Harvey & Brockless Limited Company accounts

HARVEY & BROCKLESS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 01442472

HARVEY & BROCKLESS LIMITED

FINANCIAL STATEMENTS

30 September 2022

HARVEY & BROCKLESS LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	9

Statement of income and retained earnings	13

Statement of financial position	14

Statement of cash flows	15

Notes to the financial statements	16

HARVEY & BROCKLESS LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	J P S Archer
	N G Martin
	N L Philip
	S D Yorke

Company secretary	S T Coudjoe

Registered office	44-54 Stewarts Road
	London
	SW8 4DF

Auditor	UHY Hacker Young
	Chartered accountants & statutory auditor
	168 Church Road
	Hove
	East Sussex
	BN3 2DL

Bankers	Barclays Bank Plc
	London Corporate Banking
	Knightsbridge Business Centre
	7th Floor, United Kingdom House
	180 Oxford Street
	London
	W1D 1EA

HARVEY & BROCKLESS LIMITED

STRATEGIC REPORT

YEAR ENDED 30 SEPTEMBER 2022

Principal activity The principal activity of the company during the year was that of processing, distributing and wholesaling of premium cheeses, other dairy products and speciality foods to the UK food service and food manufacturing sector. The company supplies prestige restaurants and hotels, national restaurant chains, leading hotel chains, national food service and catering providers, high-end travel accounts and other wholesale providers. The company procures supplies in both the UK and continental Europe. Business review The directors report that profit before corporation tax was £794,650 (2021: loss £2,636,928). The company's performance has improved primarily because the impact of Covid 19 has receded. The directors consider a return to profitability to be a good performance and are pleased to report that the first six months of FY 2023 have continued to show recovery and growth in all areas. Principal risks and uncertainties Although the company has not returned to pre Covid levels of performance during the year: due to certain sales sectors (specifically travel and office catering) having not fully recovered; the Omicorn variant impacting on the Christmas and New Year trade; and the inflationary and supply impact of the Ukraine war. The directors are pleased to advise that performance for the first six months of the year ended 30 September 2023 is in line with pre Covid levels. Whilst the impact of the Ukrainian war has had a material effect on the cost of dairy and other speciality foods as well as on the company overheads and salaries, these increases have on the whole been passed onto customers. The rate of the increase seems to have peaked and so barring any escalation of the war or other global event, the directors anticipate the impact of inflation to be diminishing. The company has now been trading cashflow positive for over 2 years and the directors are confident that the company has sufficient liquidity. The directors have nevertheless considered downside scenarios and management have prepared forecasts and working capital requirements for the next 18 months and are confident that the company has sufficient liquidity to at least September 2024. Despite these risks, the directors will continue to take a long term view and invest in building a great team and focus on the continuous improvement of the quality of the food supplied. They believe this approach will mitigate against these risks. After reviewing forecasts and working capital requirements, the directors have a reasonable expectation that the company has adequate resources in the normal course of business to continue in operational existence for the foreseeable future, being a period of not less than twelve months from the date of approval of these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements. The main risks arising from the company's financial statements are shown below. The directors review and agree policies for managing each of these risks and they are summarised below.

Currency risk The company transacts with various foreign entities that expose the company to currency exchange differences primarily with the Euro and UAE. Foreign exchange risks arise when future commercial transactions or recognised assets and liabilities are denominated in a currency that is not the entity's functional currency. It is company policy to manage this risk by entering into a forward exchange contract. As a result, management believes that the impact of any appreciation or depreciation in the value of of the pound against the Euro and UAE will be mitigated. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and ensuring the availability of funding though an adequate amount of committed credit facilities. The company attempts to secure and maintain sufficient borrowing facilities at all times to ensure that it is able to fund its budgeted operations as well as any additional growth. The company's risk to liquidity is a result of the funds available to cover future commitments. The company manages liquidity risk though an ongoing review of future commitments and credit facilities. Forecasts are prepared and the availability of adequate borrowing facilities and the utilisation thereof is monitored on a regular basis. Interest rate risk The company's exposure to interest rate risk arises mainly due to changes in market interest rates that impact variable rate net borrowings. The company's major interest bearing instruments that expose it to interest rate risk are variable rate bank borrowings. The company's exposure to interest rate fluctuations is managed by the company actively monitoring interest rates and fixing interest rates on transactions where applicable. Credit risk Credit risk refers to the risk that any counterparty will default on its contractual obligations to the company resulting in financial loss to the company. The company's principal financial assets are cash, debtors and loans to group companies. The company limits its exposure to any one counterparty and evaluates credit risk on an ongoing basis. The company has also taken out credit insurance cover. The company deposits with major banks of high quality credit standing. Financial key performance indicators The company utilises a range of financial and non-financial measures to assess its operational performance across all departments. The company monitors revenue growth across its product categories and sets targets for key product groups as part of the overall revenue growth expectation for the business. However as the company had not fully recovered from the impact of Covid 19, the directors continue to consider that these KPI's are not meaningful apart from in comparing the difference between pre and post Covid trading in repect of sales, gross cash margin, operating profit, net profit and employee numbers. As such sales were 13% lower than in 2019, gross cash margin 25% lower, operating profit 49% lower, net profit 54% lower and employee numbers 23% lower based on the average number of staff during the year. The KPI's highlight the fixed cost element of the business and the need for a certain volume level of sales to be flowing through the business. As advised earlier, these sales, margin and profitability numbers are now in line with FY 2019 levels in the first six months of FY 2023. Employment Involvement and Engagement During the year the directors continued to meet with the management team and employees across all company sites to provide a full presentation of the financial update and activities of the business for the financial year. Employees at all levels within the business are encouraged to provide suggestions to improve the company's activities and performance. Suggestions tables are recorded and reviewed and implemented where applicable. Customer Service and Feedback Our sales and marketing team continue to work on contacting our customers verbally and digitally to ascertain the quality of service we provide. This process will allow us to improve the level of service and remove and eliminate wastage. Product Quality A high quality of brand products supplied to our customers is fundamental and all teams within the business continue to work on improving the quality of our products. All our sites are accredited to BRC Global Standard for Food Safety high standards and we work with our customers to ensure individual customer accreditations are achieved where applicable. Information Technology The directors continue to invest in the latest technology developments across all aspect of the business to support the operational activities across the sites.

This report was approved by the board of directors on 18 May 2023 and signed on behalf of the board by:

N G Martin

Director

Registered office:

44-54 Stewarts Road

London

SW8 4DF

HARVEY & BROCKLESS LIMITED

DIRECTORS' REPORT

YEAR ENDED 30 SEPTEMBER 2022

The directors present their report and the financial statements of the company for the year ended 30 September 2022 .

Directors

The directors who served the company during the year were as follows:

J P S Archer
N G Martin
N L Philip
S D Yorke

Dividends

The directors do not recommend the payment of a dividend.

Greenhouse gas emissions and energy consumption

Methodologies for energy and emissions calculations

Reporting methodology

The information has been provided using the GHG Protocol Corporate Accounting and Reporting Standard and the 2019 UK Government Environmental Reporting Guidelines.

Intensity Ratio

The intensity ratio chosen was tCO2e per full time employee. This was chosen as it was deemed to be the best metric which could be constantly used over time and would best reflect changes in our energy consumption, but also reflect changes in our operations. As this is the first year of reporting there is no figure available for the previous year.

Environmental matters and Streamlined Energy and Carbon Reporting (SECR) The company takes environmental matters seriously and continues to improve its impact on the local and wider environment.

From 1 August 2019 we are required to report under the new SECR regulations which provides increased transparency on our energy efficiency and emissions as a business.

Principal measures taken to increase energy efficiency

		Miles / Litres / staff numbers	KWh	tC02e	% of total
	£
Gas - total KWh Used for the year			519,722	93	4
Electricity - total KWh Used for the year			3,947,038	763	31
Transport - Mileage for the year		15,077		5
Propane/butane - total litres Used for the year		3,143		3
Petrol - total litres Used for the year		10,647		23
Diesel - total litres Used for the year		631,720		1,616	65
Total Gross Emissions			4,466,760	2,503	100
Number of staff / total C02 Tonnes of C02e per Employee		374		7

Energy Efficiency and Environmental Actions

The company has implemented the following actions to improve it's energy efficiencies and reduce its environment impacts: Introduced a BMS system which improves the efficiency of the heating, cooling, and ventilation. Implemented a rolling schedule to replace diesel/petrol distribution vehicles with fully electric ones. Appointed a consultant to review its electricity consumption, and in the first place has targeted refrigeration where it could achieve up to a 20% reduction in electrical consumption using a new energy control system. It is also looking at technology to further reduce electrical consumption using Power factor correction equipment as well as converting all lighting to LED lights and has converted 90% to date. Finally it is looking into the installation of Solar panels system at the Evesham site

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate.

Employee involvement

During the year, the policy of providing employees with the information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's profit sharing schemes.

Events after the end of the reporting period

The directors are not aware of any significant events affecting the company since the year end and up to the date of this report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 18 May 2023 and signed on behalf of the board by:

N G Martin

Director

Registered office:

44-54 Stewarts Road

London

SW8 4DF

HARVEY & BROCKLESS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARVEY & BROCKLESS LIMITED

YEAR ENDED 30 SEPTEMBER 2022

Opinion

We have audited the financial statements of Harvey & Brockless Limited (the 'company') for the year ended 30 September 2022 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 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.

Other information

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company which were contrary to applicable laws and regulations including fraud and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit. Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, review of correspondence with legal advisors, enquiries of management and in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our 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 Guest

(Senior Statutory Auditor)

For and on behalf of

UHY Hacker Young

Chartered accountants & statutory auditor

168 Church Road

Hove

East Sussex

BN3 2DL

18 May 2023

HARVEY & BROCKLESS LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

YEAR ENDED 30 SEPTEMBER 2022

		2022	2021
Note		£	£
Turnover	4	97,920,847	53,856,267

Cost of sales	74,596,711	41,298,856
	---------------	---------------
Gross profit	23,324,136	12,557,411

Distribution costs		5,403,981	3,260,524
Administrative expenses		16,555,987	13,449,787
Other operating income	5	–	1,925,070
		---------------	---------------
Operating profit/(loss)	6	1,364,168	( 2,227,830)

Interest payable and similar expenses	10	569,519	409,098
		---------------	---------------
Profit/(loss) before taxation		794,649	( 2,636,928)

Tax on profit/(loss)	11	524,412	( 887,173)
		----------	-------------
Profit/(loss) for the financial year and total comprehensive income		270,237	( 1,749,755)
		----------	-------------

Retained earnings at the start of the year	4,463,308	6,213,063
	-------------	-------------
Retained earnings at the end of the year	4,733,545	4,463,308
	-------------	-------------

All the activities of the company are from continuing operations.

HARVEY & BROCKLESS LIMITED

STATEMENT OF FINANCIAL POSITION

30 September 2022

	2022		2021
Note	£	£	£

Fixed assets

Intangible assets	12	5,270,421	5,842,300
Tangible assets	13	5,442,439	5,758,768
Investments	14	65,000	65,000
		---------------	---------------
		10,777,860	11,666,068

Current assets

Stocks	15	6,969,766	5,608,058
Debtors	16	23,834,913	18,322,978
Cash at bank and in hand		3,882,236	1,839,984
		---------------	---------------
		34,686,915	25,771,020

Creditors: amounts falling due within one year	17	26,023,233		20,245,759
		---------------		---------------
Net current assets			8,663,682	5,525,261
			---------------	---------------
Total assets less current liabilities			19,441,542	17,191,329

Creditors: amounts falling due after more than one year	18		14,182,501	12,500,000

Provisions	19	505,496	208,021
		---------------	---------------
Net assets		4,753,545	4,483,308
		---------------	---------------

Capital and reserves

Called up share capital	23	20,000	20,000
Profit and loss account	24	4,733,545	4,463,308
		-------------	-------------
Shareholders funds		4,753,545	4,483,308
		-------------	-------------

These financial statements were approved by the board of directors and authorised for issue on 18 May 2023 , and are signed on behalf of the board by:

N G Martin

Director

Company registration number: 01442472

HARVEY & BROCKLESS LIMITED

STATEMENT OF CASH FLOWS

YEAR ENDED 30 SEPTEMBER 2022

	2022	2021
	£	£

Cash flows from operating activities

Profit/(loss) for the financial year	270,237	( 1,749,755)

Adjustments for:
Depreciation of tangible assets	893,926	989,178
Amortisation of intangible assets	571,879	515,934
Government grant income	–	( 1,925,070)
Interest payable and similar expenses	569,519	409,098
Tax on profit/(loss)	524,412	( 887,173)
Accrued expenses	487,385	134,019

Changes in:
Stocks	( 1,361,708)	( 504,090)
Trade and other debtors	( 5,511,935)	( 7,099,109)
Trade and other creditors	5,290,089	4,037,630
	-------------	-------------
Cash generated from operations	1,733,804	( 6,079,338)

Interest paid	( 569,519)	( 409,098)
Tax (paid)/received	( 226,937)	406,982
	-------------	-------------
Net cash from/(used in) operating activities	937,348	( 6,081,454)
	-------------	-------------

Cash flows from investing activities

Purchase of tangible assets	( 577,597)	( 560,479)
Proceeds from sale of tangible assets	–	156,824
Purchase of intangible assets	–	( 73,146)
Purchases of other investments	–	( 60,000)
	-------------	-------------
Net cash used in investing activities	( 577,597)	( 536,801)
	-------------	-------------

Cash flows from financing activities

Proceeds from borrowings	1,682,501	7,523,444
Government grant income	–	1,925,070
	-------------	-------------
Net cash from financing activities	1,682,501	9,448,514
	-------------	-------------

Net increase in cash and cash equivalents	2,042,252	2,830,259
Cash and cash equivalents at beginning of year	1,839,984	(990,275)
	-------------	-------------
Cash and cash equivalents at end of year	3,882,236	1,839,984
	-------------	-------------

HARVEY & BROCKLESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 30 SEPTEMBER 2022

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 44-54 Stewarts Road, London, SW8 4DF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on the going concern basis as the directors have undertaken a review of the future financing requirements for on-going operations of the company and are satisfied that sufficient cash facilities have been secured to meet its working capital requirements for at least 12 months from the date of signing of these financial statements.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of BFP 2015 Limited which can be obtained from 44-54 Stewarts Road, London, England, SW8 4DF. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: * No cash flow statement has been presented by the company.

Judgements and key sources of estimation uncertainty

In preparation of the financial statements the directors undertake a number of accounting estimates and assessments, and make assumptions which provide the basis for the recognition and measurements of the asset, liabilities, revenue and expenses of the company. These estimates, assessments and assumptions are based on historical experience and other factors which management consider reasonable under the circumstances. In the opinion of management the following accounting estimates and assessment are significant in the preparation of the annual financial statements: Inventory The inventory holding has been valued at then lower of cost and net realisable value. Cost is determined on a FIFO basis and ,management review the inventory holding regularly and apply a policy of writing off inventory that are obsolete and not saleable. Intangible Asset Goodwill is valued at cost less any impairment recognised by management. The valuation process is determined by estimating the continuous tangible and intangible benefits to the business from the acquisition of the goodwill and the process is reviewed annually. COVID-19 In their assessment of going concern and the preparation of forecasts, management have assumed a gradual bounce-back in business from September 2021 returning to pre-COVID-19 levels in 2022 and with sustained margins.

Revenue recognition

Turnover comprises revenue recognised byn the group in respect of goods supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised when the risks and rewards of ownership of inventory is transferred to the customer. This occurs when the inventory is delivered to the customer or is collected by them from the point of sale. As such, invoices are rasied on delivery or collection and recognised immediately. Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: * The company has transferred the significant risks and rewards of ownership to the buyer; * The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; * The amount of turnover can be measured reliably; * It is probable that the company will receive the consideration due under the transaction; and * The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	5% - 33% Straight-line
Computer software	-	5% - 33% Straight-line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	5% - 33% Straight-line
Plant and machinery	-	5% - 33% Straight-line
Fixtures and fittings	-	5% - 33% Straight-line
Motor vehicles	-	25% - 50% Straight-line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Financial instruments

The company mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction. like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured és the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. 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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. The company mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction. like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured és the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. 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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2022	2021
	£	£
Sale of goods	97,920,847	53,856,267
	---------------	---------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2022	2021
	£	£
United Kingdom	93,521,446	50,888,385
Overseas	4,399,401	2,967,882
	---------------	---------------
	97,920,847	53,856,267
	---------------	---------------

5. Other operating income

	2022	2021
	£	£
Government grant income	–	1,925,070
	----	-------------

6. Operating profit

Operating profit or loss is stated after charging:

	2022	2021
	£	£
Amortisation of intangible assets	571,879	515,934
Depreciation of tangible assets	893,926	989,178
Impairment of trade debtors	86,602	86,538
Operating lease rentals	844,579	810,388
	----------	----------

7. Auditor's remuneration

	2022	2021
	£	£
Fees payable for the audit of the financial statements	60,000	56,500
	---------	---------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2022	2021
	No.	No.
Production staff	102	79
Distribution staff	157	118
Administrative staff	111	97
	----	----
	370	294
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2022	2021
	£	£
Wages and salaries	7,714,621	6,132,044
Social security costs	724,755	512,751
Other pension costs	195,102	142,226
	-------------	-------------
	8,634,478	6,787,021
	-------------	-------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2022	2021
	£	£
Remuneration	267,930	163,954
	----------	----------

Remuneration of the highest paid director in respect of qualifying services:

	2022	2021
	£	£
Aggregate remuneration	117,783	88,954
	----------	---------

10. Interest payable and similar expenses

	2022	2021
	£	£
Interest on banks loans and overdrafts	569,519	409,098
	----------	----------

11. Tax on profit/(loss)

Major components of tax expense/(income)

	2022	2021
	£	£

Current tax:

UK current tax expense	226,937	–
Corporation tax recoverable	–	( 406,982)
	----------	----------
Total current tax	226,937	( 406,982)
	----------	----------

Deferred tax:

Origination and reversal of timing differences	297,475	( 480,191)
	----------	----------
Tax on profit/(loss)	524,412	( 887,173)
	----------	----------

Reconciliation of tax expense/(income)

The tax assessed on the profit/(loss) on ordinary activities for the year is higher than (2021: lower than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).

	2022	2021
	£	£
Profit/(loss) on ordinary activities before taxation	794,649	( 2,636,928)
	----------	-------------
Profit/(loss) on ordinary activities by rate of tax	150,984	( 501,016)
Effect of expenses not deductible for tax purposes	5,934	1,401
Effect of capital allowances and depreciation	70,019	92,633
Adjust closing deferred tax to avage rate of 19%	297,475	( 480,191)
	----------	-------------
Tax on profit/(loss)	524,412	( 887,173)
	----------	-------------

12. Intangible assets

	Goodwill	Patents, trademarks and licences	Total
	£	£	£
Cost
At 1 October 2021 and 30 September 2022	9,712,149	1,681,190	11,393,339
	-------------	-------------	---------------
Amortisation
At 1 October 2021	4,109,391	1,441,648	5,551,039
Charge for the year	430,956	140,923	571,879
	-------------	-------------	---------------
At 30 September 2022	4,540,347	1,582,571	6,122,918
	-------------	-------------	---------------
Carrying amount
At 30 September 2022	5,171,802	98,619	5,270,421
	-------------	-------------	---------------
At 30 September 2021	5,602,758	239,542	5,842,300
	-------------	-------------	---------------

In a previous period the trade and assets of a subsidiary company (The Cheese Cellar Company Limited), were transferred into this company, including some goodwill, included in the above total. In addition as a result of this transfer, and a previous transfer of trade and assets from David South (Cheese Distribution)Limited the company was left with investments of £9,484,592 in two dormant companies whose net assets did not support the investment carrying value.On this basis the investments were considered impaired, and the Companies Act 2006 requires that the investment should be written down to the higher of net realisable value in use, and the loss charged to the company's Profit and Loss account. however as no loss had been incurred the investment was transferred into goodwill. The valuation of David South (Cheese Distribution) Limited could not be justified as the brand name is no longer used by the company and so the directors had written off £1,093,112 relating to goodwill recognised on acquisition in a prior year. The goodwill in relation to The Cheese Cellar Limited is being amortised over 20 years.

13. Tangible assets

	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 October 2021	2,336,948	8,510,025	2,971,450	59,601	13,878,024
Additions	133,381	376,273	67,943	–	577,597
	-------------	-------------	-------------	---------	--------------
At 30 September 2022	2,470,329	8,886,298	3,039,393	59,601	14,455,621
	-------------	-------------	-------------	---------	--------------
Depreciation
At 1 October 2021	495,152	5,838,040	1,726,463	59,601	8,119,256
Charge for the year	154,604	585,348	153,974	–	893,926
	-------------	-------------	-------------	---------	--------------
At 30 September 2022	649,756	6,423,388	1,880,437	59,601	9,013,182
	-------------	-------------	-------------	---------	--------------
Carrying amount
At 30 September 2022	1,820,573	2,462,910	1,158,956	–	5,442,439
	-------------	-------------	-------------	---------	--------------
At 30 September 2021	1,841,796	2,671,985	1,244,987	–	5,758,768
	-------------	-------------	-------------	---------	--------------

14. Investments

	Shares in group undertakings	Other investments other than loans	Total
	£	£	£
Cost
At 1 October 2021 and 30 September 2022	93,669	65,000	158,669
	---------	---------	----------
Impairment
At 1 October 2021 and 30 September 2022	93,669	–	93,669
	---------	---------	----------

Carrying amount
At 30 September 2022	–	65,000	65,000
	---------	---------	----------
At 30 September 2021	–	65,000	65,000
	---------	---------	----------

15. Stocks

	2022	2021
	£	£
Raw materials and consumables	6,969,766	5,608,058
	-------------	-------------

Inventory is stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase, plus any applicable labour component in the production of kits, on the weighted average basis. At each reporting date, inventory is assessed for impairment with reference to damaged or slow moving inventory, or inventory past its expiry date. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.

16. Debtors

	2022	2021
	£	£
Trade debtors	12,322,447	9,839,022
Amounts owed by group undertakings	2,462,290	5,230,037
Amounts owed by undertakings in which the company has a participating interest	4,857,768	–
Prepayments and accrued income	711,876	518,019
Corporation tax repayable	859,255	1,086,193
Other debtors	2,621,277	1,649,707
	---------------	---------------
	23,834,913	18,322,978
	---------------	---------------

Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

17. Creditors: amounts falling due within one year

	2022	2021
	£	£
Trade creditors	16,174,997	14,363,924
Accruals and deferred income	5,646,003	5,158,618
Social security and other taxes	257,331	634,474
Other creditors	3,944,902	88,743
	---------------	---------------
	26,023,233	20,245,759
	---------------	---------------

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. There is a fixed and floating charge on the invoice discounting facility payable to Barclays PLC, which is secured over the related trade debtors.

18. Creditors: amounts falling due after more than one year

	2022	2021
	£	£
Bank loans and overdrafts	14,182,501	12,500,000
	---------------	---------------

The mortgage is repayable in monthly installments of £7,642 (2021 £7,642) and incurs interest at 1.85% above base. The mortgage is secured on the property it relates to.

19. Provisions

	Deferred tax (note 20)
	£
At 1 October 2021	208,021
Charge against provision	297,475
	----------
At 30 September 2022	505,496
	----------

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2022	2021
	£	£
Included in provisions (note 19)	505,496	208,021
	----------	----------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2022	2021
	£	£
Accelerated capital allowances	532,701	223,646
Pension plan obligations	( 27,205)	( 15,625)
	----------	----------
	505,496	208,021
	----------	----------

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 195,102 (2021: £ 142,226 ).

The company contributes to a defined contribution plan for its employees. A defined contribution plan is a plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

22. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2022	2021
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	1,925,070
	----	-------------

During the period under review the company received £Nil (2021 £1,925,070) in regards to the government Coronavirus Job Retention Scheme.

23. Called up share capital

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary shares of £ 1 each	20,000	20,000	20,000	20,000
	---------	---------	---------	---------

There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.

24. Reserves

Profit & loss account Includes all current and prior periods retained profits and losses.

25. Other financial commitments

At 30 September 2022 the company has a commitment to purchase foreign currency amounting to £6,741,800 (€7,650,000.00)

26. Analysis of changes in net debt

	At 1 Oct 2021	Cash flows	At 30 Sep 2022
	£	£	£
Cash at bank and in hand	1,839,984	2,042,252	3,882,236
Debt due after one year	(12,500,000)	(1,682,501)	(14,182,501)
	---------------	-------------	---------------
	( 10,660,016)	359,751	( 10,300,265)
	---------------	-------------	---------------

HARVEY & BROCKLESS LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 30 SEPTEMBER 2022

27. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	1,521,002	1,648,766
Later than 1 year and not later than 5 years	5,245,763	5,900,907
	-------------	-------------
	6,766,765	7,549,673
	-------------	-------------

Rentals under operating leases are charged to the statement of Comprehensive Income on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. Within non-cancellable operating lease commitments is an amount relating to Land and buildings, less than 1 year £916,180 (2021 £838,388) between 1 and 5 years £4,281,662(2021 £4,712,417) and more than 5 years £Nil (2021 £Nil) Relating to Motor vehicles & Other, less than 1 year £604,821 (2021 £810,378) between 1 and 5 years £964,101 (2021 £1,188,490) and more than 5 years £Nil (2021 £Nil)

28. Related party transactions

The company has taken advantage of the exemption in Financial Reporting Standard 102 from the requirement to disclose transactions with group companies that are 100% owned by the group. During the year ended 30 September 2020, the company traded with Harvey and Brockless Foodstuff Trading LLC situated in the UAE. The company's ultimate parent company BFP2015 Limited own 46.5% of the shareholding of this company. The trading transactions are summarised below: * Sales to - £5,340,326 (2021 £3,005,560) * Payments received - £3,306,990 (2021 £1,800,258) * Balance outstanding - £5,382,572 (2021 £3,046,545)

29. Controlling party

The immediate parent undertaking at the year end was Blackwater Food Provision Limited, a company incorporated in England and Wales. The ultimate parent undertaking is BFP 2015 Limited. The largest group in which the results of the company are included is that headed by BFP 2015 Limited and the smallest is that headed by Blackwater Food Provision Limited. The directors consider there to be no ultimate controlling party.