Company registration number 03639100 (England and Wales)
CATERITE FOOD AND WINESERVICE LIMITED
CONSOLIDATED GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CATERITE FOOD AND WINESERVICE LIMITED
COMPANY INFORMATION
Directors
Mr KA Graham
Mr LJ Byrne
Mr T Malik
Mrs S Hoffmann
Secretary
Mrs S Hoffmann
Company number
03639100
Registered office
Embleton
Cockermouth
Cumbria
CA13 9YA
Auditor
Gibbons
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
Bankers
Barclays Bank Plc
Market Square
Town Centre
Penrith
Cumbria
CA11 7YB
CATERITE FOOD AND WINESERVICE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 37
CATERITE FOOD AND WINESERVICE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The directors are satisfied with the performance of the businesses. However, high inflation, increased utility costs and other global factors have made for a difficult trading environment with large increase in cost of products, services and overheads. To mitigate the cost to customers the company's buyers have strived to negotiate purchase prices as low as possible, whilst maintaining product quality, However to remain sustainable the company has been forced to pass on cost increased to customers.
Turnover for the year has increased compared to the prior period as a result of increase in unit costs as described above, and increased customer numbers due to a widening of the geographical area served. The company is in a sound financial position with net assets of £12.2M which is an increase of 17.0% from 2022.
Principal risks and uncertainties
The company is not immune to risks and the company takes a responsible and balance approach towards risk management. The directors have put procedures in place aimed to minimise the possibility and scale of specific risks that may impact the company. The company benefits from a strong market presence, reputation and goodwill.
Development and performance
The directors are continually assessing their market positions and adjusting their operations to take advantage of business opportunities. The directors are confident that the group has sufficient resources to take advantage of opportunities as they arise and the group can adapt to change.
The group has continued to reinvest significant proportions of its profits back into the business to maintain and improve the quality of its service offering.
Key performance indicators
The group's key financial and other performance indicators during the year were as follows:
fixed assets
Mr KA Graham
Director
12 March 2024
CATERITE FOOD AND WINESERVICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the company and group continued to be that of the wholesale of food, wine and other catering products to the catering industry; and the provision of storage and warehousing.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £356,004. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr KA Graham
Mr LJ Byrne
Mr T Malik
Mrs S Hoffmann
Financial instruments
Objectives and policies
Adequate finance has been made available to take advantage of all business opportunities arising during the year and the directors consider the state of affairs to be satisfactory.
The parent company and subsidiaries seek to operate within the agreed overdraft facility with the bank. All sales are to UK based customers and therefore they have not entered into any hedging arrangements in respect of risks relating to trade debtors.
Price risk, credit risk, liquidity risk and cash flow risk
The businesses' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the businesses and finance lease agreements. The main purpose of these instruments is to finance the business operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the businesses' cash balances are held in such a way that achieves a competitive rate of interest. The businesses makes use of money market facilities where funds are available.
Trade debtors are supported by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise loans from the directors and shareholders. Interest is charged at the government standard rate, repayments are on demand. The businesses manages the liquidity risk by ensuring that there are sufficient funds to meet any potential payment demands.
The businesses are lessees in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
CATERITE FOOD AND WINESERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future developments
In the next financial year the directors believe the group will continue to trade profitably and produce results which compare favourably to previous years.
Auditor
The auditor, Gibbons Chartered Accountants and Statutory Auditors, 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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr KA Graham
Director
12 March 2024
CATERITE FOOD AND WINESERVICE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CATERITE FOOD AND WINESERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CATERITE FOOD AND WINESERVICE LIMITED
- 5 -
Opinion
We have audited the financial statements of Caterite Food and Wineservice Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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 group and parent 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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' 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.
CATERITE FOOD AND WINESERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CATERITE FOOD AND WINESERVICE LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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' 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 parent 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 parent 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated with the audit team and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatements including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company's remuneration policies.
CATERITE FOOD AND WINESERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CATERITE FOOD AND WINESERVICE LIMITED
- 7 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management and those charged with governance as to actual and potential litigation and claims;
enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; and
reviewing correspondence
In response to the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.
David Harper (Senior Statutory Auditor)
For and on behalf of Gibbons
12 March 2024
Chartered Accountants
Statutory Auditor
Carleton House
136 Gray Street
Workington
Cumbria
CA14 2LU
CATERITE FOOD AND WINESERVICE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
44,006,281
38,108,879
Cost of sales
(30,077,274)
(26,380,637)
Gross profit
13,929,007
11,728,242
Distribution costs
(7,205,746)
(5,608,512)
Administrative expenses
(4,307,144)
(3,226,817)
Other operating income
419,874
281,105
Operating profit
4
2,835,991
3,174,018
Interest receivable and similar income
8
58,760
25,336
Interest payable and similar expenses
9
(33,486)
(43,223)
Amounts written off investments
10
(38,256)
(239,329)
Profit before taxation
2,823,009
2,916,802
Tax on profit
11
(687,703)
(511,219)
Profit for the financial year
2,135,306
2,405,583
Profit for the financial year is all attributable to the owners of the parent company.
CATERITE FOOD AND WINESERVICE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,135,306
2,405,583
Other comprehensive income
-
-
Total comprehensive income for the year
2,135,306
2,405,583
Total comprehensive income for the year is all attributable to the owners of the parent company.
CATERITE FOOD AND WINESERVICE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
359,350
443,750
Tangible assets
14
6,214,467
5,400,832
Investments
15
925,897
943,166
7,499,714
6,787,748
Current assets
Stocks
17
2,795,478
2,683,619
Debtors
18
4,904,455
4,544,621
Cash at bank and in hand
2,818,441
1,082,345
10,518,374
8,310,585
Creditors: amounts falling due within one year
19
(4,881,623)
(4,047,930)
Net current assets
5,636,751
4,262,655
Total assets less current liabilities
13,136,465
11,050,403
Creditors: amounts falling due after more than one year
20
(343,208)
(258,186)
Provisions for liabilities
Deferred tax liability
23
594,781
373,043
(594,781)
(373,043)
Net assets
12,198,476
10,419,174
Capital and reserves
Called up share capital
26
15,950
15,950
Share premium account
257,852
257,852
Capital redemption reserve
1,300
1,300
Other reserves
10,020
10,020
Profit and loss reserves
11,913,354
10,134,052
Total equity
12,198,476
10,419,174
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr KA Graham
Director
Company registration number 03639100 (England and Wales)
CATERITE FOOD AND WINESERVICE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
359,350
443,750
Tangible assets
14
6,203,603
5,376,174
Investments
15
925,997
943,266
7,488,950
6,763,190
Current assets
Stocks
17
2,794,883
2,683,188
Debtors
18
4,877,634
4,506,399
Cash at bank and in hand
2,747,524
886,725
10,420,041
8,076,312
Creditors: amounts falling due within one year
19
(5,075,007)
(3,929,258)
Net current assets
5,345,034
4,147,054
Total assets less current liabilities
12,833,984
10,910,244
Creditors: amounts falling due after more than one year
20
(343,208)
(258,186)
Provisions for liabilities
Deferred tax liability
23
592,065
366,509
(592,065)
(366,509)
Net assets
11,898,711
10,285,549
Capital and reserves
Called up share capital
26
15,950
15,950
Share premium account
257,852
257,852
Capital redemption reserve
1,300
1,300
Other reserves
10,020
10,020
Profit and loss reserves
11,613,589
10,000,427
Total equity
11,898,711
10,285,549
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,969,166 (2022 - £3,063,703 profit).
The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr KA Graham
Director
Company registration number 03639100 (England and Wales)
CATERITE FOOD AND WINESERVICE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
15,950
257,852
1,300
10,020
8,035,969
8,321,091
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
2,405,583
2,405,583
Dividends
12
-
-
-
-
(307,500)
(307,500)
Balance at 31 December 2022
15,950
257,852
1,300
10,020
10,134,052
10,419,174
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
2,135,306
2,135,306
Dividends
12
-
-
-
-
(356,004)
(356,004)
Balance at 31 December 2023
15,950
257,852
1,300
10,020
11,913,354
12,198,476
CATERITE FOOD AND WINESERVICE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
15,950
257,852
1,300
10,020
7,244,224
7,529,346
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
3,063,703
3,063,703
Dividends
12
-
-
-
-
(307,500)
(307,500)
Balance at 31 December 2022
15,950
257,852
1,300
10,020
10,000,427
10,285,549
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
1,969,166
1,969,166
Dividends
12
-
-
-
-
(356,004)
(356,004)
Balance at 31 December 2023
15,950
257,852
1,300
10,020
11,613,589
11,898,711
CATERITE FOOD AND WINESERVICE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
3,789,883
1,985,014
Interest paid
(27,900)
(38,580)
Income taxes paid
(366,022)
(323,563)
Net cash inflow from operating activities
3,395,961
1,622,871
Investing activities
Proceeds from disposal of intangibles
-
565,000
Purchase of tangible fixed assets
(1,145,700)
(2,497,964)
Proceeds from disposal of tangible fixed assets
49,320
1,358,138
Proceeds from disposal of investments
(20,987)
(18,226)
Interest received
33,980
2,981
Dividends received
24,780
22,355
Net cash used in investing activities
(1,058,607)
(567,716)
Financing activities
Repayment of borrowings
(59,996)
(2,940)
Repayment of bank loans
-
(1,134,624)
Payment of finance leases obligations
(185,258)
(513,540)
Dividends paid to equity shareholders
(356,004)
(307,500)
Net cash used in financing activities
(601,258)
(1,958,604)
Net increase/(decrease) in cash and cash equivalents
1,736,096
(903,449)
Cash and cash equivalents at beginning of year
1,082,345
1,985,794
Cash and cash equivalents at end of year
2,818,441
1,082,345
CATERITE FOOD AND WINESERVICE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,709,494
1,563,616
Interest paid
(27,900)
(36,129)
Income taxes paid
(160,930)
(284,866)
Net cash inflow from operating activities
3,520,664
1,242,621
Investing activities
Purchase of tangible fixed assets
(1,145,700)
(2,827,215)
Proceeds from disposal of tangible fixed assets
49,320
1,369
Purchase of investments
(20,987)
(18,226)
Interest received
33,980
2,981
Dividends received
24,780
2,022,355
Net cash used in investing activities
(1,058,607)
(818,736)
Financing activities
Repayment of borrowings
(59,996)
(2,940)
Repayment of bank loans
-
(920,306)
Payment of finance leases obligations
(185,258)
(176,136)
Dividends paid to equity shareholders
(356,004)
(307,500)
Net cash used in financing activities
(601,258)
(1,406,882)
Net increase/(decrease) in cash and cash equivalents
1,860,799
(982,997)
Cash and cash equivalents at beginning of year
886,725
1,869,722
Cash and cash equivalents at end of year
2,747,524
886,725
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
Caterite Food and Wineservice Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Embleton, Cockermouth, Cumbria, CA13 9YA.
The group consists of Caterite Food and Wineservice Limited and all of its subsidiaries.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Caterite Food and Wineservice Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is between 5 and 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Not depreciated
Leasehold land and buildings
Straight line over the life of the lease
Fixtures and fittings
10 - 25% straight line basis
Motor vehicles
20 - 25% straight line/reducing balance basis
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.10
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through 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 group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
43,668,776
37,632,269
Rendering of services
337,505
476,610
44,006,281
38,108,879
2023
2022
£
£
Other revenue
Interest income
33,980
2,981
Dividends received
24,780
22,355
All turnover is generated in the UK.
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
3,489
790
Depreciation of owned tangible fixed assets
358,792
302,707
Depreciation of tangible fixed assets held under finance leases
247,281
145,282
Profit on disposal of tangible fixed assets
(23,950)
(775,093)
Amortisation of intangible assets
84,400
84,400
Profit on disposal of intangible assets
-
(565,000)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,300
14,600
For other services
Taxation compliance services
535
500
All other non-audit services
7,536
11,502
8,071
12,002
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
210
200
207
196
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,712,369
4,704,694
5,665,612
4,608,564
Social security costs
470,551
412,449
470,551
412,449
Pension costs
116,678
101,393
116,678
101,393
6,299,598
5,218,536
6,252,841
5,122,406
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
92,413
77,914
Company pension contributions to defined contribution schemes
4,921
5,521
97,334
83,435
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2022 - 1).
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,343
77
Other interest income
11,637
2,904
Total interest revenue
33,980
2,981
Other income from investments
Dividends received
24,780
22,355
Total income
58,760
25,336
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,343
77
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
24,303
Other finance costs:
Interest on finance leases and hire purchase contracts
24,134
14,277
Finance costs for financial instruments measured at fair value through profit or loss
5,586
4,643
Other interest
3,766
-
Total finance costs
33,486
43,223
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Loss on financial assets held at fair value through profit or loss
(38,256)
(236,646)
Other gains/(losses)
Gain/(loss) on disposal of fixed asset investments
-
(2,683)
(38,256)
(239,329)
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
465,965
365,023
Deferred tax
Origination and reversal of timing differences
221,738
151,530
Changes in tax rates
(5,334)
Total deferred tax
221,738
146,196
Total tax charge
687,703
511,219
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:
2023
2022
£
£
Profit before taxation
2,823,009
2,916,802
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
705,752
554,192
Tax effect of expenses that are not deductible in determining taxable profit
1,245
589
Tax effect of income not taxable in determining taxable profit
(6,195)
(4,247)
Gains not taxable
(95,277)
Effect of change in corporation tax rate
(29,679)
40,675
Permanent capital allowances in excess of depreciation
(4,622)
(40,480)
Depreciation on assets not qualifying for tax allowances
102
5,203
Amortisation on assets not qualifying for tax allowances
21,100
16,036
Effect of revaluations of investments
(5,334)
Under/(over) provided in prior years
39,862
Taxation charge
687,703
511,219
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary A shares
Interim paid
13.41
9.41
147,481
103,480
Ordinary B shares
Interim paid
16.52
16.52
16,519
16,520
Ordinary E shares
Interim paid
103.79
101.35
192,004
187,500
Total dividends
Interim dividends paid
356,004
307,500
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,074,000
Amortisation and impairment
At 1 January 2023
630,250
Amortisation charged for the year
84,400
At 31 December 2023
714,650
Carrying amount
At 31 December 2023
359,350
At 31 December 2022
443,750
Company
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,074,000
Amortisation and impairment
At 1 January 2023
630,250
Amortisation charged for the year
84,400
At 31 December 2023
714,650
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2023
359,350
At 31 December 2022
443,750
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
4,029,703
21,072
3,104,525
2,390,386
9,545,686
Additions
14,538
558,640
871,900
1,445,078
Disposals
(168,445)
(168,445)
At 31 December 2023
4,044,241
21,072
3,663,165
3,093,841
10,822,319
Depreciation and impairment
At 1 January 2023
225,389
8,636
2,362,691
1,548,138
4,144,854
Depreciation charged in the year
4,474
655
262,939
338,005
606,073
Eliminated in respect of disposals
(143,075)
(143,075)
At 31 December 2023
229,863
9,291
2,625,630
1,743,068
4,607,852
Carrying amount
At 31 December 2023
3,814,378
11,781
1,037,535
1,350,773
6,214,467
At 31 December 2022
3,804,314
12,436
741,834
842,248
5,400,832
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
4,029,703
21,072
2,801,591
2,390,386
9,242,752
Additions
14,538
558,640
871,900
1,445,078
Disposals
(168,445)
(168,445)
At 31 December 2023
4,044,241
21,072
3,360,231
3,093,841
10,519,385
Depreciation and impairment
At 1 January 2023
225,389
8,636
2,084,415
1,548,138
3,866,578
Depreciation charged in the year
4,474
655
249,145
338,005
592,279
Eliminated in respect of disposals
(143,075)
(143,075)
At 31 December 2023
229,863
9,291
2,333,560
1,743,068
4,315,782
Carrying amount
At 31 December 2023
3,814,378
11,781
1,026,671
1,350,773
6,203,603
At 31 December 2022
3,804,314
12,436
717,176
842,248
5,376,174
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Fixtures and fittings
30,800
35,200
30,800
35,200
Motor vehicles
971,521
690,569
971,521
690,569
1,002,321
725,769
1,002,321
725,769
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
100
100
Listed investments
912,807
930,076
912,807
930,076
Unlisted investments
13,090
13,090
13,090
13,090
925,897
943,166
925,997
943,266
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
943,166
Valuation changes
(38,256)
Dividends and interest
27,691
Management fees
(6,704)
At 31 December 2023
925,897
Carrying amount
At 31 December 2023
925,897
At 31 December 2022
943,166
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
100
943,166
943,266
Valuation changes
-
(38,256)
(38,256)
Dividends and interest
-
27,691
27,691
Management fees
-
(6,704)
(6,704)
At 31 December 2023
100
925,897
925,997
Carrying amount
At 31 December 2023
100
925,897
925,997
At 31 December 2022
100
943,166
943,266
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Box Clever Cumbria Limited
Embleton, Cockermouth, Cumbria CA13 9YA United Kingdom
Storage and warehousing
Ordinary
100.00
100.00
Grapevine, The Winservice Company Limited
Embleton, Cockermouth, Cumbria CA13 9YA United Kingdom
Dormant
Ordinary
100.00
100.00
For the year ended 31 December 2023 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies act 2006 relating to subsidiary companies:
Box Clever Cumbria Limited
Grapevine, The Wineservice Company Limited
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,795,478
2,683,619
2,794,883
2,683,188
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,044,685
3,566,947
4,033,938
3,547,607
Corporation tax recoverable
20,069
20,069
Other debtors
553,311
721,419
553,311
721,419
Prepayments and accrued income
306,459
236,186
290,385
217,304
4,904,455
4,544,621
4,877,634
4,506,399
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
181,855
152,757
181,855
152,757
Other borrowings
21
54,410
54,410
Trade creditors
3,430,665
2,585,296
3,424,109
2,584,344
Amounts owed to group undertakings
305,662
141,711
Corporation tax payable
284,966
205,092
230,803
Other taxation and social security
168,441
137,853
151,632
125,206
Other creditors
106,495
106,495
Accruals and deferred income
815,696
806,027
780,946
764,335
4,881,623
4,047,930
5,075,007
3,929,258
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
343,208
258,186
343,208
258,186
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
54,410
54,410
Payable within one year
54,410
54,410
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
181,855
152,757
181,855
152,757
In two to five years
343,208
258,186
343,208
258,186
525,063
410,943
525,063
410,943
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
626,571
395,268
Revaluations
(31,790)
(22,225)
594,781
373,043
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
623,855
388,734
Revaluations
(31,790)
(22,225)
592,065
366,509
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
373,043
366,509
Charge to profit or loss
221,738
225,556
Liability at 31 December 2023
594,781
592,065
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
116,678
101,393
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
25
Share-based payment transactions
The company has granted a director the right to acquire up to 1,667 Ordinary E shares or up to 9% of the issued share capital, if lower, at an exercise price of £100 per share. The option to acquire 250 shares may only be exercised on or after 31 December 2015 and 250 shares in each subsequent year thereafter. A variation to the agreement was made during the year ended 2018, which increase the option to purchase an additional 167 shares, or up to 10% of the issued share capital, if lower, after 31 December 2020. The share options are conditional on the director remaining in the entity's employment.
Group and company
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023 and 31 December 2023
167
167
100.00
100.00
Exercisable at 31 December 2023
167
167
100.00
100.00
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
11,000
11,000
11,000
11,000
Ordinary B shares of £1 each
1,000
1,000
1,000
1,000
Ordinary C shares of £1 each
1,000
1,000
1,000
1,000
Ordinary E shares of £1 each
1,850
1,850
1,850
1,850
Ordinary F shares of £1 each
1,100
1,100
1,100
1,100
15,950
15,950
15,950
15,950
Ordinary A shares have the following rights, preferences and restrictions:
The shares have full rights in respect of voting rights, dividend rights and the right to participate to capital on winding up. The shares are not redeemable shares.
Ordinary B shares have the following rights, preferences and restrictions:
The shares have full rights in respect of voting rights, dividend rights and the right to participate to capital on winding up. The shares are not redeemable shares.
Ordinary C shares have the following rights, preferences and restrictions:
The shares have full rights in respect of voting rights, dividend rights and the right to participate to capital on winding up. The shares are not redeemable shares.
Ordinary E shares have the following rights, preferences and restrictions:
The shares have full rights in respect of voting rights, dividend rights and the right to participate to capital on winding up. The shares are not redeemable shares.
Ordinary F shares have the following rights, preferences and restrictions:
The shares have full rights in respect of voting rights, dividend rights and the right to participate to capital on winding up. The shares are not redeemable shares.
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Share capital
(Continued)
- 34 -
Shares reserved for issue
Ordinary E shares.
The company granted share options on 23 July 2015, see the previous note for details. 167 shares are reserved for issue as at 31 December 2022.
27
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
125,000
-
125,000
-
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
28
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
-
72,851
-
173,267
Key management personnel
-
4,199
-
-
Company
Entities over which the company has control, joint control or significant influence
78,802
72,851
89
173,267
Key management personnel
558
4,199
-
-
Purchase of property
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the company
-
2,000,000
Company
Entities with control, joint control or significant influence over the company
-
2,000,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
305,662
141,711
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
-
7,163
Key management personnel
-
408
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 36 -
Company
Entities over which the company has control, joint control or significant influence
6,751
7,163
Key management personnel
872
408
29
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
1,969,166
3,063,703
Adjustments for:
Taxation charged
637,358
312,023
Finance costs
33,486
40,772
Investment income
(58,760)
(2,025,336)
(Gain)/loss on disposal of tangible fixed assets
(23,950)
5,899
Amortisation and impairment of intangible assets
84,400
84,400
Depreciation and impairment of tangible fixed assets
592,279
413,673
(Gain)/loss on sale of investments
-
2,683
Other gains and losses
38,256
236,646
Movements in working capital:
Increase in stocks
(111,695)
(520,637)
Increase in debtors
(391,304)
(806,519)
Increase in creditors
940,258
756,309
Cash generated from operations
3,709,494
1,563,616
CATERITE FOOD AND WINESERVICE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,135,306
2,405,583
Adjustments for:
Taxation charged
687,703
511,219
Finance costs
33,486
43,223
Investment income
(58,760)
(25,336)
Gain on disposal of tangible fixed assets
(23,950)
(775,093)
Gain on disposal of intangible assets
-
(565,000)
Amortisation and impairment of intangible assets
84,400
84,400
Depreciation and impairment of tangible fixed assets
606,073
447,989
(Gain)/loss on sale of investments
-
2,683
Other gains and losses
38,256
236,646
Movements in working capital:
Increase in stocks
(111,859)
(519,977)
Increase in debtors
(379,903)
(767,826)
Increase in creditors
779,131
906,503
Cash generated from operations
3,789,883
1,985,014
31
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
Market value movements
31 December 2023
£
£
£
£
£
Cash at bank and in hand
1,082,345
1,736,096
-
-
2,818,441
Borrowings excluding overdrafts
(54,410)
59,996
-
(5,586)
-
Obligations under finance leases
(410,943)
185,258
(299,378)
-
(525,063)
616,992
1,981,350
(299,378)
(5,586)
2,293,378
32
Analysis of changes in net funds - company
1 January 2023
Cash flows
New finance leases
Market value movements
31 December 2023
£
£
£
£
£
Cash at bank and in hand
886,725
1,860,799
-
-
2,747,524
Borrowings excluding overdrafts
(54,410)
59,996
-
(5,586)
-
Obligations under finance leases
(410,943)
185,258
(299,378)
-
(525,063)
421,372
2,106,053
(299,378)
(5,586)
2,222,461
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