Company registration number 13706850 (England and Wales)
PARIS BAGUETTE UK CO., LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PARIS BAGUETTE UK CO., LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
PARIS BAGUETTE UK CO., LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,249,619
2,201,562
Current assets
Stocks
79,807
136,626
Debtors
6
1,447,338
963,201
Cash at bank and in hand
47,561
1,942,154
1,574,706
3,041,981
Creditors: amounts falling due within one year
7
(1,839,071)
(1,610,335)
Net current (liabilities)/assets
(264,365)
1,431,646
Net assets
1,985,254
3,633,208
Capital and reserves
Called up share capital
5,200,000
5,200,000
Profit and loss reserves
(3,214,746)
(1,566,792)
Total equity
1,985,254
3,633,208

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
Jin Soo Hur
Director
Company registration number 13706850 (England and Wales)
PARIS BAGUETTE UK CO., LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 27 October 2021
-
0
-
0
-
0
Year ended 31 December 2022:
Loss and total comprehensive income
-
(1,566,792)
(1,566,792)
Issue of share capital
5,200,000
-
5,200,000
Balance at 31 December 2022
5,200,000
(1,566,792)
3,633,208
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,647,954)
(1,647,954)
Balance at 31 December 2023
5,200,000
(3,214,746)
1,985,254
PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Paris Baguette UK Co., Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Ambrose House, Meteor Court, Barnett Way, Barnwood, Gloucester, GL4 3GG. The principal place of business is 005 The Power Station, Upper Ground Floor, Battersea Power Station, London, SW11 8BZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Accounting standards require the directors to consider the appropriateness of the going concern basis when preparing financial statements, and to assess whether there are any material uncertainties that may cast significant doubt on the ability of the company to continue as a going concern.

 

The company has made a loss in the year and has net current liabilities of £264,365, and is reliant on group companies, The directors have confirmed that they believe that the going concern basis is appropriate and that the company has sufficient resources to continue in operational existence for the foreseeable future.

 

The directors confirm that the UK group has the support of the wider group whilst the business is being established in the UK market. The projections for the next year anticipate continued losses which will require continuation of this support and further cash injections. A letter of support has been provided by SPC Euro, an intermediary holding company registered in France, indication that support for the UK group will continue for at least 12 months from the date that these accounts are signed. In turn, Paris Croissant Co. LTD, the ultimate parent company which is registered in Korea, has provided a letter of support to SPC Euro to enable it to support it's subsidiaries, and, in particular, Paris Baguette UK Co. LTD and Paris Baguette UK Holdings LTD.

 

The directors, who are also the directors of the ultimate parent company, have confirmed that the group has sufficient resources to be able to provide this support.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account any discounts.

 

Shop turnover is recognised when payment is tendered at the point of sale.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
15 years
Plant and equipment
5 years
Fixtures and fittings
5 years
Computers
3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

 

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

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,158
21,326
For other services
Taxation compliance services
1,750
1,950
All other non-audit services
2,500
1,950
4,250
3,900
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
61
18
PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
1,695,999
544,799
2,240,798
Additions
250,971
37,894
288,865
At 31 December 2023
1,946,970
582,693
2,529,663
Depreciation and impairment
At 1 January 2023
34,504
4,732
39,236
Depreciation charged in the year
122,074
118,734
240,808
At 31 December 2023
156,578
123,466
280,044
Carrying amount
At 31 December 2023
1,790,392
459,227
2,249,619
At 31 December 2022
1,661,495
540,067
2,201,562
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
58,458
-
0
Amounts owed by group undertakings
805,528
40,038
Other debtors
583,352
923,163
1,447,338
963,201
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
1,200,213
-
0
Trade creditors
95,254
259,764
Amounts owed to group undertakings
-
0
1,139,200
Taxation and social security
82,611
28,081
Other creditors
460,993
183,290
1,839,071
1,610,335

The bank loan of £1,200,000 is secured by a guarantee from Paris Croissant Co., Ltd, the ultimate parent company.

PARIS BAGUETTE UK CO., LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
8
Audit report information

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 auditor's report was unqualified.

Going concern
We draw your attention to note 1.2 which indicates that the company is reliant on the ongoing financial support of its intermediary holding company and ultimate parent company. The company has made a loss in the current year,  and the projections for the next year anticipate ongoing losses, and the company will require further cash injections. These conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Senior Statutory Auditor:
Claire Bishop FCCA ACA
Statutory Auditor:
Pitt Godden & Taylor LLP
Date of audit report:
27 August 2024
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
5,637,500
6,637,500
10
Related party transactions
Transactions with related parties

The company is exempt from disclosing transactions with other wholly-owned group entities under s33 of FRS102 as it is included in group consolidated financial statements.

11
Parent company

Paris Baguette UK Co., Limited is a 100% owned subsidiary of Paris Baguette UK Holdings Limited, a company registered in England.

 

The ultimate parent company is Paris Croissant Co., LTD, a company incorporated in South Korea. The ultimate controlling party of Paris Croissant Co., LTD is Young-In Hur by virtue of a majority shareholding.

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