REGISTERED NUMBER: 01296839 (England and Wales)

North Country Quality Foods Limited

Unaudited Financial Statements

For The Year Ended 31 May 2018

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

J W Thomas

B D Thomas

C A Thomas

SECRETARY:

J W Thomas

REGISTERED OFFICE:

39 West Hope Street

off Brunel Avenue

Salford

Manchester

Greater Manchester

M5 4WN

REGISTERED NUMBER:

01296839 (England and Wales)

ACCOUNTANTS:

Lloyd Piggott Limited

Chartered Accountants

St George's House

56 Peter Street

Manchester

M2 3NQ

BANKERS:

Barclays Bank PLC

The Gateway Office

Anchorage Quays

Salford

M50 3XE

FIXED ASSETS

Intangible assets

4

220,965

238,267

Tangible assets

5

466,940

400,477

Investments

6

354,604

354,604

1,042,509

993,348

CURRENT ASSETS

Stocks

7

275,845

279,636

Debtors

8

1,784,445

1,233,016

Cash at bank and in hand

40,885

10,174

2,101,175

1,522,826

CREDITORS

Amounts falling due within one year

9

1,985,763

1,337,509

NET CURRENT ASSETS

115,412

185,317

TOTAL ASSETS LESS CURRENT LIABILITIES

1,157,921

1,178,665

CREDITORS

Amounts falling due after more than one year

10

509,907

534,962

NET ASSETS

648,014

643,703

CAPITAL AND RESERVES

Called up share capital

30,000

30,000

Capital redemption reserve

20,000

20,000

Retained earnings

598,014

593,703

SHAREHOLDERS' FUNDS

648,014

643,703

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 22 November 2018 and were signed on its behalf by:

J W Thomas - Director

1.	STATUTORY INFORMATION

North Country Quality Foods Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the

Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied

during the year, exclusive of Value Added Tax and trade discounts.

Revenue is recognised when the risks and rewards of ownership have been transferred to the customer

by way of delivery.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses is being amortised

evenly over its useful life of twenty years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Temperature control

-

15% on reducing balance

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance and 30% cost

Motor vehicles

-

25% on reducing balance and 15% on reducing balance

Computer equipment

-

33% on reducing balance and 30% on cost

Investments in subsidiaries and associates

Investments in subsidiary and associate undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete

and slow moving stocks. Costs include all direct costs and an appropriate proportion of fixed and

variable overheads.

Financial instruments

Financial assets and financial liabilities are recognised in the Company's balance sheet when the

Company becomes a party to the contractual provisions of the instrument. The principal financial

assets and liabilities of the Company are as follows:

(a) Trade receivables and trade payables

Trade receivables do not carry interest and are stated at their initial fair value reduced by appropriate

allowances for estimated irrecoverable amounts.

Trade payables on normal terms are not interest bearing and are stated at their nominal value.

(b) Cash and cash equivalents

Bank overdrafts are included within financial liabilities in current liabilities in the balance sheet.

(c) Bank and other borrowings

Interest-bearing bank and other borrowings are recorded at the fair value of the proceeds received.

Finance charges, including premiums payable on settlement or redemption and direct issue costs, are

accounted for on an accruals basis in the income statement using the effective interest method and are

added to the carrying value of the instrument to the extent that they are not settled in the period in

which they arise.

As a small entity, the company has taken advantage of the interim change to FRS 102 which inserts

paragraph 1.15A, which states "as an exception to paragraph 11.13, a small entity may measure a

basic financial liability that is a loan from a director who is a natural person and a shareholder in the

small entity (or a close member of the family of that person) initially at transaction price.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable

profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling

at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account

in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the

company will continue in operational existence for the foreseeable future. The company operates in a

highly competitive market and has remained cash positive before depreciation.

The deferred tax asset in note 8 has been calculated on the basis that future profits will occur.

The directors are confident of the success of the company and believe that it is appropriate for the

financial statements to be prepared on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 15 (2017 - 16 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 June 2017

and 31 May 2018

346,042

AMORTISATION

At 1 June 2017

107,775

Charge for year

17,302

At 31 May 2018

125,077

NET BOOK VALUE

At 31 May 2018

220,965

At 31 May 2017

238,267

5.	TANGIBLE FIXED ASSETS

Fixtures

Temperature

Plant and

and

control

machinery

fittings

£

£

£

COST

At 1 June 2017

333,830

1,497,669

103,226

Additions

986

14,651

2,678

At 31 May 2018

334,816

1,512,320

105,904

DEPRECIATION

At 1 June 2017

273,697

1,228,672

100,768

Charge for year

9,020

41,771

455

Eliminated on disposal

-

-

-

At 31 May 2018

282,717

1,270,443

101,223

NET BOOK VALUE

At 31 May 2018

52,099

241,877

4,681

At 31 May 2017

60,133

268,997

2,458

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2017

164,384

67,366

2,166,475

Additions

129,716

-

148,031

Disposals

(51,061

)

-

(51,061

)

At 31 May 2018

243,039

67,366

2,263,445

DEPRECIATION

At 1 June 2017

107,903

54,958

1,765,998

Charge for year

23,577

2,860

77,683

Eliminated on disposal

(47,176

)

-

(47,176

)

At 31 May 2018

84,304

57,818

1,796,505

NET BOOK VALUE

At 31 May 2018

158,735

9,548

466,940

At 31 May 2017

56,481

12,408

400,477

6.	FIXED ASSET INVESTMENTS

Shares in

Interest

group

in

Other

undertakings

associate

investments

Totals

£

£

£

£

COST

At 1 June 2017

and 31 May 2018

200

354,002

402

354,604

NET BOOK VALUE

At 31 May 2018

200

354,002

402

354,604

At 31 May 2017

200

354,002

402

354,604

7.

STOCKS

2018

2017

£

£

Stocks

275,845

279,636

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

1,075,653

999,863

Amounts owed by group undertakings

521,463

2,520

Corporation tax recoverable

71,561

56,979

VAT

9,381

14,556

Deferred tax asset

42,000

84,008

Prepayments

64,387

75,090

1,784,445

1,233,016

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

67,654

59,722

Hire purchase contracts

32,784

46,182

Trade creditors

1,141,763

349,122

Amounts owed to group undertakings

-

199,091

Social security and other taxes

9,858

8,637

Other creditors

1,642

-

Invoice discounting

652,075

557,130

Directors' loan accounts

24,000

24,000

Accrued expenses

55,987

93,625

1,985,763

1,337,509

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans - 1-2 years

22,007

29,167

Hire purchase contracts

103,900

86,454

Directors' loan accounts

384,000

419,341

509,907

534,962

11.	SECURED DEBTS

The invoice discounting facility is secured by way of a debenture over all assets of the group.

Hire purchase liabilities are secured against the assets to which they relate. J W Thomas also provided

a personal guarantee of £50,000 in respect of the hire purchase liabilities.

12.	OTHER FINANCIAL COMMITMENTS

Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held

separately from those of the company in an independently administered fund. The pension cost

charged represents contributions payable by the company to the fund and amounted to £4,213 (2017:

£6,081).

Operating Leases

At 31st May 2018, the company had total commitments under non-cancellable operating leases over

the remaining life of those leases of £62,500 (2017: £86,500).

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The directors continued to provide funding for the company during the year. As at 31 May 2018 the

balance due to B D Thomas was £318,000 (2017: £342,000) and J W Thomas £90,000 (2017:

£101,341). No interest is charged in respect of these loans.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose

related party transactions with wholly owned subsidiaries within the group.

D.C.D Company Limited

A 50% associated company

Sales, amounting to £47,268 (2017: £71,971), were made to D.C.D Company Limited during the year.

Purchases, amounting to £115,968 (2017: £41,226), were made from D.C.D Company Limited during

the year.

Management charges of £36,000 (2017: £48,000) were charged to D.C.D Company Limited during

the year.