REGISTERED NUMBER: |
Unaudited Financial Statements |
For The Year Ended 31st December 2023 |
for |
Cafe 2 U Limited |
REGISTERED NUMBER: |
Unaudited Financial Statements |
For The Year Ended 31st December 2023 |
for |
Cafe 2 U Limited |
Cafe 2 U Limited (Registered number: 05131350) |
Contents of the Financial Statements |
For The Year Ended 31st December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
Cafe 2 U Limited |
Company Information |
For The Year Ended 31st December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
4 Old Market Place |
Ripon |
North Yorkshire |
HG4 1EQ |
Cafe 2 U Limited (Registered number: 05131350) |
Balance Sheet |
31st December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank and in hand | 7 |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Cafe 2 U Limited (Registered number: 05131350) |
Balance Sheet - continued |
31st December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements |
For The Year Ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Cafe 2 U Limited is a |
2. | ACCOUNTING POLICIES |
Summary of significant accounting policies |
(a) General information and basis of preparation |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
(b) Intangible asset |
Intangible assets acquired separately from a business are capitalised at cost. The Licence intangible asset is the Franchise Licence held to operate the Cafe2U franchise in the United Kingdom for 25 years. The original licence commenced in 2006. The computer software intangible asset are application development costs. |
Intangible assets are amortised on a straight line basis over their useful lives. The useful life of the Licence intangible asset is 25 years, being the period of the licence fee. The computer software intangible amortisaton is 5 years. |
Provision is made for any impairment. |
(c) Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Property Improvement Over the shorter of the lease term and expected life of the asset |
Plant and Machinery Between one and two years |
Fixtures & Fittings Three years |
Computer & Office Equipment Five years |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements - continued |
For The Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant accounting policies continued |
d) Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and all other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
(e) Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
(f) Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
(g) Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
(h) Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
(i) Leases |
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
(j) Tax |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements - continued |
For The Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
(k) Tax (continued) |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. |
(l) Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Turnover from the sale of franchise licence fees, van fit out fees, recurring franchise fees, product rebates and other sales is recognised when significant risks and rewards of ownership of the goods (where applicable) have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is the signing of a new franchise licence agreement or on the invoice of goods or services. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Computer |
Licences | software | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 |
AMORTISATION |
At 1st January 2023 |
Amortisation for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements - continued |
For The Year Ended 31st December 2023 |
5. | TANGIBLE FIXED ASSETS |
Fixtures | Computer |
Improvements | and | Motor | and Office |
to property | fittings | vehicles | Equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
Amount due from parent company |
Loan to parent company Director |
Directors' current accounts |
Prepayments and accrued income |
7. | CASH AT BANK AND IN HAND |
At the period end there is a balance of £6,872 (31 December 2022 £4,394) that is restricted for use on marketing expenditure under the terms of the franchise agreements. |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 10) |
Trade creditors |
Corporation Tax |
Social security and other taxes |
Other Creditors |
Accruals and deferred income |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements - continued |
For The Year Ended 31st December 2023 |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans - 1-2 years |
Bank loans - 2-5 years |
Hire purchase contracts (see note 10) |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
Cafe 2 U Limited (Registered number: 05131350) |
Notes to the Financial Statements - continued |
For The Year Ended 31st December 2023 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
The bank loan is secured by a Debenture held by HSBC Bank PLC as fixed and floating charges over the company, and all property and assets of the company. |
12. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 22,595 | 21,818 |
Deferred tax |
£ |
Balance at 1st January 2023 |
Accelerated capital allowances | 777 |
Balance at 31st December 2023 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £0.005 | 125 | 125 |
14. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31st December 2023 and 31st December 2022: |
31.12.23 | 31.12.22 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
No interest is charged and the balance is repayable on demand. |
15. | RELATED PARTY DISCLOSURES |
The company made a loan of £16,000 to a director of the immediate parent company, who is a related party of the company. Interest was charged during the year on the loan at a rate of 2% per annum until 5th April 2023, and from then on at a rate of 2.25%. The loan balance, with interest, at 31st December 2023 stands at £16,768 (2022 £16,406). The loan is repayable on demand. No repayment was made during the year. |