REGISTERED NUMBER: SC528856 (Scotland) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
CLEAR 123 LIMITED |
REGISTERED NUMBER: SC528856 (Scotland) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
CLEAR 123 LIMITED |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
CLEAR 123 LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
5th Floor, Walker House |
Exchange Flags |
Liverpool |
L2 3YL |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The business has traded under turbulent conditions during 2022. The most significant factors being the impact of the war in Ukraine, inflation, a summer heatwave and pest infestation in the sprout crop. |
The war in Ukraine resulted in immediate increases in the cost of fertilisers, agrochemicals, and diesel fuel. These factors significantly increased the cost of cultivating the crops to be sold in 2022/23 as well as increasing the operating costs of the company including transport, packaging, electricity and labor. |
Early 2022 proved to be very good in terms of good field yields from our crops cultivated in 2021 which resulted in us holding additional crops at the end of the harvest season. Utilising our storage facility on site to its near full capacity and extending supply of the UK crop season. However, clement weather during the first quarter of the year meant sales of traditional winter vegetables were lower than anticipated, resulting in stock write offs. |
The second and third quarters of 2022 presented a very dry growing period for the 22/23 crops. Considerable volumes of irrigation were applied to all the crops but this did not counter the challenging drought conditions which caused an aphid infestation affecting most of our sprout crop. On harvesting, during August/Sept of 2022 the full extent of the aphid problem became apparent, with notable yield losses. This resulted in significant increase in labour costs to process the sprouts which was preferable to the alternative of non-supply to our customers. |
The cost-of-living crisis also reduced the volume of fresh produce being sold in the UK as the consumers economised. |
Because of the measures taken we delivered our planned sales forecast strengthening our relationships with all our major customers. |
The financial statements for December 2022 reported a reduction in margin performance to 10% (2021 - 17%), this combined with significant increases in operating costs because of inflation and the difficulty of raising selling prices to our customers quickly enough created the perfect storm. |
People |
In the year ended 30 December 2022 was the most challenging in the company's history however our employees rose to the challenge helping to maintain supply to our customers demonstrating their considerable commitment and loyalty. |
On behalf of the Board, I would like to thank them for their considerable efforts, which do not go unnoticed and are much appreciated. |
Strategy |
The main strategic objectives of the business are to grow high quality vegetables, process them, and deliver them on time to our customers. To achieve that the company continues investment in the infrastructure, automation, and the management team with the focus around, lean production principles and technologies which ensures we remain competitive in a value focused market. |
Early 2023 the business entered into a new working agreement with East of Scotland Growers Limited, a producer organisation with sixteen members. East of Scotland growers incorporated a new member to fund and grow crops for R&K Drysdale Limited. This new member together with East of Scotland Growers acquired a 40% shareholding in Clear 123 Ltd. |
The main crops grown by East of Scotland Growers are Broccoli, Cauliflower and Cabbage. R&K Drysdale Limited won the contract to supply a key customer with those crops, adding a summer vegetable range which has proved transformative with the utilisation of the storage and production facilities 12 months of the year. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The relationship with East of Scotland Growers is also bringing the potential for additional business and securing the presence of the business with the major UK supermarkets. |
In summary, the new relationship with East of Scotland Growers is proving to be a transformational by sharing the growing risk and full utilisation of the storage and production facilities. |
PRINCIPLES RISKS AND UNCERTAINTIES |
The company is an agricultural business and accordingly faces risks relating to the external environments such as weather, disease, and crop yields. Some of this risk has been significantly mitigated by processing and marketing produce grown by the ESG members and by bringing together our agricultural team, and the East of Scotland Growers extensive agronomy experience. The company also continues to invest in research in new crop varieties to improve quality, yields, disease resistance to reduce agrichemical use and improve taste. |
The business has mitigated currency risk for the imported crops by using forward currency agreements which align with agreed supplier payment and customer prices. |
OUTLOOK |
For all the advantages outlined above resulting from of our new working relationship and significant price increases that are now mitigating inflationary cost increases are improving current and future performance, providing increased certainty for longer term planning. |
In conclusion, despite an extremely difficult 2022 the Board of Directors and Management Team are confident that our joint venture with East of Scotland Growers Limited will play a part in de-risking the business, secure additional sales opportunities and future profit's and growth. |
ON BEHALF OF THE BOARD: |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of vegetable growing, packing and distribution. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
RESEARCH AND DEVELOPMENT |
R & K Drysdale Limited have been performing the on-going identification and trialling of new varieties of Brussels sprouts and kalettes to determine their ability to be grown in the UK climate in sufficiently high yields for commercial production, whilst ensuring that the product has traits desirable for domestic and international markets. Due to the research there has been an increase in staffing, consumable and subcontracting activities. |
DIRECTORS |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 group and of the profit or loss of the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and 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 group's auditors are aware of that information. |
AUDITORS |
Sedulo Audit Limited will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLEAR 123 LIMITED |
Opinion |
We have audited the financial statements of Clear 123 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 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 group's and of the parent company affairs as at 31 December 2022 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 this gives rise to a material misstatement in the financial statements themselves. 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLEAR 123 LIMITED |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on pages four and five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLEAR 123 LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Extent to which the audit was capable of detecting irregularities, including fraud |
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations. |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. |
We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
5th Floor, Walker House |
Exchange Flags |
Liverpool |
L2 3YL |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
Notes | £ | £ |
TURNOVER | 3 | 28,138,252 | 41,762,927 |
Cost of sales | 22,785,845 | 30,703,532 |
GROSS PROFIT | 5,352,407 | 11,059,395 |
Administrative expenses | 7,573,240 | 9,582,239 |
(2,220,833 | ) | 1,477,156 |
Other operating income | 1,265,038 | 237,807 |
OPERATING (LOSS)/PROFIT | 5 | (955,795 | ) | 1,714,963 |
Exceptional costs | 6 | - | 670,080 |
(955,795 | ) | 1,044,883 |
Interest payable and similar expenses | 7 | 645,560 | 582,837 |
(LOSS)/PROFIT BEFORE TAXATION | (1,601,355 | ) | 462,046 |
Tax on (loss)/profit | 8 | (248,356 | ) | 412,546 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (1,352,999 | ) | 49,500 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (1,352,999 | ) | 49,500 |
OTHER COMPREHENSIVE INCOME |
Revaluation reserve | (314,862 | ) | 3,073,314 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(314,862 |
) |
3,073,314 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,667,861 |
) |
3,122,814 |
Total comprehensive income attributable to: |
Owners of the parent | (1,667,861 | ) | 3,122,814 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
ASSETS |
FIXED ASSETS |
Intangible assets | 10 | 254,849 | 434,129 |
Tangible assets | 11 | 14,771,130 | 15,466,899 |
Investments | 12 | - | - |
Investment property | 13 | - | 1,200,000 |
15,025,979 | 17,101,028 |
CURRENT ASSETS |
Stocks | 14 | 3,992,562 | 4,956,997 |
Debtors | 15 | 8,039,145 | 6,476,614 |
Cash at bank | 5,539 | 182,646 |
12,037,246 | 11,616,257 |
27,063,225 | 28,717,285 |
CAPITAL, RESERVES AND LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 | 44,225 | 44,225 |
Share premium | 17 | 2,511,416 | 2,511,416 |
Revaluation reserve | 17 | 2,758,452 | 3,073,314 |
Other reserves | 17 | (244,010 | ) | (244,010 | ) |
Retained earnings | 17 | (59,627 | ) | 1,293,372 |
SHAREHOLDERS' FUNDS | 5,010,456 | 6,678,317 |
PROVISIONS FOR LIABILITIES | 18 | 441,668 | 690,024 |
CREDITORS | 19 | 21,611,101 | 21,348,944 |
27,063,225 | 28,717,285 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2023 and were signed on its behalf by: |
C S Keenan - Director |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
COMPANY BALANCE SHEET |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
ASSETS |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
3,589,010 | 3,666,012 |
CAPITAL, RESERVES AND LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Share premium | 17 |
Retained earnings | 17 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
CREDITORS | 19 |
Company's loss for the financial year | (201 | ) | (69,620 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 July 2020 | 44,225 | 1,243,872 | 2,511,416 |
Changes in equity |
Total comprehensive income | - | 49,500 | - |
Balance at 31 December 2021 | 44,225 | 1,293,372 | 2,511,416 |
Changes in equity |
Total comprehensive income | - | (1,352,999 | ) | - |
Balance at 31 December 2022 | 44,225 | (59,627 | ) | 2,511,416 |
Revaluation | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 July 2020 | - | (244,010 | ) | 3,555,503 |
Changes in equity |
Total comprehensive income | 3,073,314 | - | 3,122,814 |
Balance at 31 December 2021 | 3,073,314 | (244,010 | ) | 6,678,317 |
Changes in equity |
Total comprehensive income | (314,862 | ) | - | (1,667,861 | ) |
Balance at 31 December 2022 | 2,758,452 | (244,010 | ) | 5,010,456 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2020 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 | ( |
) |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 885,929 | 2,130,744 |
Interest paid | (566,751 | ) | (496,704 | ) |
Interest element of finance lease payments paid |
(78,809 |
) |
(86,133 |
) |
Tax paid | - | 21,957 |
Net cash from operating activities | 240,369 | 1,569,864 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,223,924 | ) | (5,921,715 | ) |
Sale of tangible fixed assets | 470,326 | 6,101 |
Sale of investment property | 1,200,000 | - |
Net cash from investing activities | 446,402 | (5,915,614 | ) |
Cash flows from financing activities |
New loans in year | 1,300,000 | 5,111,878 |
Loan repayments in year | (1,441,424 | ) | (874,847 | ) |
Capital repayments in year | (863,364 | ) | 1,053,139 |
Amount introduced by directors | - | 300,000 |
Net cash from financing activities | (1,004,788 | ) | 5,590,170 |
(Decrease)/increase in cash and cash equivalents | (318,017 | ) | 1,244,420 |
Cash and cash equivalents at beginning of year |
2 |
(74,987 |
) |
(1,319,407 |
) |
Cash and cash equivalents at end of year | 2 | (393,004 | ) | (74,987 | ) |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
(Loss)/profit before taxation | (1,601,355 | ) | 462,046 |
Depreciation charges | 1,113,784 | 1,254,314 |
Loss/(profit) on disposal of fixed assets | 200,000 | (6,101 | ) |
Government grants | - | (87,807 | ) |
Finance costs | 645,560 | 582,837 |
357,989 | 2,205,289 |
Decrease in stocks | 964,435 | 584,688 |
Increase in trade and other debtors | (1,562,531 | ) | (3,498,595 | ) |
Increase in trade and other creditors | 1,126,036 | 2,839,362 |
Cash generated from operations | 885,929 | 2,130,744 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 5,539 | 182,646 |
Bank overdrafts | (398,543 | ) | (257,633 | ) |
(393,004 | ) | (74,987 | ) |
Period ended 31 December 2021 |
31.12.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 182,646 | - |
Bank overdrafts | (257,633 | ) | (1,319,407 | ) |
(74,987 | ) | (1,319,407 | ) |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 182,646 | (177,107 | ) | 5,539 |
Bank overdrafts | (257,633 | ) | (140,910 | ) | (398,543 | ) |
(74,987 | ) | (318,017 | ) | (393,004 | ) |
Debt |
Finance leases | (1,960,926 | ) | 403,188 | (1,557,738 | ) |
Debts falling due within 1 year | (1,835,240 | ) | (278,584 | ) | (2,113,824 | ) |
Debts falling due after 1 year | (5,712,410 | ) | 880,185 | (4,832,225 | ) |
(9,508,576 | ) | 1,004,789 | (8,503,787 | ) |
Total | (9,583,563 | ) | 686,772 | (8,896,791 | ) |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Clear 123 Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentational currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1. |
Going concern |
The company meets its day-to-day working capital requirements through its cash reserves. The Company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within the level of its current cash reserves. At the time of signing these accounts the Directors are of the opinion that the Company will remain viable for the foreseeable future and therefore these Financial Statements have been prepared on the Going Concern basis. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is recognised to the extent that is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer; |
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
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 |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
The robotic peeler development depreciation is charged at 5% on cost. |
Freehold land is not depreciated. |
Investment property |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. |
Subsequent to initial recognition |
Investment properties whose fair value can be measure reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise. |
No depreciation is provided in respect of investment properties applying the fair value method. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial statements. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which includes debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest. Financial asserts classified as receivable within one year are not amortised. |
Classification of financial liabilities |
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 company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less, if not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets. |
Pension costs and other post-retirement benefits |
Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred. |
3. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
United Kingdom | 28,138,252 | 41,762,927 |
28,138,252 | 41,762,927 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 3,728,076 | 5,300,111 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
Production | 117 | 214 |
Administration | 58 | 44 |
Period |
Year | 1.7.20 |
Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration | 15,150 | 10,000 |
Directors' fees paid to services companies | 130,143 | 148,575 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Hire of plant and machinery | 311,006 | 454,281 |
Other operating leases | - | 57,994 |
Depreciation - owned assets | 934,505 | 1,036,393 |
Loss/(profit) on disposal of fixed assets | 200,000 | (6,101 | ) |
Goodwill amortisation | 179,280 | 268,920 |
Auditors' remuneration | 18,550 | 30,450 |
Foreign exchange differences | 251 | (91,916 | ) |
6. | EXCEPTIONAL ITEMS |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Exceptional costs | - | (670,080 | ) |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
In the prior period, the exceptional costs related to the following: |
The Coronavirus pandemic (COVID-19) caused disruption across all areas of the business, and this resulted in significant non-recurring costs which impact the business over a period of 18 months. |
These exceptional costs, amounting to £670,080, included the additional costs to meet the initial demand as supermarket shelves were constantly emptied, and site adaptions and changes in working practices to prevent the spread of the virus which has allowed the business to continue to trade without any closures and to successfully supply all customers during UK COVID lockdowns. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Bank interest | 566,751 | 427,685 |
Bank loan interest | - | 69,019 |
Hire purchase | 78,809 | 86,133 |
645,560 | 582,837 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
Deferred tax | (248,356 | ) | 412,546 |
Tax on (loss)/profit | (248,356 | ) | 412,546 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.7.20 |
Year Ended | to |
31.12.22 | 31.12.21 |
£ | £ |
(Loss)/profit before tax | (1,601,355 | ) | 462,046 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(304,257 |
) |
87,789 |
Effects of: |
Expenses not deductible for tax purposes | 58 | - |
Income not taxable for tax purposes | - | (375 | ) |
Utilisation of tax losses | - | (48,749 | ) |
Timing difference for goodwill and impairment | 34,063 | - |
change in tax |
Research and development credit | - | (82,109 | ) |
Effects of tax rate changes | 106,000 | - |
Permanent differences | (84,220 | ) | 455,990 |
Total tax (credit)/charge | (248,356 | ) | 412,546 |
Tax effects relating to effects of other comprehensive income |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserve | (314,862 | ) | - | (314,862 | ) |
1.7.20 to 31.12.21 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserve | 3,073,314 | - | 3,073,314 |
Factors that may affect future tax charges |
On 17 October 2022, the Chancellor of the Exchequer confirmed that in line with the previously enacted legislation the UK corporation tax rate will increase to 25% from 1 April 2023. The enacted rates have been used to determine the deferred tax balances, increasing the Group's net deferred tax liability by £106,000. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by section 408 of the Companies Act 2006, the income statement of the parent company is not presented as part of these financial statements. |
The Company reported a loss of £201 for the year. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 1,420,170 |
AMORTISATION |
At 1 January 2022 | 986,041 |
Amortisation for year | 179,280 |
At 31 December 2022 | 1,165,321 |
NET BOOK VALUE |
At 31 December 2022 | 254,849 |
At 31 December 2021 | 434,129 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 7,009,169 | - | 14,372,099 |
Additions | - | 328,732 | 871,880 |
Disposals | - | - | (328,402 | ) |
At 31 December 2022 | 7,009,169 | 328,732 | 14,915,577 |
DEPRECIATION |
At 1 January 2022 | 1,089,878 | - | 6,272,095 |
Charge for year | - | 246,012 | 688,493 |
Revaluation adjustments | - | - | 314,862 |
At 31 December 2022 | 1,089,878 | 246,012 | 7,275,450 |
NET BOOK VALUE |
At 31 December 2022 | 5,919,291 | 82,720 | 7,640,127 |
At 31 December 2021 | 5,919,291 | - | 8,100,004 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Assets |
Motor | under |
vehicles | construction | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 10,000 | 1,440,271 | 22,831,539 |
Additions | 16,200 | 7,112 | 1,223,924 |
Disposals | - | (341,924 | ) | (670,326 | ) |
At 31 December 2022 | 26,200 | 1,105,459 | 23,385,137 |
DEPRECIATION |
At 1 January 2022 | 2,667 | - | 7,364,640 |
Charge for year | - | - | 934,505 |
Revaluation adjustments | - | - | 314,862 |
At 31 December 2022 | 2,667 | - | 8,614,007 |
NET BOOK VALUE |
At 31 December 2022 | 23,533 | 1,105,459 | 14,771,130 |
At 31 December 2021 | 7,333 | 1,440,271 | 15,466,899 |
Included in cost or valuation of land and buildings is freehold land of £817,635 (2021 - £817,635) which is not depreciated. |
Included within Plant and Machinery are costs for the development of a Robotic Sprout Peeler process. These costs amounted to Net Book Value of £320,753(2021: £330,729). The asset will generate future economic benefits to the company. |
Cost or valuation at 31 December 2022 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2021 | - | - | 3,073,314 |
Valuation in 2022 | - | - | (314,862 | ) |
Cost | 7,009,169 | 328,732 | 12,157,125 |
7,009,169 | 328,732 | 14,915,577 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Assets |
Motor | under |
vehicles | construction | Totals |
£ | £ | £ |
Valuation in 2021 | - | - | 3,073,314 |
Valuation in 2022 | - | - | (314,862 | ) |
Cost | 26,200 | 1,105,459 | 20,626,685 |
26,200 | 1,105,459 | 23,385,137 |
Plant and machinery have been revalued on 30 June 2021 by Tallon & Associates Limited. |
12. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.12.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year/period | ( |
) |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 | 1,200,000 |
Disposals | (1,200,000 | ) |
At 31 December 2022 | - |
NET BOOK VALUE |
At 31 December 2022 | - |
At 31 December 2021 | 1,200,000 |
14. | STOCKS |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Raw materials | 1,569,360 | 1,249,005 |
Work-in-progress | 2,423,202 | 3,707,992 |
3,992,562 | 4,956,997 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Trade debtors | 6,503,491 | 5,899,155 |
Amounts owed by group undertakings | - | - |
VAT | 404,303 | 233,113 |
Prepayments and accrued income | 1,131,351 | 344,346 |
8,039,145 | 6,476,614 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary | £1 | 1,600 | 1,600 |
Preference | £0.01 | 2,600 | 2,600 |
Deferred | £0.00 | 1 | 40,025 | 40,025 |
44,225 | 44,225 |
17. | RESERVES |
Group |
Retained | Share | Revaluation | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 January 2022 | 1,293,372 | 2,511,416 | 3,073,314 | (244,010 | ) | 6,634,092 |
Deficit for the year | (1,352,999 | ) | (1,352,999 | ) |
Revaluation reserve movement | - | - | (314,862 | ) | - | (314,862 | ) |
At 31 December 2022 | (59,627 | ) | 2,511,416 | 2,758,452 | (244,010 | ) | 4,966,231 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2022 | ( |
) | 2,241,949 |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2022 | ( |
) | 2,241,748 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
18. | PROVISIONS FOR LIABILITIES |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Deferred tax | 441,668 | 690,024 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 690,024 |
Credit to Income Statement during year | (354,356 | ) |
Effect of rate change | 106,000 |
Balance at 31 December 2022 | 441,668 |
19. | CREDITORS |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Bank loans and overdrafts (see note 20) | 1,965,150 | 1,464,205 |
Other loans (see note 20) | 547,217 | 628,668 |
Finance leases (see note 21) | 485,411 | 574,748 |
Trade creditors | 4,686,754 | 3,447,254 |
Amounts owed to group undertakings | - | - |
Amounts owed to participating interests | 440,824 | 440,824 | 269,660 | 269,660 |
Social security and other taxes | 343,958 | 119,700 |
Other creditors | 5,145,313 | 5,102,804 |
Directors' current accounts | 300,000 | 300,000 | - | - |
Accrued expenses | 1,791,922 | 1,008,891 |
15,706,549 | 13,087,094 |
Amounts falling due after more than one | year: |
Bank loans (see note 20) | 3,043,309 | 3,582,883 |
Other loans (see note 20) | 1,788,916 | 2,129,527 |
Finance leases (see note 21) | 1,072,327 | 1,386,178 |
Other creditors | - | 1,163,262 |
5,904,552 | 8,261,850 |
Aggregate amounts | 21,611,101 | 21,348,944 |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | CREDITORS - continued |
Included within other creditors due within one year is deferred income relating to the wind farm totalling £nil(2021: £100,000). |
Included within other creditors due after more than one year is deferred income relating to wind farm income totalling £nil (2021: £1,163,263). |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 398,543 | 257,633 |
Bank loans | 1,566,607 | 1,206,572 |
Other loans | 547,217 | 628,668 |
2,512,367 | 2,092,873 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 175,000 | 414,978 |
Other loans - 1-2 years | 451,119 | 499,624 | - |
626,119 | 914,602 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 2,350,000 | 2,663,697 |
Other loans - 2-5 years | 685,242 | 1,040,922 |
3,035,242 | 3,704,619 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 518,309 | 504,208 | - | - |
Other loans more 5yrs instal | 652,555 | 588,981 | - | - |
1,170,864 | 1,093,189 | - | - |
Interest was charged at varying rates during the year. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
31.12.22 | 31.12.21 |
£ | £ |
Net obligations repayable: |
Within one year | 485,411 | 574,748 |
Between one and five years | 1,072,327 | 1,386,178 |
1,557,738 | 1,960,926 |
Group |
Non-cancellable operating | leases |
31.12.22 | 31.12.21 |
£ | £ |
Within one year | 142,023 | 166,679 |
Between one and five years | 212,712 | 354,735 |
354,735 | 521,414 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.22 | 31.12.21 |
£ | £ |
Bank overdraft | 398,543 | 257,633 |
Bank loans | 4,609,916 | 4,789,455 |
Other loans | 2,336,133 | 2,758,195 |
Finance leases | 1,557,738 | 1,960,926 |
8,902,330 | 9,766,209 |
The bank overdraft is secured by a floating charge over the assets and undertakings of the company. |
The bank loan is secured by a floating charge over all assets of the company. |
Hire purchase creditors are secured directly over the assets to which they relate. |
Included in other loans is £2,423,999 which are secured on the assets to which they relate. |
CLEAR 123 LIMITED (REGISTERED NUMBER: SC528856) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | RELATED PARTY DISCLOSURES |
The EFP Partnership, a partnership between C Keenan, SL Edwards and C Fleet. During the year a management charge of £Nil (2021: £nil) was invoiced from R & K Drysdale Limited to the partnership. At the year end, the company owed £294,299 (2021: £294,299) to the partnership. This amount is included in creditors due within one year. |
Option A Limited is a company which is 75% owned by C Keenan and 25% owned by C Fleet. During the year the company purchased services of £2,579,028 (2021: £4,870,035) and sales of £267,558 (2021: £89,345) and at the year end the company owed Option A £584,429 (2021: £56,182). The amount is included in trade creditors falling within one year. |
As of 31 May 2023, Option A is 100% owned by Chris Fleet, who on the same date also acquired all the shares in Agricultural Consultants Limited. |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is C S Keenan. |