume rebates.
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
Tangible fixed assets
Tangible fixed assets
are initially measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
4% straight line
Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
33% reducing balance
Land is not depreciated.
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
.
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 11 -
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
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.
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.
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 12 -
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.
Other financial liabilities
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 though 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.
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
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.
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Key areas of judgement and estimation relate to provisions against stocks and doubtful debt, but the directors are satisfied that there is no significant risk of material misstatement arising.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Manufacture and sale of Yorkshire puddings
15,260,662
12,770,412
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
3
Turnover and other revenue
(Continued)
- 14 -
2020
2019
£
£
Other significant revenue
Interest income
569
1,885
2020
2019
£
£
Turnover analysed by geographical market
UK
15,056,112
12,527,122
Europe
5,446
28,936
Rest of World
199,104
214,354
15,260,662
12,770,412
4
Operating profit
2020
2019
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
9,500
Depreciation of owned tangible fixed assets
270,676
234,485
Loss/(profit) on disposal of tangible fixed assets
3,476
(332)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Production staff
153
142
Administrative staff
11
11
Total
164
153
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
5
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
3,504,805
2,898,306
Social security costs
283,078
227,430
Pension costs
68,071
44,041
3,855,954
3,169,777
6
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
569
1,885
7
Interest payable and similar expenses
2020
2019
£
£
Interest on bank overdrafts and loans
18,654
21,453
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 16 -
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
332,830
295,321
Deferred tax
Origination and reversal of timing differences
11,073
(1,276)
Total tax charge
343,903
294,045
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit before taxation
1,051,863
883,618
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
176,104
167,887
Tax effect of expenses that are not deductible in determining taxable profit
196,080
148,580
Depreciation on assets not qualifying for tax allowances
(6,051)
3,644
Research and development tax credit
(22,230)
(26,066)
Tax expense for the year
343,903
294,045
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 17 -
9
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2019
1,859,477
2,713,781
210,467
4,783,725
Additions
93,574
191,343
102,517
387,434
Disposals
-
(9,345)
-
(9,345)
At 31 March 2020
1,953,051
2,895,779
312,984
5,161,814
Depreciation and impairment
At 1 April 2019
224,233
2,093,636
167,153
2,485,022
Depreciation charged in the year
61,726
160,803
48,147
270,676
Eliminated in respect of disposals
-
(1,869)
-
(1,869)
At 31 March 2020
285,959
2,252,570
215,300
2,753,829
Carrying amount
At 31 March 2020
1,667,092
643,209
97,684
2,407,985
At 31 March 2019
1,635,244
620,145
43,314
2,298,703
10
Stocks
2020
2019
£
£
Raw materials and consumables
586,993
408,092
Finished goods and goods for resale
132,924
167,506
719,917
575,598
11
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
2,181,033
1,911,729
Amounts owed by group undertakings
-
698,840
Other debtors
159,950
173,741
Prepayments and accrued income
93,140
90,746
2,434,123
2,875,056
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 18 -
12
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Bank loans
14
66,668
66,668
Trade creditors
1,385,628
1,529,488
Amounts owed to group undertakings
24,650
-
Corporation tax
192,830
155,321
Other taxation and social security
70,852
65,167
Other creditors
2,631
18,417
Accruals and deferred income
328,774
235,332
2,072,033
2,070,393
13
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
14
649,993
716,661
Amounts included above which fall due after five years are as follows:
Payable by instalments
383,321
449,989
14
Loans and overdrafts
2020
2019
£
£
Bank loans
716,661
783,329
Payable within one year
66,668
66,668
Payable after one year
649,993
716,661
The bank loans are secured by:
-
a first legal mortgage over the freehold property of the company;
-
a debenture comprising fixed and floating charges over all the assets and undertaking of the company;
-
a debenture comprising fixed and floating charges over all the assets and undertaking of RYPC Holdings Limited;
-
a debenture comprising fixed and floating charges over all the assets and undertaking of Go2 Foods Limited; and
-
an unlimited composite company guarantee given by the company, RYPC Holdings Limited and Go2 Foods Limited to secure the liabilities of each other.
The company's bank loan is repayable over fifteen years in equal quarterly instalments. Interest charged is at 1.95% per annum over the published Bank of England base rate.
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 19 -
15
Provisions for liabilities
2020
2019
Notes
£
£
Deferred tax liabilities
16
120,064
108,991
16
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:
£
£
ACAs
122,167
111,094
Tax losses
(2,103)
(2,103)
120,064
108,991
2020
Movements in the year:
£
Liability at 1 April 2019
108,991
Charge to profit or loss
11,073
Liability at 31 March 2020
120,064
17
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,071
44,041
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.
18
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
40 Ordinary shares of £1 each
40
40
THE REAL YORKSHIRE PUDDING CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 20 -
19
Operating lease commitments
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
7,273
7,273
Between two and five years
4,849
12,122
12,122
19,395
20
Ultimate controlling party
The ultimate parent company is Go2 Foods Limited, a company incorporated in England and Wales. Go2 Foods Limited does not have an ultimate controlling party.
The consolidated accounts of Go2 Foods Limited can be obtained from that company at Coulman Road Industrial Estate, Thorne, Doncaster, DN8 5JS.
2020-03-31
2019-04-01
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CCH Software
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