Registered number |
For the year ended |
Registered number: | |||||||
Balance Sheet | |||||||
as at |
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Notes | 2023 | 2022 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 3 | ||||||
Tangible assets | 4 | ||||||
Current assets | |||||||
Stocks | |||||||
Debtors | 5 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 6 | ( |
( |
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Net current assets | |||||||
Total assets less current liabilities | |||||||
Provisions for liabilities | 7 | ( |
( |
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Net assets | |||||||
Capital and reserves | |||||||
Called up share capital | |||||||
Profit and loss account | |||||||
Shareholders' funds | |||||||
Mr M Grimm-Foxen | |||||||
Director | |||||||
Approved by the board on |
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Notes to the Accounts | ||||||||
for the year ended |
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1 | Accounting policies | |||||||
Company information | ||||||||
Real Foods Limited is a private company limited by shares incorporated in Scotland. The registered office is 37 Broughton Street, Edinburgh, EH1 3JU. | ||||||||
Accounting convention | ||||||||
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
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Judgements and key sources of estimation uncertainty | ||||||||
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. | ||||||||
Going Concern | ||||||||
In the opinion of the Board the company has sufficient cash reserves to meet its day to day working capital requirements. Given the company's low gearing and strong market position, in the opinion of the Board, there are no material uncertainties that exist which cast significant doubt on the ability of the company to continue as a going concern. The Board therefore assess that the company will continue to trade for a period of at least 12 months from the date of approval of the financial statements and that it is appropriate to adopt the going concern basis for preparing the financial statements. | ||||||||
Turnover | ||||||||
Sale of goods | ||||||||
Turnover 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 turnover 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. |
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Government grants | ||||||||
Grants of a revenue nature are recognised within the profit or loss in the same period as the related expenditure. | ||||||||
Intangible fixed assets other than goodwill | ||||||||
Website development costs | 25% reducing balance | |||||||
Licences & design costs | 20% straight line | |||||||
Research | ||||||||
Expenditure on research is written off against profits in the year in which it is incurred. | ||||||||
Tangible fixed assets | ||||||||
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
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Tenant's alterations | 10% straight line | |||||||
Furniture, fittings and equipment | 10% reducing balance | |||||||
Computer equipment | 25% reducing balance | |||||||
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. | ||||||||
Impairment of fixed assets | ||||||||
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
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Stocks | ||||||||
Cash and cash equivalents | ||||||||
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. | ||||||||
Financial instruments | ||||||||
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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. |
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Basic financial assets | ||||||||
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. | ||||||||
Classification of financial liabilities | ||||||||
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 company after deducting all of its liabilities. | ||||||||
Basic financial liabilities | ||||||||
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
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Equity instruments | ||||||||
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. | ||||||||
Taxation | ||||||||
Current tax | ||||||||
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date. | ||||||||
Deferred tax | ||||||||
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
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Employee benefits | ||||||||
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
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Leases | ||||||||
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
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Foreign currency translation | ||||||||
2 | Employees | 2023 | 2022 | |||||
Number | Number | |||||||
Average monthly number of persons (including directors) employed by the company | ||||||||
3 | Intangible fixed assets | |||||||
Website development costs | Licences & design costs | Total | ||||||
£ | £ | £ | ||||||
Cost | ||||||||
At 1 August 2022 | 413,792 | 1,792 | ||||||
Additions | 19,706 | - | ||||||
At 31 July 2023 | 433,498 | 1,792 | ||||||
Amortisation | ||||||||
At 1 August 2022 | 296,565 | 1,792 | ||||||
Provided during the year | 33,504 | - | ||||||
At 31 July 2023 | 330,069 | 1,792 | ||||||
Net book value | ||||||||
At 31 July 2023 | 103,429 | - | ||||||
At 31 July 2022 | 117,227 | - | ||||||
4 | Tangible fixed assets | |||||||
Tenant's alterations | Furniture, fittings and equipment | Computer equipment | Total | |||||
£ | £ | £ | £ | |||||
Cost | ||||||||
At 1 August 2022 | ||||||||
Additions | - | |||||||
At 31 July 2023 | ||||||||
Depreciation | ||||||||
At 1 August 2022 | ||||||||
Charge for the year | ||||||||
At 31 July 2023 | ||||||||
Net book value | ||||||||
At 31 July 2023 | ||||||||
At 31 July 2022 | ||||||||
5 | Debtors | 2023 | 2022 | |||||
£ | £ | |||||||
Other debtors | ||||||||
6 | Creditors: amounts falling due within one year | 2023 | 2022 | |||||
£ | £ | |||||||
Trade creditors | ||||||||
Taxation and social security costs | ||||||||
Other creditors | ||||||||
7 | Provisions for liabilities | 2023 | 2022 | |||||
£ | £ | |||||||
Deferred tax liabilities | 34,218 | 40,249 | ||||||
34,218 | 40,249 | |||||||
8 | Operating lease commitments | 2023 | 2022 | |||||
Lessee | £ | £ | ||||||
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: | ||||||||
Total future minimum payments under non-cancellable operating leases | ||||||||
9 | Parent company | |||||||
The company is a subsidiary of The Whole Thing (Scotland) Limited. Its registered office is 3a Montgomery Street Lane, Edinburgh EH7 5JT. | ||||||||
10 | Controlling party | |||||||
11 | Other information | |||||||
Real Foods Limited is a private company limited by shares and incorporated in Scotland. Its registered office is: | ||||||||
37 Broughton Street | ||||||||
Edinburgh | ||||||||
EH1 3JU |