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Registered Number:08776727













ICHIBAN UK LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 29 SEPTEMBER 2023











 
ICHIBAN UK LIMITED
 

 
COMPANY INFORMATION


Directors
R J Baker 
P M Baker 
A Wilkinson 
C Smith 




Registered number
08776727



Registered office
Barrack Farm
Warren Lane

Woolpit

Bury St. Edmunds

Suffolk

IP30 9RT




Independent auditor
Sumer Auditco Limited
Statutory Auditor

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG




Solicitors
Prettys
Elm House

25 Elm Street

Ipswich

Suffolk

IP1 2AD






 
ICHIBAN UK LIMITED
 


CONTENTS



Pages
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditor's Report
6 - 10
Statement of Comprehensive Income
11
Balance Sheet
12 - 13
Statement of Changes in Equity
14
Statement of Cash Flows
15 - 16
Analysis of Net Debt
17
Notes to the Financial Statements
18 - 35



 
ICHIBAN UK LIMITED
 

 
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

Introduction
 
The directors present their Strategic Report for the period ended 29 September 2023.

Business review
 
Sales volumes proved challenging in a competitive market and the choice was made to stop less profitable lines with a consequent drop in overall sales values.  However, work begun in 2022 to re-engineer products to offset raw material price increases and improve manufacturing efficiencies which delivered a significant uplift in gross margin percentage.
Inflationary pressures, particularly the high cost of energy, continued to adversely impact the business during the period.  Additionally, successive base rate rises led to higher interest payable.
Towards the end of the period the company entered into a co-packing agreement for the supply of non-sushi products.
Given the challenges the Directors are satisfied with the overall performance for the period and believe that the improved gross margin and new products offer further potential for 2024.

Principal risks and uncertainties
 
Price risk:
The Company's selling prices are affected by a number of economic factors including customer negotiations. The Company's main expenses are those of raw materials used to make its products and employee wages. Gross margin is a financial key performance indicator and is monitored on a close basis. The Company prepares detailed budgets and forecasts to ensure it will maintain sufficient margins to cover fixed costs.
Credit risk:
All customers who wish to trade are subject to credit verification procedures. Trade debtors are reviewed regularly and provision is made for doubtful debts where necessary.
Liquidity and cash flow risk:
The Company manages its cash and borrowing requirements in order to minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk:
The Company monitors interest rate risk closely and considers that its current policies meet its objectives of managing exposure to interest rate risk.
Brexit risk:
The Company acknowledges that Brexit represents a risk and uncertainty going forward. The Company is monitoring developments to ensure the impact of Brexit is positively managed.


- 1 -



 
ICHIBAN UK LIMITED
 


STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

Financial key performance indicators
 
The operating loss of £228,723 (2022- £357,446) reflects the business review above. The gross profit margin has increased from 28.45% to 30.13%.


This report was approved by the board on 29 August 2024 and signed on its behalf.



R J Baker
Director


- 2 -



 
ICHIBAN UK LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

The directors present their report and the financial statements for the period ended 29 September 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company is that of the production and distribution of sushi products.

Results and dividends

The loss for the period, after taxation, amounted to £350,365 (2022 - loss £380,062).

The directors have not recommended any final dividends in respect of the period.

Directors

The directors who served during the period were:

R J Baker 
P M Baker 
A Wilkinson 
C Smith 


- 3 -



 
ICHIBAN UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

Financial instruments

The Company operates a treasury function which is responsible for managing the liquidity and interest risks.
The Company has various financial assets and liabilities such as trade debtors and trade creditors, arising directly from operations. In addition to this, bank and privately provided funding is used to raise finance for the company's operations and capital requirements.

Research and development activities

The Company continues to believe in the importance of investing in innovation and in the development of its products. During the period, the Company has continued to invest in research and development areas.

Engagement with employees

The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Disabled employees

The Company's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. Employees who become disabled are retained in their existing posts where possible or re-trained for suitable alternative posts.

Qualifying third party indemnity provisions

The directors have professional indemnity insurance as part of a directors' and officers' professional indemnity insurance.

Matters covered in the Strategic Report

Details of future developments and further information regarding the Company's exposure to certain risks can be found in the Strategic Report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the period end.


- 4 -



 
ICHIBAN UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

Auditor

On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.
Accordingly SB Audit LLP formally resigned as the Company's auditor with the Directors duly appointing Sumer Auditco Limited to fill the vacancy arising. The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 August 2024 and signed on its behalf.
 





R J Baker
Director


- 5 -



 
ICHIBAN UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ICHIBAN UK LIMITED

Opinion


We have audited the financial statements of Ichiban UK Limited (the 'Company') for the period ended 29 September 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 29 September 2023 and of its loss for the period 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 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 United Kingdom, including the Financial Reporting Council'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.


Emphasis of matter


We draw attention to note 2.2 to the financial statements. This provides further information in connection with the Company's reliance on borrowing facilities, in addition to related party support, to meet working capital requirements.
Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included a review of the directors' forecasts, consideration of the correspondence with the Company's lenders with regards its borrowing facilities, and review of  the ability of the aforementioned related party to continue to provide support. We agree with the directors' use of the going concern basis of accounting in the preparation of the financial statements.
Our opinion is not modified in respect of this matter.



- 6 -



 
ICHIBAN UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ICHIBAN UK LIMITED (CONTINUED)

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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.



- 7 -



 
ICHIBAN UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ICHIBAN UK LIMITED (CONTINUED)

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 Directors' 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 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 Directors' Responsibilities Statement set out on page 3, 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 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 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.



- 8 -



 
ICHIBAN UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ICHIBAN UK LIMITED (CONTINUED)

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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of directors and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Company.
The following laws and regulations were identified as being of significance to the Company:
• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards and UK Company Law; and
• Those laws and regulations considered to have an indirect effect on the financial statements including employment law, The Health and Safety Act 1974 and general food law.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing of journal entries, performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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.



- 9 -



 
ICHIBAN UK LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ICHIBAN UK LIMITED (CONTINUED)

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 2006Our 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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Steven Burgess (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditor
  
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG

4 September 2024

- 10 -



 
ICHIBAN UK LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2023
2022
Notes
£
£

  

Turnover
 4 
30,937,166
32,190,014

Cost of sales
  
(21,615,364)
(23,031,694)

Gross profit
  
9,321,802
9,158,320

Distribution costs
  
(1,041,740)
(1,192,862)

Administrative expenses
  
(8,511,710)
(8,325,779)

Other operating income
 5 
2,925
2,875

Operating loss
 6 
(228,723)
(357,446)

Interest receivable and similar income
 10 
180
1,000

Interest payable and similar expenses
 11 
(121,822)
(61,794)

Loss before tax
  
(350,365)
(418,240)

Tax on loss
 12 
-
38,178

Loss for the financial period
  
(350,365)
(380,062)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 18 to 35 form part of these financial statements.


- 11 -



 
ICHIBAN UK LIMITED
REGISTERED NUMBER:08776727


BALANCE SHEET
AS AT 29 SEPTEMBER 2023

29 September
30 September
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,917,959
2,061,262

Current assets
  

Stocks
 14 
1,757,964
2,101,552

Debtors: amounts falling due within one year
 15 
3,518,477
4,348,981

Cash at bank and in hand
 16 
650,776
44,787

  
5,927,217
6,495,320

Creditors: amounts falling due within one year
 17 
(3,636,058)
(3,455,568)

Net current assets
  
 
 
2,291,159
 
 
3,039,752

Total assets less current liabilities
  
4,209,118
5,101,014

Creditors: amounts falling due after more than one year
 18 
(1,229,910)
(1,771,441)

  

Net assets
  
2,979,208
3,329,573


Capital and reserves
  

Called up share capital 
 21 
11,111
11,111

Share premium account
 22 
28,886
28,886

Profit and loss account
 22 
2,939,211
3,289,576

  
2,979,208
3,329,573



- 12 -



 
ICHIBAN UK LIMITED
REGISTERED NUMBER:08776727

    
BALANCE SHEET (CONTINUED)
AS AT 29 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.




R J Baker
Director

The notes on pages 18 to 35 form part of these financial statements.


- 13 -



 
ICHIBAN UK LIMITED
 


STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 SEPTEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 25 September 2021
11,111
28,886
3,669,638
3,709,635


Comprehensive income for the period

Loss for the period
-
-
(380,062)
(380,062)



At 1 October 2022
11,111
28,886
3,289,576
3,329,573


Comprehensive income for the period

Loss for the period
-
-
(350,365)
(350,365)


At 29 September 2023
11,111
28,886
2,939,211
2,979,208


The notes on pages 18 to 35 form part of these financial statements.


- 14 -



 
ICHIBAN UK LIMITED
 


STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

29 September
30 September
2023
2022
£
£

Cash flows from operating activities

Loss for the financial period
(350,365)
(380,062)

Adjustments for:

Depreciation of tangible assets
375,844
414,240

Interest paid
121,822
61,794

Interest received
(180)
(1,000)

Taxation charge
-
(38,178)

Decrease/(increase) in stocks
343,588
(524,503)

Decrease/(increase) in debtors
830,504
(282,622)

Increase in creditors
186,724
270,741

Net cash generated from operating activities

1,507,937
(479,590)


Cash flows from investing activities

Purchase of tangible fixed assets
(409,935)
(141,635)

Sale of tangible fixed assets
177,394
-

Interest received
180
1,000

HP interest paid
(33,566)
(15,801)

Net cash from investing activities

(265,927)
(156,436)

- 15 -



 
ICHIBAN UK LIMITED
 


STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

29 September
30 September

2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(350,000)
(304,167)

Repayment of finance leases
(197,765)
(220,486)

Interest paid
(88,256)
(45,993)

Net cash used in financing activities
(636,021)
(570,646)

Net increase/(decrease) in cash and cash equivalents
605,989
(1,206,672)

Cash and cash equivalents at beginning of period
44,787
1,251,459

Cash and cash equivalents at the end of period
650,776
44,787


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
650,776
44,787


The notes on pages 18 to 35 form part of these financial statements.


- 16 -



 
ICHIBAN UK LIMITED
 


ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 29 SEPTEMBER 2023





At 1 October 2022
Cash flows
Other non-cash changes
At 29 September 2023
£

£

£

£

Cash at bank and in hand

44,787

605,989

-

650,776

Debt due after 1 year

(1,045,833)

-

350,000

(695,833)

Debt due within 1 year

(350,000)

350,000

(350,000)

(350,000)

Finance leases

(918,604)

197,765

-

(720,839)


(2,269,650)
1,153,754
-
(1,115,896)

The notes on pages 18 to 35 form part of these financial statements.


- 17 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

1.


General information

Ichiban UK Limited (the "Company") is a private company limited by shares, domiciled and incorporated in England and Wales. The address of the registered office is Barrack Farm, Warren Lane, Woolpit, Bury St Edmunds, Suffolk IP30 9RT.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company has drawn up its financial statements to 29 September 2023 (2022: 30 September 2022), being the last working day of the week before the accounting reference date. The directors believe this is appropriate as it removes the need for subjective accruals in respect of work that would otherwise straddle the period-end.

The following principal accounting policies have been applied:


- 18 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.2

Going concern

The directors have considered the Company's business activities, together with the factors likely to affect its future development, performance and position. The directors have also assessed the financial risks facing the Company, its liquidity position and available borrowing facilities as set out in the Strategic Report.
During the course of the period the Company met its working capital requirements through a bank loan and overdraft facility.  Subsequent to period end the Company has increased it's bank overdraft facility to £950,000 through to 25 December 2024.  Also subsequent to period end the Company has agreed terms on an invoice discounting agreement in connection only with sales to the Company's largest customer.
The Company is dependent on the continued support of Woolpit Business Parks Limited, a company under common control.  The Company leases its premises from Woolpit Business Parks Limited and has not made any rent payments since January 2024.  Woolpit Business Parks Limited has committed to not call for payment of any rent due to it now or in the future should this render the company unable to settle its liabilities as they fall due.  Woolpit Business Parks Limited has also committed to provide sufficient funds to enable the Company to continue trading for a period of at least 12 months from the date these financial statements were approved should this be required.  The directors have obtained written confirmation from Woolpit Business Parks Limited of its commitment to provide this support.  However, there remains a risk that this support could be withdrawn.
The directors have prepared detailed forecasts and in preparing these forecasts they have made certain assumptions around forecast revenues and cash flows.  Assumptions made by the directors in preparing the forecasts include additional revenues from new product lines, a range of cost reduction measures and lower stock levels.  The new product lines have been confirmed with the customers, although the supply agreements do not commit them to any minimum volumes.  Detailed plans on how the cost reduction measures and lower stock levels will be achieved have been prepared but have not been fully implemented.  Consequently, there is some uncertainty over the extent to which the cash flows from these developments will be realised; nonetheless those forecasts are considered prudent by the directors and reflect the likely impact of the ongoing cost of living crisis and the wider global economic environment.  The forecasts indicate that the Company will have sufficient resources available within its current funding arrangements to meet its working capital needs, and to meet its obligations as they fall due.
There is always uncertainty when preparing business forecasts, and the directors recognise that the current global economic environment potentially increases the level of uncertainty when preparing its cash flow and trading forecasts.  However, given the Company's success in adapting its operations, management consider that the Company is well placed to mitigate the risk of further global events.  
After making all appropriate enquiries, the directors have not identified any material uncertainties and have a reasonable expectation that the Company has adequate resources to continue in operational existence and to settle its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved.  For this reason, they continue to adopt the going concern basis in preparing the financial statements.


- 19 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.4

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from the sale of sushi products is recognised when the goods have been delivered to the customer.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.


- 20 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.6

Sale and leaseback

Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method.
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.

 
2.7

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.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.


- 21 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.13

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
3 - 12 years straight line
Fixtures and fittings
-
5 years straight line
Office equipment
-
3 - 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.


- 22 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.


- 23 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.19

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
 


- 24 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
The useful economic life of tangible fixed assets and consideration of impairment thereon is based on estimates made by the directors. These are reviewed annually for any revisions needed.
Stocks are stated at the lower of cost and net realisable value, after making due allowance for the stock provision. Management review the stock holdings and make a provision for slow moving and obsolete stock (where relevant) based upon historical experience where the recoverable amount on a stock item has fallen below the cost.
The directors have made the judgment not to recognise a net deferred tax asset of £436,454 (2022 - £190,635) due to there being significant uncertainty over the timing and extent of its utilisation.


- 25 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
30,937,166
32,190,014


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
2,925
2,875


Accruals and deferred income include Local Authority grants receivable of £5,919 (2022 - £8,844). The income is recognised in the profit and loss account at the same rate as the assets they were used to purchase are depreciated. The income recognised in the profit and loss account during the period was £2,925 (2022 - £2,875).


6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Research & development charged as an expense
11,698
7,802

Exchange differences
(6)
(1,780)

Other operating lease rentals
461,692
456,212


7.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
22,750
19,950

- 26 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
10,001,367
9,621,454

Social security costs
893,236
821,006

Cost of defined contribution scheme
193,130
174,118

11,087,733
10,616,578


The average monthly number of employees, including the directors, during the period was as follows:


        2023
        2022
            No.
            No.







Factory
308
305



Administrative
46
44

354
349


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
127,992
112,636

Company contributions to defined contribution pension schemes
11,359
11,047

139,351
123,683


During the period retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

There was no key management personnel other than the directors. The key management personnel compensation for the period was £155,346 (2022 - £138,144). The difference between this and the director's remuneration is employer's national insurance contributions.


- 27 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
180
1,000


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
88,256
45,993

Finance leases and hire purchase contracts
33,566
15,801

121,822
61,794

The bank interest payable is net of £Nil (2022 - £6,950) paid by the UK Government under the Coronavirus Business Interruption Loan Scheme.
The finance lease charges are net of £Nil (2022 - £27,768) paid by the UK Government under the Coronavirus Business Interruption Loan Scheme.


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
-


Deferred tax


Origination and reversal of timing differences
-
(38,178)


Taxation on loss on ordinary activities
-
(38,178)

- 28 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(350,365)
(418,240)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
(77,080)
(79,466)

Effects of:


Other assets not qualifying for capital allowance purposes
1,405
856

Utilisation of tax losses
-
4,400

Deferred taxation asset not recognised
78,736
36,578

Non-taxable income
(3,061)
(546)

Total tax charge for the period
-
(38,178)


Factors that may affect future tax charges

The UK corporation tax rate increased from 19% to 25% on 1 April 2023.
The Company has estimated corporation tax losses carried forward amounting to £3,273,635 (2022 - £2,846,562). 


- 29 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

13.


Tangible fixed assets







Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2022
4,383,232
23,492
237,462
4,644,186


Additions
341,521
25,248
43,166
409,935


Disposals
(177,394)
-
-
(177,394)



At 29 September 2023

4,547,359
48,740
280,628
4,876,727



Depreciation


At 1 October 2022
2,360,535
23,492
198,897
2,582,924


Charge for the period
343,655
629
31,560
375,844



At 29 September 2023

2,704,190
24,121
230,457
2,958,768



Net book value



At 29 September 2023
1,843,169
24,619
50,171
1,917,959



At 30 September 2022
2,022,697
-
38,565
2,061,262

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


29 September
30 September
2023
2022
£
£



Plant and machinery
894,784
1,086,228


- 30 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

14.


Stocks

29 September
30 September
2023
2022
£
£

Raw materials and consumables
1,185,896
1,423,829

Finished goods and goods for resale
572,068
677,723

1,757,964
2,101,552


The carrying value of stocks are stated net of impairment losses totalling £132,027 (2022 - £44,027). Impairment losses totalling £88,000 (2022 - £Nil) were recognised in profit and loss.


15.


Debtors

29 September
30 September
2023
2022
£
£


Trade debtors
3,125,267
3,687,523

Other debtors
122,548
185,576

Prepayments and accrued income
270,662
475,882

3,518,477
4,348,981



16.


Cash and cash equivalents

29 September
30 September
2023
2022
£
£

Cash at bank and in hand
650,776
44,787



- 31 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

17.


Creditors: Amounts falling due within one year

29 September
30 September
2023
2022
£
£

Bank loans
350,000
350,000

Trade creditors
2,101,835
1,596,995

Other taxation and social security
240,238
231,533

Obligations under finance lease and hire purchase contracts
186,762
192,996

Other creditors
156,631
164,790

Accruals and deferred income
600,592
919,254

3,636,058
3,455,568


The bank loans are secured by a debenture with Lloyds Bank plc dated 16 April 2015 which secures all borrowings by fixed and floating charges over the company's assets.
Trade creditors includes £882,627 (2022 - £832,768) which is secured against the stock to which they relate.
The obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


18.


Creditors: Amounts falling due after more than one year

29 September
30 September
2023
2022
£
£

Bank loans
695,833
1,045,833

Net obligations under finance leases and hire purchase contracts
534,077
725,608

1,229,910
1,771,441


The bank loans are secured by a debenture with Lloyds Bank plc dated 16 April 2015 which secures all borrowings by fixed and floating charges over the company's assets.
The obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


- 32 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

19.


Loans


Analysis of the maturity of loans is given below:


29 September
30 September
2023
2022
£
£

Amounts falling due within one year

Bank loans
350,000
350,000

Amounts falling due 1-2 years

Bank loans
350,000
350,000

Amounts falling due 2-5 years

Bank loans
345,833
695,833


1,045,833
1,395,833


The bank loans are provided under the Coronavirus Business Interruption Loan Scheme. They are repayable in equal monthly instalments and attract interest at rates between 2.18% and 2.85% above the Bank of England base rate.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

29 September
30 September
2023
2022
£
£


Within one year
211,621
225,702

Between 1-5 years
564,324
775,945

775,945
1,001,647

The minimum lease payments relate to amounts payable under sale and leaseback agreements. They are payable by fixed monthly instalments. The Company has the option to purchase the assets after it has made the minimum lease payments for small administrative fees. Until such options have been exercised the assets remain the property of the lessors. The minimum lease payments include £775,945 (2022 - £987,566) in respect of an agreement provided under the Coronavirus Business Interruption Loan Scheme.


- 33 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

21.


Share capital

29 September
30 September
2023
2022
£
£
Issued, allotted, called up and fully paid



11,111 Ordinary shares of £1.00 each
11,111
11,111



22.


Reserves

Share premium account

The share premium account represents the excess amount paid in respect to the Company's nominal value of share capital.

Profit and loss account

The profit and loss represents the Company's accumulated profits which are available for distribution to shareholders.


23.


Capital commitments


At 29 September 2023 the Company had capital commitments as follows:

29 September
30 September
2023
2022
£
£


Contracted for but not provided in these financial statements
4,268
231,860


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £193,130 (2022 -  £174,118). Contributions totalling £39,231 (2022 - £44,840) were payable to the fund at the balance sheet date and are included in creditors.


- 34 -



 
ICHIBAN UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2023

25.


Commitments under operating leases

At 29 September 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 September
30 September
2023
2022
£
£


Not later than 1 year
31,212
2,315


26.


Related party transactions

At the period end the Company owed accrued interest of £78,080 (2022 - £78,080) to shareholders in respect of shareholder loans for which the capital element was fully repaid in previous years.
At the period end the Company owed a trade creditor of £Nil (2022 - £127,500) to a company under common control.
During the period the Company was charged rent of £425,000 (2022 - £425,000) by a company under common control.
During the period the Company sold equipment of £177,394 (2022 - £Nil) to a company under common control.


27.


Controlling party

The Company is controlled by Mr R J Baker and Mrs P M Baker by virtue of their majority shareholding.

 

- 35 -