MARS CHOCOLATE UK LIMITED - Annual Accounts

Form: AA - Annual Accounts

FULL ACCOUNTS MADE UP TO 02/01/10

Filed on: 1 Oct 2010

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Mars Chocolate UK Limited
Annual report and financial statements
for the period ended # January ####
Directors’ report for the period ended # January ####
Independent auditors’ report to the members of Mars Chocolate UK Ltmtted
Profit and loss account for the period ended # January ####
Balance sheet as at # January ####
Notes to the financial statements for the period ended # January ####
Page
l
#
#
#
#

Mars Chocolate UK Limited
Directors’ report
for the period ended # January ####
Registered number: ########
The directors present their annual report on the affairs of the company together with the audited financial
statements and auditors' report for the financial period which ended on # January #### The results represent
the ## week period ended # January ####, whereas the comparatives represent the ## week period (ofwhrch l#
are trading) ended ## December ####
Principal activities
The principal activates othe ccompany are the manufacture and sale of snack-related products
Business review and future developments
The company’s profit for the financial ported ta #-###,###,### (#### £l#,###,###) No dividends were paid or
proposed during the period (#### £nil) The performance for the period reflects the investment into products,
brands, processes and consumer and customer relationships as part of our on-going strategy to reflect and adapt
to anticipated changes in consumer attitudes and behaviours, as well as increase the focus on key areas of the
market place The acquisition in the previous financial period of the trade and assets of the Mars UK
Chocolate business from Wrigley Candy UK has facilitated this strategy
The business continues to concentrate tits research and development efforts on improving its product ranges, so
rt is best placed to service the markets in which rt operates
The directors consider that the company IS well placed to take advantage of changes in the market place and
that recent levels unprofitable will be maintained
Principal risks and uncertainties
The principal risks and uncertainties facing the business include
- possible fluctuations in the price and availability of raw maternal,
~ accidental or malicious contaminator of our products or their ingredients, despite the fact that the
company manufactures products in accordance with the highest standards of quality and food safety,
» potential disruption of our manufacturing and/or distribution process t the event of circumstances beyond
our control such as adverse weather, flood, fire, system failure or a major interruption in the supply of raw
materials,
» as a consequence governmental cconcerns about sorting levels of obesity, potential regulations that could
restrict our princedom to manufacture and market our products,
- pricing pressure as a result consolidation ofthe retail trade,
» the need for the company to contribute significant additional funding to the company’s pension plans t
the event that the investment performance or changes in actuarial assumptions of the pension funds
resulted in the plans being under-funded
These risks and uncertainties are managed day to day by discreet management teams responsible for each
segment of the company's business and who report to the directors
l

Mars Chocolate UK Limited
Directors’ report
for the period ended # January #### (continued)
Key performance indicators (“KPIs”)
The directors consider the following indicators to be key in measuring the pref`romance of the business
# ##
January December
#### ####
Turnover £###,###,### £# ##,# ##,###
Profit before tax (pre-exceptional) £# ##,###,### $###,###,###
Gross profit margin (pre-exceptional) ##%. ##%
Operating profit margin (pre-exceptional) ##% ##%
Frnancral ask management
The company’s operations expose rt to a variety of financial risks that include the effects of changes t
commodity price ask, credit ask, counterpart ns, lrqurdrty risk and foreign exchange risk The company
seeks to hart the adverse effects on the financial performance of the company by monitoring the impact of
these on the performance of the company and addressing them accordingly
The company has specific policies and guidelines to manage financial ask and these policies are implemented
by the company’s finance department
Commodity price risk
The company ta exposed to commodity price ask as a result of its operations Suitable derivative instruments
are used to hedge the once ask and such instruments are traded on interregionally recognised exchanges wtthtn
guldens approved by the board directorship All derivative contracts are valued using widely available
forward prices
Credit risk
The company has implemented poltergeiSt that require appropriate credit checks on potential customers before
sales are made Ongoing review of credit checks are made on customers depending on changes in trading
relationships, information received from other sources and time elapsed from previous information obtained
Counterparty risk
The counterparts for the derivative contracts are financial push-buttons, include bamks, that have a Dortmund
A rating or with counterparts that operate on exchanges using margin calls thus hamstrung any credit risk or
with the tercentenary parent company Food Manufacturers (G B Company) Taken together the company
believes rt has Montmartre credit risk related to derivative instruments
Lrqurdrty risk
The company is cash generative To the extent necessary rt is supported by tits intermediary parent company,
Food Manufacturers (G B Company)
#

Mars Chocolate UK Limited
Directors’ report
for the period ended # January #### (continued)
Financial risk management (continued)
Forezgn exchange risk
The company is exposed to foreign exchange rate ask as a result of its operations Suitable forward rate
contracts are used to hedge the rate risk All contracts are valued using widely available forward prices
Directors
The directors holding office during THC period and up to the date of signing the financial statements were
A Parton appointed ## October ####
B Parkin appointed ## March #### and resigned ## October ####
D Allen appointed ## March ####
D J Haines appointed ## March ####
F E Dawson
I Langer appointed ## March ####
M A Jordan
S Guthne-Brovtm
Directors’ condemnatory
The company bantams larability insurance for tits directors and officers, which is a qualifying third party
indemnity provision for the purpose of the Companies Act ####
Donations
The company made chartable donations of £###,### (#### £##,###) during the period, of which those t
excess of£#,### relate to donations of£###,### to health and well-being chartreuses, £##,### to health active
lifestyles chanteuses and £##,### to environmental chartreuses No political donations were made (#### £nil)
Associates
The company believes that rt ta important that all associates arc closely involved t the fortunes of the business
for which they work and have a clear understanding of the particular contribution which each should make to
the realisation of that business’ on_invectives
Communication has continued at all levels, with the ATM that all associates are aware of the financial and
economic performance of the business Over a long period, the business has developed a variety of
communication and discussion practices closely tailored to tits particular needs and circumstances, the most
important of these being regular briefing sessions of associates with their managers Associates are asked to
take on direct and total responsibility for results, exercising attractive and making decathlons, as their tasks
require Linking THC business pay plan to IIS major operating and financial results further strengthens the
mutuality of associates’ involvement t the performance of the business
Single status treatment of its associates is one of the hallmarks of the company‘s industrial relations policy It
ta an equal opportunity employer, the only Terrance for selection and promotion being the skills and aptitude of
the individual t relation to the particularity and needs of the business conceded
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of
the applicant conceded In the event of members of staff becoming disabled, every effort is made to ensure
that their employment with the group continues and that appropriate training ta arranged It is the policy of the
group that all employees be given equal opportunities in respect of training, career development and
promotion
It ta company policy that there shall be no dominatrices tn respect of age, sex, colour, religion, race,
nationality or ethnic Ortega and that equal opportunity shall be given to all employees
#

Mars Chocolate UK Limited
Directors’ report
for the period ended # January #### (continued)
Statement of directors’ responsibilities
The directors are responsible for preparing the 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 period 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
fatr vtew of the state officiators of the company and of 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 judgements and accounting estimates that are reasonable and prudent,
' state whether applicable UK Accotmttng Standards have been followed, subject to any material
departures disclosed and explained in the financial statements,
° prepare the financial statements on the going concept basis unless rt is inappropriate to presume that
the company will continue t bbusiness
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 positron of the
company and enable them to ensure that the financial statements comply with the Companies Act #### 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 regularity
The directors are responsible for the maintenance and integrity of the company’s website Legislation t the
United Kingdom governor the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions
Statement of disclosure of information to auditors
In addition the directors also confirm that
(a) so far as each director ta aware, there is no relevant audit information off-white the company’s auditors are
unaware, and
(b) that each director has taken all the steps that he ought to have taken as a director in order to make himself
aware of any relevant audit information and to establish that the company's auditors are aware of that
information
Independent auditors
The company's auditors, PricewaterhouseCoopers LLP, have demarcated their willingness to remain t ooffice In
accordance with s ###(#) of the Companies Act ####, PricewaterhouseCoopers LLP are therefore deemed to
be reappointed as the company's auditors
On behalf of the hoard
M A Jordan
Dtrector
## April ####
#

Mars Chocolate UK Limited
Independent auditors’ report to the members of Mars Chocolate UK
Limited
We have audited the financial statements of Mars Chocolate UK Lrmrted for the period ended # January ####
which comprise of the profit and loss account, the balance sheet, and the related notes The financial reporting
framework that has been applied in their preparation is applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice)
Respective responsibility of directors and auditors
As explained more fully in the directors’ responsibility stpavement set out on page # the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair
view Our responsibility is to audit the financial statements in accordance with applicable law and Intematronal
Standards on Audrttng (UK and Ireland) Those standards require us to comply with the Auditing Practices
Board’s Ethical Standards for Auditors
This report, include the options, has been prepared for and only for the company's members as a body in
accordance with Chapter # of Part ## of the Companies Act #### and for no other purpose We do not, t
giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands rt may come save where expressly agreed by our prior consent in
writing
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient
to give reasonable assurance that the financial statements are free from maternal misstatement, whether caused
by fraud or error This includes an assessment of whether the accounting policies are appropriate to the
company’s circumstances and have been consistently applied and adequately disclosed, the reasonableness of
significant accounting estimates made by the directors, and the overall presentation of the financial statements
Opinion on financial statements
In our opinion THC financial statements
» give a true and fair view of the state of the company's affairs as at # January #### and of tits profit for
the period then ended,
I have been properly prepared m accordance with United Kingdom Generally Accepted Accounting
Practice, and
° have been prepared t aaccordance with the requirements of the Companies Act ####
Opinion on other matter prescribed by the Companies Act ####
In our optional the information given in the directors’ report for the financial period for which the financial
statements are prepared is consistent with the financial statements
#

Mars Chocolate UK Limited
Independent auditors’ report to the members of Mars Chocolate UK
Limited (continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act #### requires us to
report to you IC 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 t aagreement with the accounting records and rectums, 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
@ M,
Chris Burns (Sentor Statutory Auditor)
For and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
## April ####

Mars Chocolate UK Limited
Profit and loss account
for the period ended # January ####
## weeks ## weeks
ended ended
# ##
January December
#### ####
Note £’### £’###
Turnover l ###,### ###,# ##
Cost of sales (including exceptional items) (###,###) (###,###)
Gross profit before exceptional items ###,### ##,###
Exceptional items # (a) ##,### -
Gross profit ###,### ##,###
Other operating expenses (including exceptional items) # (##,###) (##,###)
Operating profit before exceptional totems ###,### ##,###
Exceptional items # (b) ##,### -
Operating profit ###,### ##,###
Interest receivable and stellar income # ### ###
Interest payable and similar charges # (###) (###)
Other finance costs ## - (# ##)
Profit on ordinary activities before taxation # ###,### ##,###
Tax on profit on ordinary actresses I# (##,###) (#,###)
Profit for the financial period ## ##,### ##,###
All activities relate to continuing operations
The company has no recognised gnats or losses other than the profit of£##,l##,### for the period ended #
January #### (#### £l#,###,###), and therefore no separate statement of total recognised gnats and losses has
been presented
There ta no difference between the profit on ordinary activates bbefore taxation and the profit for the financial
periods stated above, and their historical cost equivalents
#

Mars Chocolate UK Limited
Balance sheet
as at # January ####
# ##
January December
#### ####
NCIS £’### £’###
Fixed assets
Intangible assets # # - ##,###
Tangible assets ## ##,### ##,###
##,### # ##,###
Current assets
Stock ## ##,### ##,###
Debtors amounts falling due Wrthtn one year ## ###,### ###,###
Debtors amounts falling due af`tee more than one year ## - ###
Cash at bank #,### ##,###
###,### ###,###
Creditors: amounts falling due wrthrn one year ## (###,###) (###,###)
Net current assets/(kohlrabies) ##,### (##,###)
Total assets less current kohlrabies ###,### ##,###
Creditors. amounts falling due after more than one year ## (###) (###)
Provrsrons for liabilities and charges ## (#,###) (#,###)
Net assets ###,### ##,###
Capital and reserves
Called up share capital ## ##,### ##,###
Profit and loss account ## ###,### ##,###
Total shareholders’ funds ## ###,### ##,###
The notes on pages # to ## foam# part of these financial statements
These financial statements were approved by the board directorship on ## April #### and were signed on its
behalf by
M A Jordan
Director

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January ####
Accounting policies
These financial statements have been prepared under the historical cost convention, on a going concept basis,
in accordance with the accounting policies set out below and applicable accounting and financial reporting
standards in the United Kingdom and the Companies Act ####, which have been consistently applied
Cash flow statement and related party disclosures
The company is a wholly owned subsidiary of Mars Chocolate UK Holdings Lrmtted and ta included t the
consolidated financial statements of Effem Holdings Limited, which are publicly available Consequently, the
company has taken advantage of the exemption from preparing a cash flow statement under the terms of
Financial Reporting Standard # (revised ####) “Cash Flow Statements”
The company is also exempt under the terms of Financial Reporting Standard # “Related Party Disclosures”
from disclosing related party transactions with other group companies
Turnover
Turnover composes of sales to customers (excluding value added tax) and is stated at amounts divorced to
customers after trade discounts Consideration received from customers is only recorded as tu mover when the
company has completed full performance in respect of that consideration
Commodity and currency forward contracts
The company uses commodity and currency forward contracts to hedge its exposures Gains or losses on
hedges are recognised in the profit and loss account in the period in which they ans
Foreign currency
Transactions in foreign currencies are translated into sterling at the rate of exchange at the date of the
transaction Foreign currency items included t the balance sheet are translated at the rate of exchange ruling
at the period end Translation gnats and losses answer from transactions are included t the profit and loss
account in the period t whitch they arise
Research and development expenditure
Research and development expenditure ta expensed as incurred
Operating leases
Costs in respect operation's leases are charged on a straight line basis over the lease term There are no assets
held under finance leases
Lease incentives are spread over the period up to the first rent review where market rates are applied
#

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Accounting policies (continued)
Tangible fixed assets
Tangible fixed assets are stated at historical purchase cost less accumulated depreciation The cost of tangible
fixed assets ta their purchase cost, together with any incidental costs of acquisition
Depreciation is provided on a straight-lent basis over the estimated useful economic lives of the assets at the
rates shown below
Butldtng improvements # ##% per annum
Plant and machinery - ##-##% per annum
No depreciation is charged on assets which have yet to be commissioned Deprectatron ta charged from the
month in which the asset is brought into use
Accelerated depreciation may be charged where the directors consider there to have been a reduction in the
useful economic life fan aset or an compartment in the underlying value fan aset
Pension costs
Mars Chocolate UK Limited participates, along with other employers in the Effem Holdings Group non-
contributory, self-administered defined benefit pension plan, which is funded Mars Chocolate UK Limited is
unable to identify its share of the underlying assets and respectable in the group pension scheme and hence rt is
accounted for as a defined contribution scheme under Financial Reporting Standard ## “Retirement benefits”
Information in respect of the UK defined benefit pension plan and the £### # m#Larson(#### £# # ballroom)
deficit answer is available in the consolidated financial statements of Effem Holdtngs Lrmrted, which may be
obtained from The Registrar of Companies, Companies Registration Office, Companies House, Crown Way,
Matndy, Cardiff, CF# #UZ Contnbuttons are charged to the profit and loss account as they are incurred This
plan is closed to new members
For associates who have joined since l January ####, a defined contribution plan, the Associates Savings Plan
(“ASP”) ta available
Acqursrtrons
On the acquisition of assets and laundrettes of other group companies, merger accounting principles are adopted
where appropriate Where purchase consideration is not t the form of shares, the difference between proceeds
and the value of assets and rattlesnake acquired ta recorded as goodwill on the balance sheet
Intangible assets
Goodwill represents the excess of the fair value of the consideration paid to acquire new businesses over the
value of the separately identifiable and separable net assets at the date of the acquisition
Negative goodwill represents the shortfall of the fair value of the consideration paid to acquire new businesses
over the value of the separately identifiable and separable net assets at the date of the acquisition
Negative goodwill is capitalised and is amortised through the profit and loss account in the period t whitch the
assets acquired are recovered In the case of fixed assets this is the period over which they are depreciated, and
t the case of current assets, the period over which they are sold or otherwise utilised
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Accounting policies (continued)
Stock
Stocks are stated at the lower of cost and net realisable value Cost ta determined on a first in first out basis
and includes transport and handling costs In the case of manufactured products, cost includes all direct
expenditure and production overheads, including a share of manufacturing depreciation, based on the normal
level olfactory Net realisable value is based on estimated selling once less any further costs expected to be
incurred to completion and disposal Where necessary, provision is made for obsolete, slow moving and
defective stock
Taxation
Corporation tax payable is provided on taxable profits at the current rate The taxation liabilities are reduced
wholly or in part by the surrender of losses by fellow group companies
Deferred tax is recognised in respect fall ttiming differences that have originated but not reversed at the
balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a
right to pay less tax t the future have occurred at the balance sheet date
A net deferred tax asset ta recognised as recoverable and therefore recognised only when, on the basis fall
available evidence, rt can be regarded as more likely than not that there will be suitable taxable profits firm
which the future reversal of underlying trimming differences can be deducted
Deferred tax ta measured at the average tax rates that are expected to apply in the periods t whitch the turning
differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enact
by the balance sheet date Deferred tax is measured on an unaccounted bbasis
Provisions
A provision ta recognised t the balance sheet when the company has a legal or constructive obligation as
result oaf past event, rt is probable that an outflow of economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation Ifthe effect is maternal,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability A
provision for onerous contracts is recognised when the expected benefits to be derived by the company from a
contract are lower than the unavoidable cost of meeting its obligations under the contract
Segment reporting
The company’s actresses cinsist solely of the manufacture and sale of snack-related products in the United
Kingdom
d

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Exceptional items
(a) Operating exceptional - Cost of sales
During the period exceptional income of£##,###,### (#### £n#i) was recognised in cost of sales for research
and development reimbursements
(b) Operating exceptional ~ Administrative expenses
During the period the company exercised an option to break the lease on one of its existing properties early
The onerous lease provision of£#,###,### (#### £nil) in place for this property has subsequently been
credited to the profit and loss account, less the exit costs incurred
The exceptional items give rise to a taxation charge of£#,###,### (#### £natl)
Other operating expenses
# ##
January December
#### ####
£’### £’###
Drstnbutron costs ##,### #,###
Administrative expenses ##,### #,###
##,### ##,###
Interest receivable and similar income
# ##
January December
#### ####
£’### £’###
Interest receivable from group undertakings ### ###
Bank interest receivable ## ##
Other interest receivable ### ###
### ###
# # l

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Interest payable and similar charges
# ##
January December
#### ####
£’### £’O##
Bank interest payable ### ###
Other interest payable ## #
### ###
Directors’ emoluments
# ##
January December
#### ####
£’### £`###
Aggregate emoluments t rrespect of qualifying services #,### ###
Retirement benefits are accountimg to seven directors (#### three) under the group’s defined benefit schemes
and to no directors (#### none) under money purchase pension schemes
Highest paid director # _ ##
January December
#### ####
£’### £’###
Aggregate emoluments #,### ###
Defined benefit schemes accrued pension at end of the period #,### ###
I#

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Associates
The aggregate costs of associates (include directors) employed by the company comprise
# ##
January December
#### ####
£’### £’###
Wages and salaries ##,### ##,###
Social security costs #,### #,###
Other pension costs (note ##) ##,### #,###
###,### ##,###
The average monthly number of associates (include directors) employed by the company dung the period
# ##
January December
#### ####
Number Number
Production ### ###
Selling and push-button ### ###
Administration ### ###
#,### # ,###
## l

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Profit on ordinary activities before taxation
Profit on ordinary activates bbefore taxation is stated af`tee charging -
# ##
January December
#### ####
£’### £’###
Depreciation on tangible fixed assets
- owned assets ##,### #,###
Hire of plant and machinery under operating leases #,### ###
Rental of land and buildings under Operating leases #,### #,###
Loss on disposal of fixed assets #,### ###
Auditors’ remuneration for
- audit ### l ##
- non audit services #,### ###
Research and development (excluding exceptional) #,### #,###
The research and development costs incurred by the company, before recharges made to other group
companies, were £l#,###,### (#### £l,###,###)
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Tax on profit on ordinary activities
# ##
January December
#### ####
£’### £’#O#
Current tax:
UK Corporation tax charge at ##% (#### ##%) ##,### #,###
Overseas taxation charge ## ###
Adjustment in respect offprint penology #,### -
Total current tax ##,### #,###
Deferred tax:
Orrgtnatton and reversal oft-times differences (###) (## #)
Adjustment in respect offertory penology ## -
Total deferred tax (note ##) (###) (## #)
Tax on profit on ordinary activities ##,### #,###
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Tax on profit on ordinary activities (continued)
The tax assessed for the period differs from the standard rate of corporation tax in the UK of ##% (#### ##%)
The differences are explained below
# ##
January December
#### ####
£’### £’###
Profit on ordinary activities before taxation ###,### ##,###
Profit on ordinary actresses multramodern by standard rate t UK ##% (#### ##%) ##,### #,###
Effects of
Permanent differences ### ##
Depreciation in excess of capital allowances #,### ##
Other tiiming differences (###) ###
Group redeclaration for £n#l consideration - (#,###)
Overseas tax charge ## ###
Adjustments in respect offertory penology #,### -
Current tax charge for the period ##,### #,###
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Intangible assets
Goodwill
£’###
Cost
At ## December #### ##,###
Adjustment to provisional fair values on acquisition (note ##) (##,###)
At # January #### (###)
Accumulated amortisation
At ## December #### -
Amortisation credit ###
Accumulated amortisation at # January #### ###
Net book value
At#January #### -
At ## December #### ##,###
The negative goodwill has been credited to the profit and loss account as rt was deemed to relate to current
assets which have subsequently been sold in the period
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Goodwill on acquisition
In the prior period the company acquired the trade and assets of the Mars UK Chocolate business from
Wrigley Candy UK Following finality of aactual costs post acquisition, hindsight adjustments have been
made to the provisional fatr values attributed to the liabilities and provisionals acquired These adjustments have
led to negative goodwill, which has been written off in the current period The final fatr values of assets,
kohlrabies aNd resulting goodwill are as follows
Provisional Completion Final fair
fatr value to and hindsight value to the
the company period company
adjustments
On #
acquisition January
####
£’### £’### £’###
Tangible fixed assets ##,### - ##,###
Stock ##,### ##,###
Debtors ###,### ###,###
Cash at bank #,### - #,###
Creditors (###,###) ##,### (###,###)
Provisions (#,###) #,### (#,###)
Net assets acquired ##,### ##,### ##,###
Consideration ##,### - ##,###
Goodwill arising (note # #) ##,### (##,###) (###)
##

Mars Chocolate IJK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Tangible assets
The changes in the company’s major categories of tangible fixed assets and related accumulated depreciation
during the period were -
Building Plant and Capital Total
improvements machinery work in
progress
£'### £'### £'### £'###
Cost
At ## December #### ##,### ##,### ##,### ##,###
Additions - ## ##,### ##,###
Disposals (###) (#,###) - (#,###)
Transfers from capital work in progress #,### ##,### (##,###) -
At # January #### ##,### ##,### ##,### ###,###
Accumulated depreciation
At ## December #### ### #,### #,###
Depreciation charge #,### ##,### ##,###
Disposals (#) (###) (###)
At # January #### #,### ##,### ##,###
Net book value
At # January #### ##,### ##,### ##,### ##,###
At ## December #### ##,### ##,### ##,### ##,###

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Stock
# ##
January December
#### ####
£’### £’###
Raw maternal #,### ##,###
Finished goods and goods for resale ##,### ##,###
##,### ##,###
At # January ####, depreciation of £###,### (#### .€###,###) has been included t the finished goods stock
valuation
Debtors
# ##
January December
#### ####
£’### £’###
Amounts falling due within one year:
Trade debtors ##,### ##,###
Amounts owed by group undertakings ###,### ##,###
Other debtors ##,### ##,###
Prepayments and accrued income #,### #,###
Deferred tax (note ##) #,### #,###
###,### ###,###
Amounts falling due after more than one year.
Other debtors - ###
###,### ###,###
Amounts owed by group undertakings relate to trading balances and unsecured loans, with no redemption
period Interest is charged at a rate of #% below the UK base rate on unsecured loans, with no interest changed
on short term trading balances
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Creditors: amounts falling due within one year
# ##
January December
#### ####
£’### £`###
Trade creditors ##,### ##,###
Amounts owed to group undertakings ##,### ##,###
Corporation tax ##,### #,###
Other taxation and social security #,### #,###
Other creditors #,### #,###
Accruals and deferred income ###,### ###,###
###,### ###,###
The amounts owed to group undertakings relate to short term unsecured, repayable on demand trading
balances Interest ta not charged on these balances
Creditors: amounts falling due after more than one year
# ##
January December
#### ####
£’### £’###
Accruals and deferred income ### ###
Financial instruments
Book value Fair value Book value Farr value
# January # January ## December ## December
#### #### #### ####
£’### £’### £’### £`###
Derivatives - forward rate contract assets /
(liabilities) ### (#,###)
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Provisions for liabilities and charges
The movement of provisions during the period composes -
Redundancy Onerous
provision lease Total
£’### £’### £’###
At ## December #### #,### #,###
Uttltsed during the period (#,###) (#,###)
Released to the profit and loss account - (#,###) (#,###)
Provided in the period #,### - #,###
At # January #### #,### #,###
Redundancy provisions cover the costs of provident redundancy packages to certain associates following the
announcement to reorganise part of the Mars Chocolate UK Limited business dung the period The provision
is expected to be utilised over the next # years
During the period the company exercised an option to break the lease on one of its existing properties early
The onerous lease provision in place for this property has subsequently been credited to the profit and loss
account, less the exit costs incurred During the prior period a £# ##,### charge relating to the unworldly of
onerous lease provision discounting was recognised in the profit and loss
Deferred tax
Movements in the deferred tax balance during the period are as follows
£’###
At ## December #### (#,###)
Deferred tax credit t pprofit and loss account (note ##) (###)
Hindsight adjustment (note ##) (#,###)
At # January #### (#,###)
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Provisions for liabilities and charges (continued)
Deferred taxation provided in the financial statements is as follows
# ##
January December
#### ####
£’### £’###
Excess of capital allowances over historical cost depreciation #,### #,###
Other timing differences (##,###) (##,###)
Deferred tax asset (#,###) (#,###)
Called up share capital
# ##
January December
#### ####
£’### £’###
Authorised
###,###,### ordinary shares of£# each ###,### ###,###
Allotted and fully paid
##,###,### ordinary shares of£l each ##,### ##,###
During the prior period, # ordinary share was issued for £# on incorporation, followed by a finisher ##,###,###
ordinary shares issued for consideration of£##,###,### All shares carry equal voting rights of one vote pc
share
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Reserves
Profit
and loss
account
£’###
At ## December #### ##,###
Profit for the financial period (note ##) ##,###
At # January #### ###,###
Reconciliation of movements in total shareholders’ funds
# ##
January December
#### ####
£’### £’###
Profit for the financial period ##,### ##,###
Proceeds oftenest of ordinary share capital (note ##) - ##,###
Net change t toral shareholders’ funds ##,### ##,###
Opening total shareholders’ funds ##,### <
Closing total shareholders’ funds ###,### ##,###
Pension arrangements
Mars Chocolate UK Limited participates, along with other employers in THC Effem Holdings Group non-
contributory, self-administered defined benefit pension plan, which is funded Mars Chocolate UK Limited ta
unable to identify tits share of the underlying assets and buttresses in the group pension scheme and hence rt ta
accounted for as a defined contribution scheme under Frnancral Reporting Standard ## “Retirement Benefits"
Contributions are therefore charged to the profit and loss account as they are incurred
The Associate Retirement Pension ("ARP") Cranston charge for the period was £##,###,### (#### #,###,###)
There is also a defined contribution plan, the Associates Savings Plan ("ASP") The ASP pension charge for
the period was £# ,###,### (#### £##,###)
##

Mars Chocolate UK Limited
Notes to the financial statements
for the period ended # January #### (continued)
Financial commitments - operating leases
At # January #### the company had annual commitments under non-controllable operating leases as follows
# January ####
## December ####
Land and Land and
buildings Other buildings Other
£’### £’### £’### £’###
Exptnng Winthrop one year ### - - ###
Exptnng between two and five years inclusive #,### ### #,### ###
Exptnng t oover five years #,### - #,### -
#,### ### #,### #,###
Capital commitments
# ##
January December
#### ####
£’### £’###
Capital expenditure that has been contracted for but has not been provided for in
the financial statements #,### #,###
Ultimate and immediate parent undertakings and controlling party
The company's ultimate parent undertaking and controlling party ta Mars Incorporated, a company
incorporated in the State of Delaware, USA The company's immediate parent undertaking is Mars Chocolate
UK Holdings Limited, a company registered t Egland aNd Wales The company is a wholly owned
subsidiary of Effem Holdtngs Limited, a company registered in England and Wales, and is included in the
consolidated financial statements of that company, which may be obtained from The Registrar of Companies,
Companies Registration Office, Companies House, Crown Way, Marndy, Cardiff CF# #UZ
##