Caseware UK (AP4) 2023.0.135 2023.0.135 2022-12-312022-12-31truefalsefalsetrue2022-01-01Retail sale of beverages in specialised stores2017truefalse 11088507 2022-01-01 2022-12-31 11088507 2020-07-01 2021-12-31 11088507 2022-12-31 11088507 2021-12-31 11088507 2020-07-01 11088507 1 2022-01-01 2022-12-31 11088507 d:Director1 2022-01-01 2022-12-31 11088507 d:Director2 2022-01-01 2022-12-31 11088507 d:RegisteredOffice 2022-01-01 2022-12-31 11088507 c:PlantMachinery 2022-01-01 2022-12-31 11088507 c:PlantMachinery 2022-12-31 11088507 c:PlantMachinery 2021-12-31 11088507 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11088507 c:FurnitureFittings 2022-01-01 2022-12-31 11088507 c:FurnitureFittings 2022-12-31 11088507 c:FurnitureFittings 2021-12-31 11088507 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11088507 c:ComputerEquipment 2022-01-01 2022-12-31 11088507 c:ComputerEquipment 2022-12-31 11088507 c:ComputerEquipment 2021-12-31 11088507 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11088507 c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11088507 c:CurrentFinancialInstruments 2022-12-31 11088507 c:CurrentFinancialInstruments 2021-12-31 11088507 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 11088507 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 11088507 c:ShareCapital 2022-12-31 11088507 c:ShareCapital 2021-12-31 11088507 c:ShareCapital 2020-07-01 11088507 c:SharePremium 2022-12-31 11088507 c:SharePremium 2021-12-31 11088507 c:SharePremium 2020-07-01 11088507 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11088507 c:RetainedEarningsAccumulatedLosses 2022-12-31 11088507 c:RetainedEarningsAccumulatedLosses 2020-07-01 2021-12-31 11088507 c:RetainedEarningsAccumulatedLosses 2021-12-31 11088507 c:RetainedEarningsAccumulatedLosses 2020-07-01 11088507 d:OrdinaryShareClass1 2022-01-01 2022-12-31 11088507 d:OrdinaryShareClass1 2022-12-31 11088507 d:OrdinaryShareClass1 2021-12-31 11088507 d:FRS102 2022-01-01 2022-12-31 11088507 d:Audited 2022-01-01 2022-12-31 11088507 d:FullAccounts 2022-01-01 2022-12-31 11088507 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 11088507 2 2022-01-01 2022-12-31 11088507 e:PoundSterling 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 11088507












REMEDY DRINKS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

 

REMEDY DRINKS UK LIMITED

CONTENTS



Page
Company information
 
1
Directors' report
 
2
Directors' responsibilities statement
 
3
Independent auditor's report
 
4 - 8
Profit and loss account
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 19

 

REMEDY DRINKS UK LIMITED
 
COMPANY INFORMATION


Directors
G W Cobbledick 
E J Condon 




Registered number
11088507



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

REMEDY DRINKS UK LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors

The directors who served during the year were:

G W Cobbledick 
E J Condon 

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





G W Cobbledick
Director

Date: 22 April 2024
Page 2

 

REMEDY DRINKS UK LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors are responsible for preparing 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 

REMEDY DRINKS UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REMEDY DRINKS UK LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2022

Qualified Opinion


We have audited the financial statements of Remedy Drinks UK Limited (the 'company') for the year ended 31 December 2022, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its 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 qualified opinion


We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical inventories as at the end of the year or preceding year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2022 and 2021, which are included in the balance sheet at £1,604,401 and £2,155,576 respectively, by using other audit procedures.
In undertaking our work on completeness of revenue, we were not provided with proof of delivery documentation on certain items to corroborate revenue recorded in the financial statements. On 10.4% of the total sample tested a proof of delivery could not be obtained. Accordingly, we had a limitation in scope in testing revenue of £11,444,510.
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 United Kingdom, including the Financial Reporting Council'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.


Material uncertainty related to going concern


We draw attention to note 2.2 in the financial statements, which indicates that the Group (see note 12), of which Remedy Drinks UK Limited is part of, has a requirement for additional funding within the next twelve months in order to continue to trade. As stated in note 2.2, these events or conditions, along with other matters as set forth in note 2.2 indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue to trade as a going concern. Our opinion is not modified in respect of this matter.


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


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 

REMEDY DRINKS UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REMEDY DRINKS UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

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 contained within the annual reportOur 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

Except for the matter described in the Basis for qualified opinion section of our report, 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 directors' report.


Arising solely from the matter described in the Basis for qualified opinion section of our report:
 
we have not obtained all the information and explanations that we considered necessary for the pruposes of our audit; and
we were unable to determine whether adequate accounting records have been kept.
 
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:


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 and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a group strategic report.


Page 5

 

REMEDY DRINKS UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REMEDY DRINKS UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, 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.


Page 6

 

REMEDY DRINKS UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REMEDY DRINKS UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the computer component manufacturing and supply sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs.


 


Page 7

 

REMEDY DRINKS UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REMEDY DRINKS UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: 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 2006Our 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.

Comparatives


The comparative figures are unaudited.




Andrew Sanford (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
22 April 2024
Page 8

 

REMEDY DRINKS UK LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022

Year ended 31 December
Period ended
31 December
2022
2021
£
£

  

Turnover
  
11,444,510
5,768,235

Cost of sales
  
(9,046,231)
(3,077,515)

Gross profit
  
2,398,279
2,690,720

Distribution costs
  
(1,357,655)
(2,158,153)

Administrative expenses
  
(2,416,430)
(2,038,807)

Other operating income
  
-
18,787

Operating loss
  
(1,375,806)
(1,487,453)

Interest receivable and similar income
  
-
2,126

Interest payable and similar expenses
  
-
(4,848)

Loss before taxation
  
(1,375,806)
(1,490,175)

Tax on loss
  
-
-

Loss for the financial year
  
(1,375,806)
(1,490,175)

There are no items of other comprehensive income for either the year or the prior year other than the loss for the year.Accordingly, no statement of other comprehensive income has been presented.

Page 9


 
REGISTERED NUMBER:11088507
REMEDY DRINKS UK LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 4 
124,066
75,206

  
124,066
75,206

Current assets
  

Stocks
  
1,604,401
2,155,576

Debtors: amounts falling due within one year
 5 
1,270,596
780,141

Cash at bank and in hand
  
601,962
104,812

  
3,476,959
3,040,529

Creditors: amounts falling due within one year
 6 
(5,979,464)
(4,118,368)

Net current liabilities
  
 
 
(2,502,505)
 
 
(1,077,839)

Total assets less current liabilities
  
(2,378,439)
(1,002,633)

  

Net liabilities
  
(2,378,439)
(1,002,633)


Capital and reserves
  

Called up share capital 
 7 
22,907
22,907

Share premium account
  
5,164,831
5,164,831

Profit and loss account
  
(7,566,177)
(6,190,371)

Total equity
  
(2,378,439)
(1,002,633)



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 were approved and authorised for issue by the board and were signed on its behalf by:




G W Cobbledick
Director

Date: 22 April 2024

The notes on pages 12 to 19 form part of these financial statements.
Page 10

 

REMEDY DRINKS UK LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
22,907
5,164,831
(4,700,196)
487,542


Comprehensive income for the period

Loss for the period
-
-
(1,490,175)
(1,490,175)



At 1 January 2022
22,907
5,164,831
(6,190,371)
(1,002,633)


Comprehensive income for the year

Loss for the year
-
-
(1,375,806)
(1,375,806)


At 31 December 2022
22,907
5,164,831
(7,566,177)
(2,378,439)


Page 11

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Remedy Drinks UK Limited is a private company limited by shares incorporated in England and Wales. Its registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH.
The financial statements of the company for the period ended 31 December 2021, which form the comparative figures in the financial statements, cover the period from 1 July 2020 to 31 December 2021. Therefore the comparative amounts presented are not directly comparable.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis notwithstanding the fact that the company has a deficiency on total equity at the end of the year. The directors consider that this basis to be appropriate as the company has received a letter of financial support from Remedy Drinks International Limited.
In determining the ability of the company to continue to act as a going concern, the directors have made enquiries as to the financial position and performance of the Group. The Group has incurred significant losses since its inception and has a significant accumulated deficiency on its profit and loss account reserves. The Group has historically been dependent on raising equity and debt financing and has a sustained history of being able to do so, including recent debt and equity financing as noted in note 11 and further equity raises since the year end in the parent company. The Group will likely need to raise additional capital / financing in order to continue to trade and expand. It is forecasted that this will be required within the next twelve months from the date of signing these accounts. The directors have based this on continued growth, improving profitability and a track record of doing so. However, no assurance can be given that the parent company will be successful in its efforts.
The directors are of the opinion that the matters described above are material uncertainties related to events or conditions that may cast significant doubt upon the company’s ability to continue to adopt the going concern basis of accounting.
However, the directors have a reasonable expectation of the ability of the Group to procure additional financing in the next twelve months and have continued to adopt the going concern basis in preparing these accounts.

Page 12

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

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.

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

 
2.5

Operating leases: the company as lessee

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.

Page 13

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.
Job Retention Scheme claims relating to salary costs are credited to the profit and loss account as other operating income in the same period as the related salary costs. The accrued element of furlough claims is included in debtors as accrued income.

 
2.7

Interest income

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

 
2.8

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.

 
2.9

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.

 
2.10

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, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Fixtures and fittings
-
20%
Computer equipment
-
33%

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.

Page 14

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.

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. Stock is profiled and the provison is based on the expiry date. Stock that expires within 30 days are fully provided for while stock expiring within 60 days, 50% of the stock value is provided for. 

 
2.12

Cash

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

  
2.13

Share capital

Ordinary shares are classified as equity.


2.14

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

Financial liabilities are classified according to the substance of the contractual arrangements entered into.
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors, and loans from fellow group companies, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Page 15

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)



Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Employees

The average monthly number of employees, including directors, during the year was 20 (2021 - 17).

Page 16

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2022
35,070
2,789
81,911
119,770


Additions
78,168
-
2,243
80,411



At 31 December 2022

113,238
2,789
84,154
200,181



Depreciation


At 1 January 2022
8,958
1,952
33,654
44,564


Charge for the year on owned assets
9,635
558
21,358
31,551



At 31 December 2022

18,593
2,510
55,012
76,115



Net book value



At 31 December 2022
94,645
279
29,142
124,066



At 31 December 2021
26,112
837
48,257
75,206


5.


Debtors

2022
2021
£
£


Trade debtors
1,071,060
593,210

Amounts owed by group undertakings
-
107,279

Other debtors
179,745
28,314

Prepayments and accrued income
19,791
51,338

1,270,596
780,141


Page 17

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
801,407
891,002

Amounts owed to group undertakings
4,388,519
2,430,729

Other taxation and social security
205,207
148,069

Other creditors
11,856
9,842

Accruals and deferred income
572,475
638,726

5,979,464
4,118,368




7.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



2,290,700 (2021 - 2,290,700) Ordinary shares of £0.01 each
22,907
22,907

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the Company.



8.


Contingent liability

A credit line was granted on 25 January 2022 to Remedy Drinks International Limited, the company's parent undertaking. The parent and its subsidiaries, including the company, entered into a revolving loan facility as joint parties to the facility. The facility amount of USD 5 million is fully drawn, at year end, and is available for 1.5 years from the date of granting. The facility attracts interest payable annually at a floating rate equal to the Sterling Base Rate plus 5.65% per annum, subject always to an aggregate all-in minimum rate of 5.75% per annum. Under the facility the borrowers shall procure specific financial covenants. 


9.


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. The pension cost charge of £34,122 (2021: £39,312) represents contributions payable by the Company.


10.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.

Page 18

 

REMEDY DRINKS UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Post balance sheet events

In November 2023, Remedy Drinks International Limited, the company's parent undertaking and its fellow subsidiaries, including the company, entered into a revolving loan facility as joint parties to the facility. The facility is available for a maximum of USD 10 million and is available for 3 years from the date of granting, being the 16 November 2023. The facility attracts interest payable monthly at a rate of the greater of the SOFR Index rate or 2.5% plus a range of between 7% and 8% based on the pricing grid tied to financial performance plus the sum of 0.5% of the unused amount of the facility and a collateral management fee of USD 3,000. It is secured by fixed charges over all assets of the borrowers collectively excluding investment property and intellectual property which are charged as a floating charge. Under the facility the borrowers shall procure specific financial covenants. This replaces the facility referenced in note 8.


12.


Parent undertaking

The company's immediate and ultimate parent undertaking is Remedy Drinks International Limited. Consolidated accounts can be obtained from the registered office of Remedy Drinks International Limited -   16 Great Queen Street, Covent Garden, London, United Kingdom, WC2B 5AH.
 
Page 19