Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
FIKA HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr P Williams
Ms S Williams
Mrs F Powell
Mr A P Williams
Company number
11848653
Registered office
Prospect Works
(Off) South Street
Keighley
West Yorkshire
BD21 5AA
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
FIKA HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
FIKA HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair Review of the Business

In 2023/24 the core business activities of the company were the manufacturing and distribution of commercial catering equipment with the addition of a limited amount of M&E works for blue chip clients.

The core values of the company continue to be excellent customer service working in partnership with our customers and to manufacture and design quality products for our target core markets and provide a safe and inspiring environment for employees to work and develop whilst caring for our local community and the wider environment.

In 2023/24 the company finished the financial year with a decrease in sales of 10.23% (£10.23m) compared to 2022/23 (£11.40m). The decrease in sales comes at a time when most manufacturing organisations have continued to face severe trading disruption due to fluctuating market conditions and continued high interest rates affecting market confidence throughout the year, in addition and compounded by significant labour shortages, both skilled and unskilled, and significant issues with operator and staff retention.

Despite a decrease in gross sales of 10.23% there has been an increased and combined focus on both tight controls on overhead costs and stringent cash flow management, which has still resulted in a profit after tax for 2023/24 of £578,366, a 25.87% increase on 2022/23 which had seen a profit for the year of £459,493.

The company measures its finance regularly throughout the year and does so through the use of Key Performance Indicators (KPIs).

KPIs include:

Annual turnover – 10.23% decrease on 2022/23 (prior year increase 45.8% in 2021/22).

Gross profit margin maintenance – A 14.97% increase to 55.09% in 2023/24 (from 40.12% in 2022/23) Despite difficult fluctuating market trading conditions, ongoing price increases in raw material costs, component costs, labour costs and energy costs, despite pressure to maintain product price increase at current levels to our customers.

Total Cost of Sales – 2023/24 - saw a 32.7% reduction in total costs during the course of the year from £6.82m in 2022/23 to £4.59m in 2023/2024. The company objectives are to tightly control overhead & direct purchasing costs so that they show minimal increases and therefore maximise profitability. The company has significant measures in place to control our overhead and direct costs, wherever possible.

Increasing the value of shareholders’ funds Total Equity – 2023/24 saw a 43.65% increase to £1,093,326 (15.99% increase in 2022/23).

Principle risks and uncertainties

The company operates predominately in the UK market and normally under 2% of turnover to export markets. The company seeks to mitigate all forms of risk, both internal and external, and where practicable to transfer risk to insurers. The diverse nature of the company’s activities and customer base helps to mitigate risk and the effect of adverse economic political fluctuating conditions.

Customers and suppliers

The company continues not to depend on any one supplier or customer, with no single customer accounting for more than 40% of the total sales of the company. Sales and marketing initiatives aim to increase the number and diversity of our customer base to ensure we are not adversely affected by losing one single customer.

Foreign exchange

Dealing predominantly in the UK market and obtaining supplies from UK based suppliers and distributors, the company transacts predominately in sterling with only a minimal amounts of currency exposure.

FIKA HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal Risks and Uncertainties continued

Credit

The company is exposed to some credit risk in relation to customers and insurers, credit insurance is in place via the company’s banking partner HSBC. Credit control procedures take into account any identified risk in relation to customers, and these are continually under review with our banking partners and being continually improved.

Employees

At the year end the company employed 119 people across its operation (124 - 2022/23). The company’s policy is to provide equal opportunities for employment. In employment related decisions, the company complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age or physical or mental ability. Disabled people are given full consideration for employment and their development is assisted and encouraged.

The company continues to invest in its employees’ skills and capabilities to help reach their full potential, which in turn helps the company to do likewise. The company utilises predominantly semi-skilled labour and in-house training methods. The company takes health and safety and environmental responsibilities seriously and employs a full time HR/HSE Compliance Manager as part of its senior management team, the company is proud of its record in this regard.

Future Developments

We will continue to be supported with significant investment again in 2024/25 by FIKA Holdings Limited, as part of the company’s effort to maintain and increase our current market share and sales levels and to help deliver significant additional growth during the course of the year.

Our investments over the previous few years have enabled the company to consolidate its current position despite modest trading profits during the previous financial year 2022/23, and returned the company back to a healthy profitable position for 2024/25. However, market conditions are still extremely volatile in the wake of high interest rates and changes in government, and will continue to prove a challenge as we move forward given the latest budget announcements from the new Labour Government, and a new incoming US President.

The short to medium term view of the directors is to the continued longer-term survival, growth and profitability of the business, increasing efficiencies throughout the business, improving operational effectiveness with continued capital investment in automated manufacturing process aimed at controlling expensive overhead costs and countering shortages of skilled and semi-skilled labour, continued development and strengthening our current management team. These initiatives will enable significant growth over the next 18 month period as market conditions hopefully settle and improve.

The business has a strong reputation for being at the forefront of advances in the hospitality, retail and catering equipment industry within the UK, and even in these very difficult and challenging times will continue to invest in its manufacturing facilities, new product development and people as we move forward.

Bringing several subcontracted activities inhouse under its own control will continue to improve operational efficiencies, this provided a much needed solid platform to be able to facilitate significant profitability over the last year. More R&D product innovation and some diversification will continue as we move forward during 2024/25.

On behalf of the board

Mr P Williams
Director
20 November 2024
FIKA HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of Fika Holdings Limited is that of a holding company. The principal activity of the group is that of manufacturing and distribution of commercial catering equipment. The company’s main products are equipment designed to display food (hot and cold) prior to consumption.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £273,625 (2023 - £354,574). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Williams
Ms S Williams
Mrs F Powell
Mr A P Williams
Mr R J Powell
(Appointed 15 August 2023 and resigned 24 October 2023)
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr P Williams
Director
20 November 2024
FIKA HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Fika Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

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

FIKA HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIKA HOLDINGS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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 internal control.

Extent to which the audit was considered capable of detecting irregularies, including fraud

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.

Matthew Grant (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
20 November 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,229,415
11,395,586
Cost of sales
(4,594,501)
(6,824,092)
Gross profit
5,634,914
4,571,494
Administrative expenses
(5,215,218)
(4,348,164)
Other operating income
290,000
326,250
Operating profit
4
709,696
549,580
Interest payable and similar expenses
8
(178,764)
(124,936)
Profit before taxation
530,932
424,644
Tax on profit
9
47,434
34,849
Profit for the financial year
578,366
459,493
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FIKA HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
64,670
77,186
Tangible assets
12
4,703,534
4,756,324
4,768,204
4,833,510
Current assets
Stocks
15
1,245,079
1,255,738
Debtors
16
1,786,161
1,655,275
Cash at bank and in hand
1,139
55,894
3,032,379
2,966,907
Creditors: amounts falling due within one year
17
(4,903,847)
(4,997,081)
Net current liabilities
(1,871,468)
(2,030,174)
Total assets less current liabilities
2,896,736
2,803,336
Creditors: amounts falling due after more than one year
18
(1,301,210)
(1,531,541)
Provisions for liabilities
Provisions
21
90,000
90,000
Deferred tax liability
22
404,700
413,210
(494,700)
(503,210)
Government grants
(7,500)
(7,500)
Net assets
1,093,326
761,085
Capital and reserves
Called up share capital
24
1
1
Revaluation reserve
1,322,177
1,335,580
Profit and loss reserves
(228,852)
(574,496)
Total equity
1,093,326
761,085
The financial statements were approved by the board of directors and authorised for issue on 20 November 2024 and are signed on its behalf by:
20 November 2024
Mr P  Williams
Director
Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,597,000
2,623,500
Investments
13
3,068,500
3,068,500
5,665,500
5,692,000
Current assets
Cash at bank and in hand
590
-
0
Creditors: amounts falling due within one year
17
(4,033,922)
(4,113,131)
Net current liabilities
(4,033,332)
(4,113,131)
Net assets
1,632,168
1,578,869
Capital and reserves
Called up share capital
24
1
1
Revaluation reserve
1,322,177
1,335,580
Profit and loss reserves
309,990
243,288
Total equity
1,632,168
1,578,869

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £326,924 (2023 - £465,329 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 November 2024 and are signed on its behalf by:
20 November 2024
Mr P  Williams
Director
Company registration number 11848653 (England and Wales)
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1
1,348,983
(692,818)
656,166
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
459,493
459,493
Dividends
10
-
-
(354,574)
(354,574)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2023
1
1,335,580
(574,496)
761,085
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
578,366
578,366
Dividends
10
-
-
(246,125)
(246,125)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2024
1
1,322,177
(228,852)
1,093,326
FIKA HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1
1,348,983
119,130
1,468,114
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
465,329
465,329
Dividends
10
-
-
(354,574)
(354,574)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2023
1
1,335,580
243,288
1,578,869
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
326,924
326,924
Dividends
10
-
-
(273,625)
(273,625)
Transfers
-
(13,403)
13,403
-
Balance at 31 March 2024
1
1,322,177
309,990
1,632,168
FIKA HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
541,964
661,639
Interest paid
(178,764)
(124,936)
Income taxes refunded
39,070
-
0
Net cash inflow from operating activities
402,270
536,703
Investing activities
Purchase of tangible fixed assets
(43,541)
(201,000)
Net cash used in investing activities
(43,541)
(201,000)
Financing activities
Repayment of borrowings
(794)
(114,461)
Repayment of bank loans
(155,000)
(155,000)
Payment of finance leases obligations
(358,444)
(161,484)
Dividends paid to equity shareholders
(246,125)
(354,574)
Net cash used in financing activities
(760,363)
(785,519)
Net decrease in cash and cash equivalents
(401,634)
(449,816)
Cash and cash equivalents at beginning of year
(1,125,548)
(675,732)
Cash and cash equivalents at end of year
(1,527,182)
(1,125,548)
Relating to:
Cash at bank and in hand
1,139
55,894
Bank overdrafts included in creditors payable within one year
(1,528,321)
(1,181,442)
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

Fika Holdings Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Lonsdale Works, Gibson Street, Bradford, BD3 9TF.

 

The group consists of Fika Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Fika Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the sale and distribution of commercial equipment, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Freehold property
50 years straight line
Plant and equipment
5 to 10 years straight line
Fixtures and fittings
5 to 10 years straight line
Computer equipment
4 years straight line
Motor vehicles
4 years straight line
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

Freehold land is not depreciated.

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

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 group 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. 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 through 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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
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.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the period was £437,384 (2023 - £374,100) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Stock provision

At each reporting date an assessment is made for provisions required to recognise a fair value of damaged, slow moving or obsolete stock. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss when they arise.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify the possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Manufacturing and distribution of commercial catering equipment
10,229,415
11,395,586
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,229,415
11,395,586
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
172,203
266,913
Depreciation of tangible fixed assets held under finance leases
265,181
107,187
Amortisation of intangible assets
12,516
12,516
Operating lease charges
49,834
39,109
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production staff
54
56
-
-
Administrative staff
61
64
-
-
Directors
4
4
4
4
Total
119
124
4
4

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,508,385
3,725,311
-
0
-
0
Social security costs
330,350
334,101
-
-
Pension costs
245,789
122,183
-
0
-
0
4,084,524
4,181,595
-
0
-
0
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,000
1,000
Audit of the financial statements of the company's subsidiaries
23,400
22,000
24,400
23,000
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
54,605
36,832
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
121,563
79,914
Interest on finance leases and hire purchase contracts
57,201
45,022
Total finance costs
178,764
124,936
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(38,923)
-
0
Deferred tax
Origination and reversal of timing differences
(8,511)
(34,849)
Total tax credit
(47,434)
(34,849)

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
530,932
424,644
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
132,733
80,682
Tax effect of expenses that are not deductible in determining taxable profit
13,553
6,314
Tax effect of utilisation of tax losses not previously recognised
(194,716)
(111,450)
Other
996
(10,395)
Taxation credit
(47,434)
(34,849)
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
273,625
354,574
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
125,164
Amortisation and impairment
At 1 April 2023
47,978
Amortisation charged for the year
12,516
At 31 March 2024
60,494
Carrying amount
At 31 March 2024
64,670
At 31 March 2023
77,186
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
12
Tangible fixed assets
Group
Freehold property
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
2,650,000
2,754,523
369,363
406,109
175,290
6,355,285
Additions
-
0
170,000
2,759
40,782
171,053
384,594
At 31 March 2024
2,650,000
2,924,523
372,122
446,891
346,343
6,739,879
Depreciation and impairment
At 1 April 2023
26,500
969,501
178,821
383,222
40,917
1,598,961
Depreciation charged in the year
26,500
256,014
64,318
25,262
65,290
437,384
At 31 March 2024
53,000
1,225,515
243,139
408,484
106,207
2,036,345
Carrying amount
At 31 March 2024
2,597,000
1,699,008
128,983
38,407
240,136
4,703,534
At 31 March 2023
2,623,500
1,785,022
190,542
22,887
134,373
4,756,324
Company
Freehold property
£
Cost or valuation
At 1 April 2023 and 31 March 2024
2,650,000
Depreciation and impairment
At 1 April 2023
26,500
Depreciation charged in the year
26,500
At 31 March 2024
53,000
Carrying amount
At 31 March 2024
2,597,000
At 31 March 2023
2,623,500

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,687,949
788,408
-
0
-
0
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 25 -

Land and buildings with a carrying amount of £1,301,017 were revalued at 30 November 2022 by Hayfield Robinson, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been approximately £1,287,920 (2023 - £1,305,383), being cost £1,309,749 (2023 - £1,309,749) and depreciation £21,829 (2023 - £8,732).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,068,500
3,068,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
3,068,500
Carrying amount
At 31 March 2024
3,068,500
At 31 March 2023
3,068,500
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Victor Manufacturing Limited
England & Wales
Manufacture and distribution of commercial catering equipment
Ordinary
100.00

The registered office address for Victor Manufacturing Limited is: Back Prospect Works, South Street, Keighley, BD21 5AA.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
716,241
682,412
-
-
Work in progress
332,867
284,583
-
-
Finished goods and goods for resale
195,971
288,743
-
0
-
0
1,245,079
1,255,738
-
-
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,409,776
1,583,947
-
0
-
0
Corporation tax recoverable
-
0
146
-
0
-
0
Prepayments and accrued income
376,385
71,182
-
0
-
0
1,786,161
1,655,275
-
-

Trade debtors are pledged as security for the invoice financing facility (note 17).

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,683,881
1,337,002
-
0
3,610
Obligations under finance leases
20
339,561
281,621
-
0
-
0
Other borrowings
19
803,971
804,765
803,067
803,861
Trade creditors
1,331,767
1,569,163
-
0
-
0
Amounts owed to group undertakings
2
2
-
0
-
0
Other taxation and social security
467,666
633,665
-
-
Other creditors
36,452
87,063
3,230,855
3,305,660
Accruals and deferred income
240,547
283,800
-
0
-
0
4,903,847
4,997,081
4,033,922
4,113,131

Included within Bank loans and overdrafts is £1,047,274 (2023 - £1,177,832) due in relation to an invoice financing facility and is secured on trade debtors (note 16).

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
180,833
335,833
-
0
-
0
Obligations under finance leases
20
1,120,377
1,195,708
-
0
-
0
1,301,210
1,531,541
-
-
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
336,393
491,393
-
0
-
0
Bank overdrafts
1,528,321
1,181,442
-
0
3,610
Other loans
803,971
804,765
803,067
803,861
2,668,685
2,477,600
803,067
807,471
Payable within one year
2,487,852
2,141,767
803,067
807,471
Payable after one year
180,833
335,833
-
0
-
0

Borrowings are secured by way of fixed and floating charges over the company’s assets.

 

 

 

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
405,514
341,941
-
0
-
0
In two to five years
1,196,762
1,268,663
-
0
-
0
In over five years
42,645
46,724
-
0
-
0
1,644,921
1,657,328
-
-
Less: future finance charges
(184,983)
(179,999)
-
0
-
0
1,459,938
1,477,329
-
0
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty provision
90,000
90,000
-
-
FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Provisions for liabilities
(Continued)
- 29 -
Movements on provisions:
Warranty provision
Group
£
At 1 April 2023 and 31 March 2024
90,000
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
404,700
413,210
Group
Company
2024
2024
Movements in the year:
£
£
Credit to profit or loss
(8,510)
-
Liability at 31 March 2024
404,700
-

The company had no deferred tax balances at 31 March 2024 or 31 March 2023.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
245,789
122,183

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
24
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
80 Ordinary A shares of £0.01 each
0.80
0.80
10 Ordinary B shares of £0.01 each
0.10
0.10
5 Ordinary C shares of £0.01 each
0.05
0.05
5 Ordinary D shares of £0.01 each
0.05
0.05
1
1

The company issued 1 Ordinary share upon incorporation, at par value. On 22 July 2019, there was a change of share class name from Ordinary share to A Ordinary, B Ordinary, C Ordinary and D Ordinary and a subdivision of share occurred, as shown in the note. The shares have full voting rights, full rights to dividends and full rights in a distribution. They do not confer any rights of redemption.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
33,770
34,121
-
-
Between two and five years
51,378
85,967
-
-
85,148
120,088
-
-
26
Controlling party

The controlling party of the group is Mr P Williams, a Director and majority Shareholder.

FIKA HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
578,366
459,493
Adjustments for:
Taxation credited
(47,434)
(34,849)
Finance costs
178,764
124,936
Amortisation and impairment of intangible assets
12,516
12,516
Depreciation and impairment of tangible fixed assets
437,384
374,100
Movements in working capital:
Decrease in stocks
10,659
463,831
Increase in debtors
(131,032)
(562,915)
Decrease in creditors
(497,259)
(175,473)
Cash generated from operations
541,964
661,639
28
Analysis of changes in net debt - group
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
55,894
(54,755)
-
1,139
Bank overdrafts
(1,181,442)
(346,879)
-
(1,528,321)
(1,125,548)
(401,634)
-
(1,527,182)
Borrowings excluding overdrafts
(1,296,158)
155,794
-
(1,140,364)
Obligations under finance leases
(1,477,329)
358,444
(341,053)
(1,459,938)
(3,899,035)
112,604
(341,053)
(4,127,484)
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210Mr P WilliamsMs S WilliamsMrs F PowellMr A P WilliamsMr R J PowellMr R J Powellfalsefalse11848653bus:Consolidated2023-04-012024-03-31118486532023-04-012024-03-3111848653bus:Director12023-04-012024-03-3111848653bus:Director22023-04-012024-03-3111848653bus:Director32023-04-012024-03-3111848653bus:Director42023-04-012024-03-3111848653bus:Director52023-04-012024-03-3111848653bus:Director62023-04-012024-03-3111848653bus:RegisteredOffice2023-04-012024-03-3111848653bus:Consolidated2024-03-31118486532024-03-3111848653bus:Consolidated2022-04-012023-03-31118486532022-04-012023-03-3111848653core:Goodwillbus:Consolidated2024-03-3111848653core:Goodwillbus:Consolidated2023-03-3111848653bus:Consolidated2023-03-31118486532023-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-03-3111848653core:PlantMachinerybus:Consolidated2024-03-3111848653core:FurnitureFittingsbus:Consolidated2024-03-3111848653core:ComputerEquipmentbus:Consolidated2024-03-3111848653core:MotorVehiclesbus:Consolidated2024-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3111848653core:PlantMachinerybus:Consolidated2023-03-3111848653core:FurnitureFittingsbus:Consolidated2023-03-3111848653core:ComputerEquipmentbus:Consolidated2023-03-3111848653core:MotorVehiclesbus:Consolidated2023-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3111848653core:ShareCapitalbus:Consolidated2024-03-3111848653core:ShareCapitalbus:Consolidated2023-03-3111848653core:RevaluationReservebus:Consolidated2024-03-3111848653core:RevaluationReservebus:Consolidated2023-03-3111848653core:ShareCapital2024-03-3111848653core:ShareCapital2023-03-3111848653core:RevaluationReserve2024-03-3111848653core:RevaluationReserve2023-03-3111848653core:RetainedEarningsAccumulatedLosses2024-03-3111848653core:ShareCapitalbus:Consolidated2022-03-3111848653core:SharePremiumbus:Consolidated2022-03-3111848653core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3111848653core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3111848653core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-03-3111848653core:ShareCapital2022-03-3111848653core:RevaluationReserve2022-03-3111848653core:RetainedEarningsAccumulatedLosses2022-03-3111848653core:RetainedEarningsAccumulatedLosses2023-03-3111848653bus:Consolidated2022-03-3111848653core:Goodwill2023-04-012024-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-3111848653core:PlantMachinery2023-04-012024-03-3111848653core:FurnitureFittings2023-04-012024-03-3111848653core:ComputerEquipment2023-04-012024-03-3111848653core:MotorVehicles2023-04-012024-03-3111848653core:UKTaxbus:Consolidated2023-04-012024-03-3111848653core:UKTaxbus:Consolidated2022-04-012023-03-3111848653bus:Consolidated12023-04-012024-03-3111848653bus:Consolidated12022-04-012023-03-3111848653core:Goodwillbus:Consolidated2023-03-3111848653core:Goodwillbus:Consolidated2023-04-012024-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3111848653core:PlantMachinerybus:Consolidated2023-03-3111848653core:FurnitureFittingsbus:Consolidated2023-03-3111848653core:ComputerEquipmentbus:Consolidated2023-03-3111848653core:MotorVehiclesbus:Consolidated2023-03-3111848653bus:Consolidated2023-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3111848653core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-04-012024-03-3111848653core:PlantMachinerybus:Consolidated2023-04-012024-03-3111848653core:FurnitureFittingsbus:Consolidated2023-04-012024-03-3111848653core:ComputerEquipmentbus:Consolidated2023-04-012024-03-3111848653core:MotorVehiclesbus:Consolidated2023-04-012024-03-3111848653core:PlantMachinery2024-03-3111848653core:PlantMachinery2023-03-3111848653core:CurrentFinancialInstrumentsbus:Consolidated2024-03-3111848653core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3111848653core:CurrentFinancialInstruments2024-03-3111848653core:CurrentFinancialInstruments2023-03-3111848653core:WithinOneYearbus:Consolidated2024-03-3111848653core:WithinOneYearbus:Consolidated2023-03-3111848653core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3111848653core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3111848653core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-03-3111848653core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3111848653core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3111848653core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3111848653core:Non-currentFinancialInstrumentsbus:Consolidated2024-03-3111848653core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3111848653core:Non-currentFinancialInstruments2024-03-3111848653core:Non-currentFinancialInstruments2023-03-3111848653core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-03-3111848653core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3111848653core:WithinOneYear2024-03-3111848653core:WithinOneYear2023-03-3111848653core:BetweenTwoFiveYearsbus:Consolidated2024-03-3111848653core:BetweenTwoFiveYearsbus:Consolidated2023-03-3111848653core:BetweenTwoFiveYears2024-03-3111848653core:BetweenTwoFiveYears2023-03-3111848653core:MoreThanFiveYearsbus:Consolidated2024-03-3111848653core:MoreThanFiveYearsbus:Consolidated2023-03-3111848653core:MoreThanFiveYears2024-03-3111848653core:MoreThanFiveYears2023-03-3111848653bus:PrivateLimitedCompanyLtd2023-04-012024-03-3111848653bus:FRS1022023-04-012024-03-3111848653bus:Audited2023-04-012024-03-3111848653bus:ConsolidatedGroupCompanyAccounts2023-04-012024-03-3111848653bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP