Financial Statements
Strong Roots Food Company UK Limited
For the period ended 30 June 2023
Registered number: 10561433
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Strong Roots Food Company UK Limited
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Company Information
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Chartered Accountants & Statutory Auditors
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Strong Roots Food Company UK Limited
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Contents
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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Strong Roots Food Company UK Limited
Registered number:10561433
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Statement of financial position
As at 30 June 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements have been prepared in accordance with the provision applicable to companies subject to
the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 4 to 11 form part of these financial statements.
Page 1
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Strong Roots Food Company UK Limited
Registered number:10561433
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Statement of financial position (continued)
As at 30 June 2023
Page 2
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Strong Roots Food Company UK Limited
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Statement of changes in equity
For the period ended 30 June 2023
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Comprehensive expense for the financial period
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Loss for the financial period
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Statement of changes in equity
For the year ended 31 December 2021
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Comprehensive expense for the financial year
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Loss for the financial year
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The notes on pages 4 to 11 form part of these financial statements.
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Page 3
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
Strong Roots Food Company UK is a private limited company incorporated in the United Kingdom with a registered address at 75b Great Eastern Street, London, EC2A 3HN.
The principal activity of the Company is that of the development, ingredient sourcing, manufacturing coordination and distribution of innovative tasty plant-based products designed for busy lives. All of the Company plant based products are made from the best quality ingredients, sustainably sourced.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
As at the reporting date, the Company is in a net liability position amounting to £4,158,424 (2021: £1,705,874). The parent company has indicated its intention to continue to provide support to the Company in order to meet its liabilities, as they fall due and to facilitate its ongoing activities, for a period of at least twelve months from the date of approval of these financial statements.
Considering the factors mentioned above, the directors have a reasonable expectation that the Company will have sufficient financial resources available to it to continue in operational existence for the foreseeable future. Therefore, the directors have concluded it is appropriate to prepare the financial statements on the going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Page 4
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
2.Accounting policies (continued)
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Sales discounts and rebates
The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods to a customer. The transaction price is adjusted for any consideration payable to the customer, including credit or other items applied against the price such as returns, discounts, rebates, credits, incentives or other similar items.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP (£).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 5
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
The contributions to employee pension plan are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a net relisable value basis.
At each reporting date, stocks are assessed for impairment. If stock is 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.
Page 6
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
2.Accounting policies (continued)
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument 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 ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.
Page 7
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
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The average monthly number of employees, including the directors, during the period was as follows:
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18 month period ended
30 June
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Charge for the period on owned assets
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Page 8
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
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Finished goods and goods for resale
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Debtors: Amounts falling due within one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Invoice discounting facility
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Accruals and deferred income
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Page 9
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
8.Creditors: Amounts falling due within one year (continued)
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Trade creditors and obligations are payable at various dates over the coming months in accordance with the suppliers’ usual and customary credit terms.
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.
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Allotted, called up and fully paid
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100 (2021: 100) Ordinary shares of £1.00 each
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Commitments under operating leases
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At 30 June 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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After 1 year and not later than 5 years
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Related party transactions
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The Company has no transaction with its ultimate parent company during the period. The Company has availed of the exemption under section 33.1a of FRS 102 not to disclose transactions with other group companies. There were no other related party transactions requiring disclosure per section 33 of FRS 102.
The Company's immediate parent undertaking is The Euclidean Holding Company Limited, a company incorporated in Ireland. The ultimate controlling party of the Company and the largest group to consolidate these financial statements is The Plant Room Holdings Limited, a company incorporated in Ireland. The Plant Room Holdings Limited is controlled by Samuel Dennigan.
Page 10
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Strong Roots Food Company UK Limited
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Notes to the financial statements
For the period ended 30 June 2023
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Events after the end of the period
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There are no other significant events affecting the Company since the period end.
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Approval of financial statements
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The board of directors approved these financial statements for issue on 27 October 2023.
The auditor's report on the financial statements for the period ended 30 June 2023 was unqualified.
The audit report was signed on 27 October 2023 by Jason Crawford (Senior Statutory Auditor) on behalf of Grant Thornton.
Page 11
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