Cakesmiths Group Limited 05586303 false 2023-01-30 2024-01-28 2024-01-28 The principal activity of the company is the manufacture and sale of pastry goods, bread and cakes. 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Registration number: 05586303

Cakesmiths Group Limited

Annual Report and Financial Statements

for the Period from 30 January 2023 to 28 January 2024

 

Cakesmiths Group Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 25

 

Cakesmiths Group Limited

Company Information

Directors

S A J Trent

D A M Oswald

A E B Vigneron

C Ormrod

C R Giddings

Registered office

6 Kingsland Trading Estate
St Phillips Road
Bristol
BS2 0JZ

Auditors

Westcotts (SW) LLP
Chartered Accountants & Statutory Auditor
Tallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

 

Cakesmiths Group Limited

Strategic Report for the Period from 30 January 2023 to 28 January 2024

The directors present their strategic report for the period from 30 January 2023 to 28 January 2024.

Fair review of the business

The principal activity of the Company during the year was the manufacture and sale of pastry goods, bread and cakes.

The 52 weeks to 28 January 2024 showed strong revenue growth to £22.8m from £16.2m. During the year, our customer base has continued to increase alongside an increase in the average order value.

Like many other companies in the UK food sector, the Company has continued to face considerable challenges as a result of worldwide disruption to supply chains and markets along with the worldwide economic uncertainty. Inflation remains stubbornly high and has resulted in significant increases in input costs across the majority of commodities.

As a result of the continued investment in people and equipment, we have been able to mitigate a significant portion of the inflationary increases, and alongside absorbing a large portion, has enabled the Company to mitigate most of the impact on customers. The Company expects continued input cost pressure, primarily from the cocoa market, but considers it well placed to ride this out whilst continuing to support its customer base.

As always, the Company prides itself on a strong and focused new product development programme and this year saw us launch over 50 new lines.

The Directors have continued to recognise and drive ESG initiatives during FY24. It is still relatively early days and focus areas include:

- Offsetting all carbon emitted during the year.
- Measuring and looking at ways of reducing carbon emitted per cake made.
- Operating a fair and transparent employee grading structure
- Committing to a cost-of-living wage review at least once per year.
- Committing to provide all employees with an annual appraisal.
- Charitable donations, whether financial or cake

The Company commits to continuing its ESG journey over the coming years.

The Directors monitor performance of the company by monitoring a detailed set of weekly KPIs which include, but are not limited to:

- Net Sales
- Gross Margin
- Online Customer Metrics
- Manufacturing Data
- People Data

 

Cakesmiths Group Limited

Strategic Report for the Period from 30 January 2023 to 28 January 2024 (continued)

Principal risks and uncertainties

The principal risks to the Company are set out in the business review above, namely the challenging economic circumstances forcing inflationary pressures on the UK and global economy.

Where possible, the Company looks to manage the risk through contracting pricing, as well as investing in people and equipment to improve performance efficiency. Importantly, this is never done at the expense of product quality.

Approved and authorised by the Board on 31 October 2024 and signed on its behalf by:
 

.........................................
S A J Trent
Director

 

Cakesmiths Group Limited

Directors' Report for the Period from 30 January 2023 to 28 January 2024

The directors present their report and the financial statements for the period from 30 January 2023 to 28 January 2024.

Directors of the company

The directors who held office during the period were as follows:

S A J Trent

D A M Oswald

C Ormrod

S A Harris (Resigned 1 February 2024)

C R Giddings

M A Smart (Resigned 18 September 2024)

The following director was appointed after the period end:

A E B Vigneron (appointed 30 January 2024)

Financial instruments

Objectives and policies

The company does not enter into any hedging transactions.

Price risk, credit risk, liquidity risk and cash flow risk

The company has a normal level of exposure to price, credit, liquidity and cash flow risk.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 31 October 2024 and signed on its behalf by:
 


S A J Trent
Director

 

Cakesmiths Group Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Cakesmiths Group Limited

Independent Auditor's Report to the Members of Cakesmiths Group Limited

Opinion

We have audited the financial statements of Cakesmiths Group Limited (the 'company') for the period from 30 January 2023 to 28 January 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, 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:

give a true and fair view of the state of the company's affairs as at 28 January 2024 and of its profit for the period 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Cakesmiths Group Limited

Independent Auditor's Report to the Members of Cakesmiths Group Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 an auditor’s report 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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.

 

Cakesmiths Group Limited

Independent Auditor's Report to the Members of Cakesmiths Group Limited (continued)

The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements including health and safety laws, food quality regulations, employment laws and regulations and certain aspects of companies legislation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

 

Cakesmiths Group Limited

Independent Auditor's Report to the Members of Cakesmiths Group Limited (continued)

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.

......................................
Peter Lomax, FCA (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor

Tallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

31 October 2024

 

Cakesmiths Group Limited

Statement of Comprehensive Income for the Period from 30 January 2023 to 28 January 2024

Note

2024
£ 000

2023
£ 000

Turnover

3

22,853

16,192

Cost of sales

 

(13,530)

(10,003)

Gross profit

 

9,323

6,189

Administrative expenses

 

(5,038)

(3,669)

Other operating income

4

3

19

Operating profit

6

4,288

2,539

Other interest receivable and similar income

7

20

2

Interest payable and similar expenses

8

-

(5)

   

20

(3)

Profit before tax

 

4,308

2,536

Tax on profit

12

(549)

2

Profit for the financial period

 

3,759

2,538

The above results were derived from continuing operations.

The company has no recognised gains or losses for the period other than the results above.

 

Cakesmiths Group Limited

(Registration number: 05586303)
Statement of Financial Position as at 28 January 2024

Note

2024
£ 000

2023
£ 000

Fixed assets

 

Tangible assets

13

2,301

1,737

Current assets

 

Stocks

14

1,169

778

Debtors

15

3,853

1,838

Cash at bank and in hand

 

3,884

2,089

 

8,906

4,705

Creditors: Amounts falling due within one year

17

(2,763)

(1,824)

Net current assets

 

6,143

2,881

Total assets less current liabilities

 

8,444

4,618

Provisions for liabilities

18

(270)

(203)

Net assets

 

8,174

4,415

Capital and reserves

 

Called up share capital

1

1

Share premium reserve

21

10

10

Profit and loss account

21

8,163

4,404

Shareholders' funds

 

8,174

4,415

Approved and authorised by the Board on 31 October 2024 and signed on its behalf by:
 


S A J Trent
Director

 

Cakesmiths Group Limited

Statement of Changes in Equity for the Period from 30 January 2023 to 28 January 2024

Share capital
£ 000

Share premium
£ 000

Other reserves
£ 000

Profit and loss account
£ 000

Total
£ 000

At 31 January 2022

1

10

152

1,714

1,877

Profit for the period

-

-

-

2,538

2,538

Exercise of options

-

-

(152)

152

-

At 29 January 2023

1

10

-

4,404

4,415

Share capital
£ 000

Share premium
£ 000

Profit and loss account
£ 000

Total
£ 000

At 30 January 2023

1

10

4,404

4,415

Profit for the period

-

-

3,759

3,759

At 28 January 2024

1

10

8,163

8,174

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
6 Kingsland Trading Estate
St Phillips Road
Bristol
BS2 0JZ

Principal activity

The principal activity of the company is the manufacture and sale of pastry goods, bread and cakes.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Summary of disclosure exemptions

The company is exempt from the requirment to present a cash flow statement as it is included in the consolidated accounts of Topsmiths Limited.

Name of parent of group

These financial statements are consolidated in the financial statements of Topsmiths Limited.

The financial statements of Topsmiths Limited may be obtained from 6 Kingsland Trading Estate, St. Philips Road, Bristol, Somerset, England, BS2 0JZ.

Going concern

The directors have prepared forecasts covering at least the next 12 months from the date of approval of these financial statements and consider that it is appropriate to prepare the financial statements on a going concern basis.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Significant judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Stock is included at the cost required to bring the item to its finished state.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Depreciation is based on the estimated useful life of the relevant asset.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
- The amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

2

Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Building improvements

10% or 25% straight line

Fixtures and fittings

10% or 25% straight line

Computer Equipment

50% straight line

Plant and Machinery

10% or 25% straight line

Impairment

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes 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.

3

Turnover

The analysis of the company's turnover for the period from continuing operations is as follows:

2024
£ 000

2023
£ 000

Sale of goods, UK

22,790

16,082

Sale of goods, Europe

63

110

22,853

16,192

4

Other operating income

The analysis of the company's other operating income for the period is as follows:

2024
£ 000

2023
£ 000

Miscellaneous other operating income

3

19

5

Other gains and losses

The analysis of the company's other gains and losses for the period is as follows:

2024
£ 000

2023
£ 000

Loss on disposal of tangible assets

(4)

-

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

6

Operating profit

Arrived at after charging/(crediting)

2024
£ 000

2023
£ 000

Depreciation expense

512

314

Foreign exchange losses

2

1

Loss on disposal of property, plant and equipment

4

-

7

Other interest receivable and similar income

2024
£ 000

2023
£ 000

Interest income on bank deposits

20

2

8

Interest payable and similar expenses

2024
£ 000

2023
£ 000

Interest on bank overdrafts and borrowings

-

2

Interest on obligations under finance leases and hire purchase contracts

-

3

-

5

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£ 000

2023
£ 000

Wages and salaries

4,465

3,576

Social security costs

422

301

Pension costs, defined contribution scheme

77

59

4,964

3,936

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

2024
No.

2023
No.

Production

125

128

Administration and support

36

38

161

166

10

Directors' remuneration

The directors' remuneration for the period was as follows:

2024
£ 000

2023
£ 000

Remuneration

632

435

Contributions paid to money purchase schemes

8

4

640

439

In respect of the highest paid director:

2024
£ 000

2023
£ 000

Remuneration

203

91

Company contributions to money purchase pension schemes

1

1

11

Auditors' remuneration

2024
£ 000

2023
£ 000

Audit of the financial statements

16

15


 

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

12

Taxation

Tax charged/(credited) in the statement of comprehensive income

2024
£ 000

2023
£ 000

Current taxation

UK corporation tax

482

-

Deferred taxation

Arising from write-down or reversal of write-down of deferred tax asset

67

(2)

Tax expense/(receipt) in the income statement

549

(2)

The tax on profit before tax for the period is lower than the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 24.01% (2023 - 19%). This is lower than the standard rate of corporation tax of 25%, as the standard rate increase occurred from 1 April, during the current period of these accounts.

The differences are reconciled below:

2024
£ 000

2023
£ 000

Profit before tax

4,308

2,536

Corporation tax at standard rate

1,034

482

Tax decrease from effect of capital allowances and depreciation

(87)

(124)

Effect of expense not deductible in determining taxable profit (tax loss)

12

19

Tax decrease from effect of exercise of employee share options

-

(205)

Tax decrease arising from group relief

(477)

(172)

Deferred tax expense/(credit) from unrecognised tax loss or credit

67

(2)

Total tax charge/(credit)

549

(2)

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£ 000

Liability
£ 000

Accelerated capital allowances

-

270

-

270

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

12

Taxation (continued)

2023

Asset
£ 000

Liability
£ 000

Accelerated capital allowances

-

203

-

203

13

Tangible assets

Building improvements
£ 000

Fixtures and fittings
£ 000

Plant and machinery
£ 000

Computer equipment
£ 000

Total
£ 000

Cost or valuation

At 30 January 2023

1,378

1,309

-

112

2,799

Additions

470

89

484

37

1,080

Disposals

-

(2)

(33)

-

(35)

Transfers

-

(1,062)

1,062

-

-

At 28 January 2024

1,848

334

1,513

149

3,844

Depreciation

At 30 January 2023

543

447

-

72

1,062

Charge for the period

151

40

278

43

512

Eliminated on disposal

-

(1)

(30)

-

(31)

Transfers

-

(357)

357

-

-

At 28 January 2024

694

129

605

115

1,543

Carrying amount

At 28 January 2024

1,154

205

908

34

2,301

At 29 January 2023

835

862

40

-

1,737

In the prior year the Building improvements had been reported as Freehold property, which has been corrected here.

The directors have adjusted the classification of certain fixed assets to give a fairer presentation, the lines affected show as Transfers above.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

14

Stocks

2024
£ 000

2023
£ 000

Raw materials and consumables

313

346

Finished goods and goods for resale

856

432

1,169

778

15

Debtors

Note

2024
£ 000

2023
£ 000

Trade debtors

 

1,259

827

Amounts owed by related parties

23

1,854

609

Other debtors

 

139

276

Prepayments

 

601

126

   

3,853

1,838

16

Cash and cash equivalents

2024
£ 000

2023
£ 000

Cash at bank

3,884

2,089

17

Creditors

Note

2024
£ 000

2023
£ 000

Trade creditors

 

1,568

1,275

Social security and other taxes

 

80

91

Outstanding defined contribution pension costs

 

22

20

Other payables

 

27

227

Accruals

 

584

211

Corporation tax liability

12

482

-

 

2,763

1,824

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

18

Provisions for liabilities

Deferred tax
£ 000

Total
£ 000

At 30 January 2023

203

203

Increase (decrease) in existing provisions

67

67

At 28 January 2024

270

270

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £77,339 (2023 - £59,000).

Contributions totalling £21,904 (2023 - £20,482) were payable to the scheme at the end of the period and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary Class A of £1 each

350

350

350

350

Ordinary Class B of £1 each

38

38

38

38

Ordinary Class C of £1 each

350

350

350

350

Ordinary Class D of £1 each

12

12

12

12

Ordinary Class E of £1 each

30

30

30

30

Ordinary Class F of £1 each

14

14

14

14

794

794

794

794

Rights, preferences and restrictions


All shares rank equally for voting and dividend rights, and the distribution of any surplus on winding up.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

21

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

Share premium account
This reverse records the amount above the nominal value received for shares sold, less transaction costs.

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

   

2024
£ 000

2023
£ 000

Not later than one year

284

223

Later than one year and not later than five years

1,059

693

Later than five years

561

665

1,904

1,581

The amount of non-cancellable operating lease payments recognised as an expense during the period was £273,387 (2023 - £182,074).

23

Related party transactions

Summary of transactions with key management

Summary of transactions with parent

During the period the only transactions with Topsmiths Limited in the year was the recharge of Topsmiths Ltd payroll costs at £725,814 (2023: £401,711) as well as management charges of £179,332 (2023: £133,064).

At the period-end the balance between the company and Topsmiths Limited was Topsmiths Limited owing the company £1,853,585 (2023: £609,114).

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

24

Parent and ultimate parent undertaking

The ultimate parent during the period was Topsmiths Limited, incorporated in England and Wales. This changed subsequent to the year-end on 30 January 2024, when Topsmiths Ltd was acquired by Boncolac. The ultimate parent company of Boncolac, and by association the ultimate parent of Cakesmiths Group Ltd, is WPEF VII Holding Cooperatief W.A, effective from 30 January 2024. WPEF VII Holding Cooperatief W.A also became the ultimate controlling party of Cakesmiths Group Ltd, at this same date.

 The most senior parent entity producing publicly available financial statements during the period was Topsmiths Limited. These financial statements are available upon request from 6 Kingsland Trading Estate, St. Philips Road, Bristol, Somerset, England, BS2 0JZ
 

25

EMI share options exercised

During the prior year, the share options set out below were all exercised:

EMI Scheme - D Shares
On 06/09/2018 the Company granted a total of twelve (12) share options to three (3) employees under the Enterprise Management (EMI) scheme. The fair value of the share options as at the grant date was £4,379.40 per option as agreed with HM Revenue & Customs. The exercise price was £1.00 per share. The options were subject to performance targets as set at the sole discretion of the Directors, and could not be exercised by the employees until these performance targets were met. The share options would have lapsed on the fifth (5th) anniversary of the date of grant, or the date on which the option holder gave or received notice to become a leaver.

EMI Scheme - E Shares
On 02/08/2019 the Company granted a total of Thirty (30) share options to three (3) employees under the Enterprise Management (EMI) scheme. The fair value of the share options as at the grant date was £5,564.10 per option as agreed with HM Revenue & Customs. The exercise price was £1.00 per share. The options were subject to performance targets as set at the sole discretion of the Directors, and could not be exercised by the employees until these performance targets were met. The share options would have lapsed on the fifth (5th) anniversary of the date of grant, or the date on which the option holder gave or received notice to become a leaver.

EMI Scheme - F Shares
On 17/12/2021 the Company granted a total of Fourteen (14) share options to two (2) employees under the Enterprise Management (EMI) scheme. The fair value of the share options as at the grant date was £8,816.12 per option as agreed with HM Revenue & Customs. The exercise price was £1.00 per share. The options were subject to performance targets as set at the sole discretion of the Directors, and could not be exercised by the employees until these performance targets were met. The share options would have lapsed on the fifth (5th) anniversary of the date of grant, or the date on which the option holder gave or received notice to become a leaver.

 

Cakesmiths Group Limited

Notes to the Financial Statements for the Period from 30 January 2023 to 28 January 2024 (continued)

26

Charges

As at the year-end there was an outstanding charge for LDC (Managers) Ltd who had entitlement over all patents, registered and unregistered, trade and service. This charge was satisfied subsequent to the year-end on 6 February 2024.