Caseware UK (AP4) 2022.0.179 2022.0.179 2023-05-312023-05-31The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.462022-06-01falseNo description of principal activity58falsetrue 07816763 2022-06-01 2023-05-31 07816763 2021-06-01 2022-05-31 07816763 2023-05-31 07816763 2022-05-31 07816763 2021-06-01 07816763 c:Director3 2022-06-01 2023-05-31 07816763 d:Buildings d:LongLeaseholdAssets 2022-06-01 2023-05-31 07816763 d:Buildings d:LongLeaseholdAssets 2023-05-31 07816763 d:Buildings d:LongLeaseholdAssets 2022-05-31 07816763 d:PlantMachinery 2022-06-01 2023-05-31 07816763 d:PlantMachinery 2023-05-31 07816763 d:PlantMachinery 2022-05-31 07816763 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:MotorVehicles 2022-06-01 2023-05-31 07816763 d:MotorVehicles 2023-05-31 07816763 d:MotorVehicles 2022-05-31 07816763 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:OfficeEquipment 2022-06-01 2023-05-31 07816763 d:OfficeEquipment 2023-05-31 07816763 d:OfficeEquipment 2022-05-31 07816763 d:OfficeEquipment d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:ComputerEquipment 2022-06-01 2023-05-31 07816763 d:ComputerEquipment 2023-05-31 07816763 d:ComputerEquipment 2022-05-31 07816763 d:ComputerEquipment d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:OtherPropertyPlantEquipment 2022-06-01 2023-05-31 07816763 d:OtherPropertyPlantEquipment 2023-05-31 07816763 d:OtherPropertyPlantEquipment 2022-05-31 07816763 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 07816763 d:PatentsTrademarksLicencesConcessionsSimilar 2023-05-31 07816763 d:PatentsTrademarksLicencesConcessionsSimilar 2022-05-31 07816763 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-05-31 07816763 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-05-31 07816763 d:CopyrightsPatentsTrademarksServiceOperatingRights 2023-05-31 07816763 d:CopyrightsPatentsTrademarksServiceOperatingRights 2022-05-31 07816763 d:CurrentFinancialInstruments 2023-05-31 07816763 d:CurrentFinancialInstruments 2022-05-31 07816763 d:Non-currentFinancialInstruments 2023-05-31 07816763 d:Non-currentFinancialInstruments 2022-05-31 07816763 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 07816763 d:CurrentFinancialInstruments d:WithinOneYear 2022-05-31 07816763 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 07816763 d:Non-currentFinancialInstruments d:AfterOneYear 2022-05-31 07816763 d:ShareCapital 2023-05-31 07816763 d:ShareCapital 2022-05-31 07816763 d:RetainedEarningsAccumulatedLosses 2023-05-31 07816763 d:RetainedEarningsAccumulatedLosses 2022-05-31 07816763 c:FRS102 2022-06-01 2023-05-31 07816763 c:AuditExemptWithAccountantsReport 2022-06-01 2023-05-31 07816763 c:FullAccounts 2022-06-01 2023-05-31 07816763 c:PrivateLimitedCompanyLtd 2022-06-01 2023-05-31 07816763 d:AcceleratedTaxDepreciationDeferredTax 2023-05-31 07816763 d:AcceleratedTaxDepreciationDeferredTax 2022-05-31 07816763 2 2022-06-01 2023-05-31 07816763 6 2022-06-01 2023-05-31 07816763 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-05-31 07816763 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-05-31 07816763 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-05-31 07816763 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-05-31 07816763 d:LeasedAssetsHeldAsLessee 2023-05-31 07816763 d:LeasedAssetsHeldAsLessee 2022-05-31 07816763 d:PatentsTrademarksLicencesConcessionsSimilar d:OwnedIntangibleAssets 2022-06-01 2023-05-31 07816763 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:OwnedIntangibleAssets 2022-06-01 2023-05-31 07816763 d:CopyrightsPatentsTrademarksServiceOperatingRights d:OwnedIntangibleAssets 2022-06-01 2023-05-31 07816763 e:PoundSterling 2022-06-01 2023-05-31 iso4217:GBP xbrli:pure

Registered number: 07816763










Supplement Factory Ltd








Unaudited

Financial statements

Information for filing with the registrar

For the Year Ended 31 May 2023

 
Supplement Factory Ltd
 
  
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of Supplement Factory Ltd for the Year Ended 31 May 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Supplement Factory Ltd for the year ended 31 May 2023 which comprise  the Balance sheet and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW)we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.

This report is made solely to the Board of directors of Supplement Factory Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Supplement Factory Ltd  and state those matters that we have agreed to state to the Board of directors of Supplement Factory Ltd, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Supplement Factory Ltd and its Board of directors, as a body, for our work or for this report. 

It is your duty to ensure that Supplement Factory Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Supplement Factory Ltd. You consider that Supplement Factory Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Supplement Factory Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

  



Kreston Reeves LLP
 
Chartered Accountants
  
Montague Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QU
25 January 2024

 
Supplement Factory Ltd
Registered number: 07816763

Balance sheet
As at 31 May 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 4 
39,483
96,104

Tangible assets
 5 
905,562
1,039,209

Investments
 6 
11,163
11,163

  
956,208
1,146,476

Current assets
  

Stocks
  
1,225,340
1,462,622

Debtors: amounts falling due within one year
 7 
2,259,985
2,062,436

Cash at bank and in hand
 8 
87,771
74,334

  
3,573,096
3,599,392

Creditors: amounts falling due within one year
 9 
(3,521,167)
(3,442,191)

Net current assets
  
 
 
51,929
 
 
157,201

Total assets less current liabilities
  
1,008,137
1,303,677

Creditors: amounts falling due after more than one year
 10 
(300,114)
(556,316)

Provisions for liabilities
  

Deferred tax
 11 
(179,865)
(222,531)

  
 
 
(179,865)
 
 
(222,531)

Net assets
  
528,158
524,830


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account
  
528,058
524,730

  
528,158
524,830



 
Supplement Factory Ltd
Registered number: 07816763

Balance sheet (continued)
As at 31 May 2023

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions 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 income and retained earnings 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 on 25 January 2024.




L Smith
Director

The notes on page 5 form part of these financial statements.


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

1.


General information

Supplement Factory Ltd is a limited liability company incorporated in England and Wales, company number 07816763. The address of the company's principal place of business is the registered office. The principal activity of the business is the development, manufacture and distribution of health supplements. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 following principal accounting policies have been applied:

 
2.2

Revenue

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:

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.

 
2.3

Government grants

Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

2.Accounting policies (continued)

 
2.5

Tangible fixed assets

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, on the following basis:.


Long-term leasehold property
-
10% straight line
Plant and machinery
-
Between 10% and 25% straight line
Motor vehicles
-
25% straight line
Office equipment
-
25% straight line
Computer equipment
-
Between 25% reducing balance and 33% straight line
Website
-
33% straight line

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.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Stocks

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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.


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

2.Accounting policies (continued)

 
2.10

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

2.Accounting policies (continued)

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Finance costs

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.

  
2.13

Invoice Discounting

The company has an invoice discounting agreement covering certain trade debtors with full recourse. On the basis that the benefits and risks attaching to the debts remain with the company, a separate presentation has been adopted, in accordance with Financial Reporting Standard 102. On this basis the gross debts are included as an asset within trade debtors and the proceeds received are included within bank loans and overdrafts as a liability.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Operating leases

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.

 
2.16

Pensions

Defined contribution pension plan

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 payment obligations.

The contributions are recognised as an expense in profit or loss 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.

 
2.17

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

2.Accounting policies (continued)

 
2.19

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Employees

The average monthly number of employees, including directors, during the year was 58 (2022 - 46).


 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

4.


Intangible assets




Licences
Develop-
ment
Trademarks
Total

£
£
£
£



Cost


At 1 June 2022
264,787
710,229
62,935
1,037,951



At 31 May 2023

264,787
710,229
62,935
1,037,951



Amortisation


At 1 June 2022
201,427
677,486
62,934
941,847


Charge for the year on owned assets
33,508
23,113
-
56,621



At 31 May 2023

234,935
700,599
62,934
998,468



Net book value



At 31 May 2023
29,852
9,630
1
39,483



At 31 May 2022
63,360
32,743
1
96,104



Page 1

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

5.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Website
Total

£
£
£
£
£
£
£



Cost or valuation


At 1 June 2022
422,859
1,364,626
46,716
27,085
54,757
33,113
1,949,156


Additions
-
80,545
-
-
-
-
80,545


Disposals
-
-
(46,716)
-
-
-
(46,716)



At 31 May 2023

422,859
1,445,171
-
27,085
54,757
33,113
1,982,985



Depreciation


At 1 June 2022
179,134
595,617
33,091
27,085
41,907
33,113
909,947


Charge for the year on owned assets
56,115
139,534
8,759
-
4,918
-
209,326


Disposals
-
-
(41,850)
-
-
-
(41,850)



At 31 May 2023

235,249
735,151
-
27,085
46,825
33,113
1,077,423



Net book value



At 31 May 2023
187,610
710,020
-
-
7,932
-
905,562



At 31 May 2022
243,725
769,009
13,625
-
12,850
-
1,039,209

Page 2

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

           5.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
452,550
551,062

Motor vehicles
-
13,626

452,550
564,688


6.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2022
11,163



At 31 May 2023
11,163





7.


Debtors

2023
2022
£
£


Trade debtors
1,620,181
1,321,744

Amounts owed by group undertakings
437,300
487,300

Other debtors
143,116
180,021

Prepayments and accrued income
59,388
73,371

2,259,985
2,062,436


Supplement Factory Limited discounts the majority of its trade debtors with full recourse. The gross amount of the debts which are invoice discounted as at 31 May 2023 is £1,356,146 (2022: £284,442). The company has a proportion of its debtors advanced which, including charges, totals £795,000 which is included within creditors amounts falling due within one year. These facilities are secured by fixed and floating charges over all the property or undertakings of the company.

Page 3

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

8.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
87,771
74,334

Less: bank overdrafts
(795,000)
(150,080)

(707,229)
(75,746)



9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
795,000
150,080

Bank loans
154,568
157,132

Trade creditors
2,128,479
2,870,464

Corporation tax
190,837
6,317

Other taxation and social security
96,461
45,983

Obligations under finance lease and hire purchase contracts
89,604
123,688

Accruals and deferred income
66,218
88,527

3,521,167
3,442,191


Bank loans and overdrafts include the company's invoice discounting facilities. All are secured by a fixed and floating charge over all the property or undertakings of the company. 


10.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
159,913
314,481

Net obligations under finance leases and hire purchase contracts
140,201
241,835

300,114
556,316


Page 4

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2023

11.


Deferred taxation




2023
2022


£

£






At beginning of year
(222,531)
(160,587)


Charged to profit or loss
42,666
(61,944)



At end of year
(179,865)
(222,531)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(179,865)
(222,531)


12.


Related party transactions

The company has taken advantage of the exemptions available under FRS102, section 33.5, not to disclose details of its transactions with members of the group headed by Forza International Group Limited.  
All other related party transactions have been undertaken at arms length.


13.


Controlling party

The ultimate parent undertaking of the company is Forza International Group Limited, a company incorporated in England and Wales, where the ultimate controlling party is L N Smith by virtue of his 75% shareholding. 


Page 5