Registration number:
Hautecaters Holding Co. Limited
for the Year Ended 31 March 2023
Hautecaters Holding Co. Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Hautecaters Holding Co. Limited
Company Information
Director |
C Moffatt |
Company secretary |
P Saunders |
Registered office |
|
Auditors |
|
Hautecaters Holding Co. Limited
Strategic Report for the Year Ended 31 March 2023
The director presents his strategic report for the year ended 31 March 2023.
Principal activity
The principal activity of the group is is that of a holding company.
Fair review of the business
The group has a business model that combines markets where it wholly operates its own shops and others where it franchises out the operation of the shops. Its subsidiary, HCL Global Supply Ltd, makes cookie dough to be sold in both wholly owned and franchised shops. The group also derives royalties from licensing the Ben’s Cookies brand.
The year ended 31 March 2023 experienced no tangible negative impact COVID-19 pandemic. This return to normal trading helped the group’s financial performance improve versus the prior year which – in some markets – had still felt some negative impacts during the first half of 2022.
Overall: revenues increased by 27%, gross margin percentage was maintained and admin expenses on continuing operations increased by 20%.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£000 |
15,764 |
12,373 |
Gross Margin |
% |
49 |
48 |
Principal risks and uncertainties
Gross margins continue to be squeezed due to continued input inflation, particularly ingredient / food costs, energy costs and labour rates. The board maintains its view from last year that whilst much of this margin pressure can be passed on to the end consumer via retail price increases, there is a limit to this, and the company continues to look at longer term strategies to mitigate exposure.
Other longer term macro trends can present risks such as change in dietary preferences and changes to government tax policies impacting business.
Approved and authorised by the
......................................... |
Hautecaters Holding Co. Limited
Director's Report for the Year Ended 31 March 2023
The director presents his report and the for the year ended 31 March 2023.
Directors of the group
The directors who held office during the year were as follows:
Employment of disabled persons
The Group remains supportive of the employment and advancement of disabled persons.
Whilst there is no specific policy in place, the business would work to support and amend duties to enable all employees to continue work in the event of becoming disabled wherever feasible. Any disabled employees will be supported to encourage further training, career development and promotion.
Employee involvement
The Group values the commitment of its employees and has maintained its practice of communicating with them regarding the development of the business. The Directors seek to promote an inclusive workplace in which individuals feel they are respected, valued and have an equal opportunity to progress. As such, employment policies are designed to respect employees’ human rights, ensure equal opportunity and promote diversity. Employees are actively encouraged to undertake relevant training and to develop their careers. Performance reviews are also conducted with individual employees.
The Group operates as follows with regards to employee engagement:
- We welcome employees to raise concerns via ‘open door’ policy. Official communications to staff are in the format of written notices or group emails.
- Effective communication and consultation between staff and management is recognised as being key, weekly meetings take place to discuss any concerns. Regular consultation with employees is provided through regular face to face contact
- Management are regularly updated with the performance of the company and economic reasons affecting decision making on a need-to-know basis.
Future developments
There are no imminent developments of a material nature not already mentioned in the Strategic Report.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Hautecaters Holding Co. Limited
Director's Report for the Year Ended 31 March 2023
Approved and authorised by the
......................................... |
Hautecaters Holding Co. Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Hautecaters Holding Co. Limited
Independent Auditor's Report to the Members of Hautecaters Holding Co. Limited
Opinion
We have audited the financial statements of Hautecaters Holding Co. Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group and of the parent company's affairs as at 31 March 2023 and of the group's profit 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 company's ability to continue as a going concern for a period of at least twelve 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Hautecaters Holding Co. Limited
Independent Auditor's Report to the Members of Hautecaters Holding Co. Limited
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.
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is 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 director determines 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 director is 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 director either intends 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.
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. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:
• Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims;
• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
• Reviewing minutes of meetings of those charged with governance;
• Reviewing overseas local auditor reporting;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Hautecaters Holding Co. Limited
Independent Auditor's Report to the Members of Hautecaters Holding Co. Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Hautecaters Holding Co. Limited
Independent Auditor's Report to the Members of Hautecaters Holding Co. Limited
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and 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. |
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 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.
......................................
For and on behalf of
30 St Giles'
OX1 3LE
Hautecaters Holding Co. Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar charges |
( |
( |
|
(51,482) |
(44,538) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Hautecaters Holding Co. Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2023
2023 |
2022 |
|
Profit for the year |
|
|
Foreign currency translation gains |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Hautecaters Holding Co. Limited
(Registration number: 10027274)
Consolidated Balance Sheet as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
652,131 |
621,720 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Share premium reserve |
2,128,905 |
2,128,905 |
|
Other reserves |
213,932 |
181,987 |
|
Profit and loss account |
(893,334) |
(1,355,139) |
|
Equity attributable to owners of the company |
1,449,703 |
955,953 |
|
Total equity |
1,449,703 |
955,953 |
Approved and authorised by the
......................................... |
Hautecaters Holding Co. Limited
(Registration number: 10027274)
Balance Sheet as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Share premium reserve |
2,128,905 |
2,128,905 |
|
Retained earnings |
120,785 |
120,812 |
|
Shareholders' funds |
2,249,890 |
2,249,917 |
The company made a loss after tax for the financial year of £27 (2022 - profit of £-).
Approved and authorised by the
......................................... |
Hautecaters Holding Co. Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2023
Equity attributable to the parent company
Share capital |
Share premium |
Foreign currency translation |
Retained earnings |
Total |
Total equity |
|
At 1 April 2022 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
- |
|
- |
|
|
Total comprehensive income |
- |
- |
|
|
|
|
At 31 March 2023 |
|
|
|
( |
|
|
Share capital |
Share premium |
Foreign currency translation |
Retained earnings |
Total |
Total equity |
|
At 1 April 2021 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
- |
|
- |
|
|
Total comprehensive income |
- |
- |
|
|
|
|
At 31 March 2022 |
|
|
|
( |
|
|
Hautecaters Holding Co. Limited
Statement of Changes in Equity for the Year Ended 31 March 2023
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 April 2022 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
At 31 March 2023 |
|
|
|
|
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 April 2021 |
|
|
|
|
At 31 March 2022 |
|
|
|
|
Hautecaters Holding Co. Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
Foreign exchange gains/losses |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Increase/(decrease) in provisions |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Acquisition of investments in joint ventures and associates |
( |
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of other borrowing |
( |
( |
|
Payments to finance lease creditors |
|
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
Effect of exchange rate fluctuations on cash held |
(4,360) |
(56,692) |
|
Cash and cash equivalents at 31 March |
652,131 |
621,720 |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
31/32 Monument Business Park
Warpsgrove Lane
Chalgrove
Oxfordshire
OX44 7RW
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Profit and Loss Account in these financial statements. The parent company's loss for the year was £27 (2022: £nil).
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis. The group had net current liabilities of £347,075 at the 31st March 2021, which coupled with the COVID-19 global pandemic necessitated a structural review by the management. Forecasts and budgets were prepared, and structural decisions regarding loss making areas in the group were made during 2021. As a result, following profits in both 2022 and 2023 the group now has net current assets of £1,037,451 as at 31st March 2023.
At the date of approval of the accounts, these operating forecasts have been updated and continue to illustrate the ability of the group to continue as a going concern for a period of at least 12 months from the date of approval of these accounts in the opinion of the directors. In performing this review, the directors have factored in the anticipated continued impact global economic factors including rising inflation and conflict in Ukraine, and undertaken stress testing on projections to identify any point of material concern. No issues were noted in this review, and the group continues to show positive improvement trading post COVID.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Government grants
The group received government grants in the prior period in respect of the Coronavirus Job Retention Scheme in the UK.
These grants are recognised using the accrual model and as such are recorded in the profit and loss
account in the period in which the company is entitled to such grants as a result of having furloughed
staff members.
Foreign currency transactions and balances
In preparing the group's consolidated financial statements, the financial statements of the group's foreign operations are translated into the group's presentation currency of sterling. The assets and liabilities are translated using the closing exchange rate. Income and expenditure are translated using the average rate for the period. Resulting exchange differences are recognised in other comprehensive income.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
Straight line over 5-15 years |
Motor vehicles |
Straight line over 10 years |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Fixtures, fittings and equipment |
Straight line over 3-8 years |
Leasehold properties |
Straight line over the life of the lease |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Trademarks |
over 10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Revenue |
The analysis of the group's turnover for the year by class of business is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Royalties and store fees |
|
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
- |
|
Miscellaneous other operating income |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Government grants |
The amount of grants recognised in the financial statements was £Nil (2022 - £
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Other interest receivable and similar income |
2023 |
2022 |
|
Other finance income |
- |
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
|
|
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Director's remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
44,562 |
33,806 |
Other fees to auditors |
||
Auditor's remuneration - Other services |
|
|
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax increase from effect of unrelieved loss on foreign subsidiaries |
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Intangible assets |
Group
Goodwill |
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
|||
At 1 April 2022 |
|
|
|
Additions acquired separately |
|
|
|
At 31 March 2023 |
|
|
|
Amortisation |
|||
At 1 April 2022 |
|
|
|
Amortisation charge |
|
|
|
Foreign exchange movements |
( |
- |
( |
At 31 March 2023 |
|
|
|
Carrying amount |
|||
At 31 March 2023 |
|
|
|
At 31 March 2022 |
|
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £- (2022 - £-).
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Tangible assets |
Group
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Properties under construction |
Total |
|
Cost or valuation |
|||||
At 1 April 2022 |
|
|
|
- |
|
Additions |
|
|
|
|
|
Disposals |
( |
( |
( |
- |
( |
Foreign exchange movements |
|
|
- |
- |
|
At 31 March 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2022 |
|
|
|
- |
|
Charge for the year |
|
|
|
- |
|
Eliminated on disposal |
( |
( |
( |
- |
( |
Foreign exchange movements |
|
|
|
- |
|
At 31 March 2023 |
|
|
|
- |
|
Carrying amount |
|||||
At 31 March 2023 |
|
|
|
|
|
At 31 March 2022 |
|
|
|
- |
|
Included within the net book value of land and buildings above is £299,981 (2022 - £323,362) in respect of short leasehold land and buildings.
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
Subsidiary undertakings |
||||
|
22 Woodstock Street
|
Ordinary |
|
|
England |
||||
|
22 Woodstock Street
|
Ordinary |
|
|
England |
||||
|
22 Woodstock Street
|
Ordinary |
|
|
England |
||||
|
Ordinary |
|
|
|
Korea |
||||
|
Ordinary |
|
|
|
Japan |
||||
|
Ordinary shares |
|
|
|
Singapore |
||||
|
Ordinary shares |
|
|
|
USA |
||||
|
Ordinary shares |
|
|
|
Thailand |
Other holdings (at cost) |
||||
|
Ordinary |
|
|
|
USA |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
* indicates direct investment of the company
Subsidiary undertakings
Hautecaters Limited The principal activity of Hautecaters Limited is |
HCL Global Supply Limited The principal activity of HCL Global Supply Limited is |
Frampton Worldwide Limited The principal activity of Frampton Worldwide Limited is |
Ben's Cookies Korea Company Limited The principal activity of Ben's Cookies Korea Company Limited is |
Ben's Cookies Japan Company Limited The principal activity of Ben's Cookies Japan Company Limited is |
Ben's Cookies PTE Limited The principal activity of Ben's Cookies PTE Limited is |
Ben's Cookies (NY) Inc The principal activity of Ben's Cookies (NY) Inc is |
Ben's Cookies (Thailand) Company Limited The principal activity of Ben's Cookies (Thailand) Company Limited is |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2022 |
|
Provision |
|
Carrying amount |
|
At 31 March 2023 |
|
At 31 March 2022 |
|
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
Subsidiary undertakings |
||||
|
22 Woodstock Street
|
Ordinary |
|
|
England |
||||
|
22 Woodstock Street
|
Ordinary |
|
|
England |
||||
|
22 Woodstock Street,
|
Ordinary |
|
|
England |
||||
|
Ordinary |
|
|
|
Korea |
||||
|
Ordinary |
|
|
|
Japan |
Subsidiary undertakings |
Hautecaters Limited The principal activity of Hautecaters Limited is |
HCL Global Supply Limited The principal activity of HCL Global Supply Limited is |
Frampton Worldwide Limited The principal activity of Frampton Worldwide Limited is |
Ben's Cookies Korea Company Limited The principal activity of Ben's Cookies Korea Company Limited is |
Bens Cookies Japan Company Limited The principal activity of Bens Cookies Japan Company Limited is |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
|
|
- |
- |
Debtors |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
- |
- |
|
Income tax liability |
221,085 |
312,000 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Provisions for liabilities |
Group
Employee benefits |
Deferred tax |
Total |
|
At 1 April 2022 |
|
|
|
Increase (decrease) in existing provisions |
|
( |
( |
At 31 March 2023 |
|
|
|
|
Employee benefit provisions relate to amounts due overseas for employees.
Deferred tax provisions relate to accelerated capital allowances. Amounts used in year relate to the net movement.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
200 |
|
200 |
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Hire purchase contracts |
|
|
- |
- |
Redeemable preference shares |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Hautecaters Holding Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Related party transactions |
Group
Summary of transactions with other related parties
Group
Transactions with the director |
2023 |
At 1 April 2022 |
Other payments made to company by director |
At 31 March 2023 |
C Moffatt |
|||
Loan provided to Hautecaters Limited |
|
(123,779) |
|
2022 |
At 1 April 2021 |
Other payments made to company by director |
At 31 March 2022 |
C Moffatt |
|||
Loan provided to Hautecaters Limited |
|
(131,182) |
|
Parent and ultimate parent undertaking |
The ultimate controlling party is