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Registration number: 09680802

Lollo Rosso Italia Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

Lollo Rosso Italia Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 12

 

Lollo Rosso Italia Limited

(Registration number: 09680802)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

44,583

62,687

Current assets

 

Stocks

6

18,500

18,500

Debtors

7

449,468

366,915

Cash at bank and in hand

 

302

35,621

 

468,270

421,036

Creditors: Amounts falling due within one year

8

(440,879)

(329,557)

Net current assets

 

27,391

91,479

Total assets less current liabilities

 

71,974

154,166

Creditors: Amounts falling due after more than one year

8

(94,746)

(133,387)

Provisions for liabilities

(3,406)

(6,360)

Net (liabilities)/assets

 

(26,178)

14,419

Capital and reserves

 

Called up share capital

9

150

150

Retained earnings

(26,328)

14,269

Shareholders' (deficit)/funds

 

(26,178)

14,419

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

Directors' responsibilities:

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

The directors acknowledge their 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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 11 October 2023 and signed on its behalf by:
 

 

Lollo Rosso Italia Limited

(Registration number: 09680802)
Balance Sheet as at 31 July 2023

.........................................
Mr G Marabini
Director

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 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 is:
40 Bridge Street
Morpeth
Northumberland
NE611NL

These financial statements were authorised for issue by the Board on 11 October 2023.

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 that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

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.

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.

Government grants

The entity adopted the accrual model for recognising government grants.

Tax

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

The current income 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.

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in 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

Fixtures and fittings

15% reducing balance basis

Office equipment

15% reducing balance basis

Crockery and cutlery

20% straight line basis

Short leasehold land and buildings

over the term of the lease

Improvements to property

over the term of the lease

Goodwill

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. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 subsequently measured at amortised cost using the effective interest method.

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.

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 63 (2022 - 62).

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2022

100

100

Disposals

(100)

(100)

At 31 July 2023

-

-

Amortisation

At 1 August 2022

100

100

Amortisation eliminated on disposals

(100)

(100)

At 31 July 2023

-

-

Carrying amount

At 31 July 2023

-

-

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Improvements to property
 £

Crockery and cutlery
 £

Total
£

Cost or valuation

At 1 August 2022

26,142

58,115

23,836

15,876

123,969

Additions

-

5,882

-

-

5,882

Disposals

(8,188)

(40,838)

-

-

(49,026)

At 31 July 2023

17,954

23,159

23,836

15,876

80,825

Depreciation

At 1 August 2022

13,868

28,254

4,520

14,640

61,282

Charge for the year

1,196

2,124

1,582

1,084

5,986

Eliminated on disposal

(8,188)

(22,838)

-

-

(31,026)

At 31 July 2023

6,876

7,540

6,102

15,724

36,242

Carrying amount

At 31 July 2023

11,078

15,619

17,734

152

44,583

At 31 July 2022

12,274

29,861

19,316

1,236

62,687

Included within the net book value of land and buildings above is £Nil (2022 - £Nil) in respect of long leasehold land and buildings and £11,078 (2022 - £12,274) in respect of short leasehold land and buildings.
 

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

6

Stocks

2023
£

2022
£

Other inventories

18,500

18,500

7

Debtors

Current

2023
£

2022
£

Other debtors

449,468

366,915

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

32,016

28,537

Trade creditors

 

97,666

41,283

Taxation and social security

 

285,378

216,820

Accruals and deferred income

 

6,105

30,333

Other creditors

 

19,714

12,584

 

440,879

329,557

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £32,016 (2022 - £28,537).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

94,746

133,387

2023
£

2022
£

Due after more than five years

After more than five years by instalments

25,908

44,239

-

-

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £94,746 (2022 - £133,387).

Creditors include bank loans repayable by instalments of £25,908 (2022 - £44,239) due after more than five years.

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each of £1 each

75

75

75

75

Ordinary B shares of £1 each of £1 each

75

75

75

75

 

150

150

150

150

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

94,746

133,387

2023
£

2022
£

Current loans and borrowings

Bank borrowings

28,459

28,537

Bank overdrafts

3,557

-

32,016

28,537

Included in the loans and borrowings are the following amounts due after more than five years:

Borrowings due after five years

In 2019 the year the company entered into an agreement for a secured fixed rate loan over 180 months. The initial 36 months at 4.23%, converting thereafter to 3.67% over base rate.

Personal guarantees were given by Mr N Petrakis, Mr G Marabini and Mr N Perez, supported by a legal charge on Mr N Petakis' freehold property.

In 2020 the company enetered into an agreement for an unsecured government Covid Business Interuption Loan over 72 months. The initial 12 months at 0%, converting chargeable thereafter.

11

Related party transactions

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Transactions with directors

2023

At 1 August 2022
£

Advances to director
£

At 31 July 2023
£

Mr M E P Perez

Amounts advanced and repaid during the period

71,374

15,184

86,558

       
     

Mr G Marabini

Amounts advanced and repaid during the period

71,374

15,184

86,558

       
     

Mr N Petrakis

Amounts advanced and repaid during the period

71,374

15,184

86,558

       
     

 

2022

At 1 August 2021
£

Repayments by director
£

At 31 July 2022
£

Mr M E P Perez

Amounts advanced and repaid during the period

76,270

(4,896)

71,374

       
     

Mr G Marabini

Amounts advanced and repaid during the period

76,270

(4,896)

71,374

       
     

Mr N Petrakis

Amounts advanced and repaid during the period

76,270

(4,896)

71,374

       
     

 

 

Lollo Rosso Italia Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

22,267

22,456

Contributions paid to money purchase schemes

668

670

22,935

23,126