REGISTERED NUMBER: 11226361 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BEES & HONEY LTD |
REGISTERED NUMBER: 11226361 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BEES & HONEY LTD |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Income and Retained Earnings | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
BEES & HONEY LTD |
COMPANY INFORMATION |
for the Year Ended 31 October 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
4 Grovelands |
Boundary Way |
Hemel Hempstead |
Hertfordshire |
HP2 7TE |
ACCOUNTANTS: |
6b Parkway |
Porters Wood |
St Albans |
Hertfordshire |
AL3 6PA |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 October 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
Bees & Honey Ltd is the parent company of 6 subsidiary companies. |
For the purposes of this report and the financial statements, the group shall mean Bees & Honey Ltd and its subsidiaries. |
REVIEW OF BUSINESS |
The principal activity of the Group throughout the financial period continued to be the wholesale distribution and preparation of fresh food products. |
Overall, the Group had a strong year of growth building upon the positive results of the previous year. Turnover increased by £3.3m/14.2% in 2023, with gross profit margins being improved. The Group continues to increase its operational capacity to facilitate further growth whilst investing strategically to support current and future commercial strategies. |
The directors view the key financial performance indicators as being turnover and operating profit. As shown in the Group's consolidated profit and loss account, turnover has reached £27.1m (2022: £23.7m), with the Group generating an operating profit of £1,637k (2022: £603k). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group are broadly categorised as strategic, technology, operational, people and legal and regulatory risks. |
STRATEGIC RISK |
The directors do occasionally look to diversify into related businesses, where appropriate, such as retail and restaurants. However, the main focus and resources continue to be directed towards developing and nurturing our wholesale supply business. |
Our aim is simple - to have the best people supplying the best product with the best service at the right price to customers who value those attributes in a supplier. We use weekly reports and KPIs to measure the performance of our business. We have weekly sales dashboards to measure sales against budget and monitor our margins. We use debtor days and cash banking targets to monitor our credit control. We use monthly management accounts to review, monitor and manage the performance of the overall business. |
TECHNOLOGY AND OPERATIONAL RISK |
We have invested heavily over the last two years in enhancing our IT infrastructure and we now operate comfortably from two sites which provides a degree of contingency for disaster planning. We have an annual review of our IT hardware to ensure that the kit is still fit for purpose. We have anti-virus software across all our various IT networks and ensure that our data and our customer's data is kept safe and secure. |
Our fridges are monitored, and we can be notified by SMS if there are problems with our temperatures in the various fridges. |
We use a Health & Safety advisor to review our risk assessments for the operation, and in conjunction with HR and our management team to ensure that Smith & Brock Ltd remains a safe place to work and a reliable provider of services to our customers across the 52 weeks of the year. Our day shift transport manager is qualified to assess new drivers and ensures existing drivers have refresher training. Our transport management team carry out regular 'toolbox talks' to ensure that we are adhering to the required standards of operation for our vehicles. |
PEOPLE RISK |
Our people are the key to our ongoing success and growth. The Group continues to have a relatively low churn rate for our industry. We have signed up to the Living Wage Foundation and ensure via our staff orders scheme and discounted café food that our team is well looked after. Our vehicles are installed with cameras which provides safety not only for the public and our customers but also for our drivers. |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 October 2023 |
LEGAL AND REGULATORY RISK |
We use food safety and Health & Safety consultants to ensure that we adhere to the very highest of standards in our operation. We have achieved AA accreditation under BRC Food Certification and our preparatory facility operates to SALSA requirements. We understand that changes to laws and regulations could have a direct impact on the business and/or the services we provide. |
Our transport compliance ensures that our drivers have valid licences and are fit to operate trucks. |
ON BEHALF OF THE BOARD: |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2023 will be £ 450,500 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the group made donations amounting to £3,788. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Kings CAP Ltd, 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 |
BEES & HONEY LTD |
Opinion |
We have audited the financial statements of Bees & Honey Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 October 2023 and of the group's 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 group 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. |
Material uncertainty relating to going concern |
We draw attention to note 2 in the financial statements which indicates the Group's ability to continue as a going concern despite net cash outflows. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. Our evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included obtaining and reviewing the Group's business plan and holding discussions with management over the key assumptions therein, and discussions with management surrounding the parent company's future plans for the Group including working capital support. |
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 Group 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 Group 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 Group 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 |
BEES & HONEY LTD |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BEES & HONEY LTD |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was to ensure the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by way of discussions with the directors and from our commercial knowledge and experience in the retail sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, ISO Standards, employment and health and safety legislation. |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
Other matters which we are required to address |
The prior period financial statements were audited by Chartswood Limited. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BEES & HONEY 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 |
4 Grovelands |
Boundary Way |
Hemel Hempstead |
Hertfordshire |
HP2 7TE |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
CONSOLIDATED |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ |
TURNOVER | 27,103,109 | 23,715,685 |
Cost of sales | 20,639,061 | 18,493,901 |
GROSS PROFIT | 6,464,048 | 5,221,784 |
Administrative expenses | 4,827,384 | 4,618,534 |
OPERATING PROFIT | 5 | 1,636,664 | 603,250 |
Interest receivable and similar income | - | 1 |
1,636,664 | 603,251 |
Interest payable and similar expenses | 6 | 347,341 | 202,242 |
PROFIT BEFORE TAXATION | 1,289,323 | 401,009 |
Tax on profit | 7 | 118,649 | 212,172 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | (711,779 | ) | (400,616 | ) |
Dividends | 9 | (450,500 | ) | (500,000 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
8,395 |
(711,779 |
) |
Profit attributable to: |
Owners of the parent | 1,170,674 | 188,837 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
CONSOLIDATED BALANCE SHEET |
31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 349,314 | - |
Tangible assets | 12 | 2,298,838 | 2,095,610 |
Investments | 13 | - | - |
2,648,152 | 2,095,610 |
CURRENT ASSETS |
Stocks | 14 | 287,869 | 317,156 |
Debtors | 15 | 5,097,188 | 4,278,115 |
Cash at bank and in hand | 123,162 | 167,351 |
5,508,219 | 4,762,622 |
CREDITORS |
Amounts falling due within one year | 16 | 3,658,272 | 3,833,395 |
NET CURRENT ASSETS | 1,849,947 | 929,227 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,498,099 |
3,024,837 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(4,022,507 |
) |
(3,373,178 |
) |
PROVISIONS FOR LIABILITIES | 20 | (466,997 | ) | (363,238 | ) |
NET ASSETS/(LIABILITIES) | 8,595 | (711,579 | ) |
CAPITAL AND RESERVES |
Called up share capital | 21 | 200 | 200 |
Retained earnings | 22 | 8,395 | (711,779 | ) |
SHAREHOLDERS' FUNDS | 8,595 | (711,579 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2024 and were signed on its behalf by: |
Mr N Fowler - Director |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
COMPANY BALANCE SHEET |
31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,305,148 | 1,440,862 |
Interest paid | (267,385 | ) | (138,446 | ) |
Interest element of hire purchase payments paid |
(79,956 |
) |
(63,796 |
) |
Tax paid | (47,047 | ) | 3,497 |
Net cash from operating activities | 1,910,760 | 1,242,117 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (388,127 | ) | - |
Purchase of tangible fixed assets | (682,183 | ) | (1,593,355 | ) |
Sale of tangible fixed assets | 45,061 | - |
Interest received | - | 1 |
Net cash from investing activities | (1,025,249 | ) | (1,593,354 | ) |
Cash flows from financing activities |
Capital repayments in year | (125,607 | ) | 846,446 |
Amount introduced by directors | 275,688 | - |
Amount withdrawn by directors | (629,281 | ) | - |
Share issue | - | (201 | ) |
Equity dividends paid | (450,500 | ) | (500,000 | ) |
Net cash from financing activities | (929,700 | ) | 346,245 |
Decrease in cash and cash equivalents | (44,189 | ) | (4,992 | ) |
Cash and cash equivalents at beginning of year |
2 |
167,351 |
172,343 |
Cash and cash equivalents at end of year | 2 | 123,162 | 167,351 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Profit before taxation | 1,289,323 | 401,009 |
Depreciation charges | 484,122 | 363,108 |
Profit on disposal of fixed assets | (11,416 | ) | - |
Loan movement | - | (111,010 | ) |
Finance costs | 347,341 | 202,242 |
Finance income | - | (1 | ) |
2,109,370 | 855,348 |
Decrease/(increase) in stocks | 29,287 | (84,065 | ) |
(Increase)/decrease in trade and other debtors | (462,220 | ) | 1,782,334 |
Increase/(decrease) in trade and other creditors | 628,711 | (1,112,755 | ) |
Cash generated from operations | 2,305,148 | 1,440,862 |
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 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 123,162 | 167,351 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
as restated |
£ | £ |
Cash and cash equivalents | 167,351 | 172,343 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 167,351 | (44,189 | ) | 123,162 |
167,351 | (44,189 | ) | 123,162 |
Debt |
Finance leases | (1,163,936 | ) | 125,607 | (1,038,329 | ) |
Debts falling due within 1 year | (71,824 | ) | - | (71,824 | ) |
Debts falling due after 1 year | (186,967 | ) | 71,904 | (115,063 | ) |
(1,422,727 | ) | 197,511 | (1,225,216 | ) |
Total | (1,255,376 | ) | 153,322 | (1,102,054 | ) |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
Bees & Honey Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The Group meets its day-to-day working capital requirements through its cash reserves and bank facilities. The Group has prepared forecasts up to October 2025 based upon what it considers to be prudent assumptions. After considering these forecasts, the directors consider that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of issue of these financial statements and believe it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements. |
Disclosure exemptions |
As the parent company, Bees & Honey Ltd has provided a guarantee under the provision of the Companies Act 2006, s479A, for an audit exemption for four of its subsidiary companies, with the exception of Smith & Brock Ltd (Company Number 09999330) . The subsidiary companies using the exemption are as follows: |
- Sylva London Ltd (Company Number 05453919) |
- Knock Knock by Smith & Brock Ltd (Company Number 12525507) |
- Catch! By Smith & Brock Ltd (Company Number 13582959) |
- Uncle Reg Limited (Company Number 11425326) |
The results of these companies and the parent company are included in these consolidated financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2023. |
Inter-company transactions and balances between the company and its subsidiaries, which are related parties, are eliminated in full. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
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. |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors and bank loans, 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. |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates. |
These 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. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
Impairment of Stock |
The directors have applied their judgement in impairing slow moving stock to its net realisable value, based on sell by dates and customer demand. |
Impairment of Trade Debtors |
Some customers are offered credit accounts based on a credit review and historical trading information available. The debtors ledger is reviewed frequently and provision made where necessary. When assessing the impairment of trade debtors management considers factors including the current credit rating of the debtor, the ageing profile of debts and historical experience. |
4. | EMPLOYEES AND DIRECTORS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Wages and salaries | 5,437,261 | 4,844,985 |
Social security costs | 573,901 | 532,752 |
Other pension costs | 103,131 | 56,878 |
6,114,293 | 5,434,615 |
The average number of employees during the year was as follows: |
31.10.23 | 31.10.22 |
as restated |
Management | 17 | 17 |
Administration | 16 | 18 |
Sales | 8 | 9 |
Transport drivers | 31 | 26 |
Operations management | 10 | 10 |
Operations picking | 53 | 44 |
The average number of employees by undertakings that were proportionately consolidated during the year was 135 (2022 - 124 ) . |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Directors' remuneration | 83,333 | 63,100 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Hire of plant and machinery | 83,305 | 79,732 |
Other operating leases | 351,957 | 503,713 |
Depreciation - owned assets | 204,953 | 152,438 |
Depreciation - assets on hire purchase contracts | 240,357 | 210,671 |
Profit on disposal of fixed assets | (11,416 | ) | - |
Goodwill amortisation | 38,813 | - |
Auditors' remuneration | 7,000 | 7,000 |
Foreign exchange differences | (18,010 | ) | (60,877 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Other interest | 38,688 | 13,374 |
Late filing penalties | 829 | - |
Invoice financing interest | 227,868 | 125,072 |
Hire purchase | 79,956 | 63,796 |
347,341 | 202,242 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 14,830 | (33,696 | ) |
Prior year | - | 5,403 |
Interest on taxation | 60 | 1,759 |
Total current tax | 14,890 | (26,534 | ) |
Deferred tax | 103,759 | 238,706 |
Tax on profit | 118,649 | 212,172 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge 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: |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Profit before tax | 1,289,323 | 401,009 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
244,971 |
76,192 |
Effects of: |
Capital allowances in excess of depreciation | (126,322 | ) | - |
Depreciation in excess of capital allowances | - | 135,980 |
Total tax charge | 118,649 | 212,172 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Interim | 450,500 | 500,000 |
10. | PRIOR YEAR ADJUSTMENT |
A prior period adjustment has been made with respect to a subsidiary undertaking not being included in the consolidated financial position of the Group. |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 388,127 |
At 31 October 2023 | 388,127 |
AMORTISATION |
Amortisation for year | 38,813 |
At 31 October 2023 | 38,813 |
NET BOOK VALUE |
At 31 October 2023 | 349,314 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 November 2022 | - | 170,807 | 1,414,251 |
Additions | 28,800 | - | 134,706 |
Disposals | - | - | - |
At 31 October 2023 | 28,800 | 170,807 | 1,548,957 |
DEPRECIATION |
At 1 November 2022 | - | 94,142 | 233,118 |
Charge for year | 6,516 | 15,333 | 150,818 |
Eliminated on disposal | - | - | - |
At 31 October 2023 | 6,516 | 109,475 | 383,936 |
NET BOOK VALUE |
At 31 October 2023 | 22,284 | 61,332 | 1,165,021 |
At 31 October 2022 | - | 76,665 | 1,181,133 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 225,290 | 1,143,013 | 200,380 | 3,153,741 |
Additions | 60,166 | 358,670 | 99,841 | 682,183 |
Disposals | - | (80,726 | ) | - | (80,726 | ) |
At 31 October 2023 | 285,456 | 1,420,957 | 300,221 | 3,755,198 |
DEPRECIATION |
At 1 November 2022 | 62,049 | 585,631 | 83,191 | 1,058,131 |
Charge for year | 43,032 | 186,378 | 43,233 | 445,310 |
Eliminated on disposal | - | (47,081 | ) | - | (47,081 | ) |
At 31 October 2023 | 105,081 | 724,928 | 126,424 | 1,456,360 |
NET BOOK VALUE |
At 31 October 2023 | 180,375 | 696,029 | 173,797 | 2,298,838 |
At 31 October 2022 | 163,241 | 557,382 | 117,189 | 2,095,610 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 734,327 | 10,950 | 738,487 | 1,483,764 |
Additions | - | - | 336,538 | 336,538 |
Disposals | - | - | (34,131 | ) | (34,131 | ) |
At 31 October 2023 | 734,327 | 10,950 | 1,040,894 | 1,786,171 |
DEPRECIATION |
At 1 November 2022 | 77,705 | 2,909 | 294,086 | 374,700 |
Charge for year | 79,441 | 2,010 | 158,906 | 240,357 |
Eliminated on disposal | - | - | (29,580 | ) | (29,580 | ) |
At 31 October 2023 | 157,146 | 4,919 | 423,412 | 585,477 |
NET BOOK VALUE |
At 31 October 2023 | 577,181 | 6,031 | 617,482 | 1,200,694 |
At 31 October 2022 | 656,622 | 8,041 | 444,401 | 1,109,064 |
13. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 November 2022 |
Additions |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
14. | STOCKS |
Group |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Stocks | 287,869 | 317,156 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 4,266,627 | 3,332,740 |
Amounts owed by group undertakings | - | - |
Other debtors | 186,868 | 673,776 |
Directors' current accounts | 355,131 | - | - | - |
Tax | 1,722 | - |
Value added tax | 25,853 | 114,480 |
Prepayments | 260,987 | 157,119 |
5,097,188 | 4,278,115 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
as restated | as restated |
£ | £ | £ | £ |
Other loans (see note 18) | 71,824 | 71,824 |
Hire purchase contracts (see note 19) | 406,549 | 386,874 |
Trade creditors | 2,250,852 | 2,347,603 |
Amounts owed to group undertakings | - | - |
Taxation | 13,330 | 43,765 |
Social security and other taxes | 292,410 | 618,046 |
Other creditors | 58,568 | 158,141 |
Directors' current accounts | 1,639 | 101 | 101 | 101 |
Accruals | 563,100 | 207,041 |
3,658,272 | 3,833,395 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Other loans (see note 18) | 115,063 | 186,967 |
Hire purchase contracts (see note 19) | 631,780 | 777,062 |
Other creditors | 3,275,664 | 2,409,149 |
4,022,507 | 3,373,178 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Amounts falling due within one year or on | demand: |
Other loans | 71,824 | 71,824 |
Amounts falling due between two and five | years: |
Other loans - 2-5 years | 115,063 | 186,967 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 406,549 | 386,874 |
Between one and five years | 631,780 | 777,062 |
1,038,329 | 1,163,936 |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.10.23 | 31.10.22 |
as restated |
£ | £ |
Deferred tax |
Accelerated capital allowances | 466,997 | 363,238 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2022 | 363,238 |
Charge to Income Statement during year | 103,759 |
Balance at 31 October 2023 | 466,997 |
BEES & HONEY LTD (REGISTERED NUMBER: 11226361) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.10.23 | 31.10.22 |
value: | as restated |
£ | £ |
Ordinary | 10p | 200 | 200 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2022 | (711,779 | ) |
Profit for the year | 1,170,674 |
Dividends | (450,500 | ) |
At 31 October 2023 | 8,395 |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 31 October 2023 |
23. | RELATED PARTY DISCLOSURES |
During the year an advance was made to the Directors amounting to £353,993 (2022: £Nil). |
During the year, a total of key management personnel compensation of £ 83,333 (2022 - £ 63,100 ) was paid. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr N Fowler and Mr J Fowler. |