REGISTERED NUMBER: 09360931 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
for |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
REGISTERED NUMBER: 09360931 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
for |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
Page |
Company information | 1 |
Group strategic report | 2 | to | 3 |
Report of the directors | 4 | to | 5 |
Report of the independent auditors | 6 | to | 9 |
Consolidated income statement | 10 |
Consolidated other comprehensive income | 11 |
Consolidated statement of financial position | 12 |
Company statement of financial position | 13 |
Consolidated statement of changes in equity | 14 |
Company statement of changes in equity | 15 |
Consolidated statement of cash flows | 16 |
Notes to the consolidated statement of cash flows | 17 | to | 18 |
Notes to the consolidated financial statements | 19 | to | 37 |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
Company Information |
for the Year Ended 31 July 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Bank House |
Broad Street |
Spalding |
Lincolnshire |
PE11 1TB |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
We aim to present a balanced and comprehensive report of the development and performance of our business during the year and its position at the year end. Our report is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
Review of business |
The group's activities continue to involve the importation and sale of fresh fruit, vegetables and salad. |
In early 2023 there was an unprecedented cold snap in Spain ,one of the main importation regions for the group. This caused a short term gap in the supply of product and overall a shortage of product for the remainder of the season, There was a loss of crops and yields lowered on the remaining crop for the rest of the season. |
During the shortage many will remember the rationing of things like peppers and tomatoes in the major supermarkets. All of our products were similarly effected, this meant that the product that was available was slower and the growers did not stick to the supply contracts that were in place, and moved to spot market prices. At the same time we were held to our supply contracts by our customers meaning that the short term gross losses were being made on products, and longer term the prices were held high to the end of the season. Some customers did support where they could on some products for which we were grateful. |
During the same period we continued to look to diversify into regions which products were sourced, to ensure we are not over reliant on one territory. We have seen historically where regions can become over farmed and so always look for the next emerging markets to continue to meet supply at the right quality and price. We invested in growing a crop of Tomatoes in Morocco as part of this drive, whilst the early season crop looked promising the crop was affected by a virus which affected the whole crop. This crop was lost and no return was seen on the investment in growing that crop, the whole amount had to be written off within the year. The operation in Morocco has since ceased. |
Whilst the year had these two major events causing a large deficit in the trading figures, the underlying performance of the group remains strong and off the back of the support we gave our customers more volume and contracts have been won as we stood by the contracts we had in place. |
Principal risks and uncertainties |
As for many businesses of our size, the economic climate in which we operate will have an impact on the group's operations for the forthcoming period. |
Raw material prices are dictated by the growing season which affects availability of product, where possible the group fixes the required tonnages at a fixed price back to back with a fixed sales price from our customers to protect margin throughout the year. |
Where raw material for contracts are purchased in Euros, the group fix the exchange rate at the point of signing the contract to protect against any adverse movements in exchange rates. |
Two key issues have affected the group in 2023: |
Brexit posed many unmeasurable risks to the business, however we are confident that the strategies we have in place are allowing us to comfortably deal with every issue that has arisen. |
The Coronavirus Pandemic hit the UK in March 2020 and led to the shutdown of the majority of the UK economy, with numerous countrywide lockdowns throughout the year and since the year end. Due to the line of our business being food, demand for our products has remained unchanged. We have put in place various new procedures to protect our staff and ensure the storage and distribution of our products remain at the high standards that we expect. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
Development and performance |
We continue to look to diversify in the market by bringing variations of existing products to the market and also developing new product lines that sit alongside and complement our current range. |
The directors are confident that the business is well placed to continue taking advantage of opportunities as they arise and planning for longer term product innovation. |
Financial key performance indicators |
The group uses a number of financial measures to monitor progress against its aims and objectives. These include turnover, gross profit and net profit. |
On behalf of the board: |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Report of the Directors |
for the Year Ended 31 July 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023. |
Principal activity |
The principal activity of the group in the year under review was that of the importation and sale of fresh fruit and vegetables. |
Dividends |
Particulars of recommended dividends are detailed in note 8 to the financial statements. |
Directors |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the 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 group's auditors are aware of that information. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Report of the Directors |
for the Year Ended 31 July 2023 |
Auditors |
The auditors, Moore Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
Opinion |
We have audited the financial statements of Fountain Fresh Imports Ltd and it's subsidiaries (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated income statement, Consolidated other comprehensive income, Consolidated statement of financial position, Company statement of financial position, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated statement of cash flows and Notes to the consolidated statement of cash flows, 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's and of the parent company affairs as at 31 July 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 group's and the parent 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. |
Emphasis of matter |
We draw your attention to note 3 in the financial statements in relation to going concern. During the year the client suffered unforeseen circumstances which resulted in a significant down turn in results. Further information on this matter can be found in the note 3 under going concern. Since the year end the company's results have improved. Our opinion is not modified in respect of this matter. |
Report of the Independent Auditors to the Members of |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors 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. |
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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Report of the directors. |
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. |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
Auditors' 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 a Report of the auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the responsible individual 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 Group through discussions with directors and other management, and from our commercial knowledge and experience of the client Group's 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 Group. |
- 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 Group'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; |
- 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 transactions; |
- tested journal entries to identify unusual transactions; |
- 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; |
- reviewing correspondence with HMRC and the Group's legal advisors. |
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. |
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 Report of the auditors. |
Report of the Independent Auditors to the Members of |
Fountain Fresh Imports Ltd and it's |
subsidiaries |
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 a Report of the auditors 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 |
Bank House |
Broad Street |
Spalding |
Lincolnshire |
PE11 1TB |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Consolidated Income Statement |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 55,578,101 | 39,289,666 |
Cost of sales | 52,582,045 | 37,329,531 |
Gross profit | 2,996,056 | 1,960,135 |
Administrative expenses | 4,294,383 | 1,906,858 |
(1,298,327 | ) | 53,277 |
Other operating income | 7,338 | 27,306 |
Operating (loss)/profit | 5 | (1,290,989 | ) | 80,583 |
Interest receivable and similar income | 1,557 | 1,442 |
(1,289,432 | ) | 82,025 |
Gain/loss on revaluation of assets | 140,791 | - |
(1,148,641 | ) | 82,025 |
Interest payable and similar expenses | 7 | 374,706 | 131,143 |
Loss before taxation | (1,523,347 | ) | (49,118 | ) |
Tax on loss | 8 | (593,713 | ) | (188,175 | ) |
(Loss)/profit for the financial year | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (976,945 | ) | 129,682 |
Non-controlling interests | 47,311 | 9,375 |
(929,634 | ) | 139,057 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
(Loss)/profit for the year | (929,634 | ) | 139,057 |
Other comprehensive income |
Foreign currency translation | (307 | ) | (4,666 | ) |
Income tax relating to other comprehensive income |
- |
- |
Other comprehensive income for the year, net of income tax |
(307 |
) |
(4,666 |
) |
Total comprehensive income for the year |
(929,941 |
) |
134,391 |
Total comprehensive income attributable to: |
Owners of the parent | (977,253 | ) | 125,017 |
Non-controlling interests | 47,312 | 9,374 |
(929,941 | ) | 134,391 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Consolidated Statement of Financial Position |
31 July 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 | 141,220 | 220,440 |
Tangible assets | 12 | 4,797,461 | 4,318,312 |
Investments | 13 | 4,618 | 4,618 |
4,943,299 | 4,543,370 |
Current assets |
Stocks | 14 | 731,668 | 411,830 |
Debtors | 15 | 6,335,947 | 5,078,222 |
Investments | 16 | 861 | 861 |
Cash at bank and in hand | 292,423 | 597,141 |
7,360,899 | 6,088,054 |
Creditors |
Amounts falling due within one year | 17 | 9,525,785 | 6,790,293 |
Net current liabilities | (2,164,886 | ) | (702,239 | ) |
Total assets less current liabilities | 2,778,413 | 3,841,131 |
Creditors |
Amounts falling due after more than one year |
18 |
(2,584,182 |
) |
(2,476,406 |
) |
Provisions for liabilities | 23 | - | (190,554 | ) |
Net assets | 194,231 | 1,174,171 |
Capital and reserves |
Called up share capital | 24 | 100 | 100 |
Capital redemption reserve | 25 | 13,408 | 13,408 |
Other reserves | 25 | 1,998 | 1,998 |
Fair value reserve | 25 | 259,493 | 153,900 |
Retained earnings | 25 | (135,838 | ) | 997,007 |
Shareholders' funds | 139,161 | 1,166,413 |
Non-controlling interests | 55,070 | 7,758 |
Total equity | 194,231 | 1,174,171 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by: |
J Lawrence - Director |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Company Statement of Financial Position |
31 July 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Current assets |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 17 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
Provisions for liabilities | 23 | ( |
) |
Net (liabilities)/assets | ( |
) |
Capital and reserves |
Called up share capital | 24 | 100 | 100 |
Fair value reserve | 25 | 259,493 | 153,900 |
Retained earnings | 25 | (593,299 | ) | 1,023,798 |
Shareholders' funds | ( |
) |
Company's (loss)/profit for the financial year |
(1,461,504 |
) |
118,556 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up | Capital |
share | Retained | redemption | Other |
capital | earnings | reserve | reserves |
£ | £ | £ | £ |
Balance at 1 August 2021 | 100 | 1,205,242 | - | - |
Changes in equity |
Acquisition during the year | - | (33,251 | ) | 13,408 | 1,998 |
Dividends | - | (300,000 | ) | - | - |
Total comprehensive income | - | 125,016 | - | - |
100 | 997,007 | 13,408 | 1,998 |
Acquisition of non-controlling interest |
- |
- |
- |
- |
Balance at 31 July 2022 | 100 | 997,007 | 13,408 | 1,998 |
Changes in equity |
Dividends | - | (50,000 | ) | - | - |
Total comprehensive income | - | (977,252 | ) | - | - |
Revaluation of investment |
property | - | (105,593 | ) | - | - |
Balance at 31 July 2023 | 100 | (135,838 | ) | 13,408 | 1,998 |
Fair |
value | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 | 153,900 | 1,359,242 | - | 1,359,242 |
Changes in equity |
Acquisition during the year | - | (17,845 | ) | - | (17,845 | ) |
Dividends | - | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | - | 125,016 | 9,374 | 134,390 |
153,900 | 1,166,413 | 9,374 | 1,175,787 |
Acquisition of non-controlling interest |
- |
- |
(1,616 |
) |
(1,616 |
) |
Balance at 31 July 2022 | 153,900 | 1,166,413 | 7,758 | 1,174,171 |
Changes in equity |
Dividends | - | (50,000 | ) | - | (50,000 | ) |
Total comprehensive income | - | (977,252 | ) | 47,312 | (929,940 | ) |
Revaluation of investment |
property | 105,593 | - | - | - |
Balance at 31 July 2023 | 259,493 | 139,161 | 55,070 | 194,231 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 | 100 | 1,205,242 | 153,900 | 1,359,242 |
Changes in equity |
Dividends | - | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | - | 118,556 | - | 118,556 |
Balance at 31 July 2022 | 100 | 1,023,798 | 153,900 | 1,177,798 |
Changes in equity |
Dividends | - | (50,000 | ) | - | (50,000 | ) |
Total comprehensive income | - | (1,461,504 | ) | - | (1,461,504 | ) |
Revaluation of investment |
property | - | (105,593 | ) | 105,593 | - |
Balance at 31 July 2023 | 100 | (593,299 | ) | 259,493 | (333,706 | ) |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (629,136 | ) | 456,736 |
Interest paid | (280,793 | ) | (45,020 | ) |
Interest element of hire purchase payments paid |
(93,913 |
) |
(86,123 |
) |
Tax paid | (34,732 | ) | (17,682 | ) |
Net cash from operating activities | (1,038,574 | ) | 307,911 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (37,400 | ) | (329,419 | ) |
Purchase of tangible fixed assets | (1,148,452 | ) | (2,194,952 | ) |
Purchase of fixed asset investments | - | (4,618 | ) |
Sale of tangible fixed assets | 257,929 | 91,566 |
Sale of fixed asset investments | - | (57 | ) |
Interest received | 1,557 | 1,442 |
Net cash from investing activities | (926,366 | ) | (2,436,038 | ) |
Cash flows from financing activities |
New loans in year | 1,528,692 | 1,787,946 |
Capital repayments in year | 98,370 | 558,769 |
Amount introduced by directors | 76,550 | - |
Amount withdrawn by directors | - | (25,819 | ) |
Grant income | 6,610 | 8,905 |
Equity dividends paid | (50,000 | ) | (300,000 | ) |
Net cash from financing activities | 1,660,222 | 2,029,801 |
Decrease in cash and cash equivalents | (304,718 | ) | (98,326 | ) |
Cash and cash equivalents at beginning of year |
2 |
597,141 |
695,467 |
Cash and cash equivalents at end of year |
2 |
292,423 |
597,141 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 July 2023 |
1. | Reconciliation of loss before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Loss before taxation | (1,523,347 | ) | (49,118 | ) |
Depreciation charges | 738,241 | 717,038 |
Profit on disposal of fixed assets | (69,456 | ) | (8,615 | ) |
Gain on revaluation of fixed assets | (140,791 | ) | - |
(Gain)/loss on foreign exchange | (306 | ) | (4,666 | ) |
Government grants | (6,610 | ) | (8,905 | ) |
Finance costs | 374,706 | 131,143 |
Finance income | (1,557 | ) | (1,442 | ) |
(629,120 | ) | 775,435 |
Increase in stocks | (319,838 | ) | (253,013 | ) |
Increase in trade and other debtors | (877,331 | ) | (2,934,747 | ) |
Increase in trade and other creditors | 1,197,153 | 2,869,061 |
Cash generated from operations | (629,136 | ) | 456,736 |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts: |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 292,423 | 597,141 |
Year ended 31 July 2022 |
31.7.22 | 1.8.21 |
£ | £ |
Cash and cash equivalents | 597,141 | 695,467 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 July 2023 |
3. | Analysis of changes in net debt |
At 1.8.22 | Cash flow | At 31.7.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 597,141 | (304,718 | ) | 292,423 |
597,141 | (304,718 | ) | 292,423 |
Liquid resources |
Current asset investments | 861 | - | 861 |
861 | - | 861 |
Debt |
Finance leases | (1,410,844 | ) | (98,370 | ) | (1,509,214 | ) |
Debts falling due within 1 year | (1,461,888 | ) | (1,465,225 | ) | (2,927,113 | ) |
Debts falling due after 1 year | (1,444,044 | ) | (63,467 | ) | (1,507,511 | ) |
(4,316,776 | ) | (1,627,062 | ) | (5,943,838 | ) |
Total | (3,718,774 | ) | (1,931,780 | ) | (5,650,554 | ) |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
1. | Statutory information |
Fountain Fresh Imports Ltd and it's subsidiaries is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. |
Going concern |
During the year the group suffered from an unforeseen deterioration in the Spanish weather resulting in very poor crops being produced. This resulted in the group suffering from large losses fulfilling the contracts which they were committed to. The group also suffered from investing overseas to production of a tomato crop which failed and also resulted in large losses. These events resulted in a poor year for the year ended 31 July 2023. Since this year end the groups performance has improved. The directors are committed to supporting the group and ensuring it succeeds in the future. |
Basis of consolidation |
The Group financial statements consolidate the financial statements of the Company and it's subsidiary undertakings drawn up to 31st July each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. |
Business combinations are accounted for under the purchase method. Where necessary , adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions , balances, income and expenses are eliminated on consolidation. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | Accounting policies - continued |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Invoice financing |
Certain trade debtors are subject to a invoice financing agreement whereby an advance of funds is received and secured upon them. |
Where the company has retained significant benefits and risks relating to these debts, separate presentation is adopted whereby the gross trade debts and a corresponding liability in respect of the advance received are shown in the balance sheet. The interest element of the factors charges are charged to the profit and loss over the term to which they relate. |
Goodwill |
Goodwill is recognised as the amount paid in connection with the acquisition of two companies in 2022. The assets are being amortised evenly over their estimated useful life of 3 years |
Intangible assets |
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at valued amounts, are recorded at the fair value at the date of revaluation as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. |
Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date. |
Amortisation |
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
Market business | - 20% straight line |
Computer software | - 25% straight line |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | Accounting policies - continued |
Tangible fixed assets |
Freehold property | - |
Leasehold property improvements | - |
Plant & equipment | - |
Office equipment | - |
Motor vehicles | - |
Office equipment | - |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Stocks |
Stock are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the stock to its present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | Accounting policies - continued |
Foreign currencies |
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rage ruling at the reporting date, with any gains or losses being taken to the profit and loss account. |
Foreign currency translation |
Functional and presentation currency |
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in ‘sterling’, which is the company’s functional and the group’s presentation currency. |
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date, including any goodwill in relation to that entity. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
Transactions and balances |
Foreign currency transactions are translated into the group entity’s functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. |
Hire purchase and leasing commitments |
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using he effective interest method. Finance charges are allocate to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial liabilities and equity instruments are classified according to the substances of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then it is classed as an equity instrument. Dividends and distributions relating equity instruments are debited directly to equity. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | Accounting policies - continued |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment test, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets. |
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whichever other assets or liabilities of the company are assigned to those units. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Government grants |
Government grants in respect of capital expenditure are credited to a deferred income account and are released to the Profit and Loss Account by equal annual instalments over the expected useful lives of the relevant assets. |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,276,123 | 2,395,449 |
Social security costs | 374,876 | 273,899 |
Other pension costs | 56,017 | 39,702 |
3,707,016 | 2,709,050 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production staff | 81 | 70 |
Administrative staff | 24 | 17 |
Number of directors | 4 | 4 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
4. | Employees and directors - continued |
The average number of employees by undertakings that were proportionately consolidated during the year was 30 (2022 - 34 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 149,661 | 62,760 |
Directors' pension contributions to money purchase schemes | 1,690 | 996 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | Operating (loss)/profit |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 273,773 | 76,777 |
Depreciation - owned assets | 621,621 | 601,810 |
Profit on disposal of fixed assets | (69,456 | ) | (8,615 | ) |
Goodwill amortisation | 116,666 | 120,389 |
Market intangible assets amortisation | 1,600 | 1,450 |
Computer software amortisation | 9,426 | 39 |
Goodwill on subsidiary amortisation | (6,649 | ) | (6,649 | ) |
Auditors' remuneration | 23,690 | 15,500 |
Foreign exchange differences | (822,668 | ) | (773,792 | ) |
6. | Exceptional items |
2023 | 2022 |
£ | £ |
Exceptional items | (1,068,479 | ) | - |
The exceptional item relates to an investment in growing tomatoes overseas. Significant investment |
was made during the year however the crop produced was very poor and resulted in large losses being |
incurred. |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank loan interest | 280,793 | 45,020 |
Interest on hire purchase | 93,913 | 86,123 |
374,706 | 131,143 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
8. | Taxation |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 16,175 | 2,562 |
Over provision of corporation |
tax | (276,466 | ) | (176,702 | ) |
Total current tax | (260,291 | ) | (174,140 | ) |
Deferred tax | (333,422 | ) | (14,035 | ) |
Tax on loss | (593,713 | ) | (188,175 | ) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (1,523,347 | ) | (49,118 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
(380,837 |
) |
(9,332 |
) |
Effects of: |
Expenses not deductible for tax purposes | (30,331 | ) | 18,143 |
Capital allowances in excess of depreciation | (5,307 | ) | (158,291 | ) |
Utilisation of tax losses | 434,312 | 151,696 |
Adjustments to tax charge in respect of previous periods | - | (176,702 | ) |
Chargeable gain | - | 2,166 |
Movement in deferred tax increase/(decrease) | (333,422 | ) | (14,035 | ) |
Spanish tax and group transactions | (1,662 | ) | (1,820 | ) |
Over provision in prior year | (276,466 | ) | - |
Total tax credit | (593,713 | ) | (188,175 | ) |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Foreign currency translation | (307 | ) | - | (307 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Foreign currency translation | (4,666 | ) | - | (4,666 | ) |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
9. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Statement of comprehensive income of the parent company is not presented as part of these financial statements. |
10. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares shares of £1 each |
Interim | 50,000 | 300,000 |
11. | Intangible fixed assets |
Group |
Market | Goodwill |
intangible | Computer | on |
Goodwill | assets | software | subsidiary | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 August 2022 | 347,897 | 33,284 | 1,469 | (19,947 | ) | 362,703 |
Additions | - | - | 37,400 | - | 37,400 |
At 31 July 2023 | 347,897 | 33,284 | 38,869 | (19,947 | ) | 400,103 |
Amortisation |
At 1 August 2022 | 120,389 | 28,484 | 39 | (6,649 | ) | 142,263 |
Amortisation for year | 116,666 | 1,600 | 9,426 | (6,649 | ) | 121,043 |
Charge written back | (4,423 | ) | - | - | - | (4,423 | ) |
At 31 July 2023 | 232,632 | 30,084 | 9,465 | (13,298 | ) | 258,883 |
Net book value |
At 31 July 2023 | 115,265 | 3,200 | 29,404 | (6,649 | ) | 141,220 |
At 31 July 2022 | 227,508 | 4,800 | 1,430 | (13,298 | ) | 220,440 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
11. | Intangible fixed assets - continued |
Company |
Market |
intangible | Computer |
Goodwill | assets | software | Totals |
£ | £ | £ | £ |
Cost |
At 1 August 2022 |
Additions |
Reclassification/transfer | ( |
) | ( |
) |
At 31 July 2023 |
Amortisation |
At 1 August 2022 |
Amortisation for year |
Charge written back | (4,423 | ) | - | - | (4,423 | ) |
At 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
12. | Tangible fixed assets |
Group |
Leasehold |
Freehold | property | Plant & |
property | improvements | equipment |
£ | £ | £ |
Cost or valuation |
At 1 August 2022 | 1,329,249 | 2,302,532 | 398,124 |
Additions | 216,667 | 161,616 | 164,300 |
Disposals | - | - | - |
Revaluations | 140,791 | - | - |
Reclassification/transfer | 1,149,959 | (1,149,959 | ) | - |
At 31 July 2023 | 2,836,666 | 1,314,189 | 562,424 |
Depreciation |
At 1 August 2022 | - | 554,478 | 159,616 |
Charge for year | - | 189,928 | 76,718 |
Eliminated on disposal | - | - | - |
At 31 July 2023 | - | 744,406 | 236,334 |
Net book value |
At 31 July 2023 | 2,836,666 | 569,783 | 326,090 |
At 31 July 2022 | 1,329,249 | 1,748,054 | 238,508 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | Tangible fixed assets - continued |
Group |
Office | Motor | Office |
equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 August 2022 | 41,813 | 1,752,081 | 52,946 | 5,876,745 |
Additions | 1,395 | 577,764 | 26,710 | 1,148,452 |
Disposals | (773 | ) | (490,900 | ) | - | (491,673 | ) |
Revaluations | - | - | - | 140,791 |
Reclassification/transfer | - | - | - | - |
At 31 July 2023 | 42,435 | 1,838,945 | 79,656 | 6,674,315 |
Depreciation |
At 1 August 2022 | 18,221 | 796,206 | 29,912 | 1,558,433 |
Charge for year | 6,102 | 336,437 | 12,436 | 621,621 |
Eliminated on disposal | (193 | ) | (303,007 | ) | - | (303,200 | ) |
At 31 July 2023 | 24,130 | 829,636 | 42,348 | 1,876,854 |
Net book value |
At 31 July 2023 | 18,305 | 1,009,309 | 37,308 | 4,797,461 |
At 31 July 2022 | 23,592 | 955,875 | 23,034 | 4,318,312 |
Cost or valuation at 31 July 2023 is represented by: |
Leasehold |
Freehold | property | Plant & |
property | improvements | equipment |
£ | £ | £ |
Valuation in 2023 | 140,791 | - | - |
Cost | 2,695,875 | 1,314,189 | 562,424 |
2,836,666 | 1,314,189 | 562,424 |
Office | Motor | Office |
equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2023 | - | - | - | 140,791 |
Cost | 42,435 | 1,838,945 | 79,656 | 6,533,524 |
42,435 | 1,838,945 | 79,656 | 6,674,315 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | Tangible fixed assets - continued |
Company |
Leasehold |
Freehold | property | Plant & |
property | improvements | equipment |
£ | £ | £ |
Cost or valuation |
At 1 August 2022 |
Additions |
Disposals |
Revaluations |
Reclassification/transfer | ( |
) |
At 31 July 2023 |
Depreciation |
At 1 August 2022 |
Charge for year |
Eliminated on disposal |
At 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
Office | Motor | Office |
equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 August 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
Reclassification/transfer |
At 31 July 2023 |
Depreciation |
At 1 August 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
12. | Tangible fixed assets - continued |
Company |
The freehold properties were purchased at a cost of £2,289,176 and re-valued on an open market basis on 05 May 2022 by Allied Surveyors & Valuers for one property. Two other properties were valued at 19 February 2024 by Eddisons however the valuation at 31 July 2023 has been confirmed to be in line with this valuation.These valuations are considered to be fair value for the year ended 31 July 2023 and the properties have been revalued to reflect this. |
13. | Fixed asset investments |
Group |
Investments |
£ |
Cost |
At 1 August 2022 |
and 31 July 2023 | 4,618 |
Net book value |
At 31 July 2023 | 4,618 |
At 31 July 2022 | 4,618 |
Company |
Shares in |
group |
undertaking |
£ |
Cost |
At 1 August 2022 |
Reclassification/transfer |
At 31 July 2023 |
Net book value |
At 31 July 2023 |
At 31 July 2022 |
The company's investments at the Statement of financial position date in the share capital of companies include the following: |
Company | Registered office | Class of shares | % holding |
Fountain Fresh Spain SL |
Plaza de los tres Reyes, 1-1, Cartagena, 30201, Murcia |
Ordinary shares |
90 |
Moon & Evison Limited |
The Factory, New Road, Upwell, Wisbech, England, PE14 9AB |
Ordinary shares |
100 |
During the year, Moon & Evison Limited was subject to audit exemption under section 479a of the Companies Act 2006 as a result of the parent company, Fountain Fresh Imports Limited, providing a guarantee over the subsidiary. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
14. | Stocks |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 731,668 | 411,830 |
15. | Debtors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 5,205,484 | 4,052,696 |
Amounts owed from related |
parties | - | - | - | 43,860 |
Other debtors | 168,325 | 402,477 | 128,560 | 373,492 |
Amounts owed from related |
parties | 40,367 | 24,492 | 40,367 | 24,492 |
Directors' current accounts | 590 | 6,423 | 590 | 2,630 |
Corporation tax | 421,482 | 178,123 |
VAT | 88,706 | 45,475 |
Deferred tax asset | 142,868 | - | 142,868 | - |
Prepayments and accrued income | 268,125 | 368,536 |
6,335,947 | 5,078,222 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 142,868 | - | 142,868 | - |
16. | Current asset investments |
Group |
2023 | 2022 |
£ | £ |
Current investments | 861 | 861 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
17. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 243,208 | 188,827 |
Other loans (see note 19) | 2,683,905 | 1,273,061 |
Hire purchase contracts (see note 20) | 432,543 | 379,426 |
Trade creditors | 5,218,031 | 3,850,417 |
Amounts owed to group |
companies | - | - | 110,838 | 2,834 |
Corporation tax | - | 51,664 |
Social security and other taxes | 70,124 | 66,526 |
Other creditors | 84,516 | 112,856 |
Amounts owed to related |
parties | 231,063 | 560,442 | 231,063 | 560,442 |
Directors' current accounts | 72,000 | 1,283 | 72,000 | 1,283 |
Accruals and deferred income | 488,506 | 302,014 |
Deferred government grants | 1,889 | 3,777 |
9,525,785 | 6,790,293 |
18. | Creditors: amounts falling due after more than one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 19) | 1,507,511 | 1,444,044 |
Hire purchase contracts (see note 20) | 1,076,671 | 1,031,418 |
Deferred government grants | - | 944 |
2,584,182 | 2,476,406 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
19. | Loans |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 243,208 | 188,827 |
Invoice financing | 2,683,905 | 1,273,061 | 2,683,905 | 1,273,061 |
2,927,113 | 1,461,888 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 206,533 | 146,533 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 564,044 | 425,711 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans | 736,934 | 871,800 | 736,934 | 871,800 |
20. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 432,543 | 379,426 |
Between one and five years | 1,076,671 | 1,031,418 |
1,509,214 | 1,410,844 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
20. | Leasing agreements - continued |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 39,758 | 43,275 |
Between one and five years | 35,203 | 74,961 |
74,961 | 118,236 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
21. | Secured debts |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 1,750,719 | 1,632,871 |
Invoice financing | 2,683,905 | 1,273,061 | 2,683,905 | 1,273,061 |
Hire purchase | 1,509,214 | 1,385,034 | 1,408,958 | 1,385,034 |
5,943,838 | 4,290,966 |
Obligations under finance lease and hire purchase contracts are secured against the relevant asset it is financing. |
The invoice financing liability is secured by a fixed and floating charge over the company's assets. |
The bank loan is secured by a fixed and floating charge over the freehold property owned by the company. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
22. | Financial instruments |
Financial assets measured at fair value through profit and loss comprise cash at bank and in hand. |
The company entered into foreign currency forward contracts to mitigate the exchange rate risk for certain foreign currency transactions. |
As at 31 July 2023, the company had various contracts in place with an option to purchase as follows: |
€4,589,750 at a rate of 1.1525 |
€4,100,000 at a rate of 1.1600 |
€3,500,000 at a rate of 1.1700 |
€2,900,000 at a rate of 1.1650 |
€250,000 at a rate of 1.1575 |
€240,000 at a rate of 1.1400 |
€200,000 at a rate of 1.1601 |
23. | Provisions for liabilities |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | - | 190,554 | - | 190,554 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 190,554 |
Provided during year | (333,422 | ) |
Balance at 31 July 2023 | (142,868 | ) |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2022 |
Provided during year | ( |
) |
Balance at 31 July 2023 | ( |
) |
The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate to from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse. |
24. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 100 | 100 |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
25. | Reserves |
Group |
Capital | Fair |
Retained | redemption | Other | value |
earnings | reserve | reserves | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 August 2022 | 997,007 | 13,408 | 1,998 | 153,900 | 1,166,313 |
Deficit for the year | (976,945 | ) | (976,945 | ) |
Dividends | (50,000 | ) | (50,000 | ) |
Foreign currency translation | (307 | ) | - | - | - | (307 | ) |
Revaluation of investment |
property | (105,593 | ) | - | - | 105,593 | - |
At 31 July 2023 | (135,838 | ) | 13,408 | 1,998 | 259,493 | 139,061 |
Company |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 August 2022 | 1,023,798 | 153,900 | 1,177,698 |
Deficit for the year | (1,461,504 | ) | (1,461,504 | ) |
Dividends | (50,000 | ) | (50,000 | ) |
Revaluation of investment |
property | (105,593 | ) | 105,593 | - |
At 31 July 2023 | (593,299 | ) | 259,493 | (333,806 | ) |
26. | Directors' advances, credits and guarantees |
The following advances and credits to the directors subsisted during the year ended 31 July 2023 and the period ended 31 July 2022. |
2023 | 2022 |
£ | £ |
Director |
Balance outstanding at start of period | 5,140 | (23,125 | ) |
Amounts advanced | 65,495 | 172,265 |
Amounts repaid | (142,095 | ) | (144,000 | ) |
Balance outstanding at end of period | (71,410 | ) | 5,140 |
No interest was charged to the directors loan accounts during the year. The amounts repaid and advanced disclosed were aggregated figures. |
Fountain Fresh Imports Ltd and it's |
subsidiaries (Registered number: 09360931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
27. | Related party disclosures |
The following transactions occurred with companies in which the directors have participating interests: |
£ |
Sales | 26,043 |
Amounts due from related parties | 43,433 |
Purchases | 133,126 |
Amounts owed to related parties | 229,220 |
All of the above transactions are carried out at arms length. |