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Registration number: 10111465

Cove Brands Limited

Filleted Financial Statements

for the Year Ended 31 December 2022

 

Cove Brands Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

Cove Brands Limited

Company Information

Directors

Kenneth Bryan Kryzda

Brian Lang Harwitt

Graham Kohan

David Kalowitz

Registered office

71-75 Shelton Street
Covent Garden
London
WC2H 9JQ

Auditors

Williamson & Croft Audit Ltd
York House
20 York Street
Manchester
M2 3BB

 

Cove Brands Limited

(Registration number: 10111465)
Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

4

4,067

5,399

Tangible assets

5

2,674

2,408

 

6,741

7,807

Current assets

 

Stocks

6

8,023,732

5,337,214

Debtors

7

10,222,907

3,935,613

Cash at bank and in hand

 

1,958,220

377,821

 

20,204,859

9,650,648

Creditors: Amounts falling due within one year

8

(3,358,096)

(2,039,851)

Net current assets

 

16,846,763

7,610,797

Total assets less current liabilities

 

16,853,504

7,618,604

Creditors: Amounts falling due after more than one year

8

(15,204,121)

(6,887,551)

Net assets

 

1,649,383

731,053

Capital and reserves

 

Called up share capital

2,000,002

2

Retained earnings

(350,619)

731,051

Shareholders' funds

 

1,649,383

731,053

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 5 September 2024 and signed on its behalf by:
 

.........................................
Kenneth Bryan Kryzda
Director

   
     
 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The company was formerly known as Benitago Limited.

The address of its registered office is:
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ
United Kingdom

These financial statements were authorised for issue by the Board on 5 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company.

Summary of disclosure exemptions

The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirements to prepare such a statement.

Going concern

The company is exploring potential options in respect of the restructuring of the group and its operations. One of these options which is under consideration is a transfer of the trade, assets and liabilities of the company to a fellow group subsidiary which would potentially result in the company ceasing trade. It is noted that it is the intention for the trade of the company to carry on, albeit within a separate entity. The options available are in the exploratory stage with no action yet confirmed.

Due to the nature of the current plans being exploratory with no action confirmed, the company is still a going concern and these accounts have been prepared on a going concern basis.

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Audit report

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006: The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 5 September 2024 was Tor Stringfellow FCA, who signed for and on behalf of Williamson & Croft Audit Ltd.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2021 - 2).

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2022

5,609

5,609

At 31 December 2022

5,609

5,609

Amortisation

At 1 January 2022

210

210

Amortisation charge

1,332

1,332

At 31 December 2022

1,542

1,542

Carrying amount

At 31 December 2022

4,067

4,067

At 31 December 2021

5,399

5,399

5

Tangible assets

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2022

2,587

2,587

Additions

980

980

At 31 December 2022

3,567

3,567

Depreciation

At 1 January 2022

179

179

Charge for the year

714

714

At 31 December 2022

893

893

Carrying amount

At 31 December 2022

2,674

2,674

At 31 December 2021

2,408

2,408

6

Stocks

2022
£

2021
£

Finished goods and goods for resale

8,023,732

5,337,214

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

7

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

356,863

160,585

Amounts owed by related parties

10

6,461,281

2,233,786

Prepayments

 

1,203,721

1,166,006

Other debtors

 

2,201,042

375,236

   

10,222,907

3,935,613

8

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

9

381,382

1,093,315

Trade creditors

 

713,250

423,617

Taxation and social security

 

-

197,211

Accruals and deferred income

 

208,718

325,708

Other creditors

 

2,054,746

-

 

3,358,096

2,039,851


Included in bank loans and overdrafts are amounts totalling £378,544 (2021: £994,284) which are secured by way of a floating charge over the companies assets.

Creditors: amounts falling due after more than one year

Note

2022
£

2021
£

Due after one year

 

Loans and borrowings

9

172,502

287,112

Other non-current financial liabilities

 

15,031,619

6,600,439

 

15,204,121

6,887,551


Included in bank loans and overdrafts are amounts totalling £156,223 (2021: £270,833) which are secured by way of a floating charge over the companies assets.

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

9

Loans and borrowings

Non-current loans and borrowings

2022
£

2021
£

Bank borrowings

156,223

270,833

Other borrowings

16,279

16,279

172,502

287,112

Current loans and borrowings

2022
£

2021
£

Bank borrowings

378,544

1,040,507

Other borrowings

2,838

52,808

381,382

1,093,315

10

Related party transactions

The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33.1A from the requirement to disclose transactions with group entities that are wholly owned members of the group.

 

Cove Brands Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Directors' remuneration

The directors' remuneration for the year was as follows:

2022
£

2021
£

Remuneration

130,540

118,382

11

Parent and ultimate parent undertaking

The company's immediate parent is Cove Brands Inc, incorporated in Delaware, United States.

 

The address of is:
The main business address of Cove Brands Inc (previously Benitago Inc)., is:

55 Broadway, Suite 401, 3rd Floor, New York, NY, 10006

The registered office address of Cove Brands Inc (previously Benitago Inc), is:

16192 Coastal Highway, Lewes, Delaware, United States