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COMPANY REGISTRATION NUMBER: 10023057
ATARIYA FOODS LIMITED
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND CONSOLIDATED FINANCIAL STATEMENTS
31 December 2022
ATARIYA FOODS LIMITED
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2022
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
8
Independent auditor's report to the members
11
Consolidated statement of comprehensive income
16
Consolidated statement of financial position
17
Company statement of financial position
19
Consolidated statement of changes in equity
21
Company statement of changes in equity
22
Consolidated statement of cash flows
23
Notes to the group strategic report, report of the directors and consolidated financial statements
25
ATARIYA FOODS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
G Hashimoto
S Higaki
M Morishita
Company secretary
Ryuko Saito
Registered office
168 Church Road
Hove
East Sussex
England
BN3 2DL
Auditor
UHY Hacker Young (S.E.) Limited
Chartered Accountants & Statutory Auditors
168 Church Road
Hove
East Sussex
BN3 2DL
ATARIYA FOODS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2022
Review of the business
The Groups principal activities during the year was wholesale and retail fish and sushi products. The Group prepared in 2021 for the coming year by reviewing existing supplier portfolio and diversified our supplier portfolio by geographic and by products in order to maintain sufficient product quality and quantity for the growth post COVID. As a result, in 2022 wholesale business has recovered to pre-COVID transaction level.
Principal risks and uncertainties
In 2022, wholesale business managed to recover transaction volume as consumers shift their activity for more spending for dining, leisure, travels. On the other hand, the retail business was slow due to the customer spending behaviour having been diversified.
The Group's business portfolio is a combination of B to C and B to B business where bit perfectly trails the same growth trend, and this combination has been the risk hedging function during COVID and we need additional tools/strategy to minimise those risk after recovery.
Performance of the business in the period
The results of the period and the financial position of the company as shown in these financial statements. During the year the turnover of the group was £28,161,135. Due to additional lease assets form the business use, the overhead costs increased and overall loss increased as a result.
Financial key performance indicators
2022
2021
£
£
Turnover
28,161,135
23,946,519
Gross profit
6,597,279
5,644,131
Operating loss
214,722
3,725,207
Total net assets/(liabilities)
9,228,655
8,604,159
2022
2021
Gross profit percentage - %
23
24
Competitive Risks
The fish wholesale business becomes competitive due to have more competitors entering the same business. However the group reviewed its customer portfolio carefully and diversify the customer base from traditional Japanese sushi restaurants to various restaurant base, such as hotels and takeaways.
Legislative Risk
The group primarily deals with food products which is highly regulated. The directors continually monitor changes in legislation to ensure compliance across the group.
Directors' statement of compliance with duty to promote the success of the Group In discharging their duty to promote interests of the company under section 172 Companies Act 2006, the directors of the company have considered several factors and stakeholder interests. These are described below:
(a) The likely consequences of any decision in the long term,
AFL is 100% owned by JFLA Holdings and its board is responsible for UK and Europe’s strategies and plan along with the parent financial support JFLA holdings outsiders Japanese food business in UK and Europe have more rooms to grow therefore plan to continue to provide resources as well as financial support.
(b) The interests of the group’s employees,
The groups aim is to keep all employees aware of the group's position and our progress that may affect them as employees. we do this by holding regular group meetings and 1-1 meetings, this
encourages good communication between senior management and staff, in turn this enables our managers to understand and listen to the views of our employees on all relevant matters.
In addition to the above, we hold regular briefings and email bulletins. Employees are absolutely encouraged to participate in the performance and growth of our business the incentives and potential yearly bonuses. The group employs around 195 people, we provide extensive and ongoing in-house training programs that cover all aspects of their work as well as personal and professional development through the group.
It is our policy to achieve and maintain a high standard of health and safety and to ensure everyone, regardless of race, religion, or sex, and including disabled people where possible and practical is treated in the same way as regards to employment, training and career development and promotion. Every effort is made to help with the rehabilitation of anyone injured during their employment.
As a business the group is absolutely committed to providing a safe and responsible place of work, Concern for the wellbeing of our staff is taken very seriously and is a key element in our drive to be "A fantastic place to work" we demonstrate this through our ongoing training programs for all employees. We work closely with our insurance providers and equipment suppliers to ensure sharing of best practices and leading health and safety solutions.
(c) The need to foster the group’s business relationships with suppliers, customers and others. Our wholesale business division recognises the importance of maintaining and building upon long standing and new relationships with its suppliers and customers, by offering clear and fair payment terms and competitive market pricing and unmatched customer service and ultimately
offering products of the highest quality and provenance.
(d) The impact of the company’s operations on the community and the environment, our group is wholly committed to reducing its impact on the environment, we are committed to offering sustainable seafood from countries and companies that share our ambitions to reduce our operational impact on the environment, this includes upgrading to a fully electric fleet of vehicles in the next 3-5 years and upgrading our extensive freezing procedures with new efficient units.
We are also in the process of becoming a MSC member (Marine Stewardship Council) https:www.msc.org The MSC is a global, science-based non-profit dedicated to ending overfishing worldwide. Learn more about how the MSC develops the globally-recognised standard for seafood sustainability.
We actively encourage behaviours that reduce our day to day impact on the environment by reducing the use of paper where unnecessary and the reducing our use of electricity, this in turn will reduce our CO2 emissions throughout the business.
(e) The desirability of the group maintaining a reputation for high standards of business conduct, and
The Yakitori company has been accredited by the BRC and T&S Enterprises (London) Limited gained SALSA accreditation in 2020 to allow us to offer confidence to our customers as to our commitment to offer good quality products produced in a hygienically safe and progressive environment, BRC and SALSA accreditation are widely recognised and has allow us to expand our customer base into hotels and other restaurant groups.
Fish business division is committed to progress and are currently in the process of becoming a BRC member, this will furthermore increase our scope as to the customer types we can work with. The above measures will help offer our customers confidence in our working practices and our use of sustainable fished products.
(f) The need to act fairly between members of the group
AFL is 100% subsidiary of JFLA holdings and there is no other shareholder.
Future developments
After the balance sheet date but before the signing of these accounts, Atariya Foods limited dispose of 2 of its subsidiaries, T&S Enterprises London Limited and Atariya Foods Retail (UK) Limited to Atariya-Ishimitsu UK Ltd which it owns a 70% share holding.
Position of the group at the year end
The results for the year and the financial position at the year end where considered satisfactory by the directors who expect continued growth in the foreseeable future.
This report was approved by the board of directors on 10 October 2023 and signed on behalf of the board by:
M Morishita
Director
Registered office:
168 Church Road
Hove
East Sussex
England
BN3 2DL
ATARIYA FOODS LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2022
The directors present their report and the Group strategic report, report of the directors and consolidated financial statements of the group for the year ended 31 December 2022 .
Principal activities
The principal activity of the company during the year was wholesale of other food, including fish, crustaceans and molluscs.
Directors
The directors who served the company during the year were as follows:
G Hashimoto
S Higaki
M Morishita
Dividends
The directors do not recommend the payment of a dividend.
Employment of disabled persons
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate.
Employee involvement
The groups aim is to keep all employees aware of the company position and our progress that may affect them as employees. we do this by holding regular group meetings and 1-1 meetings, this encourages good communication between senior management and staff, in turn this enables our managers to understand and listen to the views of our employees on all relevant matters. In addition to the above, we hold regular briefings and email bulletins. Employees are absolutely encouraged to participate in the performance and growth of our business the incentives and potential yearly bonuses. The group employs around 195 people, we provide extensive and ongoing in-house training programs that cover all aspects of their work as well as personal and professional development through the company.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the Group strategic report, report of the directors and consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare Group strategic report, report of the directors and consolidated financial statements for each financial year. Under that law the directors have elected to prepare the Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 group and 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 group and the company's auditor is aware of that information.
This report was approved by the board of directors on 10 October 2023 and signed on behalf of the board by:
M Morishita
Director
Registered office:
168 Church Road
Hove
East Sussex
England
BN3 2DL
ATARIYA FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ATARIYA FOODS LIMITED
YEAR ENDED 31 DECEMBER 2022
Opinion
We have audited the Group strategic report, report of the directors and consolidated financial statements of Atariya Foods Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated 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 Group strategic report, report of the directors and consolidated financial statements: - give a true and fair view of the state of the group's and of the parent company's 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; - 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 group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the Group strategic report, report of the directors and consolidated 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 or the parent company's ability to continue as a going concern for a period of at least twelve months from when the Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 year for which the Group strategic report, report of the directors and consolidated financial statements are prepared is consistent with the Group strategic report, report of the directors and consolidated 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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Group strategic report, report of the directors and consolidated 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.
Auditor's responsibilities for the audit of the group strategic report, report of the directors and consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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: Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company which were contrary to applicable laws and regulations including fraud and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit. Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, review of correspondence with legal advisors, enquiries of management and in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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 Group strategic report, report of the directors and consolidated 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 group's 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 group's or the parent 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 Group strategic report, report of the directors and consolidated 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 group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the Group strategic report, report of the directors and consolidated financial statements, including the disclosures, and whether the Group strategic report, report of the directors and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated Group strategic report, report of the directors and consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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.
David Guest
(Senior Statutory Auditor)
For and on behalf of
UHY Hacker Young (S.E.) Limited
Chartered Accountants & Statutory Auditors
168 Church Road
Hove
East Sussex
BN3 2DL
10 October 2023
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2022
2022
2021
Note
£
£
Turnover
4
28,161,135
23,946,519
Cost of sales
21,563,856
18,302,388
---------------
---------------
Gross profit
6,597,279
5,644,131
Distribution costs
668,473
593,185
Administrative expenses
6,511,146
9,418,983
Other operating income
5
367,618
642,829
-------------
-------------
Operating loss
6
( 214,722)
( 3,725,208)
Other interest receivable and similar income
10
57,859
109,600
Interest payable and similar expenses
11
203,054
507,919
-------------
-------------
Loss before taxation
( 359,917)
( 4,123,527)
Tax on loss
12
264,579
( 164,936)
----------
-------------
Loss for the financial year and total comprehensive income
( 624,496)
( 3,958,591)
----------
-------------
Loss for the financial year attributable to:
The owners of the parent company
( 585,995)
( 3,954,175)
Non-controlling interests
( 38,501)
( 4,416)
----------
-------------
( 624,496)
( 3,958,591)
----------
-------------
All the activities of the group are from continuing operations.
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2022
2022
2021
Note
£
£
Fixed assets
Intangible assets
13
36,068
1,413,950
Tangible assets
14
1,685,681
1,342,228
Investments
15
34,992
34,992
-------------
-------------
1,756,741
2,791,170
Current assets
Stocks
16
1,667,142
1,073,291
Debtors
17
6,190,061
1,911,717
Cash at bank and in hand
1,385,777
2,286,142
-------------
-------------
9,242,980
5,271,150
Prepayments and accrued income
359,079
274,635
Creditors: amounts falling due within one year
Bank loans and overdrafts
23,008
105,037
Trade creditors
2,207,825
2,113,253
Amounts owed to group undertakings
4,026,093
126,962
Other creditors including taxation and social security
19
920,822
711,204
-------------
-------------
7,177,748
3,056,456
-------------
-------------
Net current assets
2,424,311
2,489,329
-------------
-------------
Total assets less current liabilities
4,181,052
5,280,499
Creditors: amounts falling due after more than one year
20
12,974,869
13,697,303
Provisions
22
88,442
( 146,045)
Accruals and deferred income
346,396
333,400
---------------
---------------
Net liabilities
( 9,228,655)
( 8,604,159)
---------------
---------------
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
31 December 2022
2022
2021
Note
£
£
Capital and reserves
Called up share capital
26
8,270,991
8,270,991
Share premium account
27
5,601,528
5,601,528
Profit and loss account
27
( 22,699,779)
( 22,113,784)
---------------
---------------
Equity attributable to the owners of the parent company
( 8,827,260)
( 8,241,265)
Non-controlling interests
( 401,395)
( 362,894)
-------------
-------------
( 9,228,655)
( 8,604,159)
-------------
-------------
These Group strategic report, report of the directors and consolidated financial statements were approved by the board of directors and authorised for issue on 10 October 2023 , and are signed on behalf of the board by:
M Morishita
Director
Company registration number: 10023057
ATARIYA FOODS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
31 December 2022
2022
2021
Note
£
£
Fixed assets
Tangible assets
14
716,735
716,735
Investments
15
9,645,090
9,645,191
---------------
---------------
10,361,825
10,361,926
Current assets
Debtors
17
2,666,338
3,738,644
Cash at bank and in hand
87,632
155,264
-------------
-------------
2,753,970
3,893,908
Prepayments and accrued income
431
Creditors: amounts falling due within one year
Trade creditors
206,438
316,548
Amounts owed to group undertakings
11,238,194
577,001
Other creditors including taxation and social security
19
372,476
382,980
---------------
-------------
11,817,108
1,276,529
---------------
-------------
Net current (liabilities)/assets
( 9,062,707)
2,617,379
---------------
---------------
Total assets less current liabilities
1,299,118
12,979,305
Creditors: amounts falling due after more than one year
20
12,394,456
Accruals and deferred income
28,000
40,250
-------------
---------------
Net assets
1,271,118
544,599
-------------
---------------
Capital and reserves
Called up share capital
26
8,270,991
8,270,991
Share premium account
27
5,601,528
5,601,528
Profit and loss account
27
( 12,601,401)
( 13,327,920)
---------------
---------------
Shareholders funds
1,271,118
544,599
---------------
---------------
The profit for the financial year of the parent company was £ 726,519 (2021: £ 2,037,968 loss).
ATARIYA FOODS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION (continued)
31 December 2022
These Group strategic report, report of the directors and consolidated financial statements were approved by the board of directors and authorised for issue on 10 October 2023 , and are signed on behalf of the board by:
M Morishita
Director
Company registration number: 10023057
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2022
Called up share capital
Share premium account
Profit and loss account
Equity attributable to the owners of the parent company
Non-controlling interests
Total
£
£
£
£
£
£
At 1 January 2021
8,263,932
( 18,159,609)
( 9,895,677)
( 358,478)
( 10,254,155)
Loss for the year
( 3,954,175)
( 3,954,175)
( 4,416)
( 3,958,591)
-------------
----
--------------
-------------
----------
--------------
Total comprehensive income for the year
( 3,954,175)
( 3,954,175)
( 4,416)
( 3,958,591)
Issue of shares
7,059
5,601,528
5,608,587
5,608,587
-------------
-------------
--------------
-------------
----------
--------------
Total investments by and distributions to owners
7,059
5,601,528
5,608,587
5,608,587
At 31 December 2021
8,270,991
5,601,528
( 22,113,784)
( 8,241,265)
( 362,894)
( 8,604,159)
Loss for the year
( 585,995)
( 585,995)
( 38,501)
( 624,496)
-------------
-------------
--------------
-------------
----------
--------------
Total comprehensive income for the year
( 585,995)
( 585,995)
( 38,501)
( 624,496)
-------------
-------------
--------------
-------------
----------
--------------
At 31 December 2022
8,270,991
5,601,528
( 22,699,779)
( 8,827,260)
( 401,395)
( 9,228,655)
-------------
-------------
--------------
-------------
----------
--------------
ATARIYA FOODS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2022
Called up share capital
Share premium account
Profit and loss account
Total
£
£
£
£
At 1 January 2021
8,263,932
( 11,289,952)
( 3,026,020)
Loss for the year
( 2,037,968)
( 2,037,968)
-------------
----
--------------
-------------
Total comprehensive income for the year
( 2,037,968)
( 2,037,968)
Issue of shares
7,059
5,601,528
5,608,587
-------------
-------------
--------------
-------------
Total investments by and distributions to owners
7,059
5,601,528
5,608,587
At 31 December 2021
8,270,991
5,601,528
( 13,327,920)
544,599
Profit for the year
726,519
726,519
-------------
-------------
--------------
-------------
Total comprehensive income for the year
726,519
726,519
-------------
-------------
--------------
-------------
At 31 December 2022
8,270,991
5,601,528
( 12,601,401)
1,271,118
-------------
-------------
--------------
-------------
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2022
2022
2021
Note
£
£
Cash flows from operating activities
Loss for the financial year
( 624,496)
( 3,958,591)
Adjustments for:
Depreciation of tangible assets
119,555
97,645
Amortisation of intangible assets
1,377,882
2,182,351
Government grant income
( 6,000)
( 204,391)
Other interest receivable and similar income
( 57,859)
( 109,600)
Interest payable and similar expenses
203,054
507,919
(Gains)/loss on disposal of tangible assets
( 10,274)
1,152
Tax on profit/(loss)
264,579
( 164,936)
Accrued expenses/(income)
12,996
( 34,336)
Changes in:
Stocks
( 593,851)
660,859
Trade and other debtors
( 4,362,788)
3,364,794
Trade and other creditors
328,177
( 736,575)
-------------
-------------
Cash generated from operations
( 3,349,025)
1,606,291
Interest paid
( 203,054)
( 507,919)
Interest received
57,859
109,600
Tax paid
( 54,079)
( 11,916)
-------------
-------------
Net cash (used in)/from operating activities
( 3,548,299)
1,196,056
-------------
-------------
Cash flows from investing activities
Purchase of tangible assets
( 464,062)
( 120,327)
Proceeds from sale of tangible assets
11,328
Purchase of intangible assets
( 1,600)
Proceeds from sale of intangible assets
1,178,817
-------------
-------------
Net cash (used in)/from investing activities
( 452,734)
1,056,890
-------------
-------------
Cash flows from financing activities
Proceeds from issue of ordinary shares
5,608,587
Proceeds from borrowings
( 72,910)
75,618
Proceeds from loans from group undertakings
3,192,321
( 7,687,446)
Government grant income
6,000
204,391
Payments of finance lease liabilities
( 4,173)
( 14,886)
-------------
-------------
Net cash from/(used in) financing activities
3,121,238
( 1,813,736)
-------------
-------------
ATARIYA FOODS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
YEAR ENDED 31 DECEMBER 2022
2022
2021
Note
£
£
Net (decrease)/increase in cash and cash equivalents
( 879,795)
439,210
Cash and cash equivalents at beginning of year
2,265,572
1,826,362
-------------
-------------
Cash and cash equivalents at end of year
18
1,385,777
2,265,572
-------------
-------------
ATARIYA FOODS LIMITED
NOTES TO THE GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2022
1. General information
Atariya Foods Limited is a company limited by shares incorporated in the United Kingdom. The registered office of the company is 168 Church Road, Brighton, Sussex, BN3 2DL. The company's place of business is 458 Heather Park Drive, Wembley, HA0 1SS. The nature of the company's operations and its principal activities are set out in the Directors' Report. All amounts in the financial statements have been rounded to the nearest £1.
2. Statement of compliance
These Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated 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 Group strategic report, report of the directors and consolidated financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The Group strategic report, report of the directors and consolidated financial statements consolidate the Group strategic report, report of the directors and consolidated financial statements of Atariya Foods Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.
Judgements and key sources of estimation uncertainty
In preparation of the financial statements in conformity with FRS102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimate and associated assumptions are based on historical experience and various other factors take are believe to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may defer from these estimates. In respect of the judgements, estimates and assumptions made be management in preparing these financial statements, none are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities presented.
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.
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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
Domain Name
-
4 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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:
Short leasehold property
-
2% straight line
Plant and machinery
-
15% straight line
Fixtures, fittings and equipment
-
15% straight line
Motor vehicles
-
25% straight line
Investments
Investments in associates
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.
Investments in joint ventures
Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
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
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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:
2022
2021
£
£
Sale of goods
28,161,135
23,946,519
---------------
---------------
The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2022
2021
£
£
United Kingdom
21,821,826
18,370,686
Overseas
6,339,309
5,575,833
---------------
---------------
28,161,135
23,946,519
---------------
---------------
5. Other operating income
2022
2021
£
£
Management charges receivable
110,211
316,132
Government grant income
6,000
204,391
Other operating income
251,407
122,306
----------
----------
367,618
642,829
----------
----------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2022
2021
£
£
Amortisation of intangible assets
1,377,882
2,182,339
Depreciation of tangible assets
119,555
97,662
(Gains)/loss on disposal of tangible assets
( 10,274)
1,152
Impairment of trade debtors
104,385
93,081
Foreign exchange differences
( 1,001,999)
( 1,618,579)
-------------
-------------
Within administrative expenses was an exceptional amount of £Nil relating to the write off from an intercompany loan balance (2021 £2,875,923)
7. Auditor's remuneration
2022
2021
£
£
Fees payable for the audit of the group strategic report, report of the directors and consolidated financial statements
92,000
128,500
---------
----------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2022
2021
No.
No.
Production staff
113
140
Distribution staff
11
10
Administrative staff
31
30
Management staff
10
12
Number of EU staff
30
40
----
----
195
232
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2022
2021
£
£
Wages and salaries
5,086,538
4,739,510
Social security costs
360,700
366,894
Other pension costs
69,953
39,068
-------------
-------------
5,517,191
5,145,472
-------------
-------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2022
2021
£
£
Remuneration
82,706
113,923
---------
----------
The number of directors who accrued benefits under company pension plans was as follows:
2022
2021
No.
No.
Defined contribution plans
2
2
----
----
10. Other interest receivable and similar income
2022
2021
£
£
Interest on cash and cash equivalents
4,236
4,038
Interest from group undertakings
53,623
105,562
---------
----------
57,859
109,600
---------
----------
11. Interest payable and similar expenses
2022
2021
£
£
Interest on obligations under finance leases and hire purchase contracts
12,311
8,440
Interest due to group undertakings
178,927
454,106
Other interest payable and similar charges
11,816
45,373
----------
----------
203,054
507,919
----------
----------
12. Tax on profit/(loss)
Major components of tax income
2022
2021
£
£
Current tax:
UK current tax income
32,790
43,042
Adjustments in respect of prior periods
( 2,698)
---------
---------
Total current tax
30,092
43,042
---------
---------
Deferred tax:
Origination and reversal of timing differences
234,487
( 207,978)
----------
----------
Tax on profit/(loss)
264,579
( 164,936)
----------
----------
Reconciliation of tax expense/(income)
The tax assessed on the loss on ordinary activities for the year is higher than (2021: higher than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).
2022
2021
£
£
Loss on ordinary activities before taxation
( 359,917)
( 4,123,527)
----------
-------------
Loss on ordinary activities by rate of tax
166,216
( 330,367)
Adjustment to tax charge in respect of prior periods
( 2,698)
Effect of expenses not deductible for tax purposes
962
699
Effect of capital allowances and depreciation
( 51,408)
Utilisation of tax losses
( 248,575)
146,257
Unused tax losses
165,595
Other tax adjustment to increase/(decrease) tax liability
234,487
18,475
----------
-------------
Tax on profit/(loss)
264,579
( 164,936)
----------
-------------
13. Intangible assets
Group
Goodwill
Domain Name
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022
10,911,695
1,600
10,913,295
---------------
-------
---------------
Amortisation
At 1 January 2022
9,499,278
67
9,499,345
Charge for the year
1,377,499
383
1,377,882
---------------
-------
---------------
At 31 December 2022
10,876,777
450
10,877,227
---------------
-------
---------------
Carrying amount
At 31 December 2022
34,918
1,150
36,068
---------------
-------
---------------
At 31 December 2021
1,412,417
1,533
1,413,950
---------------
-------
---------------
The company has no intangible assets.
14. Tangible assets
Group
Freehold property
Short leasehold property
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 Jan 2022
716,735
1,080,397
1,547,364
464,191
65,923
3,874,610
Additions
210,828
116,325
43,199
93,710
464,062
Disposals
( 9,173)
( 9,173)
----------
-------------
-------------
----------
----------
-------------
At 31 Dec 2022
716,735
1,291,225
1,663,689
507,390
150,460
4,329,499
----------
-------------
-------------
----------
----------
-------------
Depreciation
At 1 Jan 2022
947,144
1,223,895
328,547
32,796
2,532,382
Charge for the year
9,606
48,757
41,060
20,132
119,555
Disposals
( 8,119)
( 8,119)
----------
-------------
-------------
----------
----------
-------------
At 31 Dec 2022
956,750
1,272,652
369,607
44,809
2,643,818
----------
-------------
-------------
----------
----------
-------------
Carrying amount
At 31 Dec 2022
716,735
334,475
391,037
137,783
105,651
1,685,681
----------
-------------
-------------
----------
----------
-------------
At 31 Dec 2021
716,735
133,253
323,469
135,644
33,127
1,342,228
----------
-------------
-------------
----------
----------
-------------
Company
Freehold property
£
Cost
At 1 January 2022 and 31 December 2022
716,735
----------
Depreciation
At 1 January 2022 and 31 December 2022
----------
Carrying amount
At 31 December 2022
716,735
----------
At 31 December 2021
716,735
----------
15. Investments
Group
Other investments other than loans
£
Cost
At 1 January 2022 and 31 December 2022
34,992
---------
Impairment
At 1 January 2022 and 31 December 2022
---------
Carrying amount
At 1 January 2022 and 31 December 2022
34,992
---------
At 31 December 2021
34,992
---------
Company
Shares in group undertakings
£
Cost
At 1 January 2022
9,645,191
Disposals
( 101)
-------------
At 31 December 2022
9,645,090
-------------
Impairment
At 1 January 2022 and 31 December 2022
-------------
Carrying amount
At 31 December 2022
9,645,090
-------------
At 31 December 2021
9,645,191
-------------
All of the below companies are incorporated in England & Wales, with the exception of the following companies, and the registered office addresses are 168 Church Road, Hove, England, BN3 2DL
Atariya Foods Netherlands BV and Atariya Horeca BV which were incorporated in the Netherlands and the registered office addresses are Luzernestraat 40 2153 GN Nieuw-Vennep
Dae-Yang Asiatische LebensmittelGMBH and Atariya SKY Gmbh were incorporated in Germany and the registered office addresses are Immermannstraße 21, 40210 Düsseldorf, Germany
Subsidiaries, associates and other investments
Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
T&S Enterprises (London) Limited
Ordinary
100
Atariya Foods Retail UK Limited
Ordinary
100
Atariya Restaurant London Limited
Ordinary
90
The Yakitori Company Limited
Ordinary
100
Atariya Horeca B.V
Ordinary
100
Atariya S.K.Y GmbH
Ordinary
100
Atariya Foods Netherlands B.V
Ordinary
100
Dae-Yang Asiatische Lebensmittel GmbH
Ordinary
100
Atariya Cafe Japan Limited
Ordinary
100
16. Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and consumables
1,667,142
1,073,291
-------------
-------------
----
----
17. Debtors
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade debtors
1,507,010
1,462,558
26,811
188
Amounts owed by group undertakings
4,372,288
2,584,382
3,675,309
Other debtors
310,763
449,159
55,145
63,147
-------------
-------------
-------------
-------------
6,190,061
1,911,717
2,666,338
3,738,644
-------------
-------------
-------------
-------------
18. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2022
2021
£
£
Cash at bank and in hand
1,385,777
2,286,142
Bank overdrafts
( 20,570)
-------------
-------------
1,385,777
2,265,572
-------------
-------------
19. Other creditors including taxation and social security falling
due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Corporation tax
38,145
62,132
6,843
6,843
Social security and other taxes
274,601
199,349
Other creditors
608,076
449,723
365,633
376,137
----------
----------
----------
----------
920,822
711,204
372,476
382,980
----------
----------
----------
----------
Included within other creditors are invoice discounting facilities which are secured on the trade debtors of the group by way of fixed and floating charges. The group's loans are secured by fixed and floating charges over the assets of the group.
20. Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans and overdrafts
79,700
91,151
Amounts owed to group undertakings
12,895,169
13,601,979
12,394,456
Obligations under finance leases and hire purchase contracts
4,173
---------------
---------------
----
---------------
12,974,869
13,697,303
12,394,456
---------------
---------------
----
---------------
Included within creditors: amounts falling due after more than five years is an amount of £17,517 (2021: £Nil) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The amount relates to the government bounce back loan scheme, the group extended the loan to ten years, ending on the 7 October 2030 at a rate of 2.5%.
The group's loans are secured by fixed and floating charges over the assets of the group.
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Later than 1 year and not later than 5 years
4,173
----
-------
----
----
22. Provisions
Group
Deferred tax (note 23)
£
At 1 January 2022
( 146,045)
Charge against provision
234,487
----------
At 31 December 2022
88,442
----------
The company does not have any provisions.
23. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Included in provisions (note 22)
88,442
( 146,045)
---------
----------
----
----
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2022
2021
2022
2021
£
£
£
£
Accelerated capital allowances
40,045
58,716
Revaluation of tangible assets
( 204,761)
Unused tax losses
49,279
Pension plan obligations
( 882)
---------
----------
----
----
88,442
(146,045)
---------
----------
----
----
24. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 69,953 (2021: £ 39,068 ).
25. Government grants
The amounts recognised in the Group strategic report, report of the directors and consolidated financial statements for government grants are as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Recognised in other operating income:
Government grants recognised directly in income
6,000
204,391
-------
----------
----
----
26. Called up share capital
Issued, called up and fully paid
2022
2021
No.
£
No.
£
Ordinary shares of £ 1 each
8,270,991
8,270,991
8,270,991
8,270,991
-------------
-------------
-------------
-------------
27. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
28. Analysis of changes in net debt
At 1 Jan 2022
Cash flows
At 31 Dec 2022
£
£
£
Cash at bank and in hand
2,286,142
(900,365)
1,385,777
Bank overdrafts
(20,570)
20,570
Debt due within one year
(211,429)
(3,837,672)
(4,049,101)
Debt due after one year
(13,697,303)
722,434
(12,974,869)
---------------
-------------
---------------
( 11,643,160)
( 3,995,033)
( 15,638,193)
---------------
-------------
---------------
29. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Not later than 1 year
387,986
94,809
Later than 1 year and not later than 5 years
1,544,708
1,348,375
Later than 5 years
508,979
727,354
-------------
-------------
----
----
2,441,673
2,170,538
-------------
-------------
----
----
Rentals under operating leases are charged to the statement of Comprehensive Income on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. Within non-cancellable operating lease commitments is an amount relating to Land and buildings, less than 1 year £306,917 (2021 £59,938) between 1 and 5 years £1,544,708(2021 £1,348,375) and more than 5 years £508,979 (2021 £727,354) Relating to Motor vehicles & Other, less than 1 year £81,069 (2021 £34,872) between 1 and 5 years £237,497 (2021 £Nil) and more than 5 years £Nil (2021 £Nil)
ATARIYA FOODS LIMITED
NOTES TO THE GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND CONSOLIDATED FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2022
30. Controlling party
The company's immediate and ultimate parent undertaking is JFLA Holdings Inc, registered in Japan. The largest group of which the company is a member and which prepares consolidated accounts is JFLA Holdings Inc, whose registered office address is 1-5-6 Nihonbash-kakigara-cho, Tokyo 103-0014, Japan where copies of the consolidated financial statements can be obtained.