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COMPANY REGISTRATION NUMBER: 06099534
Kosher Deli (UK) Limited
Financial Statements
31 December 2021
Kosher Deli (UK) Limited
Financial Statements
Period from 1 March 2021 to 31 December 2021
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
Kosher Deli (UK) Limited
Strategic Report
Period from 1 March 2021 to 31 December 2021
The directors have pleasure in presenting their Strategic report of the company for the period ended 31 December 2021. Principal Activities The principal activity of the company during the period was that of wholesale and retail food suppliers. Development and Performance We refer to the attached financial statements for the period 31 Dcember 2021. Competitive trading conditions coupled with unavoidable increases in overhead and factory and shop running costs, and significant fluctuations in the international value of sterling have all impacted on the results of the company. Despite the above, careful management has still resulted in an increase in turnover for the period based upon an annualised adjustment. Future projections are however still heavily clouded by the Covid-19 pandemic and the uncertainties of future international trade relationships following Brexit. Overview Turnover has increased by 15% compared to the previous equivalent period. We are please to report that our Luton factory is now fully operational. Financial risk management objectives and policies a) The financial risk management objectives and policies of the company including the policy for hedging each major type of forecasted transaction for which hedge accounting is used as outlined below; b) The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk as outlined below; Price and exchange rate risks are managed by ensuring that dealing prices for goods purchased or sold are fixed in the appropriate trading currencies to match with the currency in which the goods are subsequently sold or purchased. Credit risk is managed by agreeing credit terms with smaller customers on a customer by customer basis, taking into account where applicable acceptable credit references. Larger customers, such as supermarket chains, apply their own fixed credit terms to all transactions. Liquidity and cashflow risks are managed by ensuring that the company at all times has sufficient working capital available to meet anticipated levels of expenditure.
This report was approved by the board of directors on 26 August 2022 and signed on behalf of the board by:
Mrs H Klein
Director
Registered office:
Hallswelle House
1 Hallswelle Road
London
England
NW11 0DH
Kosher Deli (UK) Limited
Directors' Report
Period from 1 March 2021 to 31 December 2021
The directors present their report and the financial statements of the company for the period ended 31 December 2021 .
Directors
The directors who served the company during the period was as follows:
Mr A Bendahan
Mrs H Klein was appointed as a director of the company on 1 April 2022.
Dividends
The directors do not recommend the payment of a dividend.
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 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 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; - 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 26 August 2022 and signed on behalf of the board by:
Mrs H Klein
Director
Registered office:
Hallswelle House
1 Hallswelle Road
London
England
NW11 0DH
Kosher Deli (UK) Limited
Independent Auditor's Report to the Members of Kosher Deli (UK) Limited
Period from 1 March 2021 to 31 December 2021
Opinion
We have audited the financial statements of Kosher Deli (UK) Limited (the 'company') for the period ended 31 December 2021 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, 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 31 December 2021 and of its profit for the period 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 period 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: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls by testing journal entries and evaluating whether there was evidence of management bias which represented a risk of material misstatement due to fraud. 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.
Phillip Smulovitch
(Senior Statutory Auditor)
For and on behalf of
GK & Co. LLP
Chartered accountants & statutory auditor
Hallswelle House
1 Hallswelle Road
London
NW11 0DH
26 August 2022
Kosher Deli (UK) Limited
Statement of Comprehensive Income
Period from 1 March 2021 to 31 December 2021
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
Note
£
£
Turnover
4
8,099,948
8,428,886
Cost of sales
4,272,356
3,648,002
------------
------------
Gross profit
3,827,592
4,780,884
Property outgoings
21,580
20,819
Administrative expenses
3,447,905
4,641,575
Other operating income
5
25,265
176,942
------------
------------
Operating profit
6
383,372
295,432
Other interest receivable and similar income
9
32,141
36,756
Interest payable and similar expenses
10
174,143
229,067
------------
------------
Profit before taxation
241,370
103,121
Tax on profit
11
35,227
( 157,805)
---------
---------
Profit after taxation
206,143
260,926
Other taxes not shown under the above
89,595
---------
---------
Profit for the financial period
206,143
171,331
---------
---------
Revaluation of tangible assets
2,934,941
------------
---------
Total comprehensive income for the period
3,141,084
171,331
------------
---------
All the activities of the company are from continuing operations.
Kosher Deli (UK) Limited
Statement of Financial Position
31 December 2021
31 Dec 21
28 Feb 21
Note
£
£
£
Fixed assets
Tangible assets
12
12,009,822
8,476,756
Current assets
Stocks
13
352,355
338,675
Debtors
14
1,842,441
1,911,982
Cash at bank and in hand
43,165
80,403
------------
------------
2,237,961
2,331,060
Creditors: amounts falling due within one year
15
2,195,850
2,114,366
------------
------------
Net current assets
42,111
216,694
-------------
------------
Total assets less current liabilities
12,051,933
8,693,450
Creditors: amounts falling due after more than one year
16
4,395,316
4,878,960
Provisions
Taxation including deferred tax
18
771,043
70,000
-------------
------------
Net assets
6,885,574
3,744,490
-------------
------------
Capital and reserves
Called up share capital
22
1
1
Revaluation reserve
23
3,239,200
304,259
Profit and loss account
23
3,646,373
3,440,230
------------
------------
Shareholders funds
6,885,574
3,744,490
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 26 August 2022 , and are signed on behalf of the board by:
Mrs H Klein
Director
Company registration number: 06099534
Kosher Deli (UK) Limited
Statement of Changes in Equity
Period from 1 March 2021 to 31 December 2021
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 March 2020
1
304,259
3,268,899
3,573,159
Profit for the period
171,331
171,331
----
---------
------------
------------
Total comprehensive income for the period
171,331
171,331
At 28 February 2021
1
304,259
3,440,230
3,744,490
Profit for the period
206,143
206,143
Other comprehensive income for the period:
Revaluation of tangible assets
12
2,934,941
2,934,941
----
------------
------------
------------
Total comprehensive income for the period
2,934,941
206,143
3,141,084
----
------------
------------
------------
At 31 December 2021
1
3,239,200
3,646,373
6,885,574
----
------------
------------
------------
Kosher Deli (UK) Limited
Statement of Cash Flows
Period from 1 March 2021 to 31 December 2021
31 Dec 21
28 Feb 21
£
£
Cash flows from operating activities
Profit for the financial period
206,143
171,331
Adjustments for:
Depreciation of tangible assets
195,213
490,793
Government grant income
( 127,354)
Other interest receivable and similar income
( 32,141)
( 36,756)
Interest payable and similar expenses
174,143
229,067
Loss on disposal of tangible assets
7,170
Tax on profit
35,227
(157,805)
Accrued expenses/(income)
32,051
( 32,000)
Changes in:
Stocks
( 13,680)
21,085
Trade and other debtors
69,541
267,669
Trade and other creditors
( 206,835)
( 356,401)
---------
---------
Cash generated from operations
459,662
476,799
Interest paid
( 174,143)
( 229,067)
Interest received
32,141
36,756
Tax (paid)/received
( 32,117)
19,914
---------
---------
Net cash from operating activities
285,543
304,402
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 104,895)
( 140,741)
Proceeds from sale of tangible assets
1,068
---------
---------
Net cash used in investing activities
( 104,895)
( 139,673)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 259,183)
( 290,177)
Government grant income
127,354
Payments of finance lease liabilities
41,297
---------
---------
Net cash used in financing activities
( 217,886)
( 162,823)
---------
---------
Net (decrease)/increase in cash and cash equivalents
( 37,238)
1,906
Cash and cash equivalents at beginning of period
80,403
78,497
--------
--------
Cash and cash equivalents at end of period
43,165
80,403
--------
--------
Kosher Deli (UK) Limited
Notes to the Financial Statements
Period from 1 March 2021 to 31 December 2021
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hallswelle House, 1 Hallswelle Road, London, England, NW11 0DH.
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.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
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.
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:
Plant and machinery
-
25% reducing balance
Fixtures, fittings and equipment
-
25% reducing balance
Motor vehicles
-
25% reducing balance
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.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
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:
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Sale of goods
7,345,142
7,565,187
Rendering of services
754,806
593,699
Other income
270,000
------------
------------
8,099,948
8,428,886
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Rental income
25,265
49,588
Government grant income
127,354
--------
---------
25,265
176,942
--------
---------
6. Operating profit
Operating profit or loss is stated after charging:
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Depreciation of tangible assets
195,213
490,793
Loss on disposal of tangible assets
7,170
---------
---------
7. Auditor's remuneration
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Fees payable for the audit of the financial statements
20,000
20,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:
31 Dec 21
28 Feb 21
No.
No.
Production staff
75
85
Administrative staff
5
5
----
----
80
90
----
----
The aggregate payroll costs incurred during the period, relating to the above, were:
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Wages and salaries
2,099,907
2,393,909
Social security costs
178,215
189,051
Other pension costs
34,330
41,732
------------
------------
2,312,452
2,624,692
------------
------------
9. Other interest receivable and similar income
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Interest on loans and receivables
32,138
36,714
Interest on bank deposits
3
42
--------
--------
32,141
36,756
--------
--------
10. Interest payable and similar expenses
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Interest on banks loans and overdrafts
159,314
187,939
Interest on obligations under finance leases and hire purchase contracts
393
Interest payable - other loans
14,436
39,138
Other interest payable and similar charges
1,990
---------
---------
174,143
229,067
---------
---------
11. Tax on profit
Major components of tax expense/(income)
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Current tax:
UK current tax expense
22,627
32,117
Adjustments in respect of prior periods
( 19,914)
--------
--------
Total current tax
22,627
12,203
--------
--------
Deferred tax:
Origination and reversal of timing differences
12,600
( 170,008)
--------
---------
Tax on profit
35,227
(157,805)
--------
---------
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the period is lower than (2021: lower than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).
Period from
1 Mar 21 to
Year to
31 Dec 21
28 Feb 21
£
£
Profit on ordinary activities before taxation
241,370
103,121
---------
---------
Profit on ordinary activities by rate of tax
45,860
19,593
Effect of expenses not deductible for tax purposes
37,466
94,785
Effect of capital allowances and depreciation
( 60,699)
( 80,295)
Unused tax losses
( 1,966)
---------
---------
Tax on profit
22,627
32,117
---------
---------
12. Tangible assets
Freehold properties
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost/valuation
At 1 March 2021
7,376,616
2,692,343
506,993
11,000
10,586,952
Additions
54,890
4,815
45,190
104,895
Revaluations
3,623,384
3,623,384
-------------
------------
---------
--------
-------------
At 31 December 2021
11,000,000
2,747,233
511,808
56,190
14,315,231
-------------
------------
---------
--------
-------------
Depreciation
At 1 March 2021
1,667,050
436,787
6,359
2,110,196
Charge for the period
169,417
15,625
10,171
195,213
-------------
------------
---------
--------
-------------
At 31 December 2021
1,836,467
452,412
16,530
2,305,409
-------------
------------
---------
--------
-------------
Carrying amount
At 31 December 2021
11,000,000
910,766
59,396
39,660
12,009,822
-------------
------------
---------
--------
-------------
At 28 February 2021
7,376,616
1,025,293
70,206
4,641
8,476,756
-------------
------------
---------
--------
-------------
Tangible assets held at valuation
The freehold properties are shown at the greater of cost and directors valuation as at the balance sheet date.
13. Stocks
31 Dec 21
28 Feb 21
£
£
Finished goods and goods for resale
352,355
338,675
---------
---------
14. Debtors
31 Dec 21
28 Feb 21
£
£
Trade debtors
269,190
335,189
Prepayments and accrued income
17,679
61,534
Sundry loans
830,042
794,726
Amounts owed by related undertakings
682,779
643,972
Other debtors
42,751
76,561
------------
------------
1,842,441
1,911,982
------------
------------
15. Creditors: amounts falling due within one year
31 Dec 21
28 Feb 21
£
£
Bank loans and overdrafts
343,205
50,000
Trade creditors
1,179,328
1,325,201
Accruals and deferred income
52,051
20,000
Corporation tax
22,627
32,117
Social security and other taxes
52,762
33,465
Obligations under finance leases and hire purchase contracts
11,262
Director loan accounts
275,910
314,619
Other creditors
258,705
338,964
------------
------------
2,195,850
2,114,366
------------
------------
The bank borrowings are secured by a charge on the freehold properties. Additionally, the company has entered into a Composite Accounting Agreement whereby each participating company has provided a guarantee to the Bank.
16. Creditors: amounts falling due after more than one year
31 Dec 21
28 Feb 21
£
£
Bank loans and overdrafts
4,365,281
4,878,960
Obligations under finance leases and hire purchase contracts
30,035
------------
------------
4,395,316
4,878,960
------------
------------
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
31 Dec 21
28 Feb 21
£
£
Not later than 1 year
11,262
Later than 1 year and not later than 5 years
30,035
--------
----
41,297
--------
----
18. Provisions
Deferred tax (note 19)
£
At 1 March 2021
70,000
Additions
701,043
---------
At 31 December 2021
771,043
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
31 Dec 21
28 Feb 21
£
£
Included in provisions (note 18)
771,043
70,000
---------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
31 Dec 21
28 Feb 21
£
£
Accelerated capital allowances
12,600
170,008
Revaluation of tangible assets
758,443
70,000
---------
---------
771,043
240,008
---------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 34,330 (2021: £ 41,732 ).
21. Government grants
The amounts recognised in the financial statements for government grants are as follows:
31 Dec 21
28 Feb 21
£
£
Recognised in other operating income:
Government grants recognised directly in income
127,354
----
---------
22. Called up share capital
Authorised share capital
31 Dec 21
28 Feb 21
No.
£
No.
£
Ordinary A shares of £ 1 each
50,000
50,000
50,000
50,000
Ordinary B shares of £ 1 each
50,000
50,000
50,000
50,000
---------
---------
---------
---------
100,000
100,000
100,000
100,000
---------
---------
---------
---------
Issued, called up and fully paid
31 Dec 21
28 Feb 21
No.
£
No.
£
Ordinary A shares of £ 1 each
1
1
1
1
----
----
----
----
23. Reserves
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Mar 2021
Cash flows
At 31 Dec 2021
£
£
£
Cash at bank and in hand
80,403
(37,238)
43,165
Debt due within one year
(364,619)
(265,758)
(630,377)
Debt due after one year
(4,878,960)
483,644
(4,395,316)
------------
---------
------------
( 5,163,176)
180,648
( 4,982,528)
------------
---------
------------
25. Directors' advances, credits and guarantees
During the period the directors entered into the following advances and credits with the company:
31 Dec 21
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr A Bendahan
314,619
( 38,709)
275,910
---------
--------
---------
28 Feb 21
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr A Bendahan
449,139
( 134,520)
314,619
---------
---------
---------
26. Related party transactions
The company was under the control of Mr Bendahan throughout the current and previous year. Mr Bendahan is the managing director. There were transactions with related companies at market value during the period. The management fees paid to these related undertakings amounted to £88,500 (2021:113,000). Additionally, the company received interest in the sum of £32,138 (2021: £36,714) from companies in which the director of this company has a controlling interest.
Kosher Deli (UK) Limited
Notes to the Financial Statements (continued)
Period from 1 March 2021 to 31 December 2021
27. Controlling party
The ultimate parent company is Richtone Developments Ltd., a company incorporated in British Virgin Islands.