UNDERWOOD MEAT COMPANY LIMITED

• ⚠

  Material uncertainty over going concern

  We draw attention to note 1.3 to the financial statements, which explains that the group breached banking covenants in respect of two term loans during the year ended 31 October 2024. At the date of approval of the financial statements, the waiver relating to the covenant breach for the year ended 31 October 2024 had not been received and the revised pricing contract with a major customer had not been signed, with the company's forecast results dependent on the continuation of the revised pricing. As stated in note 1.3, these events and conditions indicate the existence of material uncertainties that may cast significant doubt on the company's ability to continue as a going concern.

Values shown as filed in the company's annual accounts. — indicates the figure wasn't present under that line item in that period. About these numbers

Margins divide P&L lines by turnover. Gearing is liabilities over total assets. Current ratio is current assets over creditors falling due within one year. Interest cover is operating profit over absolute finance costs. Sector-distribution context coming next.

Accounting basis

FRS 102

Reporting scope

Standalone (parent only)

Auditor

Sumer Auditco Limited

Audit opinion

Unqualified (clean)

Going concern

Material uncertainty disclosed

“We draw attention to note 1.3 to the financial statements, which explains that the group breached banking covenants in respect of two term loans during the year ended 31 October 2024. At the date of approval of the financial statements, the waiver relating to the covenant breach for the year ended 31 October 2024 had not been received and the revised pricing contract with a major customer had not been signed, with the company's forecast results dependent on the continuation of the revised pricing. As stated in note 1.3, these events and conditions indicate the existence of material uncertainties that may cast significant doubt on the company's ability to continue as a going concern.”

Group structure

1. UNDERWOOD MEAT COMPANY LIMITED · parent
   1. Manor Farm Sausage Co Limited 100% · United Kingdom · Dormant
   2. Northern Catering Butchers Limited 100% · United Kingdom · Dormant

Significant events

• “Year on year turnover fell from £65.1m to £60.3 (-7.5%), but with a positive increase in overall GP (15.9% vs prior year 13.6%). Distribution and administrative costs saw a 1% increase, but this still delivered an operating profit of £773k vs prior year £115k (increase of £658k).”
• “Overall, the directors of the business are pleased with the improved result and with the profit after tax of £302k (an increase of £683k vs 2023).”
• “PBT moved back into profit vs the prior year loss, whilst cash flow was managed accordingly in line with non-funded capex and strategic stock purchase requirements.”
• “From late December 2024, the impact of reductions in global cattle production from 3 years prior and outbreaks of various poultry related diseases, saw unprecedented, continued increases in base protein costs (average 30%-40%) at a detrimental bottom line impact averaging around £150k pm.”
• “The write off of a related party loan with J Heeley a former director of the company.”
• “Costs in relation to the closure of a retail shop in the year.”
• “Last years exceptional items related to the following: The first exceptional item was in relation to the write off of a related party loan with R Bennett the father of T M S Bennett a director of the company.”
• “The second exceptional item in the prior year was in relation to costs associated with a group refinance and restructure which saw the introduction of a new ultimate parent company Underwood Meat Topco Limited.”
• “The third exceptional item in the prior year was in relation to costs associated with an employee settlement.”

Auditor, going-concern and subsidiary information is drawn from the narrative of the latest annual accounts. About these numbers

Filings

5

last 12 months

Capital events

0

last 24 months

Officers appointed

2

last 12 months

Officers resigned

0

last 12 months

Direct counts from the register. No score, no rating — see the Filing timeline for the underlying events.

• Turnover

  -7.5%

  £65,131,033 → £60,270,932

• Cash

  +115.6%

  £505,505 → £1,089,929

  highest in 4 filed years

• Net assets

  -10.2%

  £3,255,633 → £2,924,424

  lowest in 4 filed years

• Employees

  +8.1%

  270 → 292

  highest in 4 filed years

• Operating profit

  +572.8%

  £114,876 → £772,846

  highest in 3 filed years

• Profit before tax

  +202.2%

  -£407,315 → £416,086

  first positive since 2023

• Wages

  +0.8%

  £7,970,631 → £8,031,264

  highest in 4 filed years

Each % is (latest − prior) ÷ |prior| for the line item as filed. Periods don't have to be exactly 12 months apart — a long or short period (typical around incorporation or year-end changes) will distort the comparison. Lines a company doesn't report are omitted. About these numbers