REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
WOW HYDRATE LIMITED |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
WOW HYDRATE LIMITED |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
WOW HYDRATE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Create Business Hub |
Ground Floor |
5 Rayleigh Road |
Hutton, Brentwood. |
Essex |
CM13 1AB |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Share premium | 11 |
Retained earnings | 11 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
BALANCE SHEET - continued |
30 JUNE 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Wow Hydrate Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
In the research phase of an internal project, it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. |
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
During the year the company recorded a loss of £5,424,798 and remains reliant on continued investment from current shareholders and new external investment in order to meet its liabilities as they fall due both in the short term and 12 months from the date of approval of the financial statements. |
While the company remains reliant on the support of the shareholders, the level of support required from pre existing shareholders has reduced significantly since the year end as new, high-profile shareholders have been taken on board. |
Following the decision to fundamentally change the Wow Hydrate products in April 2022, the cost of manufacture has reduced significantly from the launch of Wow Hydrate Next Generation in late August 2022. The gross margin per unit from the next generation bottles is averaging between 40% and 50% against the previous gross margins of between 10% and 15%. |
Product sales during July and August 2022 were slow as stocks of the old products were wound down to allow a complete switch to the new products from late August, but since the launch of the new drinks sales have climbed significantly and the first quarter of 2023 has seen sales volumes up over 200% on the same period last year. |
Having considered the combination of reduced unit cost, increased sales volumes and continued funding from shareholders and new investors, the directors have concluded that it remains their expectation that margins will increase, and funding will continue to be available. It is therefore appropriate to continue to adopt the going concern basis of preparation for these financial statements. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
4. | INTANGIBLE FIXED ASSETS |
Patents |
and | Development |
licences | costs | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
Amortisation for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
6. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Finished goods |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
10. | CALLED UP SHARE CAPITAL |
Shares were issued during the period as follows: |
On 15th August 2022 the company issued 10,350 A class £0.025 ordinary shares for a consideration of £425,000. |
On 11th November 2022 the company issued 34,417 A Class ordinary shares of £0.025 each and 466 B Class ordinary shares of £0.025 for a total consideration of £1,504,758. |
On 19th December 2022 the company issued 20,893 A Class ordinary shares of £0.025 each for a consideration of £850,000. |
On the 23rd March 2023 the company issued 63,552 A Class ordinary shares of £0.025 each for a consideration of £2,500,771 |
WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
11. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2022 | (21,458,074 | ) | 23,124,209 | 1,666,135 |
Deficit for the year | (7,420,782 | ) | (7,420,782 | ) |
Cash share issue | - | 6,342,195 | 6,342,195 |
At 30 June 2023 | (28,878,856 | ) | 29,466,404 | 587,548 |
12. | POST BALANCE SHEET EVENTS |
Since the year end the company has raised a further £3,499,693 through the issue of 69,896 new ordinary shares of £0.025 nominal value each, and upon confirmation of the sponsorship agreement being signed in Autumn 2023 a further raise of £9,096,484 has been completed and will be subject to the issuance of an additional 179,308 shares at a nominal value of £0.025 per share. |