Registered number
10119822
RED FARM LONDON LTD
FILLETED ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RED FARM LONDON LTD
Registered number: 10119822
Balance Sheet
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 4 373,584 490,275
Current assets
Stocks 10,191 10,730
Debtors 5 298,539 323,130
Cash at bank and in hand 11,106 100,736
319,836 434,596
Creditors: amounts falling due within one year 6 (259,648) (269,727)
Net current assets 60,188 164,869
Total assets less current liabilities 433,772 655,144
Creditors: amounts falling due after more than one year 7 (1,335,261) (1,339,098)
Net liabilities (901,489) (683,954)
Capital and reserves
Called up share capital 2,631,853 2,631,853
Profit and loss account (3,533,342) (3,315,807)
Shareholders' funds (901,489) (683,954)
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
N Maadad
Director
Approved by the board on 27 June 2024
RED FARM LONDON LTD
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Going concern
The financial statements have been prepared on a going concern basis, despite the company incurring a net loss of £217,535 during the year and having the net liabilities of £901,489 at the year end. In doing so, the directors have prepared budget projections for the foreseeable future, considering uncertain trading environment. In addition, the company is reliant on its shareholders as well as other related parties for funds to support its working capital. These parties have pledged continued support for the company for at least 12 months from the date of the approval of these financial statements and in particular will not seek repayment of the amounts currently made available.

This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payments. As with any company placing reliance on other related parties for financial support, that there are no certainty that this support will continue although at the date of approval of these financial statements, there is no reason to believe that they will not do so.

On this basis, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.
Government Grants
Government grants received is recognised in the profit and loss account in the same period the expenditure it relates and has been reported as part of other operating income.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Leasehold land and buildings 20% reducing balance
Plant and machinery 33% on reducing balance
Fixtures, fittings, tools and equipment 33% on reducing balance
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Audit information
The audit report is unqualified.
Senior statutory auditor: Indra Raj Giri ACA, FCCA
Firm: Makesworth Audit Services Ltd
Date of audit report: 27 June 2024
3 Employees 2023 2022
Number Number
Average number of persons employed by the company 20 17
4 Tangible fixed assets
Leasehold buildings Plant and machinery etc Furnitures, fixtures & equipment Total
£ £ £ £
Cost
At 1 January 2023 1,123,558 254,835 54,473 1,432,866
Additions (12,106) - 787 (11,319)
At 31 December 2023 1,111,452 254,835 55,260 1,421,547
Depreciation
At 1 January 2023 688,467 214,863 39,261 942,591
Charge for the year 87,018 13,191 5,163 105,372
At 31 December 2023 775,485 228,054 44,424 1,047,963
Net book value
At 31 December 2023 335,967 26,781 10,836 373,584
At 31 December 2022 435,091 39,972 15,212 490,275
5 Debtors 2023 2022
£ £
Trade debtors 35,813 42,617
Other debtors 262,726 280,513
298,539 323,130
6 Creditors: amounts falling due within one year 2023 2022
£ £
Trade creditors 39,323 61,372
Taxation and social security costs 92,212 81,888
Other creditors 128,113 126,467
259,648 269,727
7 Creditors: amounts falling due after one year 2023 2022
£ £
Other creditors 1,335,261 1,339,098
8 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 2,609,167 2,919,167
9 Related party transactions
Included within other creditors due over one year is an amount of £1,335,261 (2022 : £1,339,098) which is owed to Gates Hospitality FZ-LLC, a company in which the directors, Mr A Sammour and Mr N Maadad are shareholders.
10 Other information
RED FARM LONDON LTD is a private company limited by shares and incorporated in England. Its registered office is:
C/O Pas Accountants Ltd
2nd Floor, The Red House
74-76 High Street
Bushey, Herefordshire
WD23 3HE
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