10 false false false false false false false false false false true false false false false false false No description of principal activity 2022-12-28 Sage Accounts Production Advanced 2023 - FRS102_2023 61,512 5,623 67,135 43,478 6,418 49,896 17,239 18,034 xbrli:pure xbrli:shares iso4217:GBP 10887864 2022-12-28 2023-12-31 10887864 2023-12-31 10887864 2022-12-27 10887864 2022-01-01 2022-12-27 10887864 2022-12-27 10887864 2021-12-31 10887864 core:FurnitureFittings 2022-12-28 2023-12-31 10887864 bus:Director1 2022-12-28 2023-12-31 10887864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-27 10887864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 10887864 core:LandBuildings core:ShortLeaseholdAssets 2022-12-27 10887864 core:FurnitureFittings 2022-12-27 10887864 core:LandBuildings core:ShortLeaseholdAssets 2023-12-31 10887864 core:FurnitureFittings 2023-12-31 10887864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-28 2023-12-31 10887864 core:LandBuildings core:ShortLeaseholdAssets 2022-12-28 2023-12-31 10887864 core:WithinOneYear 2023-12-31 10887864 core:WithinOneYear 2022-12-27 10887864 core:AfterOneYear 2023-12-31 10887864 core:AfterOneYear 2022-12-27 10887864 core:ShareCapital 2023-12-31 10887864 core:ShareCapital 2022-12-27 10887864 core:SharePremium 2023-12-31 10887864 core:SharePremium 2022-12-27 10887864 core:RetainedEarningsAccumulatedLosses 2023-12-31 10887864 core:RetainedEarningsAccumulatedLosses 2022-12-27 10887864 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-27 10887864 core:LandBuildings core:ShortLeaseholdAssets 2022-12-27 10887864 core:FurnitureFittings 2022-12-27 10887864 bus:SmallEntities 2022-12-28 2023-12-31 10887864 bus:AuditExemptWithAccountantsReport 2022-12-28 2023-12-31 10887864 bus:SmallCompaniesRegimeForAccounts 2022-12-28 2023-12-31 10887864 bus:PrivateLimitedCompanyLtd 2022-12-28 2023-12-31 10887864 bus:FullAccounts 2022-12-28 2023-12-31 10887864 core:FurnitureFittingsToolsEquipment 2022-12-28 2023-12-31 10887864 core:FurnitureFittingsToolsEquipment 2022-12-27 10887864 core:FurnitureFittingsToolsEquipment 2023-12-31
COMPANY REGISTRATION NUMBER: 10887864
Root + Branch Ltd
Filleted Unaudited Financial Statements
31 December 2023
Root + Branch Ltd
Statement of Financial Position
31 December 2023
2023
2022
(restated)
Note
£
£
Fixed assets
Intangible assets
5
17,239
18,034
Tangible assets
6
34,674
52,347
--------
--------
51,913
70,381
Current assets
Stocks
55,728
50,000
Debtors
7
497,341
419,767
Cash at bank and in hand
9,175
1,928
---------
---------
562,244
471,695
Creditors: amounts falling due within one year
8
340,045
349,369
---------
---------
Net current assets
222,199
122,326
---------
---------
Total assets less current liabilities
274,112
192,707
Creditors: amounts falling due after more than one year
9
402,519
219,423
---------
---------
Net liabilities
( 128,407)
( 26,716)
---------
---------
Capital and reserves
Called up share capital
110
109
Share premium account
1,857,619
1,451,650
Profit and loss account
( 1,986,136)
( 1,478,475)
------------
------------
Shareholders deficit
( 128,407)
( 26,716)
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Root + Branch Ltd
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 14 October 2024 , and are signed on behalf of the board by:
Mr B P Murdock
Director
Company registration number: 10887864
Root + Branch Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 20-22 Wenlock Road, London, N1 7GU, England.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Following growth in the brand recognition of Root + Branch over the last few years, the Board decided to reduce our store operations to a single store in 2024. The focus in 2024 has been on building out our network of national and international retailers and to build traction in our online sales presence. The decision to do this was to enable a reduction in fixed costs, improve our margins and to broaden our distribution which should move the company to profitability in 2025. Notwithstanding the net liabilities of £128,407, the financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate. The Directors have made this assessment based on a review of the cash flow projections of the company for the next 12 months.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs
-
Over 10 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property
-
Over 3 years minimum lease term
Fixtures and fittings
-
20% straight line
Equipment
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 10 (2022: 10 ).
5. Intangible assets
Development costs
£
Cost
At 28 December 2022 (as restated)
61,512
Additions
5,623
--------
At 31 December 2023
67,135
--------
Amortisation
At 28 December 2022
43,478
Charge for the year
6,418
--------
At 31 December 2023
49,896
--------
Carrying amount
At 31 December 2023
17,239
--------
At 27 December 2022
18,034
--------
6. Tangible assets
Short leasehold property
Fixtures and fittings
Equipment
Total
£
£
£
£
Cost
At 28 December 2022 (as restated)
22,274
78,667
2,012
102,953
Additions
537
537
--------
--------
-------
---------
At 31 December 2023
22,274
79,204
2,012
103,490
--------
--------
-------
---------
Depreciation
At 28 December 2022
9,477
40,143
986
50,606
Charge for the year
7,425
10,348
437
18,210
--------
--------
-------
---------
At 31 December 2023
16,902
50,491
1,423
68,816
--------
--------
-------
---------
Carrying amount
At 31 December 2023
5,372
28,713
589
34,674
--------
--------
-------
---------
At 27 December 2022
12,797
38,524
1,026
52,347
--------
--------
-------
---------
7. Debtors
2023
2022
(restated)
£
£
Trade debtors
40,029
85,168
Other debtors
457,312
334,599
---------
---------
497,341
419,767
---------
---------
8. Creditors: amounts falling due within one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
9,195
45,331
Trade creditors
251,225
191,103
Corporation tax
100
Social security and other taxes
35,401
72,108
Other creditors
44,224
40,727
---------
---------
340,045
349,369
---------
---------
9. Creditors: amounts falling due after more than one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
32,846
38,451
Other creditors
369,673
180,972
---------
---------
402,519
219,423
---------
---------