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Registered number: SC241535
Adapa UK Edinburgh Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Directors' Report and Financial Statements
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3—4
Independent Auditor's Report 5—7
Profit and Loss Account 8
Balance Sheet 9
Statement of Changes in Equity 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13—19
Page 1
Company Information
Director Mr M Pawlak
Secretary As Company Services Limited
Company Number SC241535
Registered Office 1 Rutland Court
Edinburgh
Midlothian
EH3 8EY
Accountants ERC Accountants & Business Advisers Limited
Chartered Accountants
Hanover Buildings, 11-13 Hanover Street
Liverpool
Merseyside
L1 3DN
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Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
This year has seen gross profit remain fairly consistent with an small decrease of 2% against the prior period from £1.64m to £1.61m. This year has also seen a decrease in sales of approximately 9.4% to £12m and an increase in gross profit margin from 12.4% to 13.4%.
The company's financial instruments, other than derivatives, comprise borrowings, some cash and liquid resources, and various items, such as trade debtors, trade creditors etc, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.
The company is exposed to the usual credit related losses in the event of non payment by customers but the risks have been mitigated through partial insurance and credit checks to ensure that such events will not endanger the company's financial stability.
The company also enters into derivatives transactions; forward foreign currency contracts. The purpose of such transactions is to manage their currency risks arising from the company's operations and its sources of finance.
The company's financial performance has not been adversly affected by the COVID-19 pandemic. This is due to the nature of the customer base whereby any decreases in activity with some customers (contract packing, food service) has been offset by increased activity for customers in other sectors (pet food and PPE). The potential risk is to be monitored on an ongoing basis to ensure performance is maintained. The expectation of healthy profitability going forward has been suitably prepared in forecasts and budgets. 
On behalf of the board
Mr M Pawlak
Director
22 March 2024
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Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The principal activity of the company during the year was that of the importation and supply of packaging film and materials.
Dividends
The director does not recommend the payment of a dividend.
Directors
The directors who held office during the year were as follows:
Mr F Caresmel Resigned 24/08/2023
Mr M Pawlak Appointed 24/08/2023
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, ERC Accountants & Business Advisers Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr M Pawlak
Director
22 March 2024
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Independent Auditor's Report
Opinion
We have audited the financial statements of Adapa UK Edinburgh Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes of Equity, Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 the provisions available for small entities, in the circumstances set out in note 24 to the financial statements, 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 entity's ability to continue as a going concern for a period of at least 12 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its 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:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
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Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, 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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 
  • Enquiries with management relating to controls in place, segregation of duties and any potential litigation and claims.
  • Professional scepticism is maintained in areas of potential management override of controls including cash handling.
  • Inspection and reconciliation of related party balances is performed to ensure accuracy and existence.As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and performaudit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 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.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
  • Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 that 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.
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Richard Brown (Senior Statutory Auditor)
for and on behalf of ERC Accountants & Business Advisers Ltd , Statutory Auditor
22 March 2024
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Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 12,037,480 13,291,240
Cost of sales (10,424,431 ) (11,646,658 )
GROSS PROFIT 1,613,049 1,644,582
Administrative expenses (1,791,656 ) (1,308,895 )
Fair value losses on investment properties - (130,480 )
Fair value gains on investments 19,040 -
OPERATING (LOSS)/PROFIT (159,567 ) 205,207
Income from Shares in group undertakings 55,469 -
(Loss)/profit on disposal of fixed assets (91,608 ) 17,338
Other interest receivable and similar income 7 - 10,819
(LOSS)/PROFIT BEFORE TAXATION (195,706 ) 233,364
Tax on (Loss)/profit 9 36,365 (63,319 )
(LOSS)/PROFIT AFTER TAXATION BEING (LOSS)/PROFIT FOR THE FINANCIAL YEAR (159,341 ) 170,045
The notes on pages 12 to 19 form part of these financial statements.
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Balance Sheet
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 10 79,769 662,258
79,769 662,258
CURRENT ASSETS
Stocks 11 432,321 780,231
Debtors 12 2,550,439 2,623,914
Investments 13 - 20,060
Cash at bank and in hand 1,354,988 997,754
4,337,748 4,421,959
Creditors: Amounts Falling Due Within One Year 14 (3,125,678 ) (3,466,096 )
NET CURRENT ASSETS (LIABILITIES) 1,212,070 955,863
TOTAL ASSETS LESS CURRENT LIABILITIES 1,291,839 1,618,121
Creditors: Amounts Falling Due After More Than One Year (5,427 ) (169,674 )
PROVISIONS FOR LIABILITIES
Deferred Taxation (1,854 ) (4,548 )
NET ASSETS 1,284,558 1,443,899
CAPITAL AND RESERVES
Called up share capital 17 100 100
Share premium account 59,238 59,238
Profit and Loss Account 1,225,220 1,384,561
SHAREHOLDERS' FUNDS 1,284,558 1,443,899
On behalf of the board
Mr M Pawlak
Director
22 March 2024
The notes on pages 12 to 19 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Share Premium Profit and Loss Account Total
£ £ £ £
As at 1 January 2022 100 59,238 1,214,516 1,273,854
Profit for the year and total comprehensive income - - 170,045 170,045
As at 31 December 2022 and 1 January 2023 100 59,238 1,384,561 1,443,899
Loss for the year and total comprehensive income - - (159,341 ) (159,341)
As at 31 December 2023 100 59,238 1,225,220 1,284,558
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Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 45,821 299,528
Tax paid (56,382 ) -
Further item of operating activities 37,002 217,614
Net cash generated from operating activities 26,441 517,142
Cash flows from investing activities
Purchase of tangible assets (61,487 ) (65,316 )
Proceeds from disposal of tangible assets 513,300 29,397
Proceeds from disposal of current asset investments 20,060 -
Interest received - 10,819
Dividends received 55,469 -
Net cash generated from/(used in) investing activities 527,342 (25,100 )
Cash flows from financing activities
Repayment of bank borrowings (191,897 ) (34,258 )
Repayment of finance leases (4,652 ) 14,731
Net cash used in financing activities (196,549 ) (19,527 )
Increase in cash and cash equivalents 357,234 472,515
Cash and cash equivalents at beginning of year 2 997,754 525,239
Cash and cash equivalents at end of year 2 1,354,988 997,754
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Notes to the Statement of Cash Flows
1. Reconciliation of (loss)/profit for the financial year to cash generated from operations
2023 2022
£ £
(Loss)/profit for the financial year (159,341 ) 170,045
Adjustments for:
Tax on (loss)/profit (36,365 ) 63,319
Interest income - (10,819 )
Income from shares in group undertakings (55,469) -
Depreciation of tangible assets 39,067 23,358
Loss/(profit) on disposal of tangible assets 91,608 (17,338)
Net fair value (gains)/losses recognised in profit or loss (19,040) 130,480
Foreign exchange gains (13,498) (29,764)
Movements in working capital:
Decrease/(increase) in stocks 347,910 (299,804 )
Decrease in trade and other debtors 101,905 879,287
Decrease in trade and other creditors (250,956 ) (609,236 )
Net cash generated from operations 45,821 299,528
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 1,354,988 997,754
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 997,754 357,234 1,354,988
Finance leases (14,731) 4,652 (10,079)
Debts falling due within one year (32,302 ) 32,302 -
Debts falling due after more than one year (159,595) 159,595 -
791,126 553,783 1,344,909
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Notes to the Financial Statements
1. General Information
Adapa UK Edinburgh Limited is a private company, limited by shares, incorporated in Scotland, registered number SC241535 . The registered office is 1 Rutland Court, Edinburgh, Midlothian, EH3 8EY.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Significant judgements and estimations
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.
2.4. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold Nil depreciation
Plant and machinery 15% & 33% Reducing balance
Motor vehicles 33% Reducing balance
Fixtures and fittings 33% Reducing balance
2.6. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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2.7. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Financial Instruments
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 entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.12. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
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2.13. Financial Reporting Standard 102 - Reduced Disclosure Exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Adapa GmbH Group, which can be obtained from www.unternehmensregister.de.
2.14. 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.
3. Turnover
Analysis of turnover by geographical market is as follows:
2023 2022
£ £
United Kingdom 11,137,188 12,610,831
Rest of the world 900,292 680,409
12,037,480 13,291,240
4. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 14,600 14,000
5. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 891,572 598,527
Social security costs 97,793 69,467
Other pension costs 75,528 41,965
1,064,893 709,959
6. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 6 6
Sales, marketing and distribution 3 2
Finance department: 3 2
12 10
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7. Interest Receivable and Similar Income
2023 2022
£ £
Dividends from shares in subsidiaries 55,469 -
Other interest receivable - 10,819
55,469 10,819
9. Tax on Profit
The tax (credit)/charge on the (loss)/profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 19.0% 19.0% (28,227 ) 57,160
Prior period adjustment (981 ) -
(29,208 ) 57,160
Deferred Tax
Deferred taxation (7,157 ) 6,159
Total tax charge for the period (36,365 ) 63,319
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the (loss)/profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax (195,706) 233,364
Tax on profit at 19% (UK standard rate) (37,184 ) 44,339
Expenses not deductible for tax purposes 24,828 26,902
Capital allowances (1,504 ) (13,855 )
Short term timing differences (10,985 ) 5,933
Prior period adjustment (981 ) -
Dividends from companies (10,539 ) -
Total tax charge for the period (36,365) 63,319
10. Tangible Assets
Land & Property
Freehold Plant and machinery Motor vehicles Fixtures and fittings Total
£ £ £ £ £
Cost
As at 1 January 2023 580,000 129,196 96,329 - 805,525
Additions - 22,184 37,999 1,304 61,487
Disposals (580,000 ) (22,185 ) (31,000 ) (1,304 ) (634,489 )
As at 31 December 2023 - 129,195 103,328 - 232,523
...CONTINUED
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Depreciation
As at 1 January 2023 - 106,022 37,245 - 143,267
Provided during the period - 10,209 28,859 - 39,068
Disposals - (5,084 ) (24,497 ) - (29,581 )
As at 31 December 2023 - 111,147 41,607 - 152,754
Net Book Value
As at 31 December 2023 - 18,048 61,721 - 79,769
As at 1 January 2023 580,000 23,174 59,084 - 662,258
11. Stocks
2023 2022
£ £
Materials 432,321 780,231
12. Debtors
2023 2022
£ £
Due within one year
Trade debtors 2,359,917 2,449,296
Prepayments and accrued income 16,602 19,024
Other debtors 145,490 155,594
Corporation tax recoverable assets 28,430 -
2,550,439 2,623,914
13. Current Asset Investments
2023 2022
£ £
Shares in subsidiaries - 20,060
- 20,060
The company owned 100% of the issued share capital of Oui 3 Limited, a company incorporated in the United Kingdom. The nature of the business of the company during the year was that of advertising and design. Oui 3 Ltd ceased to trade as of 31/01/2023 at which point all assets, liabilities and trade were taken over by Adapa UK Edinburgh Ltd.
14. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 4,652 4,652
Trade creditors 1,066,181 1,543,614
Bank loans and overdrafts - 32,302
Corporation tax - 57,160
Other taxes and social security 44,327 22,117
VAT 221,973 260,934
Advances under discounting facility 1,562,343 1,389,589
Other creditor 28,167 21,815
Accruals and deferred income 198,035 133,913
3,125,678 3,466,096
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The company has a floating charge dated 23 October 2017 that is held over advances under discounting facility on all property or undertaking of the company.
The company also has three further floating charges dated 30 October 2017, 28 November 2017 and 29 May 2018 on all the property orundertaking of the company.
15. Obligations Under Finance Leases and Hire Purchase
2023 2022
£ £
The future minimum finance lease payments are as follows:
Not later than one year 4,652 4,652
Later than one year and not later than five years 5,427 10,079
10,079 14,731
10,079 14,731
16. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 4,548 4,548
Additions (2,694 ) (2,694)
Balance at 31 December 2023 1,854 1,854
17. Share Capital
2023 2022
£ £
Allotted, Called up and fully paid 100 100
18. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2023 2022
£ £
Not later than one year 16,800 -
Later than one year and not later than five years 12,600 -
29,400 -
19. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £75,528 (2022: £41,965).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
20. Directors Advances, Credits and Guarantees
The directors received no advances, credits or guarantees during the current or previous accounting periods.
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21. Reserves
Called-up share capital - This reserve records the nominal value of shares that have been issued.
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account - This reserve records retained earnings and accumulated losses.
22. Related Party Disclosures
The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.
23. Controlling Parties
The director believes the controlling party to be Adapa GmbH (Germany). A company that owns 80% of the parent company Adapa France SAS, a company registered in France. Accounts for Adapa France SAS can be obtained from Institut National de la Propriete Industrielle at www.inpi.fr.
24. FRC's Ethical Standard - Provision Available for Small Entities
In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
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