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Registration number: 06526126

The Bay Tree Food Co Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

image-name
 

The Bay Tree Food Co Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 13

 

The Bay Tree Food Co Ltd

Company Information

Directors

Emma S Macdonald

Nigel D Hodgson

Jennifer P Sheldon

Registered office

36 East Way
Lee Mill Industrial Estate
Ivybridge
Devon
PL21 9GE

Accountants

Dorset FD Limited
Chartered Accountants
Unit 35
Great Cranford Street
Poundbury
Dorchester
Dorset
DT1 3SQ

 

The Bay Tree Food Co Ltd

(Registration number: 06526126)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

381,250

456,250

Tangible assets

5

198,909

235,794

 

580,159

692,044

Current assets

 

Stocks

6

653,090

609,917

Debtors

7

548,582

539,622

Cash at bank and in hand

 

77,003

9,808

 

1,278,675

1,159,347

Creditors: Amounts falling due within one year

8

(1,085,942)

(824,420)

Net current assets

 

192,733

334,927

Total assets less current liabilities

 

772,892

1,026,971

Creditors: Amounts falling due after more than one year

8

(146,386)

(207,997)

Provisions for liabilities

(24,964)

(29,401)

Net assets

 

601,542

789,573

Capital and reserves

 

Called up share capital

9

201,566

201,566

Share premium reserve

199,664

199,664

Capital redemption reserve

300,000

300,000

Retained earnings

(99,688)

88,343

Shareholders' funds

 

601,542

789,573

For the financial year ending 28 February 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 and the option not to file the Profit and Loss Account has been taken.

 

The Bay Tree Food Co Ltd

(Registration number: 06526126)
Balance Sheet as at 28 February 2023

Approved and authorised by the Board on 25 November 2023 and signed on its behalf by:
 

.........................................
Emma S Macdonald
Director

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 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:
36 East Way
Lee Mill Industrial Estate
Ivybridge
Devon
PL21 9GE
United Kingdom

These financial statements were authorised for issue by the Board on 25 November 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.

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

Government grants are recognised at the fair value of the asset received or receiveable when there is
reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related
costs are incurred.
Government grants relating an asset are recognised in income systematically over the asset's
expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than
being deducted from the asset's carrying amount.

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises 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.

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 differences.

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

Leasehold land and buildings

Over length of lease

Furniture, fittings and equipment

14% - 20% reducing balance or 3 years straight line

Motor vehicles

22% reducing balance

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

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 is 20 years. The directors have
agreed that 20 years from the date of the acquisition is a reliable estimate of the useful life of the
acquired goodwill after considering the established and recognised brand acquired, the reliable
demand for products experienced since acquisition, the long term nature of the business and the
regular review and refreshing of the brand to maintain its ability to generate revenue.

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 years 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.

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.

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. 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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a
pension plan under which the company pays fixed contributions into a separate entity. Once the
contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due.
Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are
held separately from the company in independently administered funds.

3

Staff numbers

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

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2022

1,500,000

1,500,000

At 28 February 2023

1,500,000

1,500,000

Amortisation

At 1 March 2022

1,043,750

1,043,750

Amortisation charge

75,000

75,000

At 28 February 2023

1,118,750

1,118,750

Carrying amount

At 28 February 2023

381,250

381,250

At 28 February 2022

456,250

456,250

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2022

77,856

732,065

59,260

869,181

Additions

3,640

16,227

-

19,867

At 28 February 2023

81,496

748,292

59,260

889,048

Depreciation

At 1 March 2022

73,639

525,715

34,033

633,387

Charge for the year

3,966

47,161

5,625

56,752

At 28 February 2023

77,605

572,876

39,658

690,139

Carrying amount

At 28 February 2023

3,891

175,416

19,602

198,909

At 28 February 2022

4,217

206,350

25,227

235,794

Included within the net book value of land and buildings above is £3,891 (2022 - £4,217) in respect of leasehold land and buildings.
 

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

6

Stocks

2023
£

2022
£

Other inventories

653,090

609,917

7

Debtors

Current

2023
£

2022
£

Trade debtors

427,547

382,458

Prepayments

56,795

56,518

Other debtors

64,240

100,646

 

548,582

539,622

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

434,991

230,200

Trade creditors

 

563,961

483,503

Taxation and social security

 

23,331

24,843

Accruals and deferred income

 

50,751

68,998

Other creditors

 

12,908

16,876

 

1,085,942

824,420

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

139,592

198,691

Deferred income

 

6,794

9,306

 

146,386

207,997

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

1,836

1,836

1,836

1,836

Preference Shares of £1 each

199,730

199,730

199,730

199,730

 

201,566

201,566

201,566

201,566

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

126,392

180,878

Hire purchase contracts

13,200

17,813

139,592

198,691

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

2023
£

2022
£

Current loans and borrowings

Bank borrowings

374,622

219,673

Hire purchase contracts

4,340

10,527

Other borrowings

56,029

-

434,991

230,200

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £648,000 (2022 - £168,000). At the reporting end date the company had outstanding commitments for future minimum
lease payments under non-cancellable operating leases.

12

Related party transactions

The Directors have previously made loans to the company. At the end of the year, the company owed the Directors £3,000 (2022: £7,000), which is included within Other Creditors on the balance sheet. During the year, the company repaid the Directors £4,000 (2022: £58,000). During the year one of the Directors has received a temporary loan of £3,000 from the company (2022: £NIL), which is included within Other Debtors on the balance sheet and is expected to be repaid within 9 months of 28.2.2023.

 

The Bay Tree Food Co Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

125,548

129,591