Celebration Drinks Limited
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 07309666 (England and Wales)
Celebration Drinks Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Celebration Drinks Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1,072
1,768
Tangible assets
4
472,749
540,321
473,821
542,089
Current assets
Stock
104,269
112,540
Debtors
5
250,354
270,737
Cash at bank and in hand
62,886
97,089
417,509
480,366
Creditors: amounts falling due within one year
6
(1,189,828)
(1,168,298)
Net current liabilities
(772,319)
(687,932)
Total assets less current liabilities
(298,498)
(145,843)
Creditors: amounts falling due after more than one year
7
(78,028)
(123,172)
Provisions for liabilities
Deferred tax liability
8
(118,128)
(134,552)
Net liabilities
(494,654)
(403,567)
Capital and reserves
Called up share capital
10
2
2
Profit and loss reserves
(494,656)
(403,569)
Total equity
(494,654)
(403,567)
Celebration Drinks Limited
Balance Sheet (Continued)
As at 31 December 2023
Page 2
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 11 November 2024 and are signed on its behalf by:
D G Heley
Director
Company Registration No. 07309666
Celebration Drinks Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 3
1
Accounting policies
Company information
Celebration Drinks Limited is a private company limited by shares incorporated in England and Wales. The registered office is Trafalgar House, 712 London Road, West Thurrock, Essex, RM20 3JT.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company's balance sheet at 31 December 202true3 shows an excess of current liabilities over assets. The company meets its working capital requirements through loans from related parties. These related parties have agreed to continue to support the company by not recalling the loans of £742,998 until such time as the company is able to repay the loans without compromising its ability to continue to trade and to meet its liabilities as they fall due.
Therefore, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods net of VAT and trade discounts.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Goodwill
25% straight line
Trademarks
10% straight line
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
10%/20%/25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Stock
Stock are stated at the lower of cost net realisable value. Cost includes all excise duty and transport costs incurred in bringing the stock into its present location and condition.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
Financial instruments
The company only has basic financial instruments at amortised cost, with no financial instruments classified as other or basic instrument measured at fair value.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2022: 4).
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
3
Intangible fixed assets
Goodwill
Trademarks
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
25,000
6,960
31,960
Amortisation and impairment
At 1 January 2023
25,000
5,192
30,192
Amortisation charged for the year
696
696
At 31 December 2023
25,000
5,888
30,888
Carrying amount
At 31 December 2023
1,072
1,072
At 31 December 2022
1,768
1,768
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
655,840
Additions
4,921
At 31 December 2023
660,761
Depreciation and impairment
At 1 January 2023
115,519
Depreciation charged in the year
72,493
At 31 December 2023
188,012
Carrying amount
At 31 December 2023
472,749
At 31 December 2022
540,321
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
237,689
255,399
Other debtors
12,665
15,338
250,354
270,737
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,994
9,747
Trade creditors
127,852
66,825
Amounts due to related parties
742,998
749,285
Taxation and social security
52,943
76,040
Other creditors
256,041
266,401
1,189,828
1,168,298
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
20,752
30,746
Other creditors
57,276
92,426
78,028
123,172
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
118,128
134,552
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
8
Deferred taxation
(Continued)
Page 8
2023
Movements in the year:
£
Liability at 1 January 2023
134,552
Credit to profit or loss
(16,424)
Liability at 31 December 2023
118,128
The deferred tax liability set out above is expected to reverse in the future and relates to accelerated capital allowances that are expected to mature within the same period.
Deferred tax is not recognised in respect of tax losses of £882,339 (2022: £877,816), as there is no guarantee of future taxable profits against which to relieve them.
9
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,852
5,575
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Included in other creditors at the year end is an amount of £600 (2022: £398) in respect of unpaid pension contributions.
10
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
11
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Total
258,000
294,000
Celebration Drinks Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 9
12
Directors' transactions
Included in other creditors at the year end, was an amount owed to D G Heley, a director of the company, of £100,000 (2022: £135,000).
13
Related party transactions
The companies Heley International Limited, Q E Logistics Limited, Exports of Goodies Limited, G.A.F. Heley (Properties) Limited and Big Blue Squirrel Self Storage Limited are related due to family interests.
During the period the company had the following transactions with related parties:-
2023
2022
£
£
Expenditure
Heley International Limited
Rent
3,000
3,000
Employment and Pension costs
49,301
59,916
Recharged expenses
45,628
18,816
G.A.F. Heley (Properties) Limited
Loan Arrangement Fee
7,200
7,200
All transactions were made on a normal commercial basis.
At the year end, there were loans outstanding which are owed to related parties as follows:
Amounts owed to Heley International Limited of £140,360 (2022: £140,643), amounts owed to G.A.F. Heley (Properties) Limited of £357,200 (2022: £357,200), amounts owed to Q E Logistics Limited of £109,777 (2022: £109,777) and amounts owed to Big Blue Squirrel Self Storage Limited £135,662 (2022: £141,665). During the year, interest of £1,292 (2022: £2,502) was paid and interest of £1,374 (2022: £4,963) was accrued on loans owed to Big Blue Squirrel Self Storage Limited at a rate of 2.75%. During the year, interest of £31,815 (2022: £13,896) was paid on loans owed to G.A.F. Heley (Properties) Limited.
At the year end, there were trading balances with related parties as follows:
Included in trade creditors at the year end were amounts owed to Exports of Goodies Limited of £15,000 (2022: £15,000).
Other transactions
Included in other creditors at the year end, was an amount owed to Mr G Heley, a director of related party; Heley International Limited, of £79,447 (2022: £88,351). During the year, interest totalling £441 (2022: £2,704) was paid to Mr G Heley.