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REGISTERED NUMBER: 14898033 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Period 26 May 2023 to 30 June 2024

for

Sarunds Holdings Ltd

Sarunds Holdings Ltd (Registered number: 14898033)






Contents of the Consolidated Financial Statements
for the Period 26 May 2023 to 30 June 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Cash Flow Statement 17

Notes to the Consolidated Financial Statements 18


Sarunds Holdings Ltd

Company Information
for the Period 26 May 2023 to 30 June 2024







DIRECTORS: Mr R F J Darke
Mrs G L Hitchens
Miss M L Hutchings
Mr G R Parkinson
Miss L J Way





SECRETARY: Mrs G L Hitchens





REGISTERED OFFICE: Unit 1 Holland Way
Blandford Forum
Dorset
DT11 7SX





REGISTERED NUMBER: 14898033 (England and Wales)





AUDITORS: Griffiths Marshall
Beaumont House
172 Southgate Street
Gloucester
Gloucestershire
GL1 2EZ

Sarunds Holdings Ltd (Registered number: 14898033)

Group Strategic Report
for the Period 26 May 2023 to 30 June 2024

The directors present their strategic report of the company and the group for the period 26 May 2023 to 30 June 2024.

The directors present the strategic report for the year ended 30 June 2024.

The House of Sarunds Limited sources, imports & distributes high quality Chocolate & Confectionery - predominantly to retail customers. The company maintains a broad spectrum of products& customers, making it highly resilient to shifts in business levels with any one customer or market sector.

REVIEW OF BUSINESS
After a period of post COVID normalisation in the previous trading year, turnover returned to robust growth during 2023-24. This growth was driven by efforts to target the cards & gifts sector and to increase sales to larger "multiple" retailers.

These initiatives were driven by targeted recruitment to bring in new skills and experience into the sales team and the expansion of the product base.

As a result, the customer base was grown in absolute terms with over 2,200 live accounts by the end of the fiscal year and in the number of larger turnover accounts within that overall figure.

This work will continue into 2024-25 as we anticipate significant opportunity to grow further within these channels.

PRINCIPAL RISKS AND UNCERTAINTIES
Inflationary pressure both in terms of operating costs and in cost of good sold, increased during the year - with abnormally high growth in minimum wage and poor cocoa harvests driving dramatic rises in wholesale prices for chocolate. The full impact of these changes will not be felt until 2024-25, in particular as the scale of chocolate price increases risks impact on consumer demand.

The House of Sarunds has anticipated these changes and has been able to leverage buying power to mitigate some of the worst impacts of price increase and also is launching initiatives to grow sales in other product groups - such as sugar confectionery and bakery - to reduce reliance on chocolate going forward.

FUTURE DEVELOPMENTS
During 2023-24, The House of Sarunds were successful in winning exclusive distribution of Europe's largest marzipan brand Niederegger. This opens up a number of new large, national accounts which will be a key focus of attention and opportunity in 2024-25.

This continued growth in larger accounts alongside the launch of major new product programmes will be the principal trading focusses for the year.

Alongside these however, the Directors will evaluate plans to increase capacity as turnover growth continues throughout the medium term.


Sarunds Holdings Ltd (Registered number: 14898033)

Group Strategic Report
for the Period 26 May 2023 to 30 June 2024

KEY PERFORMANCE INDICATORS
2024 2023
Sales £16,072,116 £12,518,355
Gross Profit £4,388,254 £3,469,008
Gross Profit Margin 27.3% 27.7%
Operating Profit £736,615 £469,930

ON BEHALF OF THE BOARD:





Mr R F J Darke - Director


4 November 2024

Sarunds Holdings Ltd (Registered number: 14898033)

Report of the Directors
for the Period 26 May 2023 to 30 June 2024

The directors present their report with the financial statements of the company and the group for the period 26 May 2023 to 30 June 2024.

INCORPORATION
The group was incorporated on 26 May 2023

CHANGE OF OWNERSHIP
In July 2023, The House of Sarunds limited was acquired by a new company, Sarunds Holdings limited. The shareholders of Sarunds Holdings limited include the previous owners and also the other four Directors of the business - effectively facilitating a buy out including the entire management team.

In preparation for this change, the Directors reviewed a number of strategic options and decided this was the best way to facilitate eventual change of ownership in a gradual, controlled and sustainable manner that would be beneficial for the business and all its stakeholders.

As a result of the transaction, an initial cash dividend of £1.2m was paid to Sarunds Holding in July. This was possible due to the consistent and prudent re-investment of profits back into the business over several previous years and had no impact on trading.

Performance since the transaction has been strong, with a significant increase in customer base, turnover and also the net asset position which remains strong.

The Directors firmly believe that these outcomes, together with a new structure that both retains and motivates experienced senior management, is an exciting platform for The House of Sarunds future growth.

DIVIDENDS
Dividends of £200,000 were paid in the year. The directors do not recommend payment of a final dividend.

DIRECTORS
The directors who have held office during the period from 26 May 2023 to the date of this report are as follows:

Mr R F J Darke - appointed 26 May 2023
Mrs G L Hitchens - appointed 5 June 2023
Miss M L Hutchings - appointed 5 June 2023
Mr G R Parkinson - appointed 5 June 2023
Miss L J Way - appointed 5 June 2023

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


Sarunds Holdings Ltd (Registered number: 14898033)

Report of the Directors
for the Period 26 May 2023 to 30 June 2024

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Griffiths Marshall, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr R F J Darke - Director


4 November 2024

Report of the Independent Auditors to the Members of
Sarunds Holdings Ltd

Opinion
We have audited the financial statements of Sarunds Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Sarunds Holdings Ltd


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Sarunds Holdings Ltd


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which our procedures are 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:

- Enquiry of management and those charged with governance around actual and potential litigation and
claims as well as actual, suspected and alleged fraud;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material
effect on the financial statements or the operations of the company through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of
journal entries and other adjustments for appropriateness, evaluating the business rationale of
significant transactions outside the normal course of business and reviewing accounting estimates for
indicators of potential bias.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Sarunds Holdings Ltd


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 a Report of the Auditors 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.




Greg Lewis (Senior Statutory Auditor)
for and on behalf of Griffiths Marshall
Beaumont House
172 Southgate Street
Gloucester
Gloucestershire
GL1 2EZ

8 November 2024

Sarunds Holdings Ltd (Registered number: 14898033)

Consolidated Income Statement
for the Period 26 May 2023 to 30 June 2024

Notes £   

TURNOVER 16,084,337

Cost of sales 11,692,151
GROSS PROFIT 4,392,186

Administrative expenses 3,811,924
580,262

Other operating income 13,940
OPERATING PROFIT 4 594,202

Interest receivable and similar income 10,359
604,561

Interest payable and similar expenses 5 62,919
PROFIT BEFORE TAXATION 541,642

Tax on profit 6 192,085
PROFIT FOR THE FINANCIAL PERIOD 349,557
Profit attributable to:
Owners of the parent 349,557

Sarunds Holdings Ltd (Registered number: 14898033)

Consolidated Other Comprehensive Income
for the Period 26 May 2023 to 30 June 2024

Notes £   

PROFIT FOR THE PERIOD 349,557


OTHER COMPREHENSIVE INCOME -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

349,557

Total comprehensive income attributable to:
Owners of the parent 349,557

Sarunds Holdings Ltd (Registered number: 14898033)

Consolidated Balance Sheet
30 June 2024

Notes £    £   
FIXED ASSETS
Intangible assets 9 934,312
Tangible assets 10 287,447
Investments 11 -
1,221,759

CURRENT ASSETS
Stocks 12 1,788,234
Debtors 13 1,543,057
Cash at bank and in hand 475,980
3,807,271
CREDITORS
Amounts falling due within one year 14 1,873,693
NET CURRENT ASSETS 1,933,578
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,155,337

CREDITORS
Amounts falling due after more than one
year

15

(2,942,111

)

PROVISIONS FOR LIABILITIES 18 (63,719 )
NET ASSETS 149,507

CAPITAL AND RESERVES
Called up share capital 19 100
Retained earnings 20 149,407
SHAREHOLDERS' FUNDS 149,507

The financial statements were approved by the Board of Directors and authorised for issue on 4 November 2024 and were signed on its behalf by:





Mr R F J Darke - Director


Sarunds Holdings Ltd (Registered number: 14898033)

Company Balance Sheet
30 June 2024

Notes £    £   
FIXED ASSETS
Intangible assets 9 -
Tangible assets 10 -
Investments 11 4,000,000
4,000,000

CURRENT ASSETS
Debtors 13 961
Cash at bank 12,742
13,703
CREDITORS
Amounts falling due within one year 14 93,944
NET CURRENT LIABILITIES (80,241 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,919,759

CREDITORS
Amounts falling due after more than one
year

15

2,807,111
NET ASSETS 1,112,648

CAPITAL AND RESERVES
Called up share capital 19 100
Retained earnings 20 1,112,548
SHAREHOLDERS' FUNDS 1,112,648

Company's profit for the financial year 1,312,548

The financial statements were approved by the Board of Directors and authorised for issue on 4 November 2024 and were signed on its behalf by:





Mr R F J Darke - Director


Sarunds Holdings Ltd (Registered number: 14898033)

Consolidated Statement of Changes in Equity
for the Period 26 May 2023 to 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 100 - 100
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 349,557 349,557
Balance at 30 June 2024 100 149,557 149,657

Sarunds Holdings Ltd (Registered number: 14898033)

Company Statement of Changes in Equity
for the Period 26 May 2023 to 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 100 - 100
Dividends - (200,000 ) (200,000 )
Total comprehensive income - 1,312,548 1,312,548
Balance at 30 June 2024 100 1,112,548 1,112,648

Sarunds Holdings Ltd (Registered number: 14898033)

Consolidated Cash Flow Statement
for the Period 26 May 2023 to 30 June 2024

Notes £   
Cash flows from operating activities
Cash generated from operations 1 3,067,545
Interest paid (62,919 )
Tax paid (108,686 )
Net cash from operating activities 2,895,940

Cash flows from investing activities
Purchase of tangible fixed assets (91,499 )
Purchase of fixed asset investments (4,000,000 )
Sale of tangible fixed assets 959
Interest received 330
Net cash from investing activities (4,090,210 )

Cash flows from financing activities
Loan repayments in year (99,999 )
Share issue 100
Preference shares 1,970,149
Equity dividends paid (200,000 )
Net cash from financing activities 1,670,250

Increase in cash and cash equivalents 475,980
Cash and cash equivalents at
beginning of period

2

-

Cash and cash equivalents at end of
period

2

475,980

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Cash Flow Statement
for the Period 26 May 2023 to 30 June 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

£   
Profit before taxation 541,642
Depreciation charges 203,213
Loss on disposal of fixed assets 1,481
Opening cash balance 1,679,028
Finance costs 62,919
Finance income (10,359 )
2,477,924
Increase in stocks (686,823 )
Increase in trade and other debtors (1,254,329 )
Increase in trade and other creditors 2,530,773
Cash generated from operations 3,067,545

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 30 June 2024
30.6.24 26.5.23
£    £   
Cash and cash equivalents 475,980 -


3. ANALYSIS OF CHANGES IN NET DEBT

At 26.5.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank and in hand - 475,980 475,980
- 475,980 475,980
Debt
Debts falling due within 1 year - (100,000 ) (100,000 )
Debts falling due after 1 year - (2,095,149 ) (2,095,149 )
- (2,195,149 ) (2,195,149 )
Total - (1,719,169 ) (1,719,169 )

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements
for the Period 26 May 2023 to 30 June 2024

1. STATUTORY INFORMATION

Sarunds Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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 £.The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’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.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2023, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
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:

Trademarks Over the useful life
Website development 5 years straight line

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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:

Leasehold land and buildings Over the life of the lease
Fixtures and fittings 3 to 10 years 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.

Stocks
Key estimates are applied in establishing the value of stock held by the Company. An assessment is performed at each reporting date and a stock provision is recognised when the selling price less costs to complete and sell, are lower than its carrying amount. The stock provision at the balance sheet date was £51,173 (2023: £24,426).

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

2. ACCOUNTING POLICIES - continued

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 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, 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.

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 company after deducting all of its liabilities.


Basic financial liabilities

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

2. ACCOUNTING POLICIES - continued
Basic financial liabilities, including creditors and bank loans 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.

Other financial liabilities
Derivatives, including 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 remeasured 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 company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the company 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 company.

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

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.

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.

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
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 leases asset are consumed.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
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. The directors have reviewed the future prospects of the company and its cashflows, including fluctuations in the market place and current global issues at the time of approving the financial statements.

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Bad debt provision
The trade debtors balance recorded in the Company's Balance Sheet is reviewed for bad debts by management on a regular basis. Any bad debts discovered are provided for in full via a specific provision. The bad debt provision at the balance sheet date (exclusive of any intercompany bad debt provision) was £92,935 (2023: £122,406).

3. EMPLOYEES AND DIRECTORS

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

30.06.2024
Directors 6
Employees 63
69

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

4. OPERATING PROFIT

The operating profit is stated after charging:

£   
Hire of plant and machinery 27,007
Other operating leases 198,546
Depreciation - owned assets 93,173
Loss on disposal of fixed assets 1,481
Goodwill amortisation 102,577
Patents and licences amortisation 136
Development costs amortisation 10,448
Auditors' remuneration 20,775

5. INTEREST PAYABLE AND SIMILAR EXPENSES
£   
Bank loan interest 47,131
Other interest 15,788
62,919

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
£   
Current tax:
UK corporation tax 192,085
Tax on profit 192,085

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
£   
Ordinary Shares shares of 1 each
Final 200,000

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

9. INTANGIBLE FIXED ASSETS

Group
Patents
and Development
Goodwill licences costs Totals
£    £    £    £   
COST
At 26 May 2023 - 680 55,784 56,464
Additions 1,025,769 - - 1,025,769
At 30 June 2024 1,025,769 680 55,784 1,082,233
AMORTISATION
At 26 May 2023 - 272 34,488 34,760
Amortisation for period 102,577 136 10,448 113,161
At 30 June 2024 102,577 408 44,936 147,921
NET BOOK VALUE
At 30 June 2024 923,192 272 10,848 934,312
At 25 May 2023 - 408 21,296 21,704

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Short and
leasehold fittings Totals
£    £    £   
COST
At 26 May 2023 189,536 658,817 848,353
Additions 4,269 87,230 91,499
Disposals - (3,724 ) (3,724 )
At 30 June 2024 193,805 742,323 936,128
DEPRECIATION
At 26 May 2023 142,358 414,434 556,792
Charge for period 23,542 69,631 93,173
Eliminated on disposal - (1,284 ) (1,284 )
At 30 June 2024 165,900 482,781 648,681
NET BOOK VALUE
At 30 June 2024 27,905 259,542 287,447
At 25 May 2023 47,178 244,383 291,561

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertaking
£   
COST
Additions 4,000,000
At 30 June 2024 4,000,000
NET BOOK VALUE
At 30 June 2024 4,000,000

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Chocbox Limited
Registered office: Unit 1, Holland Way Industrial Estate, Holland Way, Blandford Forum, England, DT11 7SX
Nature of business: Wholesale of sugar, chocolate and sugar
%
Class of shares: holding
Ordinary 100.00

Choconauts Limited
Registered office: Unit 1, Holland Way Industrial Estate, Holland Way, Blandford Forum, England, DT11 7SX
Nature of business: Wholesale of sugar, chocolate and sugar
%
Class of shares: holding
Ordinary 50.00

The House of Sarunds Limited
Registered office: Unit 1 Holland Way, Blandford Forum, Dorset, England, DT11 7SX
Nature of business: Wholesale of sugar, chocolate and sugar
%
Class of shares: holding
Ordinary 100.00


12. STOCKS


Group
£   
Stocks 1,788,234

The stocks represents finished goods and goods for resale.

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Group Company
£    £   
Trade debtors 1,253,368 -
Other debtors 49,674 961
Prepayments 240,015 -
1,543,057 961

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Group Company
£    £   
Bank loans and overdrafts (see note 16) 100,000 -
Trade creditors 818,397 -
Tax 83,399 -
Social security and other taxes 46,480 -
VAT 175,867 -
Other creditors 161,090 93,944
Directors' current accounts 120,115 -
Accrued expenses 368,345 -
1,873,693 93,944

The other creditors represents the loan from the shareholders and regular monthly instalments are made to repay these loans.

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR


Group Company
£    £   
Bank loans (see note 16) 125,000 -
Preference shares (see note 16) 1,970,149 1,970,149
Other creditors 846,962 836,962
2,942,111 2,807,111

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

16. LOANS

An analysis of the maturity of loans is given below:


Group Company
£    £   
Amounts falling due within one year or on demand:
Bank loans 100,000 -
Amounts falling due between one and two years:
Bank loans - 1-2 years 125,000 -
Amounts falling due between two and five years:
Preference shares 1,970,149 1,970,149

The CBIL loan is secured by the Assets of the company. The lender has been given a partial guarantee from the Secretary of State, under the Coronavirus Business Interruption Loan Scheme.

The 1,970,149 preference shares each with nominal value of £1 are redeemable at par on demand of Sarunds Holdings Ltd or shareholder.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non- cancellable operating leases
£   
Within one year 294,838
Between one and five years 273,634
568,472

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases.

18. PROVISIONS FOR LIABILITIES


Group
£   
Deferred tax 63,719

Sarunds Holdings Ltd (Registered number: 14898033)

Notes to the Consolidated Financial Statements - continued
for the Period 26 May 2023 to 30 June 2024

18. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Provided during period 1,022
Balance at 30 June 2024 1,022

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal
value: £   
100 Ordinary Shares 1 100

20. RESERVES

Group
Retained
earnings
£   

At 26 May 2023 (150 )
Profit for the period 349,557
Dividends (200,000 )
At 30 June 2024 149,407

Company
Retained
earnings
£   

Profit for the period 1,312,548
Dividends (200,000 )
At 30 June 2024 1,112,548


21. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are Mr R Darke, Mrs G Hitchens, Mr M Hutchings, Mr G Parkinson and
Miss L Way.