Frozen ready meals retailer Cook has insisted it is in a strong financial position despite its auditor expressing doubt over the company’s future.
The retailer’s accounts revealed Cook reported a pre-tax loss of £328,850 in the year to 31 March 2008 on sales up 26% to £13.9m.
In the accounts, made available at Companies House this week, auditor Baker Tilly said: “At that date [31 March], the company’s total liabilities exceeded its total assets by £455,470. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”
However, founder Edward Perry insisted the company, which has 32 stores across the south east, was in good shape.
“On the face of it, obviously the auditor was right to be concerned – negative net worth is not a good look,” he said. “But the shareholders and our family have always been totally committed to the success of Cook, have always supported it with whatever is required, and are more excited now than ever.”
Cook had recently renewed its current facility with its bank and the family had invested a further £1.5m in the business, he said.
“This obviously puts the business into significant positive net worth territory and is one part of a larger jigsaw,” Perry added.
“We’re in the process of putting the finishing touches on a major new strategic initiative that we have been working on for a few months, one that will see us accelerate our growth significantly.
“We see the coming few years as a brilliant time for a ‘land grab’, and we’re just gearing up.”
The company opened 11 stores last year and in 2007 opened a factory, dubbed a “kitchen”, in Sittingbourne, Kent. The accounts revealed the kitchen had the capacity to support a turnover in excess of £80m and was the “long-term foundation for the company”.
Sales were better than Cook had planned for, Perry added.
The retailer’s accounts revealed Cook reported a pre-tax loss of £328,850 in the year to 31 March 2008 on sales up 26% to £13.9m.
In the accounts, made available at Companies House this week, auditor Baker Tilly said: “At that date [31 March], the company’s total liabilities exceeded its total assets by £455,470. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”
However, founder Edward Perry insisted the company, which has 32 stores across the south east, was in good shape.
“On the face of it, obviously the auditor was right to be concerned – negative net worth is not a good look,” he said. “But the shareholders and our family have always been totally committed to the success of Cook, have always supported it with whatever is required, and are more excited now than ever.”
Cook had recently renewed its current facility with its bank and the family had invested a further £1.5m in the business, he said.
“This obviously puts the business into significant positive net worth territory and is one part of a larger jigsaw,” Perry added.
“We’re in the process of putting the finishing touches on a major new strategic initiative that we have been working on for a few months, one that will see us accelerate our growth significantly.
“We see the coming few years as a brilliant time for a ‘land grab’, and we’re just gearing up.”
The company opened 11 stores last year and in 2007 opened a factory, dubbed a “kitchen”, in Sittingbourne, Kent. The accounts revealed the kitchen had the capacity to support a turnover in excess of £80m and was the “long-term foundation for the company”.
Sales were better than Cook had planned for, Perry added.
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