REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
THE GREAT PRODUCT EXCHANGE LTD |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
THE GREAT PRODUCT EXCHANGE LTD |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
THE GREAT PRODUCT EXCHANGE LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditors |
605 Albert House |
256-260 Old Street |
London |
EC1V 9DD |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
BALANCE SHEET |
31 DECEMBER 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
The Great Product Exchange Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The company incurred losses on ordinary activities during the period under review and has continued to incur further losses to the end of the subsequent period. |
Arovo Belgium BV who owns a controlling stake in the company has continued to bring stability to the company in terms of access to working capital, resources and expertise in terms of product sourcing. Arovo Belgium BV is the holder to the rights for a number of brand licenses which it uses to create ranges of branded products. This has allowed the company to sell these products into the UK market, allowing the company to widen it's customer base and expand it's product offering. |
The directors have prepared forecasts to 31 December 2024 which they have reviewed against prior year end management information and for sensitivity. |
In addition, the company continues to be in ongoing negotiations with existing and new customers and has won several, potentially highly profitable contracts and the directors are optimistic that new contracts will be awarded moving forward. |
Arovo Belgium BV has provided written confirmation to the directors of its intention to continue to provide financial support to the company for a period of at least 12 months from the date of the signing of these financial statements. |
At the time of signing these accounts, having considered the economic climate, the Directors expectations and intentions for the next twelve months, the support of the parent company and the availability of working capital, the Directors are of the opinion that the Company will remain viable for the foreseeable future and therefore these Financial Statements have been prepared on the Going Concern basis. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets other than goodwill |
Computer software is stated at cost less accumulated amortisation and any accumulated impairment losses. It is amortised over its estimated useful life over 3 years using a straight line method. |
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 to reflect the new expectations. |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
The company only enters into transactions in 'basic' financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties. |
Basic financial assets (other than those classified as payable within one year) are initially measured at cost, and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities (other than those classified as payable within one year) are initially recognised at present value of future cash flows and subsequently at amortised costs using the effective interest method. Basic financial liabilities classified as payable within one year are not amortised. |
Financial assets and liabilities are offset, with the net amounts reported in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for qualified opinion |
For the year ended 31 December 2021, we were unable to gain access to a number of inventory locations due to Covid-19 restrictions and therefore we were unable to observe the counting of inventories at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2021 which are stated at the balance sheet date at £592,518. |
Accordingly, we have not been able to obtain sufficient appropriate audit evidence. As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of impaired, recorded or unrecorded inventories and the elements making up both the Income Statement and the Balance Sheet. |
for and on behalf of |
9. | OPERATING LEASE COMMITMENTS |
At the 31st December 2022 the company had leasing commitments totalling £Nil (2021: £8,401). |
10. | RELATED PARTY DISCLOSURES |
Included within other creditors due less than one year are loans from directors totalling £3,888 (2021: £6,596). The loans are interest free and repayable on demand. |
Included within creditors due less than one year is an amount owed to the ultimate parent company totalling £2,521,833 (2021: £1,121,026 due after one year). The amount is interest free. |
THE GREAT PRODUCT EXCHANGE LTD (REGISTERED NUMBER: 09189901) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | RELATED PARTY DISCLOSURES - continued |
Arovo Belgium Bv (incorporated in Belgium) is the ultimate parent company due to its majority shareholding. |
11. | POST BALANCE SHEET EVENTS |
Following the year end but prior to the date of these financial statements the company's parent undertaking disposed of one of the company's business operations. This operation accounted for 33% of the company's turnover. The Directors of the company are of the opinion that this does not affect the ability of the company to continue as a going concern as the disposed business operation was loss-making. |