REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
YOUR GRIND LTD |
REGISTERED NUMBER: |
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: |
Registered office: |
Registered number: |
Auditors: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
Aissela |
46 High Street |
Esher |
Surrey |
KT10 9QY |
YOUR GRIND LTD (REGISTERED NUMBER: 08199187) |
Income Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales |
Gross profit |
Administrative expenses |
Operating profit/(loss) | 6 | ( |
) |
Interest payable and similar expenses | 7 |
Profit/(loss) before taxation | ( |
) |
Tax on profit/(loss) | 8 | ( |
) |
Profit/(loss) for the financial year | ( |
) |
YOUR GRIND LTD (REGISTERED NUMBER: 08199187) |
Other Comprehensive Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Profit/(loss) for the year | ( |
) |
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) |
YOUR GRIND LTD (REGISTERED NUMBER: 08199187) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 |
Tangible assets | 10 |
Current assets |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
Creditors |
Amounts falling due within one year | 13 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
14 |
Net assets |
Capital and reserves |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 | ( |
) | ( |
) |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 | ( |
) |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 132,893 | 127,470 |
334,190 | 88,482 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 | 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 |
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. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
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 |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
5. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
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 |
Profit on disposal of fixed assets | ( |
) |
Development costs amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Interest and finance charges |
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 | ( |
) |
Tax on profit/(loss) | ( |
) |
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 | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
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 |
Amortisation |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
10. | Tangible fixed assets |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
£188,741 (2022: £170,941) of assets were bought under finance leases. |
11. | Stocks |
2023 | 2022 |
£ | £ |
Stocks |
Raw materials |
Finished goods |
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 |
Other debtors |
Tax |
VAT |
Prepayments |
13. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
14. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
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 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
17. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.000001 | 1 | 1 |
A Ordinary | £0.000001 | 2 | 2 |
3 | 3 |
18. | Reserves |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | ( |
) | 145,063 |
Profit for the year |
At 31 December 2023 | ( |
) | 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. |