Company Registration No. 09506166 (England and Wales)
MOORDALE FOODS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
MOORDALE FOODS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MOORDALE FOODS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,064,420
1,024,257
Current assets
Stocks
1,298,958
1,424,212
Debtors
4
768,402
804,016
Cash at bank and in hand
1,140,453
661,781
3,207,813
2,890,009
Creditors: amounts falling due within one year
5
(634,254)
(466,529)
Net current assets
2,573,559
2,423,480
Total assets less current liabilities
3,637,979
3,447,737
Creditors: amounts falling due after more than one year
6
(619,455)
(714,954)
Provisions for liabilities
(51,103)
(46,949)
Net assets
2,967,421
2,685,834
Capital and reserves
Called up share capital
7
1,135,200
1,135,200
Profit and loss reserves
1,832,221
1,550,634
Total equity
2,967,421
2,685,834
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MOORDALE FOODS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2020
31 March 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 December 2020 and are signed on its behalf by:
Mr A Arnett
Director
Company Registration No. 09506166
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
1
Accounting policies
Company information
Moordale Foods Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unicorn House, Broad Lane, Gilberdyke, Brough, HU15 2TS.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
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.
Whilst the company was impacted by the Covid-19 pandemic, it adapted working practices in line with government guidelines, maintaining operations throughout the lockdown period and to date. During this time the company did not require any additional cash funding. The directors are aware of additional support that is available should it be required, and are confident that the company will be able to meet all liabilities as they are expected to fall for at least the next twelve months.
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
.
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
(being 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 and subsequently 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:
Freehold land and buildings
2% straight line
Plant and machinery
15% reducing balance
Fixtures and fittings
20% reducing balance
Computer equipment
25% reducing balance or 33% straight line
Motor vehicles
25% reducing balance
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 4 -
Freehold 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
.
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.
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.
Cost is calculated based on the cost of purchase using the weighted average basis.
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
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction
costs
.
Financial assets classified as receivable within one year are not amortised.
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 company after deducting all of its liabilities.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, are
initially recognised at transaction price.
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. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less
. Trade creditors
are recognised initially at transaction price.
1.9
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.
1.10
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.
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.
1.11
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.
1.12
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.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 6 -
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 32
(2019 - 28).
3
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2019
790,010
277,312
62,553
87,027
55,576
1,272,478
Additions
32,562
39,888
8,953
28,615
-
110,018
Disposals
-
-
-
-
(29,163)
(29,163)
At 31 March 2020
822,572
317,200
71,506
115,642
26,413
1,353,333
Depreciation and impairment
At 1 April 2019
19,310
121,483
36,850
42,396
28,182
248,221
Depreciation charged in the year
5,434
30,817
5,969
17,846
9,789
69,855
Eliminated in respect of disposals
-
-
-
-
(29,163)
(29,163)
At 31 March 2020
24,744
152,300
42,819
60,242
8,808
288,913
Carrying amount
At 31 March 2020
797,828
164,900
28,687
55,400
17,605
1,064,420
At 31 March 2019
770,700
155,829
25,703
44,631
27,394
1,024,257
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
501,899
588,210
Other debtors
266,503
140,798
768,402
729,008
2020
2019
Amounts falling due after more than one year:
£
£
Other debtors
-
75,008
Total debtors
768,402
804,016
5
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
259,389
163,773
Taxation and social security
120,035
82,066
Other creditors
254,830
220,690
634,254
466,529
Hire purchase obligations totalling £14,770 (2019: £23,802) have been secured over the assets to which they relate.
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
619,455
714,954
Hire purchase obligations totalling £26,598 (2019: £16,857) have been secured over the assets to which they relate.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
200 Ordinary shares of £1 each
200
200
1,135,000 Preference shares of £1 each
1,135,000
1,135,000
1,135,200
1,135,200
The ordinary shares consist of 100 Ordinary £1 shares, 5 Ordinary A £1 shares, 10 Ordinary B £1 shares, 10 Ordinary C £1 shares, 10 Ordinary D £1 shares, 10 Ordinary E £1 shares, 10 Ordinary F £1 shares, 10 Ordinary G £1 shares, 10 Ordinary H £1 shares, 10 Ordinary I £1 shares, 10 Ordinary J £1 shares and 5 Ordinary K £1 shares.
Only the Ordinary £1 shares have voting rights and each class of shares has different rights to dividends. All class of shares rank pari passu in all other respects.
8
Directors' transactions
The advances are unsecured and are repayable on demand.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Advance
2.50
-
159,748
1,400
(150,600)
10,548
Advance
-
3,105
4,212
-
(4,000)
3,317
3,105
163,960
1,400
(154,600)
13,865
9
Related party transactions
Amounts owed to/by related parties
Category
Amount owed to
Amounts owed by
2020
2019
2020
2019
£
£
£
£
Key management personnel
362,857
468,097
13,865
3,105