Cherry Orchard Publishing (UK) Limited 04635780 false 2022-05-01 2023-03-31 2023-03-31 The principal activity of the company is that of a dormant company Digita Accounts Production Advanced 6.30.9574.0 true true 04635780 2022-05-01 2023-03-31 04635780 2023-03-31 04635780 core:SpecificBusinessCombination1 bus:Consolidated 2023-03-31 04635780 core:FinancialAssetsCostLessImpairment core:Non-currentFinancialInstruments 2023-03-31 04635780 core:CurrentFinancialInstruments 2023-03-31 04635780 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 04635780 core:Non-currentFinancialInstruments 2023-03-31 04635780 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 04635780 core:Goodwill 2023-03-31 04635780 core:FurnitureFittingsToolsEquipment 2023-03-31 04635780 core:MotorVehicles 2023-03-31 04635780 core:OtherPropertyPlantEquipment 2023-03-31 04635780 bus:SmallEntities 2022-05-01 2023-03-31 04635780 bus:AuditExemptWithAccountantsReport 2022-05-01 2023-03-31 04635780 bus:FullAccounts 2022-05-01 2023-03-31 04635780 bus:SmallCompaniesRegimeForAccounts 2022-05-01 2023-03-31 04635780 bus:RegisteredOffice 2022-05-01 2023-03-31 04635780 bus:Director1 2022-05-01 2023-03-31 04635780 bus:PrivateLimitedCompanyLtd 2022-05-01 2023-03-31 04635780 core:Goodwill 2022-05-01 2023-03-31 04635780 core:FurnitureFittingsToolsEquipment 2022-05-01 2023-03-31 04635780 core:MotorVehicles 2022-05-01 2023-03-31 04635780 core:OfficeEquipment 2022-05-01 2023-03-31 04635780 core:OtherPropertyPlantEquipment 2022-05-01 2023-03-31 04635780 core:PlantMachinery 2022-05-01 2023-03-31 04635780 countries:EnglandWales 2022-05-01 2023-03-31 04635780 2021-04-01 2022-04-30 04635780 2022-04-30 04635780 core:CurrentFinancialInstruments 2022-04-30 04635780 core:CurrentFinancialInstruments core:WithinOneYear 2022-04-30 04635780 core:Non-currentFinancialInstruments 2022-04-30 04635780 core:Non-currentFinancialInstruments core:AfterOneYear 2022-04-30 iso4217:GBP xbrli:pure

Registration number: 04635780

Prepared for the registrar

Cherry Orchard Publishing (UK) Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 May 2022 to 31 March 2023

 

Cherry Orchard Publishing (UK) Limited

(Registration number: 04635780)
Balance Sheet as at 31 March 2023

Note

31 March 2023
£

30 April 2022
£

Fixed assets

 

Intangible assets

4

10,900

-

Tangible assets

5

43,657

-

Other financial assets

7

250,000

-

 

304,557

-

Current assets

 

Stocks

331,210

-

Debtors

8

548,201

224,451

Cash at bank and in hand

 

29,443

-

 

908,854

224,451

Creditors: Amounts falling due within one year

9

(579,790)

(43,665)

Net current assets

 

329,064

180,786

Total assets less current liabilities

 

633,621

180,786

Creditors: Amounts falling due after more than one year

9

(131,371)

-

Net assets

 

502,250

180,786

Capital and reserves

 

Called up share capital

2

2

Profit and loss account

502,248

180,784

Shareholders' funds

 

502,250

180,786

For the financial period ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 13 October 2023
 


J E Collins
Director

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office and principal place of business is:
Unit 10
Duddage Manor Business Park
Twyning
Tewkesbury
Gloucestershire
GL20 6BY

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when, the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

Tangible assets

Tangible assets are stated on the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Office equipment

25% reducing balance

Fixtures and fittings

25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years straight line

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the period, was 7 (2022 - 0).

 

4

Intangible assets

Goodwill
 £

Total
£

Cost

Acquired through business combinations

12,000

12,000

At 31 March 2023

12,000

12,000

Amortisation

Amortisation charge for the period

1,100

1,100

At 31 March 2023

1,100

1,100

Carrying amount

At 31 March 2023

10,900

10,900

 

5

Tangible assets

Fixtures and Fittings
£

Office Equipment
 £

Plant and machinery
 £

Total
£

Cost

Additions

724

972

-

1,696

Acquired through business combinations

41,008

145,393

225

186,626

At 31 March 2023

41,732

146,365

225

188,322

Depreciation

Charge for the period

1,258

11,666

-

12,924

Acquired through business combinations

36,057

95,459

225

131,741

At 31 March 2023

37,315

107,125

225

144,665

Carrying amount

At 31 March 2023

4,417

39,240

-

43,657

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

 

6

Business combinations

On 3 May 2022, Cherry Orchard Publishing (UK) Limited acquired the trade and assets of Cherry Orchard Publishing LLP.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:

Book value
2023
£

Assets and liabilities acquired

Financial assets

244,970

Stocks

265,000

Tangible assets

54,885

Financial liabilities

(488,463)

Total identifiable assets

76,392

Goodwill

12,000

Total consideration

88,392

Satisfied by:

Cash

88,392

 

7

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

Additions

250,000

250,000

At 31 March 2023

250,000

250,000

Carrying amount

At 31 March 2023

250,000

250,000

 

8

Debtors

31 March 2023
 £

30 April 2022
 £

Trade debtors

286,969

224,449

Other debtors

257,820

2

Prepayments

3,412

-

 

548,201

224,451

 

Cherry Orchard Publishing (UK) Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 March 2023

 

9

Creditors

Note

31 March 2023
 £

30 April 2022
 £

Due within one year

 

Loans and borrowings

10

35,445

-

Trade creditors

 

247,881

-

Social security and other taxes

 

42,413

-

Other creditors

 

172,760

43,665

Accrued expenses

 

2,816

-

Corporation tax liability

78,475

-

 

579,790

43,665

Note

31 March 2023
£

30 April 2022
£

Due after one year

 

Loans and borrowings

10

131,371

-

 

10

Loans and borrowings

31 March 2023
£

30 April 2022
£

Current loans and borrowings

Bank borrowings

35,445

-

31 March 2023
£

30 April 2022
£

Non-current loans and borrowings

Bank borrowings

131,371

-

£166,816 (£35,445 due within one year and £131,371 due after one year) represents the secured Lloyds loan which is secured by way of a fixed and floating charge over all assets.

 

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £9,649 (2022 - £Nil).

 

12

Related party transactions

At 31 March 2023, the director owes the company £249,421 (30 April 2022 - £nil) in the form of a director's loan account. The loan is unsecured, repayable on demand and interest is payable on the outstanding balance at the HMRC official rate.