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2023-01-01
Sage Accounts Production Advanced 2023 - FRS102_2023
532,935
892,135
xbrli:pure
xbrli:shares
iso4217:GBP
02915880
2023-01-01
2023-12-31
02915880
2023-12-31
02915880
2022-12-31
02915880
2022-01-01
2022-12-31
02915880
2022-12-31
02915880
2021-12-31
02915880
core:LandBuildings
core:OwnedOrFreeholdAssets
2023-01-01
2023-12-31
02915880
core:LandBuildings
core:LongLeaseholdAssets
2023-01-01
2023-12-31
02915880
core:PlantMachinery
2023-01-01
2023-12-31
02915880
core:MotorVehicles
2023-01-01
2023-12-31
02915880
bus:RegisteredOffice
2023-01-01
2023-12-31
02915880
bus:OrdinaryShareClass1
2023-01-01
2023-12-31
02915880
bus:LeadAgentIfApplicable
2023-01-01
2023-12-31
02915880
bus:Director3
2023-01-01
2023-12-31
02915880
core:WithinOneYear
2023-12-31
02915880
core:WithinOneYear
2022-12-31
02915880
core:LandBuildings
core:OwnedOrFreeholdAssets
2022-12-31
02915880
core:LandBuildings
core:LongLeaseholdAssets
2022-12-31
02915880
core:PlantMachinery
2022-12-31
02915880
core:MotorVehicles
2022-12-31
02915880
core:LandBuildings
core:OwnedOrFreeholdAssets
2023-12-31
02915880
core:LandBuildings
core:LongLeaseholdAssets
2023-12-31
02915880
core:PlantMachinery
2023-12-31
02915880
core:MotorVehicles
2023-12-31
02915880
core:UKTax
2023-01-01
2023-12-31
02915880
core:UKTax
2022-01-01
2022-12-31
02915880
core:RetainedEarningsAccumulatedLosses
2022-12-31
02915880
core:RetainedEarningsAccumulatedLosses
2021-12-31
02915880
core:RetainedEarningsAccumulatedLosses
2023-12-31
02915880
core:RetainedEarningsAccumulatedLosses
2022-12-31
02915880
core:ShareCapital
2023-12-31
02915880
core:ShareCapital
2022-12-31
02915880
core:BetweenOneFiveYears
2023-12-31
02915880
core:BetweenOneFiveYears
2022-12-31
02915880
core:MoreThanFiveYears
2023-12-31
02915880
core:MoreThanFiveYears
2022-12-31
02915880
core:LandBuildings
core:OwnedOrFreeholdAssets
2022-12-31
02915880
core:LandBuildings
core:LongLeaseholdAssets
2022-12-31
02915880
core:PlantMachinery
2022-12-31
02915880
core:MotorVehicles
2022-12-31
02915880
bus:LeadAgentIfApplicable
2022-01-01
2022-12-31
02915880
bus:MediumEntities
2023-01-01
2023-12-31
02915880
bus:Audited
2023-01-01
2023-12-31
02915880
bus:Medium-sizedCompaniesRegimeForAccounts
2023-01-01
2023-12-31
02915880
bus:PrivateLimitedCompanyLtd
2023-01-01
2023-12-31
02915880
bus:FullAccounts
2023-01-01
2023-12-31
02915880
bus:OrdinaryShareClass1
2023-12-31
02915880
bus:OrdinaryShareClass1
2022-12-31
02915880
core:OfficeEquipment
2023-01-01
2023-12-31
02915880
core:OfficeEquipment
2022-12-31
02915880
core:OfficeEquipment
2023-12-31
COMPANY REGISTRATION NUMBER:
02915880
Year ended 31st December 2023
Independent auditor's report to the member |
5 |
|
|
Statement of income and retained earnings |
9 |
|
|
Statement of financial position |
10 |
|
|
Notes to the financial statements |
11 |
|
|
Year ended 31st December 2023
The directors present their strategic report on the company for the year ended 31 December 2023.
Review of the business
The financial year has been a challenging one for the business due to the high levels of inflation and lower disposable income for consumers due to the economic background in the UK. The business, as a supplier to the food service market, a sector that has struggled to recover post COVID-19 with the additional pressures placed upon it by the macro-economic environment in the UK, has performed better than the previous year but has still reported a loss. The business was and continues to be supported by its other group companies by way of the provision of additional working capital to support ongoing losses. The financial performance for 2023 has been impacted by inflationary pressures on raw materials and the minimum wage increases as well as low growth, particularly in the restaurants sector. The inflationary impacts have proven difficult to pass onto customers in full, but the business has been successful in finding other cost savings to maintain margin percentage. The market has remained difficult in 2024 with the business having to continue in trying to pass on the cost increases created by on-going inflationary pressures, particularly in cocoa, the continued difficult economic backdrop, and operating in a market that is struggling to generate growth.
Results
The company made a pre-tax loss of £709,916 (2022 loss: £862,411) for the year from a turnover of £15,980,774 (2022: £15,076,617). At 31 December 2023 the company had net assets of £2,584,667 (2022: £3,117,602).
Principal risks and uncertainties
The main risks to the business are on-going issues from Brexit, inflationary pressures, and the integrity of our supply chains. The conflicts in Ukraine, and now in Gaza, and the consequences to international supply chains continue to present significant challenges in 2024. The company has also continued to see significant complications in terms of the supply of products, raw materials, and finished goods due to supply chain challenges arising from Brexit and crop yields being low from climate change, particularly in cocoa. This is likely to continue in the medium term until the supply chain adapts.
Performance monitoring
The business continues to monitor and develop a number of key performance indicators, both financial and operational. These allow the management team to understand and control, in an enhanced way, the business and its service to customers. Key indicators being measured are: Financial Definition Sales growth Growth in sales revenue and the strength of the company's market position. Operational margin The continued growth of operating profits which allows the company to continue to invest in its manufacturing and distribution facilities. Customer service levels Maintaining a consistently high level of customer service.
This report was approved by the board of directors on 23rd July 2024 and signed on behalf of the board by:
Registered office: |
Destiny House |
Preston Street |
Manchester |
M18 8DB |
|
Year ended 31st December 2023
The director presents his report and the financial statements of the company for the year ended
31 December 2023
.
Principal activities
The principal activity of the company during the year was the manufacture of desserts and patisserie.
Director
The director who served the company during the year was as follows:
Dividends
The director does not recommend the payment of a dividend.
Future developments
The director intends to make further improvements in the production and distribution facilities of the company in order to continue to enhance its operational capability thereby allowing it to accommodate increases in the demand for its products.
Financial instruments
The director considers that the company only has limited exposure to the various aspects of financial risk and it does not enter into any non basic contracts as there is no requirement for this within its trade. The company's revenue is invoiced in sterling and all its operational costs arise within the United Kingdom.
Going concern
The accounts have been prepared on a going concern basis, see note 3 for further details.
Disclosure of information in the strategic report
In accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report)Regulations 2013 the company's strategic report is shown separately on page 1 of the financial statements.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies 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 director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 485 of the Companies Act 2006.
This report was approved by the board of directors on
23 July 2024
and signed on behalf of the board by:
Registered office: |
Destiny House |
Preston Street |
Manchester |
M18 8DB |
|
Independent Auditor's Report to the Member of
Heataction Limited |
|
Year ended 31st December 2023
Opinion
We have audited the financial statements of Heataction Limited (the 'company') for the year ended 31st December 2023 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 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 company's affairs as at 31st December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.
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 director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the director's report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. 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: - adequate accounting records have not been kept, or 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
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. The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; - inquired of management and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures. The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and testing a sample of revenue transactions recorded in the year to determine whether revenue had been recorded correctly. 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 member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Stuart Whitehead FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Edwards Veeder LLP |
Chartered accountants & statutory auditor |
Alex House |
260-268 Chapel Street |
Salford |
M3 5JZ |
|
5 August 2024
Statement of Income and Retained Earnings |
|
Year ended 31st December 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
15,980,774 |
15,076,617 |
|
|
|
|
Cost of sales |
10,089,974 |
11,312,339 |
|
------------- |
------------- |
Gross profit |
5,890,800 |
3,764,278 |
|
|
|
Administrative expenses |
6,471,063 |
4,824,703 |
Other operating income |
5 |
50,893 |
249,628 |
|
|
------------ |
------------ |
Operating loss |
6 |
(
529,370) |
(
810,797) |
|
|
|
|
Interest payable and similar expenses |
9 |
180,546 |
51,614 |
|
------------ |
------------ |
Loss before taxation |
(
709,916) |
(
862,411) |
|
|
|
|
Tax on loss |
10 |
(
176,981) |
29,724 |
|
--------- |
--------- |
Loss for the financial year and total comprehensive income |
(
532,935) |
(
892,135) |
|
--------- |
--------- |
|
|
|
|
Retained earnings at the start of the year |
3,117,600 |
4,009,735 |
|
------------ |
------------ |
Retained earnings at the end of the year |
2,584,665 |
3,117,600 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 December 2023
Fixed assets
Tangible assets |
11 |
|
2,249,348 |
2,401,489 |
|
|
|
|
|
Current assets
Stock |
12 |
3,356,841 |
|
2,138,382 |
Debtors |
13 |
3,976,233 |
|
4,485,299 |
Cash at bank and in hand |
53,958 |
|
41,718 |
|
------------ |
|
------------ |
|
7,387,032 |
|
6,665,399 |
|
|
|
|
|
Creditors: amounts falling due within one year |
14 |
7,051,713 |
|
5,949,286 |
|
------------ |
|
------------ |
Net current assets |
|
335,319 |
716,113 |
|
|
------------ |
------------ |
Total assets less current liabilities |
|
2,584,667 |
3,117,602 |
|
|
------------ |
------------ |
Net assets |
|
2,584,667 |
3,117,602 |
|
|
------------ |
------------ |
|
|
|
|
|
Capital and reserves
Called up share capital |
17 |
|
2 |
2 |
Profit and loss account |
|
2,584,665 |
3,117,600 |
|
|
------------ |
------------ |
Shareholder funds |
|
2,584,667 |
3,117,602 |
|
|
------------ |
------------ |
|
|
|
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the
board of directors
and authorised for issue on
23 July 2024
, and are signed on behalf of the board by:
Company registration number:
02915880
Notes to the Financial Statements |
|
Year ended 31st December 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Destiny House, Preston Street, Manchester, M18 8DB.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of companies Act 2006.
3.
Accounting policies
Basis of preparation
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.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the company will have sufficient funds to meet its liabilities as they fall due for that period. Whilst the Company has net current assets, the forecasts are dependent on La Compagnie des Desserts SAS providing funding, if required. La Compagnie des Desserts SAS has indicated its intention to support the Company for the period covered by the forecast. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Disclosure exemptions
The Company is a qualifying entity for the purposes of FRS 102 and it has taken advantage of the disclosure exemption relating to the following: Section 7 - provision of a cash flow statement in accordance with FRS 102 paragraph 1.12(b) Section 28 - Key management personnel Section 33.1A - Related party disclosures
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life of fixed assets In making decisions regarding the depreciation of noncurrent assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to profit and loss in each year.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the 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.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
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 decrease 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.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Long Leasehold Property |
- |
2% straight line |
|
Leasehold Property Improvements |
- |
15% reducing balance |
|
Plant, Equipment and Fittings |
- |
15% reducing balance |
|
Motor Vehicles |
- |
25% reducing balance |
|
Office Equipment |
- |
15% reducing balance |
|
|
|
|
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 testing, 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 are largely independent of the cash inflows from other assets or groups 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 whether other assets or liabilities of the company are assigned to those units.
Stock and work in progress
Stocks of finished goods and work in progress are valued on the basis of lower of cost or net realisable value. Raw materials, consumables and goods bought in are valued at cost.
Finance leases and hire purchase contracts
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 the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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 the 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.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans to and from related parties. Debt instruments ( other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be be paid or received. Financial assets that are 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 amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a 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. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Defined contribution plans
The company operates a defined contribution pension scheme for the directors. The assets of the pension scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Sale of goods |
15,980,774 |
15,076,617 |
|
------------- |
------------- |
|
|
|
5.
Other operating income
|
2023 |
2022 |
|
£ |
£ |
Government grant income |
– |
92,928 |
Other operating income |
50,893 |
156,700 |
|
-------- |
--------- |
|
50,893 |
249,628 |
|
-------- |
--------- |
|
|
|
6.
Operating loss
Operating profit or loss is stated after charging:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
308,711 |
295,611 |
Loss on disposal of tangible assets |
31,353 |
15,744 |
Impairment of trade debtors |
90,792 |
– |
Operating lease rentals |
92,256 |
74,275 |
|
--------- |
--------- |
|
|
|
7.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
16,575 |
13,600 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Production staff |
105 |
103 |
Administrative staff |
33 |
32 |
Management staff |
19 |
19 |
|
---- |
---- |
|
157 |
154 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
5,165,458 |
5,090,185 |
Social security costs |
428,063 |
414,592 |
Other pension costs |
97,142 |
90,929 |
|
------------ |
------------ |
|
5,690,663 |
5,595,706 |
|
------------ |
------------ |
|
|
|
9.
Interest payable and similar expenses
|
2023 |
2022 |
|
£ |
£ |
Interest on banks loans and overdrafts |
– |
23 |
Interest on obligations under finance leases and hire purchase contracts |
– |
2,784 |
Interest due to group undertakings |
180,546 |
48,807 |
|
--------- |
-------- |
|
180,546 |
51,614 |
|
--------- |
-------- |
|
|
|
10.
Tax on loss
Major components of tax (income)/expense
Current tax:
UK current tax expense |
– |
29,724 |
Adjustments in respect of prior periods |
(
176,981) |
– |
|
--------- |
-------- |
Total current tax |
(
176,981) |
29,724 |
|
--------- |
-------- |
|
--------- |
-------- |
Tax on loss |
(
176,981) |
29,724 |
|
--------- |
-------- |
|
|
|
Reconciliation of tax (income)/expense
The tax assessed on the loss on ordinary activities for the year is lower than (2022: higher than) the
standard rate of corporation tax in the UK
of
23.52
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
Loss on ordinary activities before taxation |
(
709,916) |
(
862,411) |
|
--------- |
--------- |
Loss on ordinary activities by rate of tax |
(
166,972) |
(
163,858) |
Adjustment to tax charge in respect of prior periods |
(
176,981) |
– |
Effect of expenses not deductible for tax purposes |
8,216 |
5,178 |
Effect of capital allowances and depreciation |
25,748 |
(
65,647) |
Effect of revenue exempt from tax |
– |
(
16,280) |
Unused tax losses |
133,008 |
270,331 |
|
--------- |
--------- |
Tax on loss |
(
176,981) |
29,724 |
|
--------- |
--------- |
|
|
|
11.
Tangible assets
|
Long Leasehold Property |
Leasehold Property Improvements |
Plant, Equipment and Fittings |
Motor Vehicles |
Office Equipment |
Total |
|
£ |
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
|
At 1 Jan 2023 |
660,815 |
519,739 |
4,064,980 |
63,147 |
133,326 |
5,442,007 |
Additions |
– |
10,730 |
130,584 |
– |
46,611 |
187,925 |
Disposals |
– |
(
14,275) |
(
27,360) |
– |
(
27,888) |
(
69,523) |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
At 31 Dec 2023 |
660,815 |
516,194 |
4,168,204 |
63,147 |
152,049 |
5,560,409 |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
Depreciation |
|
|
|
|
|
|
At 1 Jan 2023 |
157,607 |
330,565 |
2,444,516 |
61,375 |
46,455 |
3,040,518 |
Charge for the year |
13,216 |
28,897 |
248,320 |
1,772 |
16,506 |
308,711 |
Disposals |
– |
(
9,080) |
(
19,575) |
– |
(
9,513) |
(
38,168) |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
At 31 Dec 2023 |
170,823 |
350,382 |
2,673,261 |
63,147 |
53,448 |
3,311,061 |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
Carrying amount |
|
|
|
|
|
|
At 31 Dec 2023 |
489,992 |
165,812 |
1,494,943 |
– |
98,601 |
2,249,348 |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
At 31 Dec 2022 |
503,208 |
189,174 |
1,620,464 |
1,772 |
86,871 |
2,401,489 |
|
--------- |
--------- |
------------ |
-------- |
--------- |
------------ |
|
|
|
|
|
|
|
12.
Stock
|
2023 |
2022 |
|
£ |
£ |
Raw materials and consumables |
603,082 |
509,178 |
Work in progress |
41,150 |
88,698 |
Finished goods |
2,712,609 |
1,540,506 |
|
------------ |
------------ |
|
3,356,841 |
2,138,382 |
|
------------ |
------------ |
|
|
|
13.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
3,287,430 |
3,883,799 |
Prepayments and accrued income |
305,213 |
213,421 |
Corporation tax repayable |
130,775 |
130,176 |
Other debtors |
252,815 |
257,903 |
|
------------ |
------------ |
|
3,976,233 |
4,485,299 |
|
------------ |
------------ |
|
|
|
14.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Trade creditors |
1,081,265 |
1,469,795 |
Accruals and deferred income |
1,222,460 |
958,597 |
Social security and other taxes |
110,516 |
102,098 |
Other creditors |
4,637,472 |
3,418,796 |
|
------------ |
------------ |
|
7,051,713 |
5,949,286 |
|
------------ |
------------ |
|
|
|
ABN-AMRO Commercial Finance Plc has a fixed and floating mortgage debenture charged on the present and future assets of the company other than any fixed assets subject to hire purchase finance and the leasehold property at 1-5 Tavistock Industrial Estate, Railway Street, Manchester M18 8FE. The amount outstanding at 31 December 2023 was £391,090 (2022: £603,991).
15.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
97,142
(2022: £
90,929
).
16.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants recognised directly in income |
– |
92,928 |
|
---- |
-------- |
|
|
|
17.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 0.02 each |
100 |
2 |
100 |
2 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
18.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
Not later than 1 year |
270,988 |
270,988 |
Later than 1 year and not later than 5 years |
1,083,952 |
1,083,952 |
Later than 5 years |
600,057 |
871,045 |
|
------------ |
------------ |
|
1,954,997 |
2,225,985 |
|
------------ |
------------ |
|
|
|
19.
Related party transactions
The company has taken advantage of the exemption available in Section 33 of FRS102 "Related Party Disclosures" whereby it has not disclosed transactions with its ultimate parent company or any wholly owned subsidiary undertaking of the group.
20.
Controlling party
The ultimate parent company is
La Compagnie des Desserts SAS
, a company incorporated in France. The largest and smallest level of consolidated financial statements are drawn up by La Compagnie des Desserts SAS, 4 rue des romains, 11200 Lezignan Corbieres.