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Registration number: 12222632

Spinach Branding Ltd

Unaudited Filleted Financial Statements

for the Year Ended 30 September 2023

 

Spinach Branding Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

Spinach Branding Ltd

(Registration number: 12222632)
Balance Sheet as at 30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

99,236

115,776

Tangible assets

5

39,154

42,255

 

138,390

158,031

Current assets

 

Debtors

6

277,829

167,530

Cash at bank and in hand

 

6,634

195,600

 

284,463

363,130

Creditors: Amounts falling due within one year

7

(260,477)

(176,543)

Net current assets

 

23,986

186,587

Total assets less current liabilities

 

162,376

344,618

Creditors: Amounts falling due after more than one year

7

(20,752)

(30,746)

Net assets

 

141,624

313,872

Capital and reserves

 

Called up share capital

8

160

200

Capital redemption reserve

40

-

Profit and loss account

141,424

313,672

Shareholders' funds

 

141,624

313,872

 

Spinach Branding Ltd

(Registration number: 12222632)
Balance Sheet as at 30 September 2023

For the financial year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
A Thomas
Director

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C/o Sterlings Ltd Lawford House
Albert Place
London
N3 1QA
England

These financial statements were authorised for issue by the Board on 31 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling (£), which is also the company's functional currency. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

6.25 years

Office equipment

25% straight line

Computer equipment

33% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2022 - 5).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2022

165,396

165,396

At 30 September 2023

165,396

165,396

Amortisation

At 1 October 2022

49,620

49,620

Amortisation charge

16,540

16,540

At 30 September 2023

66,160

66,160

Carrying amount

At 30 September 2023

99,236

99,236

At 30 September 2022

115,776

115,776

The aggregate amount of research and development expenditure recognised as an expense during the period is £- (2022 - £325).
 

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

5

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 October 2022

56,252

56,252

Additions

23,936

23,936

Disposals

(7,391)

(7,391)

At 30 September 2023

72,797

72,797

Depreciation

At 1 October 2022

13,997

13,997

Charge for the year

19,668

19,668

Eliminated on disposal

(22)

(22)

At 30 September 2023

33,643

33,643

Carrying amount

At 30 September 2023

39,154

39,154

At 30 September 2022

42,255

42,255

6

Debtors

Current

2023
£

2022
£

Trade debtors

261,889

96,018

Prepayments

-

39,359

Other debtors

15,940

32,153

 

277,829

167,530

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

10,014

40,414

Trade creditors

 

6,860

23,813

Taxation and social security

 

81,680

98,248

Accruals and deferred income

 

152,329

5,500

Other creditors

 

9,594

8,568

 

260,477

176,543

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

20,752

30,746

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary shares of £1 each

160

160

160

160

B Ordinary shares of £1 each

-

-

40

40

 

160

160

200

200

During the year, the company repurchased 40 B Ordinary shares of £1 each out of capital for total consideration of £30,600.

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

20,752

30,746

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,014

9,747

Other borrowings

-

30,667

10,014

40,414

Bank borrowings

The bank loan comprises a Bounce Back Loan, repayable over a six year period with no early repayment charges. The loan bears interest of 2.5% per annum, with the first 12 months of interest covered by business interruption payments made by the government on behalf of the company. The loan is repayable in instalments commencing in October 2021 and ending in September 2026.

 

Spinach Branding Ltd

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

10

Related party transactions

At the balance sheet date, £8,630 was owed by the company to the directors (2022: £16,214 owed to the company by the directors). The balance is unsecured. There are no formal terms and conditions regarding repayment of the balance.

The directors have provided personal guarantees in respect of the company's other borrowings which, at the balance sheet date, totalled £nil (2022: £30,667).

During the year, the company incurred fees in the amount of £51,000 (2022: £42,000) for freelance services provided by a company owned and controlled by a spouse of a director.