REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
for |
Kedem Europe Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
for |
Kedem Europe Limited |
Kedem Europe Limited (Registered number: 02803383) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Kedem Europe Limited |
Company Information |
for the Year Ended 31 August 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
4 Quex Road |
London |
NW6 4PJ |
Kedem Europe Limited (Registered number: 02803383) |
Strategic Report |
for the Year Ended 31 August 2023 |
The directors present their strategic report for the year ended 31 August 2023. |
This report provides a strategic analysis of Kedem Europe, a leading wholesale drinks company. It examines the company's current position, external and internal environments, strategic objectives, and recommended strategies to achieve these objectives. |
REVIEW OF BUSINESS |
Background: Kedem Europe, founded in 1993, is a leading wholesaler of alcoholic and non-alcoholic beverages. The company prides itself on its extensive product range, competitive pricing, and excellent customer service. |
Current Situation: Kedem Europe holds a significant market share in the kosher wholesale drinks industry. In 2023, the company reported revenues of £11,386,041 with a net profit of £1,223,998 before tax. Key products include wines, grape juices and whisky. |
Kedem Europe Limited (Registered number: 02803383) |
Strategic Report |
for the Year Ended 31 August 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
1. External Analysis |
Political: Regulations around beverage taxes and import tariffs are affecting the cost structure. Government initiatives promoting health could influence sales. |
Economic: Economic downturns could affect disposable income, affecting luxury beverage sales. However, essential drink sales remain stable. |
Social: Rising health consciousness is driving demand for healthier beverage options, such as low-sugar drinks and organic juices. |
Technological: Implementation of a robust sales and accounting systems and introduction to power bi for better reporting and decision-making. |
Environmental: Increasing environmental awareness is pushing companies to adopt sustainable practices, such as reducing plastic use and increasing recycling. |
Legal: Compliance with safety regulations and labelling laws is essential to avoid legal penalties. |
2. Industry Analysis |
Competitive Rivalry: High competition from other wholesalers and direct suppliers to retailers. |
Threat of New Entrants: Moderate threat due to significant capital requirements and established relationships with suppliers and customers. |
Bargaining Power of Suppliers: Moderate, as there are numerous suppliers, but key suppliers of premium products hold more power. |
Bargaining Power of Customers: High, especially large retailers and chains that can negotiate lower prices. |
Threat of Substitutes: Moderate, with growing popularity of non-traditional beverages like energy drinks and mocktails. |
3. Internal Analysis |
Strengths: |
- Strong brand reputation. |
- Extensive product range. |
- Established distribution network. |
Weaknesses: |
- Dependence on key suppliers. |
- Limited presence in emerging markets. |
Opportunities: |
- Expanding product lines. |
- Penetrating new geographic markets. |
Threats: |
- Increasing competition. |
- Regulatory and legal challenges. |
STRATEGIC OBJECTIVES |
Short-term Goals: |
- Increase market share by 5% within one year. |
- Launch a new line of alcoholic beverage within six months. |
Long-term Goals: |
- Achieve a 20% revenue growth over the next five years. |
- Extend operations into new regions and increase market presence. |
Kedem Europe Limited (Registered number: 02803383) |
Strategic Report |
for the Year Ended 31 August 2023 |
STRATEGIES |
1. Strategy Formulation |
Corporate-Level Strategy: Focus on growth through product diversification and geographic expansion. |
Business-Level Strategy: Differentiate the product offering by emphasising quality and health benefits. |
Functional-Level Strategy: |
- Marketing: Invest in digital marketing and social media campaigns to reach a broader audience. |
- Operations: Implement advanced management systems to improve efficiency. |
- Finance: Allocate budget for staff developments. |
2. Implementation Plan |
Action Plans: |
- Market Share Increase: Partner with retailers for promotional events and discounts. |
- Sales and Marketing Strategy: Develop strategies for pricing, promotions, customer acquisition and retention. |
Resource Allocation: |
- Allocate £2 million for marketing and promotional activities. |
- Invest 80k for a robust sales and accounting system. |
Timeline: |
- Market share initiatives: Ongoing, review quarterly. |
- New line launch: Completed within six to nine months. |
Responsibilities: |
- Sales Manager: Oversee promotional campaigns. |
- Operations Manager: Manages day-to-day operations. |
3. Monitoring and Evaluation |
Key Performance Indicators (KPIs): |
- Sales growth rate. |
- Market share percentage. |
- Customer satisfaction scores. |
Monitoring Process: |
- Monthly sales reports and market analysis. |
- Quarterly review meetings. |
Evaluation Methods: |
- Compare performance against targets and adjust strategies as needed. |
- Conduct customer surveys to gather feedback on new products. |
CONCLUSION |
Kedem Europe is well positioned to leverage its strengths and capitalise on opportunities in the market. By focusing on product diversification and expanding into new markets, the company can achieve its strategic goals and continue its growth trajectory. |
ON BEHALF OF THE BOARD: |
Kedem Europe Limited (Registered number: 02803383) |
Report of the Directors |
for the Year Ended 31 August 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies 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 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. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company'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 company's auditors are aware of that information. |
AUDITORS |
The auditors, Purcells, Chartered Accountants, 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 |
Kedem Europe Limited |
Opinion |
We have audited the financial statements of Kedem Europe Limited (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 August 2023 and of its profit 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 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 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Kedem Europe Limited |
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 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, 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 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 five, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Kedem Europe Limited |
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: |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the directors. |
• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards). |
• We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
• Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of noncompliance |
. |
• We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
• We reviewed the minutes of the meetings of the Board of Directors. |
• We performed analytical procedures to identify any unusual or unexpected relationships. |
• We examined supporting documents for all material balances, transactions and disclosures. |
• We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions. |
On that basis, we believe that our procedures are effective in detecting irregularities, including fraud. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). |
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. |
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 |
Kedem Europe Limited |
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 |
4 Quex Road |
London |
NW6 4PJ |
Kedem Europe Limited (Registered number: 02803383) |
Income Statement |
for the Year Ended 31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,722,928 | 1,433,213 |
1,220,637 | 1,298,284 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 5 |
PROFIT FOR THE FINANCIAL YEAR |
Kedem Europe Limited (Registered number: 02803383) |
Other Comprehensive Income |
for the Year Ended 31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Kedem Europe Limited (Registered number: 02803383) |
Balance Sheet |
31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Retained earnings | 12 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kedem Europe Limited (Registered number: 02803383) |
Statement of Changes in Equity |
for the Year Ended 31 August 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 August 2023 |
Kedem Europe Limited (Registered number: 02803383) |
Cash Flow Statement |
for the Year Ended 31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 300 |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,165,488 |
Cash and cash equivalents at end of year | 2 | 2,535,649 | 2,752,822 |
Kedem Europe Limited (Registered number: 02803383) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.8.23 | 31.8.22 |
£ | £ |
Profit before taxation |
Government grants | ( |
) |
Finance income | (3,361 | ) | (92 | ) |
1,220,637 | 1,298,284 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 2,535,649 | 2,752,822 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 2,752,822 | 3,165,488 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.22 | Cash flow | At 31.8.23 |
£ | £ | £ |
Net cash |
Cash at bank | 2,752,822 | (217,173 | ) | 2,535,649 |
2,752,822 | ( |
) | 2,535,649 |
Total | 2,752,822 | (217,173 | ) | 2,535,649 |
Kedem Europe Limited (Registered number: 02803383) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
1. | STATUTORY INFORMATION |
Kedem Europe Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is based on sales to customers less returns exclusive of value added tax and is represented by one class of business within the U.K. |
Tangible fixed assets |
Fixtures and fittings | - |
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. |
3. | EMPLOYEES AND DIRECTORS |
31.8.23 | 31.8.22 |
£ | £ |
Wages and salaries |
The average number of employees during the year was as follows: |
31.8.23 | 31.8.22 |
£0 - £50,000 |
31.8.23 | 31.8.22 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.8.23 | 31.8.22 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Kedem Europe Limited (Registered number: 02803383) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.8.23 | 31.8.22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
6. | DIVIDENDS |
31.8.23 | 31.8.22 |
£ | £ |
Ordinary shares of 0.10 each |
Final |
7. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
8. | STOCKS |
31.8.23 | 31.8.22 |
£ | £ |
Stocks |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade debtors |
Other debtors | 294,169 | 811,503 |
Prepayments |
Kedem Europe Limited (Registered number: 02803383) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.8.23 | 31.8.22 |
value: | £ | £ |
Ordinary | 0.10 | 300 | 300 |
12. | RESERVES |
Retained |
earnings |
£ |
At 1 September 2022 |
Profit for the year |
At 31 August 2023 |
13. | RELATED PARTY DISCLOSURES |
The company is related to Inchcool Limited by a common director. Sales commissions of £168,500 were due to Inchcool Limited on a commercial basis. The balance owed to that company at the balance sheet date was £68,404. |