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COMPANY REGISTRATION NUMBER: 01328222
FLORA FOUNTAIN LIMITED
Filleted Unaudited Financial Statements
31 December 2023
FLORA FOUNTAIN LIMITED
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
6
773,244
781,907
Investments
7
740,000
850,000
------------
------------
1,513,244
1,631,907
Current assets
Stocks
58,947
75,913
Debtors
8
115,349
137,603
Cash at bank and in hand
61,784
41,405
---------
---------
236,080
254,921
Creditors: amounts falling due within one year
9
730,746
120,369
---------
---------
Net current (liabilities)/assets
( 494,666)
134,552
------------
------------
Total assets less current liabilities
1,018,578
1,766,459
Creditors: amounts falling due after more than one year
10
700,300
Provisions
Taxation including deferred tax
126,717
127,293
------------
------------
Net assets
891,861
938,866
------------
------------
FLORA FOUNTAIN LIMITED
Statement of Financial Position (continued)
31 December 2023
2023
2022
Note
£
£
£
Capital and reserves
Called up share capital
30,000
30,000
Profit and loss account
12
861,861
908,866
---------
---------
Shareholders funds
891,861
938,866
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 31st December 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 financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 4 March 2024 , and are signed on behalf of the board by:
Mr. K.V. Shah
Mr. P.K. Shah
Director
Director
Company registration number: 01328222
FLORA FOUNTAIN LIMITED
Notes to the Financial Statements
Year ended 31st December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 283 High Street, Uxbridge, Middlesex, UB8 1LQ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The financial statements have been prepared on a going concern basis as the directors consider that there are no material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern in the foreseeable future. The directors will continue to support the company in the foreseeable future. The bank loan repayable within 1 year will be repaid by the current asset investment held by the company.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which will have a significant effect on the amounts recognised in the financial statements. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Revenue recognition
The turnover shown in the profit and loss account represents amounts received and receivable in respect of sale of prescription medicines and other counter goods, exclusive of value added tax.
Taxation
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non- discounted basis at the average tax rates that would apply when the timing differences are expected to reverse, based on the tax rate and laws that have been enacted by the balance sheet date.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
4% straight line
Fixtures, fittings & equipment
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non puttable ordinary shares. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment
Employee benefits
The company contributes to a defined contribution plan for the benefit of its employees. Contributions are recognised in the profit and loss as they become payable.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 10 (2022: 11 ).
5. Tax on loss
Major components of tax income
2023
2022
£
£
Deferred tax:
Origination and reversal of timing differences
( 576)
( 1,046)
----
-------
Tax on loss
( 576)
( 1,046)
----
-------
6. Tangible assets
Land and buildings
Fixtures and fittings
Motor vehicles
Investment properties
Total
£
£
£
£
£
Cost
At 1st January 2023
105,904
140,837
16,111
710,000
972,852
Additions
3,552
3,552
---------
---------
--------
---------
---------
At 31st December 2023
105,904
144,389
16,111
710,000
976,404
---------
---------
--------
---------
---------
Depreciation
At 1st January 2023
80,244
99,687
11,014
190,945
Charge for the year
4,236
6,705
1,274
12,215
---------
---------
--------
---------
---------
At 31st December 2023
84,480
106,392
12,288
203,160
---------
---------
--------
---------
---------
Carrying amount
At 31st December 2023
21,424
37,997
3,823
710,000
773,244
---------
---------
--------
---------
---------
At 31st December 2022
25,660
41,150
5,097
710,000
781,907
---------
---------
--------
---------
---------
The investment properties have been revalued at an open market value by the Directors at 31 December 2023.
7. Investments
Other investments other than loans
£
Cost
At 1st January 2023
850,000
Disposals
( 110,000)
---------
At 31st December 2023
740,000
---------
Impairment
At 1st January 2023 and 31st December 2023
---------
Carrying amount
At 31st December 2023
740,000
---------
At 31st December 2022
850,000
---------
Fixed asset investments include long term interest bearing loans amounting to £740,000 (2022: £850,000).
8. Debtors
2023
2022
£
£
Trade debtors
78,080
102,165
Other debtors
37,269
35,438
---------
---------
115,349
137,603
---------
---------
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
600,250
3,002
Trade creditors
101,545
110,106
Social security and other taxes
3,940
4,478
Other creditors
25,011
2,783
---------
---------
730,746
120,369
---------
---------
The bank loan of £600,250 is secured on the company's freehold commercial property and a fixed and floating charge on all the assets of the company.
The loan is a repayment loan with interest being charged at 2.8% per annum over the GBP HBZ Base Rate. The loan is repayable in full by 31st December 2024.
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
700,300
----
---------
11. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions
126,717
127,293
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
6,741
7,317
Fair value adjustment of investment property
119,976
119,976
---------
---------
126,717
127,293
---------
---------
12. Reserves
Profit and loss account - Included in this reserve are distributable profits made up of retained earnings and accumulated losses of £297,813 (2022: £344,818) and undistributed profits arising on net asset revaluations of £564,048 (2022: £564,048).
13. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr. K.V. Shah
( 1,897)
8,174
( 6,522)
( 245)
Mr. P.K. Shah
1,381
1,512
( 13,000)
( 10,107)
-------
-------
--------
--------
( 516)
9,686
( 19,522)
( 10,352)
-------
-------
--------
--------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr. K.V. Shah
( 788)
( 1,109)
( 1,897)
Mr. P.K. Shah
1,381
1,381
-------
-------
----
-------
593
( 1,109)
( 516)
-------
-------
----
-------
14. Related party transactions
The director, Mr P K Shah has provided a personal guarantee to Habib Bank Zurich Plc for the bank loan. The loan amount outstanding as at 31 December 2023 is £600,250.