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REGISTERED NUMBER: 08199187 (England and Wales)















Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

YOUR GRIND LTD

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Contents of the Financial Statements
for the year ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


YOUR GRIND LTD

Company Information
for the year ended 31 December 2023







Directors: S Rapoport
P H Turton
C Bull
L Rodwell
N Curran





Registered office: A403 The Biscuit Factory
100 Clements Road
London
SE16 4DG





Registered number: 08199187 (England and Wales)





Auditors: Cooper Parry Group Limited
Statutory Auditor
Aissela
46 High Street
Esher
Surrey
KT10 9QY

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Strategic Report
for the year ended 31 December 2023


The directors present their strategic report for the year ended 31 December 2023.

Review of the business
The company's principal activities during the year continued to be producing and selling coffee to businesses and consumers.

The company considers the key financial performance indicators to be Turnover and EBITDA.

2023 2022 Change
£ £ %
Turnover 11,664,197 11,437,911 1.98
EBITDA 325,729 90,409 260

Turnover grew by 1.98% in 2023. The continued growth in the Business-to-Business (B2B) channel and initial entry into the Grocery offset the slight decline in Direct-to-Consumer (D2C) after the normalisation of trading post-COVID. Whilst revenues were lower year on year in the first half of 2023, they grew by 9% in the second half, with 19% growth achieved in Q4 proving the company was back on a solid growth trajectory.

The company's development into a multi-channel business will drive double-digit turnover growth in 2024. Revenue is increasing across all sales channels, fuelled by a resurgence of its D2C subscription channel, together with traction gained in the grocery market and ongoing expansion of B2B. Furthermore, the company also expects to accelerate sales from the Pact Store, its non-subscription consumer channel. It is expanding its range of seasonal products and expects to sell a record number of its flagship coffee advent calendars and new innovative products during Q4.

EBITDA increased by 260%, despite a 2% reduction in the gross margin due to the surge in coffee prices. With challenging market conditions and rising customer acquisition costs, the company adapted its strategy by reducing marketing spend to focus on efficient payback periods and acquiring customers with high lifetime values. This approach has improved profitability and the quality of customers acquired.

As the company continues this strategy and revenues increase, EBITDA is expected to grow again in 2024. However, profitability remains susceptible to fluctuations in the volatile coffee market. Nevertheless, due to its multi-channel approach, the directors are comfortable with the business's financial strength to withstand these fluctuations.

Principal Risks and Uncertainties
Currency risk
The company buys its coffee in US Dollars and is therefore subject to the volatility of exchange rates. Hedging arrangements are in place to mitigate this risk.

Interest rate risk
The company has a bank loan where a floating rate basis determines the interest rate, which is subject to increases in the Bank of England base rate.

Inflation Risk
The business is subject to inflationary pressures, particularly on direct costs. The company regularly reviews its cost base to offset cost increases in other areas.

Credit Risk
The credit risk to the business is primarily with B2B customers paying on credit terms. The company has credit control procedures to mitigate the risk of bad debt.

On behalf of the board:





N Curran - Director


23 September 2024

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Report of the Directors
for the year ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

Principal activity
The principal activity of the company in the year under review was that of producing and selling coffee to businesses and consumers.

Dividends
No dividends will be distributed for the year ended 31 December 2023.

Future developments
There are no significant changes to the business operations expected during 2023.

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

S Rapoport
P H Turton
C Bull
L Rodwell
N Curran

Financial instruments
Details of risks related to financial instruments are provided in the strategic report on page 2.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;
-make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Report of the Directors
for the year ended 31 December 2023


Auditors
The audit business of Haines Watts Kingston LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Kingston LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

The auditors, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





N Curran - Director


23 September 2024

Report of the Independent Auditors to the Members of
Your Grind Ltd


Opinion
We have audited the financial statements of Your Grind Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The 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 31 December 2023 and of its profit for the year 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 Auditors' 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 UK, including the FRC'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.

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our 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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Your Grind Ltd


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Your Grind Ltd


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 2006. Our 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 a Report of the Auditors 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.




Paul Hodgett BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
Aissela
46 High Street
Esher
Surrey
KT10 9QY

23 September 2024

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Income Statement
for the year ended 31 December 2023

2023 2022
Notes £ £

Turnover 3 11,664,198 11,437,911

Cost of sales 6,063,012 5,679,147
Gross profit 5,601,186 5,758,764

Administrative expenses 5,436,614 5,909,577
Operating profit/(loss) 6 164,572 (150,813 )


Interest payable and similar expenses 7 132,893 127,470
Profit/(loss) before taxation 31,679 (278,283 )

Tax on profit/(loss) 8 - (105,394 )
Profit/(loss) for the financial year 31,679 (172,889 )

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Other Comprehensive Income
for the year ended 31 December 2023

2023 2022
Notes £ £

Profit/(loss) for the year 31,679 (172,889 )


Other comprehensive income - -
Total comprehensive income for the year 31,679 (172,889 )

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Balance Sheet
31 December 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 9 26,477 57,098
Tangible assets 10 109,763 192,817
136,240 249,915

Current assets
Stocks 11 521,896 534,947
Debtors 12 658,356 791,686
Cash at bank 953,906 797,253
2,134,158 2,123,886
Creditors
Amounts falling due within one year 13 1,554,599 1,440,370
Net current assets 579,559 683,516
Total assets less current liabilities 715,799 933,431

Creditors
Amounts falling due after more than one
year

14

539,054

788,365
Net assets 176,745 145,066

Capital and reserves
Called up share capital 17 3 3
Share premium 18 5,649,959 5,649,959
Retained earnings 18 (5,473,217 ) (5,504,896 )
Shareholders' funds 176,745 145,066

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





N Curran - Director


YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 January 2022 3 (5,332,007 ) 5,649,959 317,955

Changes in equity
Total comprehensive income - (172,889 ) - (172,889 )
Balance at 31 December 2022 3 (5,504,896 ) 5,649,959 145,066

Changes in equity
Total comprehensive income - 31,679 - 31,679
Balance at 31 December 2023 3 (5,473,217 ) 5,649,959 176,745

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Cash Flow Statement
for the year ended 31 December 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 483,473 232,438
Interest paid (132,893 ) (127,470 )
Tax paid 105,394 20,719
Net cash from operating activities 455,974 125,687

Cash flows from investing activities
Purchase of intangible fixed assets - (5,279 )
Purchase of tangible fixed assets (38,144 ) (38,166 )
Net cash from investing activities (38,144 ) (43,445 )

Cash flows from financing activities
Loan repayments in year (261,177 ) (216,842 )
Net cash from financing activities (261,177 ) (216,842 )

Increase/(decrease) in cash and cash equivalents 156,653 (134,600 )
Cash and cash equivalents at beginning
of year

2

797,253

931,853

Cash and cash equivalents at end of year 2 953,906 797,253

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Cash Flow Statement
for the year ended 31 December 2023


1. Reconciliation of profit/(loss) before taxation to cash generated from operations
2023 2022
£ £
Profit/(loss) before taxation 31,679 (278,283 )
Depreciation charges 169,618 238,553
Loss on disposal of fixed assets - 742
Finance costs 132,893 127,470
334,190 88,482
Decrease/(increase) in stocks 13,051 (68,176 )
Decrease/(increase) in trade and other debtors 27,936 (33,215 )
Increase in trade and other creditors 108,296 245,347
Cash generated from operations 483,473 232,438

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£ £
Cash and cash equivalents 953,906 797,253
Year ended 31 December 2022
31/12/22 1/1/22
£ £
Cash and cash equivalents 797,253 931,853


3. Analysis of changes in net (debt)/funds

At 1/1/23 Cash flow At 31/12/23
£ £ £
Net cash
Cash at bank 797,253 156,653 953,906
797,253 156,653 953,906
Debt
Finance leases (111,215 ) 19,882 (91,333 )
Debts falling due within 1 year (223,496 ) - (223,496 )
Debts falling due after 1 year (711,370 ) 223,496 (487,874 )
(1,046,081 ) 243,378 (802,703 )
Total (248,828 ) 400,031 151,203

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements
for the year ended 31 December 2023


1. Statutory information

Your Grind Limited is a private company, limited by shares, registered and domiciled in England and Wales. The address of its registered office is A403 The Biscuit Factory, 100 Clements Road, London. The financial statements are presented in Pound Sterling (£) which is the functional currency of the Company and rounded to the nearest £.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis.

The directors have prepared a 3 year cash flow forecast. Based on these assessments,and the current resources available, the directors are of the opinion that the above is sufficient to conclude that the company is a going concern.

The financial statements do not include any adjustments to the value of the balance sheet which would result should the going concern basis not be valid.

Based on these assessments, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual financial statements.

Key source of estimation, uncertainty and judgement
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Turnover
Turnover represents sales derived from the supply of roasted coffees produced by the company as well as other coffee related hardware.

Turnover is presented net of VAT and other taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - Straight line over 3 years
Fixtures and fittings - Straight line over 3 years
Computer equipment - Straight line over 3 years

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

Hire purchase and leasing commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the group, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset’s useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the
remaining balance of the liability.

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis.

3. Turnover

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£ £
United Kingdom 11,664,198 11,437,911
11,664,198 11,437,911

4. Employees and directors
2023 2022
£ £
Wages and salaries 2,444,992 2,236,990
Social security costs 220,392 211,161
Other pension costs 62,322 58,314
2,727,706 2,506,465

The average number of employees during the year was as follows:
2023 2022

Sales 9 10
Production 22 20
Management 6 7
Logistics 32 29
69 66

5. Directors' emoluments
2023 2022
£ £
Directors' remuneration 292,419 259,995

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 155,400 140,485

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


6. Operating profit/(loss)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

2023 2022
£ £
Depreciation - owned assets 138,998 170,865
Profit on disposal of fixed assets - (1,687 )
Development costs amortisation 30,621 67,689
Auditors' remuneration 12,175 12,000
Foreign exchange differences (2,551 ) 15,220

7. Interest payable and similar expenses
2023 2022
£ £
Interest and finance charges 132,893 127,470

8. Taxation

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax - (105,394 )
Tax on profit/(loss) - (105,394 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit/(loss) before tax 31,679 (278,283 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

7,920

(52,874

)

Effects of:
Expenses not deductible for tax purposes 50 1,115
Depreciation in excess of capital allowances 28,145 34,895
Utilisation of tax losses (36,115 ) -
R&D enhanced deduction - (121,334 )
Tax losses carried forward - 31,862
Difference in tax rate - 942
Total tax credit - (105,394 )

A deferred tax asset has not been recognised in respect of tax losses of £5,003,910 (2022: £5,149,241). At a tax rate of 25% and 19% these losses would represent a potential tax asset of £1,251,246 (2022: £978,356).

No deferred tax asset has been provided on the above losses due to the uncertainty as to the timing of the reversal of these losses. As such, no liability has been recognised as the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority and the liabilities are expected to be realised simultaneously with the assets in future periods and so are offset.

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


9. Intangible fixed assets
Development
costs
£
Cost
At 1 January 2023
and 31 December 2023 215,355
Amortisation
At 1 January 2023 158,257
Amortisation for year 30,621
At 31 December 2023 188,878
Net book value
At 31 December 2023 26,477
At 31 December 2022 57,098

10. Tangible fixed assets
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£ £ £ £ £
Cost
At 1 January 2023 615,606 274,179 8,500 208,624 1,106,909
Additions 5,830 15,016 - 35,098 55,944
At 31 December 2023 621,436 289,195 8,500 243,722 1,162,853
Depreciation
At 1 January 2023 482,708 246,664 4,250 180,470 914,092
Charge for year 89,698 29,112 2,833 17,355 138,998
At 31 December 2023 572,406 275,776 7,083 197,825 1,053,090
Net book value
At 31 December 2023 49,030 13,419 1,417 45,897 109,763
At 31 December 2022 132,898 27,515 4,250 28,154 192,817

£188,741 (2022: £170,941) of assets were bought under finance leases.

11. Stocks
2023 2022
£ £
Stocks 310,634 301,676
Raw materials 197,215 210,072
Finished goods 14,047 23,199
521,896 534,947

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


12. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors 470,290 397,163
Other debtors 27,218 24,266
Tax - 105,394
VAT 80,194 162,014
Prepayments 80,654 102,849
658,356 791,686

13. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts (see note 15) 223,496 223,496
Hire purchase contracts (see note 16) 40,153 34,220
Trade creditors 708,399 762,534
Social security and other taxes 61,666 53,402
Other creditors 28,706 52,457
Accrued expenses 492,179 314,261
1,554,599 1,440,370

14. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans (see note 15) 487,874 711,370
Hire purchase contracts (see note 16) 51,180 76,995
539,054 788,365

15. Loans

An analysis of the maturity of loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank loans 223,496 223,496

Amounts falling due between two and five years:
Bank loans - 2-5 years 487,874 711,370

There are fixed charges, a negative pledge and a floating charge covering the property undertaking of the company at Companies House.

YOUR GRIND LTD (REGISTERED NUMBER: 08199187)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


16. Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£ £
Net obligations repayable:
Within one year 40,153 34,220
Between one and five years 51,180 76,995
91,333 111,215

Non-cancellable
operating leases
2023 2022
£ £
Within one year 35,000 82,333
Between one and five years - 35,000
35,000 117,333

17. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
1,467,239 Ordinary £0.000001 1 1
1,487,722 A Ordinary £0.000001 2 2
3 3

18. Reserves
Retained Share
earnings premium Totals
£ £ £

At 1 January 2023 (5,504,896 ) 5,649,959 145,063
Profit for the year 31,679 31,679
At 31 December 2023 (5,473,217 ) 5,649,959 176,742

19. Share options

In order to provide incentive, the Board of Directors have granted share options to certain employees. At 31 December 2023 there were unallocated outstanding options to purchase up to 2,323 (2022: 71,460) new ordinary shares of £0.000001 each granted under H M Revenue and Customs Enterprise Management Incentive Scheme Rules. The options became exercisable at various dates from the first anniversary of the vesting commencement date.

No charge has been made in the financial statements for the cost of the options which were granted at the market value of the shares at the date the options were granted.

During the year 15,703 share options were exercised by employees at an exercise price of £0.000001 per share.