Company registration number 09506393 (England and Wales)
BEAN & CO GLOBAL LTD CONSOLIDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BEAN & CO GLOBAL LTD CONSOLIDATION
COMPANY INFORMATION
Directors
Mr A Barnoon
Mr R Ben Yami
Mr A Ben Yami
G Shamir
J Sowell
Mrs S Ziv
Mr Y Ziv
Company number
09506393
Registered office
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
Auditor
Cameron Baum Hollander Ltd
88-90 Crawford Street
London
W1H 2EJ
BEAN & CO GLOBAL LTD CONSOLIDATION
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
16 - 31
BEAN & CO GLOBAL LTD CONSOLIDATION
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The financial performance of the Group has improved in 2023 compared with 2022.

 

In 2023, Revenue has increased to $2,918,200 (2022: $2,473,273). The Group generated a gross loss in the period, and a loss after tax of $6,597,722 (2022: $19,115,597). A key factor behind the loss for the prior year was a large impairment of fixed assets. The Directors are confident that performance will be improved in 2024.

In 2016, Bean&co Nicaragua purchased agricultural land in Nicaragua. The groups intended use for this acquisition was to grow cocoa for sale. Since then the Group invested in developments to the land including Irrigation equipment, bearer plants, Machinery, constructions, and others, to prepare the qualifying asset for its intended use.

 

The company capitalized borrowing costs that are attributable to the acquisition, construction and production of qualifying assets which necessarily take a substantial period of time to get ready for their intended use or sale.

 

In December 2022, the establishing process of the qualifying asset was completed, and the company decided that in addition to the growth and sale of cocoa, the asset will intend to grow and sell plantain bananas in order to increase the future operating cash flow.

 

As of December 31, 2022, the Company received from an independent appraiser an external evaluation regarding the operation in Nicaragua as it recorded in the consolidated statement of financial position. The appraiser, in the process of preparing the evaluation as of December 31, 2022, implemented the discount cash flow approach (DCF) according to management's forecasts for the future years. The appraiser used WACC of 16.5%.

 

The company's forecast cash flow, was based production of 20 hectare of cocoa and 800 hectare of plantain bananas, out of which 20 hectare of cocoa and 200 hectare of plantain bananas already available as of December 2022.

According to the evaluation, the fair value of the operation was USD 17.5 Million, therefore

the company recognized an impairment of USD 14.4 Million.

 

The directors have evaluated the valuation in 2023 and are of the opinion that the valuation is unchanged.

 

In 2016, as part of the SPA dated March 2016, the company received land rights in Nigeria.

As of December 31 ,2023, the company's management decided to amortize the land rights

value in the books to $0 as the viability of developing it further was considered to be beyond the scope of the company.

 

BEAN & CO GLOBAL LTD CONSOLIDATION
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The group's operations expose it to a variety of financial risks that include the effect of market risk (including currency risk and price risk), credit risk and liquidity risk. The group's overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the group's financial performance. The group uses sound management principles to protect against certain financial risk exposure.

The directors are responsible for setting the objectives and underlying principles of financial risk management for the group. The senior management team then establishes the detailed policies such as authority levels, oversight responsibilities, risk identification and measurement, exposure limits and hedging strategies. The policies set by the board of directors are implemented by the group's finance department.

 

Currency risk

Currency risk arises when transactions are denominated in foreign currencies. To manage the currency risk, the directors periodically will authorise limited foreign currency planning to mitigate the relevant foreign exchange exposure.

 

Price risk

The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the cost of managing exposure to commodity price exceed any potential benefit. The directors will revisit the appropriateness of this policy should the group's operations change substantially.

 

Credit risk

Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. For all customers, the group perform credit evaluations to assess credit worthiness. For other financial assets, the group adopts the policy of dealing only with high credit quality counterparts. Credit exposure to an individual counterparty is restricted by credit limits that are approved based on ongoing credit evaluation.

 

Liquidity risk

The liquidity risk is usually assessed by comparing liquid assets and short term liabilities. The group manages the liquidity risk by using cash flow forecasts which enables the group to monitor its working capital and take remedial action when necessary.

 

As part of the liquidity risk management, the company has received written undertakings from its principle shareholders to continue to provide the company with sufficient working capital to continue its operations as and when required.

 

 

 

 

Outlook

The Group has had a stronger start to the new financial year and has signed agreements with various counterparties in different geographical locations, to expand the cocoa plantations. The Group look forward to significant growth in revenue and to become profitable.

On behalf of the board

Mr Y Ziv
Director
27 September 2024
BEAN & CO GLOBAL LTD CONSOLIDATION
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of the growth and cultivation of cocoa plantations worldwide.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A Barnoon
Mr R Ben Yami
Mr A Ben Yami
G Shamir
J Sowell
Mrs S Ziv
Mr Y Ziv
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

BEAN & CO GLOBAL LTD CONSOLIDATION
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Y Ziv
Director
27 September 2024
BEAN & CO GLOBAL LTD CONSOLIDATION
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BEAN & CO GLOBAL LTD CONSOLIDATION
- 5 -
Opinion

We have audited the financial statements of Bean & Co Global Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Balance Sheet, Company Balance Sheet and 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 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.

 

BEAN & CO GLOBAL LTD CONSOLIDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BEAN & CO GLOBAL LTD CONSOLIDATION
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

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.

BEAN & CO GLOBAL LTD CONSOLIDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BEAN & CO GLOBAL LTD CONSOLIDATION
- 7 -

Procedures adopted to mitigate limitations outlined above include:

 

The following laws and regulations were identified as being of significance to the entity:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Daniel Ian Baum (Senior Statutory Auditor)
For and on behalf of Cameron Baum Hollander Limited
27 September 2024
Chartered Accountants
Statutory Auditor
88 Crawford Street
London
W1H 2EJ
BEAN & CO GLOBAL LTD CONSOLIDATION
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
$
$
Turnover
3
2,918,200
2,473,273
Cost of sales
(3,203,001)
(3,157,887)
Gross loss
(284,801)
(684,614)
Administrative expenses
(5,803,502)
(17,372,259)
Operating loss
4
(6,088,303)
(18,056,873)
Interest receivable and similar income
6
113,757
45,969
Interest payable and similar expenses
7
(571,276)
(42,937)
Loss before taxation
(6,545,822)
(18,053,841)
Tax on loss
8
(51,900)
(1,061,756)
Loss for the financial year
(6,597,722)
(19,115,597)
Loss for the financial year is all attributable to the owners of the parent company.
BEAN & CO GLOBAL LTD CONSOLIDATION
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
$
$
Loss for the year
(6,597,722)
(19,115,597)
Other comprehensive income
-
-
Total comprehensive income for the year
(6,597,722)
(19,115,597)
Total comprehensive income for the year is all attributable to the owners of the parent company.
BEAN & CO GLOBAL LTD CONSOLIDATION
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
$
$
$
$
Fixed assets
Intangible assets
9
51,973
-
0
Tangible assets
10
29,292,528
31,491,322
29,344,501
31,491,322
Current assets
Stocks
13
769,571
240,079
Debtors
14
674,889
1,054,789
Cash at bank and in hand
287,545
169,741
1,732,005
1,464,609
Creditors: amounts falling due within one year
15
(5,956,608)
(6,594,648)
Net current liabilities
(4,224,603)
(5,130,039)
Total assets less current liabilities
25,119,898
26,361,283
Creditors: amounts falling due after more than one year
16
(31,743,805)
(26,387,466)
Net liabilities
(6,623,907)
(26,183)
Capital and reserves
Called up share capital
19
1,000,000
1,000,002
Share premium account
39,180,510
39,180,510
Profit and loss reserves
(46,804,417)
(40,206,695)
Total equity
(6,623,907)
(26,183)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Mr Y Ziv
Director
Company registration number 09506393 (England and Wales)
BEAN & CO GLOBAL LTD CONSOLIDATION
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
10
-
0
2,900,000
Investments
11
143,923
143,923
143,923
3,043,923
Current assets
Debtors
14
60,493,574
54,248,248
Cash at bank and in hand
21,208
7,951
60,514,782
54,256,199
Creditors: amounts falling due within one year
15
(3,787,874)
(3,332,986)
Net current assets
56,726,908
50,923,213
Total assets less current liabilities
56,870,831
53,967,136
Creditors: amounts falling due after more than one year
16
(27,176,961)
(20,832,944)
Net assets
29,693,870
33,134,192
Capital and reserves
Called up share capital
19
1,000,000
1,000,000
Share premium account
39,180,510
39,180,510
Profit and loss reserves
(10,486,640)
(7,046,318)
Total equity
29,693,870
33,134,192

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was $3,440,323 (2022 - $34,433 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Mr Y Ziv
Director
Company registration number 09506393 (England and Wales)
BEAN & CO GLOBAL LTD CONSOLIDATION
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
$
$
$
$
Balance at 1 January 2022
1,000,000
39,180,510
(21,091,098)
19,089,412
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(19,115,597)
(19,115,597)
Balance at 31 December 2022
1,000,000
39,180,510
(40,206,695)
(26,183)
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(6,597,722)
(6,597,722)
Balance at 31 December 2023
1,000,000
39,180,510
(46,804,417)
(6,623,907)
BEAN & CO GLOBAL LTD CONSOLIDATION
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
$
$
$
$
Balance at 1 January 2022
1,000,000
39,180,510
(7,011,885)
33,168,625
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(34,433)
(34,433)
Balance at 31 December 2022
1,000,000
39,180,510
(7,046,318)
33,134,192
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(3,440,322)
(3,440,322)
Balance at 31 December 2023
1,000,000
39,180,510
(10,486,640)
29,693,870
BEAN & CO GLOBAL LTD CONSOLIDATION
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
20
(3,767,878)
(549,576)
Interest paid
(571,276)
(42,937)
Income taxes paid
(51,900)
(1,061,756)
Net cash outflow from operating activities
(4,391,054)
(1,654,269)
Investing activities
Purchase of intangible assets
(51,973)
-
Purchase of tangible fixed assets
(896,942)
(1,775,726)
Interest received
113,757
45,969
Net cash used in investing activities
(835,158)
(1,729,757)
Financing activities
Issue of convertible loans
6,344,017
3,764,752
Repayment of bank loans
(1,000,000)
(500,000)
Net cash generated from financing activities
5,344,017
3,264,752
Net increase/(decrease) in cash and cash equivalents
117,805
(119,274)
Cash and cash equivalents at beginning of year
168,940
288,214
Cash and cash equivalents at end of year
286,745
168,940
Relating to:
Cash at bank and in hand
287,545
169,741
Bank overdrafts included in creditors payable within one year
(800)
(801)
BEAN & CO GLOBAL LTD CONSOLIDATION
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
21
(5,908,074)
(3,806,618)
Interest paid
(526,810)
-
0
Net cash outflow from operating activities
(6,434,884)
(3,806,618)
Investing activities
Interest received
104,124
42,526
Net cash generated from investing activities
104,124
42,526
Financing activities
Issue of convertible loans
6,344,017
3,764,752
Net cash generated from financing activities
6,344,017
3,764,752
Net increase in cash and cash equivalents
13,257
660
Cash and cash equivalents at beginning of year
7,951
7,292
Cash and cash equivalents at end of year
21,208
7,951
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Bean & Co Global Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, Great Titchfield House, 14-18 Great Titchfield Street, London, W1W 8BD.

 

The group consists of Bean & Co Global Ltd and all of its subsidiaries.

 

Bean & Co Global Ltd is owned by 4 shareholders: LR USA LLC (49.7%), Mivtach Shamir Holdings Ltd (23.98%), Sowell Cocoa LLC (23.98%) and Mr Doron Retter (2.34%).

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.

The financial statements are prepared in US Dollar, 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Bean & Co Global Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these Financial Statements.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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 trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
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.

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:

Freehold land and buildings
Nil
Fixtures and fittings
10% Straight Line
Computers
33% Straight Line
Motor vehicles
20% Straight Line
Biological assets
10% Straight Line

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
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.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Compound instruments

The component parts of compound instruments issued by the group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
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.

1.18
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 leased asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.20

Agricultural produce

Agricultural produce is presented at fair value less estimated selling costs at the reporting date. Changes in its fair value are recognised in profit or loss. Fair value is determined generally by external valuation specialists using valuation techniques and assumptions as to estimates of projected future cash flows from the property and estimate of the suitable discount rate for these cash flows.

 

In determining the fair value of Agricultural produce, valuation specialists and the Company's management are required to use certain assumptions in order to estimate the future cash flows from the Agricultural produce. The Group considers, among others, the following relevant indicators:

 

1. Are there any price quotations from recent transactions

2. The life cycle of the Agricultural produce

3. The estimated yield of agricultural production

4. Costs that are directly attributable to bringing the asset to its intended use

5. Are selling costs reliably determinable.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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
Turnover and other revenue
2023
2022
$
$
Turnover analysed by geographical market
Ecuador
1,523,456
2,335,621
Nicaragua
554,922
120,084
United Kingdom
16,575
17,568
Colombia
823,247
-
2,918,200
2,473,273
2023
2022
$
$
Other revenue
Interest income
113,757
45,969
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Operating loss
2023
2022
$
$
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(33,908)
(4,268)
Research and development costs
-
32,730
Fees payable to the group's auditor for the audit of the group's financial statements
37,025
35,425
Depreciation of owned tangible fixed assets
195,736
421,832
Operating lease charges
18,329
-
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
162
329
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
$
$
$
$
Wages and salaries
1,734,362
1,633,282
-
0
-
0
Social security costs
99,877
90,150
-
-
1,834,239
1,723,432
-
0
-
0
6
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
9,633
3,462
Interest receivable from group companies
104,124
42,507
Total income
113,757
45,969
2023
2022
Investment income includes the following:
$
$
Interest on financial assets not measured at fair value through profit or loss
113,757
45,969
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
571,218
42,937
Other finance costs:
Other interest
58
-
Total finance costs
571,276
42,937
8
Taxation
2023
2022
$
$
Current tax
Foreign current tax on profits for the current period
51,900
1,061,756

Corporation Tax is attributable to the subsidiaries incorporated in various jurisdictions other than England.

The Israeli corporation tax rate was 23%.

The statutory tax rate in Ecuador was 22%.

The corporate tax rate in Nicaragua is between 10% - 30% depending on the type of business. The company is subject to 30% tax on its profits.

9
Intangible fixed assets
Group
Spare Asset 1
$
Cost
At 1 January 2023
-
0
Additions
51,973
At 31 December 2023
51,973
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
51,973
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Biological assets
Total
$
$
$
$
$
$
Cost
At 1 January 2023
24,984,282
2,709,803
14,045
140,649
5,102,377
32,951,156
Additions
441,848
220,892
2,197
20,823
211,182
896,942
Revaluation
(2,900,000)
-
0
-
0
-
0
-
0
(2,900,000)
At 31 December 2023
22,526,130
2,930,695
16,242
161,472
5,313,559
30,948,098
Depreciation and impairment
At 1 January 2023
-
0
703,654
4,819
103,155
648,206
1,459,834
Depreciation charged in the year
1,449
106,851
329
(42,074)
129,181
195,736
At 31 December 2023
1,449
810,505
5,148
61,081
777,387
1,655,570
Carrying amount
At 31 December 2023
22,524,681
2,120,190
11,094
100,391
4,536,172
29,292,528
At 31 December 2022
24,984,282
2,006,149
9,226
37,494
4,454,171
31,491,322
Company
Freehold land and buildings
$
Cost
At 1 January 2023
2,900,000
Revaluation
(2,900,000)
At 31 December 2023
-
0
Depreciation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
2,900,000
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Investments in subsidiaries
12
-
0
-
0
143,923
143,923
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
$
Cost or valuation
At 1 January 2023 and 31 December 2023
143,923
Carrying amount
At 31 December 2023
143,923
At 31 December 2022
143,923
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
% Held
Direct
Bean & Co Finance Ltd
United Kingdom
100.00
B&C Agro Development Ltd
United Kingdom
100.00
Bean & Co Israel Ltd
Israel
100.00
Bean & Co Nicaragua
Nicaragua
100.00
Bean & Co San Juan Nicaragua
Nicaragua
100.00
Beannco Ecuador SL
Spain
100.00
Agricola Bean & Co La Mejor Beanmejor S.A
Ecuador
100.00
Bean & Co Nazarethfarm
Ecuador
100.00
Bean & Co Processing
Ecuador
100.00
Bean & Co Colombia S.A.S
Colombia
100.00
13
Stocks
Group
Company
2023
2022
2023
2022
$
$
$
$
Raw materials and consumables
769,571
240,079
-
-
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
$
$
$
$
Trade debtors
332,896
449,808
1
1
Amounts owed by group undertakings
-
-
48,324,503
43,085,378
Other debtors
341,993
604,981
-
0
-
0
674,889
1,054,789
48,324,504
43,085,379
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
12,169,070
11,162,869
Total debtors
674,889
1,054,789
60,493,574
54,248,248
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Bank loans and overdrafts
17
800
801
-
0
-
0
Trade creditors
237,011
254,286
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
33,775
34,036
Other creditors
5,713,283
6,309,957
3,754,099
3,298,950
Accruals and deferred income
5,514
29,604
-
0
-
0
5,956,608
6,594,648
3,787,874
3,332,986
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
$
$
$
$
Convertible loans
18
27,176,961
20,832,944
27,176,961
20,832,944
Bank loans and overdrafts
17
4,500,000
5,500,000
-
0
-
0
Other creditors
66,844
54,522
-
0
-
0
31,743,805
26,387,466
27,176,961
20,832,944
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
$
$
$
$
Bank loans
4,500,000
5,500,000
-
0
-
0
Bank overdrafts
800
801
-
0
-
0
4,500,800
5,500,801
-
-
Payable within one year
800
801
-
0
-
0
Payable after one year
4,500,000
5,500,000
-
0
-
0

Bean & Co Nicaragua signed with Banco Lafise Bancentro Sociedad Anonima a loan agreement in the aggregate amount of $7,000,000 at an interest rate of 7% per annum, variable based on the weighted average rate, from the date of disbursement thereof and until the expiration of 12 years thereafter.

Total repayments of $1,000,000 were made in the period.

18
Convertible loan notes
Group
Company
2023
2022
2023
2022
$
$
$
$
Liability component of convertible loan notes
27,176,961
20,832,944
27,176,961
20,832,944

The shareholders of the company have signed various agreements with the company for convertible loan notes.

To the extent that the loans are not repaid or converted, the loan amount shall bear interest at 8%.

There are currently no plans in place to convert the loan notes to equity.

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary Shares of $1 each
1,000,000
1,000,000
1,000,000
1,000,000
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Cash absorbed by group operations
2023
2022
$
$
Loss for the year after tax
(6,597,722)
(19,115,597)
Adjustments for:
Taxation charged
51,900
1,061,756
Finance costs
571,276
42,937
Investment income
(113,757)
(45,969)
Depreciation and impairment of tangible fixed assets
195,736
421,832
Movements in working capital:
(Increase)/decrease in stocks
(529,492)
407,038
Decrease in debtors
379,900
2,105,190
(Decrease)/increase in creditors
(625,717)
1,351,135
Cash absorbed by operations
(6,667,876)
(13,771,678)
Difference
3,341,464
14,317,891
Per cash flow statement page
(3,326,412)
546,213
21
Cash absorbed by operations - company
2023
2022
$
$
Loss for the year after tax
(3,440,322)
(34,433)
Adjustments for:
Finance costs
526,810
-
0
Investment income
(104,124)
(42,526)
Movements in working capital:
Increase in debtors
(6,245,326)
(4,618,377)
Increase in creditors
454,888
888,718
Cash absorbed by operations
(8,808,074)
(3,806,618)
Difference
2,900,000
-
Per cash flow statement page
(5,908,074)
(3,806,618)
BEAN & CO GLOBAL LTD CONSOLIDATION
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
169,741
117,804
287,545
Bank overdrafts
(801)
1
(800)
168,940
117,805
286,745
Borrowings excluding overdrafts
(5,500,000)
1,000,000
(4,500,000)
Convertible loan notes
(20,832,944)
(6,344,017)
(27,176,961)
(26,164,004)
(5,226,212)
(31,390,216)
23
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
7,951
13,257
21,208
Convertible loan notes
(20,832,944)
(6,344,017)
(27,176,961)
(20,824,993)
(6,330,760)
(27,155,753)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr A BarnoonMr R Ben YamiMr A Ben YamiG ShamirJ SowellMrs S ZivMr Y 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