Company Registration No. 09506166 (England and Wales)
MOORDALE FOODS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
MOORDALE FOODS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
MOORDALE FOODS LIMITED
BALANCE SHEET
AS AT 31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
182,926
Tangible assets
4
1,132,150
1,064,420
Investments
5
100,000
1,415,076
1,064,420
Current assets
Stocks
1,278,474
1,298,958
Debtors
6
1,302,014
768,402
Cash at bank and in hand
2,724,438
1,140,453
5,304,926
3,207,813
Creditors: amounts falling due within one year
7
(1,339,466)
(634,254)
Net current assets
3,965,460
2,573,559
Total assets less current liabilities
5,380,536
3,637,979
Creditors: amounts falling due after more than one year
8
(1,292,484)
(619,455)
Provisions for liabilities
(97,306)
(51,103)
Net assets
3,990,746
2,967,421
Capital and reserves
Called up share capital
1,135,200
1,135,200
Profit and loss reserves
2,855,546
1,832,221
Total equity
3,990,746
2,967,421
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 2021 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 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 22 October 2021 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 2021
- 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
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
20% or 33% straight line
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
1.5
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
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
.
1.6
Fixed asset investments
Investments
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
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.
1.8
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.
1.9
Cash and cash equivalents
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.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
1.10
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.
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.
1.11
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.
1.12
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.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
1.13
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.
1.14
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.16
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
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
39
32
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
3
Intangible fixed assets
Software
£
Cost
At 1 April 2020
Additions - internally developed
225,126
At 31 March 2021
225,126
Amortisation and impairment
At 1 April 2020
Amortisation charged for the year
42,200
At 31 March 2021
42,200
Carrying amount
At 31 March 2021
182,926
At 31 March 2020
4
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2020
822,572
317,200
71,506
115,642
26,413
1,353,333
Additions
47,171
37,507
10,461
57,815
152,954
Disposals
(30,153)
(30,153)
At 31 March 2021
869,743
354,707
81,967
143,304
26,413
1,476,134
Depreciation and impairment
At 1 April 2020
24,744
152,300
42,819
60,242
8,808
288,913
Depreciation charged in the year
6,132
33,549
7,269
29,466
8,808
85,224
Eliminated in respect of disposals
(30,153)
(30,153)
At 31 March 2021
30,876
185,849
50,088
59,555
17,616
343,984
Carrying amount
At 31 March 2021
838,867
168,858
31,879
83,749
8,797
1,132,150
At 31 March 2020
797,828
164,900
28,687
55,400
17,605
1,064,420
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
5
Fixed asset investments
2021
2020
£
£
Loans
100,000
Movements in fixed asset investments
Other investments
£
Cost or valuation
At 1 April 2020
-
Additions
100,000
At 31 March 2021
100,000
Carrying amount
At 31 March 2021
100,000
At 31 March 2020
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
961,317
501,899
Other debtors
340,697
266,503
1,302,014
768,402
7
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
25,000
Trade creditors
589,058
259,389
Taxation and social security
306,874
120,035
Other creditors
418,534
254,830
1,339,466
634,254
Hire purchase obligations totalling £12,677 (2020: £14,770) have been secured over the assets to which they relate. Bank loans totalling £25,000 (2020: £Nil) have been secured by way of a personal guarantee by one of the directors limited to a total of £75,000.
MOORDALE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
725,000
Other creditors
567,484
619,455
1,292,484
619,455
Hire purchase obligations totalling £13,921 (2020: £26,598) have been secured over the assets to which they relate. Bank loans totalling £725,000 (2020: £Nil) have been secured by way of a personal guarantee by one of the directors limited to a total of £75,000.
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
125,000
-
9
Related party transactions
Balances with related parties
Category
Amounts owed by
Amounts owed to
related parties
related parties
2021
2020
2021
2020
£
£
£
£
Key management personnel
19,259
13,865
362,867
362,857
10
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
10,548
-
22
(10,570)
-
Advance
2.50
-
35,414
209
(20,579)
15,044
Advance
-
3,317
4,898
-
(4,000)
4,215
13,865
40,312
231
(35,149)
19,259