Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
FIKA HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr P Williams
Ms S Williams
Mrs F Powell
Mr A P Williams
Company number
11848653
Registered office
Prospect Works
(Off) South Street
Keighley
West Yorkshire
BD21 5AA
Auditor
Azets Audit Services Limited
12 Kings Street
Leeds
LS1 2HL
FIKA HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
FIKA HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair Review of the Business

In 2022/23 the core business activities of the group were the manufacturing and distribution of commercial catering equipment. The core values of the group continue to be excellent customer service and to manufacture and design quality products for our target core markets and provide a safe and inspiring environment for employees to work and develop whilst caring for our local community and the wider environment.

In 2022/23 the group finished the financial year with significant increase in sales of 46% compared to 2021/22. The increase in sales comes at a time when the most manufacturing organisations have continued to face severe trading disruption throughout the supply chain with significant raw material and component shortages and lengthy supply delays, also compounded by significate labour shortages both skilled and unskilled, and significant issues with operator and staff retention.

These resulting shortages and delays also came with significate pricing increases and surcharges in all areas including, raw materials; components, energy and labour, with cost increases of up to 40%-50% in some cases.

With an increase in gross sales of 46% and combined with both tight controls on overhead costs and stringent cash flow management, this has still resulted in a modest profit after tax for 2022/23 of £459,493; (2021/22 - £384,042 loss for the year).

Key performance indicators

The group measures its financial regularly throughout the year and does so through the use of Key Performance Indicators (KPIs).

KPIs include:

Annual turnover – 46% increase on 2021/22 (prior increase 51% 2020/21)

Gross profit margin maintenance – 7.3% decrease to 40.12% in 2022/23 (47.41% in 2021/22). Difficult market trading condition, significant price increase in raw material costs, component costs, labour costs and energy costs, despite significant product price increase to our customers.

Controlling fixed/overhead costs – 2022/23 - saw a 0.8% reduction in overhead costs to 43.3% (2021/22 - 51.7% ). The company objectives is to tightly control overhead costs so that they show minimal increases and therefore maximise profitability. The company has significant measures in place to control overhead costs, where ever possible.

Maintaining or increasing cash reserves (including short term investments) – the balance sheet at 31 March 2023 was £55,894 (£100,763 – 1 April 2022).

Shareholders funds increased to £761,085 representing a 16% increase on the prior year (2021/22 - £656,166).

Fixed assets – 2022/23 saw a reduction in tangible fixed assets of £173,100 to £4,756,324 (2021/22 - £4,929,424).

FIKA HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

The group operates predominately in the UK market and normally under 2% of turnover to export markets. The group seeks to mitigate all forms of risk, both internal and external, and where practicable to transfer risk to insurers. The diverse nature of the group's activities and customer base helps to mitigate risk and the effect of adverse economic political conditions.

Customers and suppliers

The group continues not to depend on any one supplier or customer, with no single customer accounting for more than 22% of the total sales of the group. Sales and marketing initiatives aim to increase the number and diversity of our customer base to ensure we are not adversely affected by losing one single customer.

Foreign exchange

Dealing predominantly in the UK market, and obtaining suppliers from the UK based suppliers and distributors, the group transacts predominately in sterling with only a minimal amounts of currency exposure.

Credit

The group is exposed to some credit risk in relation to customers and insurers, credit insurance is in place via the group's banking partner HSBC. Credit control procedures take into account any identified risk in relation to customers and these are continually under review with our banking partners and being continually improved.

Employees

At the year end the group employed 124 people across its operation. The group’s policy is to provide equal opportunities for employment. In employment related decisions, the group complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age or physical or mental ability. Disabled people are given full consideration for employment and their development is assisted and encouraged.

The group continues to invest in its employees’ skills and capabilities to help reach their full potential, which in turn helps the group to do likewise. The group utilises predominantly semi-skilled labour and in-house training methods. The group takes health and safety and environmental responsibilities seriously and employs a full time HR/HSE Compliance Manager as part of its senior management team, the group is proud of its record in this regard.

 

FIKA HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Future Developments

Our previous few years investments have enabled the group to consolidate its current position despite a modest trading loss during the previous financial year 2021-22, and returned the group back to a healthy profitable position for 2022-23, however market condition have been extremely volatile in the wake of the Covid-19 Pandemic and continue to prove a challenge as we move forward.

The directors continue to review the financial and operational functions of the business and as market conditions continue to be volatile in the wake of the Covid-19 Pandemic and the war in Ukraine continues to have a significant adverse effect of supply chain’s and especially energy cost.

The short to medium term view of the directors is to the continued longer-term survival, growth and profitability of the business. Increasing efficiencies throughout the business, improving operational effectiveness with continued capital investment aimed at controlling expensive overhead costs throughout the group whilst also strengthening our current management team, and enabling significant grow over the next 18 month period as market conditions settle and improve.

The business has a strong market reputation for being at the forefront of advances in the hospitality, retail and catering equipment industry within the UK, and even in these very difficult and challenging times will continue to invest in its manufacturing facilities and new product development and people as we move forward.

The consolidated of the group's operation in its new 108,000 sq.ft. manufacturing facility based in Keighley West Yorkshire, has allowed more capital investment in technology, automated manufacturing systems and has given the group the opportunity to bring serval subcontracted activities inhouse under its own control. This provided a much needed solid platform to be able to facilitate significate profitable growth over the last year, more product innovate and some diversification will continue as we hopefully see market conditions improve.

On behalf of the board

Mr P Williams
Director
27 November 2023
FIKA HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of Fika Holdings Limited is that of a holding company. The principal activity of the group is that of manufacturing and distribution of commercial catering equipment. The company’s main products are equipment designed to display food (hot and cold) prior to consumption.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £354,574 (2022: £226,600). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Williams
Ms S Williams
Mrs F Powell
Mr A P Williams
Mr R J Powell
(Appointed 15 August 2023 and resigned 24 October 2023)
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr P Williams
Director
27 November 2023
FIKA HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Fika Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 7 -
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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

Extent to which the audit was considered capable of detecting irregularies, including fraud

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.

Matthew Grant (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
27 November 2023
Chartered Accountants
Statutory Auditor
12 Kings Street
Leeds
LS1 2HL
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
11,395,586
7,815,867
Cost of sales
(6,824,092)
(4,110,210)
Gross profit
4,571,494
3,705,657
Administrative expenses
(4,348,164)
(4,333,016)
Other operating income
326,250
559,883
Operating profit/(loss)
4
549,580
(67,476)
Interest payable and similar expenses
8
(124,936)
(96,495)
Profit/(loss) before taxation
424,644
(163,971)
Tax on profit/(loss)
9
34,849
(220,071)
Profit/(loss) for the financial year
459,493
(384,042)
Other comprehensive income
Revaluation of tangible fixed assets
-
0
1,348,983
Total comprehensive income for the year
459,493
964,941
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FIKA HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
77,186
89,702
Tangible assets
12
4,756,324
4,929,424
4,833,510
5,019,126
Current assets
Stocks
15
1,255,738
1,719,569
Debtors
16
1,655,275
1,092,360
Cash at bank and in hand
55,894
100,763
2,966,907
2,912,692
Creditors: amounts falling due within one year
17
(4,997,081)
(4,863,306)
Net current liabilities
(2,030,174)
(1,950,614)
Total assets less current liabilities
2,803,336
3,068,512
Creditors: amounts falling due after more than one year
18
(1,531,541)
(1,866,787)
Provisions for liabilities
Provisions
21
90,000
90,000
Deferred tax liability
22
413,210
448,059
(503,210)
(538,059)
Government grants
(7,500)
(7,500)
Net assets
761,085
656,166
Capital and reserves
Called up share capital
24
1
1
Revaluation reserve
1,335,580
1,348,983
Profit and loss reserves
(574,496)
(692,818)
Total equity
761,085
656,166
The financial statements were approved by the board of directors and authorised for issue on 27 November 2023 and are signed on its behalf by:
27 November 2023
Mr P  Williams
Director
Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,623,500
2,650,000
Investments
13
3,068,500
3,068,500
5,692,000
5,718,500
Current assets
Cash at bank and in hand
-
0
10,211
Creditors: amounts falling due within one year
17
(4,113,131)
(4,260,597)
Net current liabilities
(4,113,131)
(4,250,386)
Net assets
1,578,869
1,468,114
Capital and reserves
Called up share capital
24
1
1
Revaluation reserve
1,335,580
1,348,983
Profit and loss reserves
243,288
119,130
Total equity
1,578,869
1,468,114

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £465,329 (2022 - £338,171 profit).

The financial statements were approved by the board of directors and authorised for issue on 27 November 2023 and are signed on its behalf by:
27 November 2023
Mr P  Williams
Director
Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
1
-
0
(82,176)
(82,175)
Year ended 31 March 2022:
Loss for the year
-
-
(384,042)
(384,042)
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,348,983
-
1,348,983
Total comprehensive income
-
1,348,983
(384,042)
964,941
Dividends
10
-
-
(226,600)
(226,600)
Balance at 31 March 2022
1
1,348,983
(692,818)
656,166
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
459,493
459,493
Dividends
10
-
-
(354,574)
(354,574)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2023
1
1,335,580
(574,496)
761,085
FIKA HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
1
-
0
7,559
7,560
Year ended 31 March 2022:
Profit for the year
-
-
338,171
338,171
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,348,983
-
1,348,983
Total comprehensive income
-
1,348,983
338,171
1,687,154
Dividends
10
-
-
(226,600)
(226,600)
Balance at 31 March 2022
1
1,348,983
119,130
1,468,114
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
465,329
465,329
Dividends
10
-
-
(354,574)
(354,574)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2023
1
1,335,580
243,288
1,578,869
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
661,639
658,137
Interest paid
(124,936)
(96,495)
Income taxes refunded
-
0
108,832
Net cash inflow from operating activities
536,703
670,474
Investing activities
Purchase of tangible fixed assets
(201,000)
(993,968)
Proceeds from disposal of tangible fixed assets
-
79,833
Repayment of loans
-
9,479
Net cash used in investing activities
(201,000)
(904,656)
Financing activities
Repayment of borrowings
(114,461)
70,689
Repayment of bank loans
(155,000)
(408,677)
Payment of finance leases obligations
(161,484)
445,439
Dividends paid to equity shareholders
(354,574)
(226,600)
Net cash used in financing activities
(785,519)
(119,149)
Net decrease in cash and cash equivalents
(449,816)
(353,331)
Cash and cash equivalents at beginning of year
(675,732)
(322,401)
Cash and cash equivalents at end of year
(1,125,548)
(675,732)
Relating to:
Cash at bank and in hand
55,894
100,763
Bank overdrafts included in creditors payable within one year
(1,181,442)
(776,495)
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Fika Holdings Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Lonsdale Works, Gibson Street, Bradford, BD3 9TF.

 

The group consists of Fika Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Fika Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the sale and distribution of commercial equipment, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
50 years straight line
Plant and equipment
5 to 10 years straight line
Fixtures and fittings
5 to 10 years straight line
Computer equipment
4 years straight line
Motor vehicles
4 years straight line
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the period was £374,100 (2022: £324,266) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Stock provision

At each reporting date an assessment is made for provisions required to recognise a fair value of damaged, slow moving or obsolete stock. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss when they arise.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify the possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Manufacturing and distribution of commercial catering equipment
11,395,586
7,815,867
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,395,586
7,815,867
2023
2022
£
£
Other revenue
Grants received
-
269,883
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
-
(269,883)
Depreciation of owned tangible fixed assets
374,100
324,524
Profit on disposal of tangible fixed assets
-
(56,921)
Amortisation of intangible assets
12,516
12,516
Operating lease charges
39,109
56,715
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production staff
56
44
-
-
Administrative staff
64
61
-
-
Directors
4
4
4
4
Total
124
109
4
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,725,311
2,912,728
-
0
-
0
Social security costs
334,101
322,335
-
-
Pension costs
122,183
162,653
-
0
-
0
4,181,595
3,397,716
-
0
-
0
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,000
1,000
Audit of the financial statements of the company's subsidiaries
22,000
17,500
23,000
18,500
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
36,832
35,131
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
79,914
62,147
Interest on finance leases and hire purchase contracts
45,022
34,348
Total finance costs
124,936
96,495
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(34,849)
112,537
Changes in tax rates
-
0
107,534
Total deferred tax
(34,849)
220,071

The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
424,644
(163,971)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
80,682
(31,154)
Tax effect of expenses that are not deductible in determining taxable profit
6,314
794
Tax effect of income not taxable in determining taxable profit
-
0
(570)
Tax effect of utilisation of tax losses not previously recognised
(111,450)
241,444
Group relief
-
0
(10,347)
Permanent capital allowances in excess of depreciation
-
0
(192,560)
Depreciation on assets not qualifying for tax allowances
-
0
830
Other
(10,395)
(8,437)
Deferred tax movement
-
0
220,071
Taxation (credit)/charge
(34,849)
220,071
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
354,574
226,600
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
125,164
Amortisation and impairment
At 1 April 2022
35,462
Amortisation charged for the year
12,516
At 31 March 2023
47,978
Carrying amount
At 31 March 2023
77,186
At 31 March 2022
89,702
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Tangible fixed assets
Group
Freehold property
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2022
2,650,000
2,716,251
355,637
406,109
26,288
6,154,285
Additions
-
0
38,272
13,726
-
0
149,002
201,000
At 31 March 2023
2,650,000
2,754,523
369,363
406,109
175,290
6,355,285
Depreciation and impairment
At 1 April 2022
-
0
730,160
110,862
365,622
18,217
1,224,861
Depreciation charged in the year
26,500
239,341
67,959
17,600
22,700
374,100
At 31 March 2023
26,500
969,501
178,821
383,222
40,917
1,598,961
Carrying amount
At 31 March 2023
2,623,500
1,785,022
190,542
22,887
134,373
4,756,324
At 31 March 2022
2,650,000
1,986,091
244,775
40,487
8,071
4,929,424
Company
Freehold property
£
Cost or valuation
At 1 April 2022 and 31 March 2023
2,650,000
Depreciation and impairment
At 1 April 2022
-
0
Depreciation charged in the year
26,500
At 31 March 2023
26,500
Carrying amount
At 31 March 2023
2,623,500
At 31 March 2022
2,650,000

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
788,408
1,284,892
-
0
-
0
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 26 -

Land and buildings with a carrying amount of £1,301,017 were revalued at 30 November 2022 by Hayfield Robinson, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been approximately £1,287,920 (2022 - £1,305,383), being cost £1,309,749 (2022 - £1,309,749) and depreciation £21,829 (2022 - £8,732).

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,068,500
3,068,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
3,068,500
Carrying amount
At 31 March 2023
3,068,500
At 31 March 2022
3,068,500
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Victor Manufacturing Limited
England & Wales
Manufacture and distribution of commercial catering equipment
Ordinary
100.00

The registered office address for Victor Manufacturing Limited is: Back Prospect Works, South Street, Keighley, BD21 5AA.

 

During the prior year, Total Catering Equipment and Manufacturing Limited was dissolved, this was a 100% subsidiary held by Victor Manufacturing Limited and was therefore a 100% indirect subsidiary of Fika Holdings Limited. As the company was dormant there were no transactions to include in the consolidated financial statements.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
682,412
806,003
-
-
Work in progress
284,583
237,681
-
-
Finished goods and goods for resale
288,743
675,885
-
0
-
0
1,255,738
1,719,569
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,583,947
1,022,181
-
0
-
0
Corporation tax recoverable
146
146
-
0
-
0
Other debtors
-
33,585
-
0
-
0
Prepayments and accrued income
71,182
36,448
-
0
-
0
1,655,275
1,092,360
-
-

Trade debtors are pledged as security for the invoice financing facility (note 17).

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,337,002
932,055
3,610
-
0
Obligations under finance leases
20
281,621
262,859
-
0
-
0
Other borrowings
19
804,765
919,226
803,861
820,992
Trade creditors
1,569,163
1,854,745
-
0
-
0
Amounts owed to group undertakings
2
-
0
-
0
-
0
Other taxation and social security
633,665
255,398
-
-
Other creditors
87,063
202,640
3,305,660
3,439,605
Accruals and deferred income
283,800
436,383
-
0
-
0
4,997,081
4,863,306
4,113,131
4,260,597

Included within Bank loans and overdrafts is £1,177,832 (2022 - £776,495) due in relation to an invoice financing facility and is secured on trade debtors (note 16).

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
335,833
490,833
-
0
-
0
Obligations under finance leases
20
1,195,708
1,375,954
-
0
-
0
1,531,541
1,866,787
-
-
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
491,393
646,393
-
0
-
0
Bank overdrafts
1,181,442
776,495
3,610
-
0
Other loans
804,765
919,226
803,861
820,992
2,477,600
2,342,114
807,471
820,992
Payable within one year
2,141,767
1,851,281
807,471
820,992
Payable after one year
335,833
490,833
-
0
-
0

Borrowings are secured by way of fixed and floating charges over the company’s assets.

 

 

 

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
341,941
325,386
-
0
-
0
In two to five years
1,268,663
1,149,608
-
0
-
0
In over five years
46,724
399,824
-
0
-
0
1,657,328
1,874,818
-
-
Less: future finance charges
(179,999)
(236,005)
-
0
-
0
1,477,329
1,638,813
-
0
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Warranty provision
90,000
90,000
-
-
Movements on provisions:
Warranty provision
Group
£
At 1 April 2022 and 31 March 2023
90,000
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
413,210
448,059
Group
Company
2023
2023
Movements in the year:
£
£
Credit to profit or loss
(34,849)
-
Liability at 31 March 2023
413,210
-

The company had no deferred tax balances at 31 March 2023 or 31 March 2022.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
122,183
162,653

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
24
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
80 Ordinary A shares of £0.01 each
0.80
0.80
10 Ordinary B shares of £0.01 each
0.10
0.10
5 Ordinary C shares of £0.01 each
0.05
0.05
5 Ordinary D shares of £0.01 each
0.05
0.05
1
1

The company issued 1 Ordinary share upon incorporation, at par value. On 22 July 2019, there was a change of share class name from Ordinary share to A Ordinary, B Ordinary, C Ordinary and D Ordinary and a subdivision of share occurred, as shown in the note. The shares have full voting rights, full rights to dividends and full rights in a distribution. They do not confer any rights of redemption.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
34,121
46,231
-
-
Between two and five years
85,967
120,088
-
-
120,088
166,319
-
-
26
Controlling party

The controlling party of the group is Mr P Williams, a Director and majority Shareholder.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
27
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
459,493
(384,042)
Adjustments for:
Taxation (credited)/charged
(34,849)
220,071
Finance costs
124,936
96,495
Gain on disposal of tangible fixed assets
-
(56,921)
Amortisation and impairment of intangible assets
12,516
12,516
Depreciation and impairment of tangible fixed assets
374,100
324,524
Movements in working capital:
Decrease/(increase) in stocks
463,831
(652,305)
Increase in debtors
(562,915)
(172,708)
(Decrease)/increase in creditors
(175,473)
1,270,507
Cash generated from operations
661,639
658,137
28
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
100,763
(44,869)
55,894
Bank overdrafts
(776,495)
(404,947)
(1,181,442)
(675,732)
(449,816)
(1,125,548)
Borrowings excluding overdrafts
(1,565,619)
269,461
(1,296,158)
Obligations under finance leases
(1,638,813)
161,484
(1,477,329)
(3,880,164)
(18,871)
(3,899,035)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr P WilliamsMs S WilliamsMrs F PowellMr A P WilliamsMr R J 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