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REGISTERED NUMBER: 03193432 (England and Wales)










Financial Statements

for the Year Ended 31 December 2023

for

Freshroast Coffee Co. Limited

Freshroast Coffee Co. Limited (Registered number: 03193432)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Freshroast Coffee Co. Limited

Company Information
for the Year Ended 31 December 2023







DIRECTOR: Christopher John Brooking





REGISTERED OFFICE: Unit B Ainley Industrial Estate
Huddersfield Road
Elland
West Yorkshire
HX5 9JP





REGISTERED NUMBER: 03193432 (England and Wales)





AUDITORS: SCB (Accountants) Limited
31 Sackville street
Manchester
M1 3LZ

Freshroast Coffee Co. Limited (Registered number: 03193432)

Balance Sheet
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 4 77,600 90,556

CURRENT ASSETS
Stocks 5 486,746 459,619
Debtors 6 1,167,463 1,230,062
Cash at bank and in hand 27,582 33,870
1,681,791 1,723,551
CREDITORS
Amounts falling due within one year 7 (699,186 ) (761,818 )
NET CURRENT ASSETS 982,605 961,733
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,060,205

1,052,289

CREDITORS
Amounts falling due after more than one
year

8

(14,167

)

(24,167

)

PROVISIONS FOR LIABILITIES (18,900 ) (16,800 )
NET ASSETS 1,027,138 1,011,322

CAPITAL AND RESERVES
Called up share capital 11 30,000 30,000
Other reserves 170,631 170,631
Retained earnings 826,507 810,691
SHAREHOLDERS' FUNDS 1,027,138 1,011,322

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the director and authorised for issue on 28 October 2024 and were signed by:





Christopher John Brooking - Director


Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
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.

REVENUE RECOGNITION
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/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.

TANGIBLE FIXED 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
Leasehold improvements 5% on cost
Plant & Machinery 10% on cost
Office Equipment 25% reducing balance
Motor vehicles 25% reducing balance


GOVERNMENT GRANTS
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

STOCKS
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method.

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.



Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
ACCOUNTING POLICIES - continued

LEASES
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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 attransaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

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

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

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






Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

ACCOUNTING POLICIES - continued

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

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

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCY TRANSACTION & 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 rates prevailing on the initial transaction dates.

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
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.

Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand and call deposits, 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.

TRADE DEBTORS
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

TRADE CREDITORS
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

BORROWINGS
lnterest-bearing borrowings are initially recorded at fair value, net of transaction costs. lnterest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

lnterest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

PROVISION FOR LIABILITIES
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of income and Other Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2022 - 27 ) .

Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. TANGIBLE FIXED ASSETS
Leasehold Plant and Office
improvements machinery equipments Totals
£    £    £    £   
COST
At 1 January 2023 25,766 666,027 47,052 738,845
Additions - 2,394 9,593 11,987
At 31 December 2023 25,766 668,421 56,645 750,832
DEPRECIATION
At 1 January 2023 24,470 578,040 45,779 648,289
Charge for year (833 ) 24,044 1,732 24,943
At 31 December 2023 23,637 602,084 47,511 673,232
NET BOOK VALUE
At 31 December 2023 2,129 66,337 9,134 77,600
At 31 December 2022 1,296 87,987 1,273 90,556

5. STOCKS
2023 2022
£    £   
Stock 486,746 459,619

6. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 575,653 510,388
Amounts owed by group undertakings 75,000 668,270
Other debtors 41,020 51,404
691,673 1,230,062

Amounts falling due after more than one year:
Amounts owed by group undertakings 475,790 -

Aggregate amounts 1,167,463 1,230,062

Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 9) 10,000 10,000
Trade creditors 372,018 392,579
Taxation and social security 84,298 35,933
Other creditors 232,870 323,306
699,186 761,818

Included within creditors is £125,784(2022 : £216,590) which is secured on the assets of the company against the floating charges

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 9) 14,167 24,167

9. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 10,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 14,167 24,167

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 87,180 75,580
Between one and five years 331,235 359,005
418,415 434,585

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
30,000 Ordinary £ 1 30,000 30,000

Freshroast Coffee Co. Limited (Registered number: 03193432)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jeffrey Bor BSC FCA (Senior Statutory Auditor)
for and on behalf of SCB (Accountants) Limited

13. RELATED PARTY DISCLOSURES

Director's remuneration

The directors' remuneration for the year was as follows:

2023 2022
£ £
Contributions paid to money purchase schemes 41,900 35,090

Other related party transactions
During the year the company made the following related party transactions:

Freshroast Holdings Limited
(100% holding company)
During the year, the company paid dividends of £188,761 (2022 : £38,761) to the holding company.

At the balance sheet date the amount due from Freshroast Holdings Limited was £550,790 (2022 : £668,270), presented as £75,000 receivable in less than 1 year and £475,790 receivable more than 1 year.

14. PARENT AND ULTIMATE PARENT UNDERTAKING

The company's immediate parent is Freshroast Holdings Limited, incorporated in England and Wales.

These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF4 3UZ.