REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Period |
1 September 2023 to 30 April 2024 |
for |
Sweetdreams Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Period |
1 September 2023 to 30 April 2024 |
for |
Sweetdreams Limited |
Sweetdreams | Limited (Registered number: 03554243) |
Contents of the Financial Statements |
for the Period 1 September 2023 to 30 April 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Cash Flow Statement | 16 |
Notes to the Cash Flow Statement | 17 |
Notes to the Financial Statements | 19 |
Sweetdreams | Limited |
Company Information |
for the Period 1 September 2023 to 30 April 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditor |
Beechey House |
87 Church Street |
Crowthorne |
Berkshire |
RG45 7AW |
Sweetdreams | Limited (Registered number: 03554243) |
Strategic Report |
for the Period 1 September 2023 to 30 April 2024 |
The directors present their strategic report for the period 1 September 2023 to 30 April 2024. |
REVIEW OF BUSINESS |
The business model |
Sweetdreams is a manufacturer of confectionery products sourced from other primary food manufacturers. SugaRich Group acquired the Sweetdreams business on 3rd January 2024. Sweetdreams is positioned as the leading repurposer of primary food manufacturers materials into confectionery products. |
Key Performance Indicators |
" Annual Revenue has reduced by 8% in the 8 month period to 30th April 2024 to £2,019m (2023 £3,301m) |
" Operating Losses are £113,970 in the 8 month period to 30th April 2024 following a profit of £209,788 in the year to 31st August 2023. |
Sweetdream have moved premises to a new facility to enable the company to grow in line with the forecast projections. As a result a P&L charge of £69,405 is recognised in the P&L in relation to an impairment on the assets of Sweetdreams. This is included in the figures above. |
The business is currently trading profitably, and turnover is considerably ahead of 2024 levels. |
The Finance Director and his team monitor the cash position on a daily basis and provide regular reports to the board focusing on key performance indicators of the business including the overall level of debt, working capital requirements, cash position and trends, debtors and creditors days, waste levels and waste costs, stock levels and sales levels. |
Another Key indicator is the level of bad debts, which remains very low. Sweetdreams credit check every customer annually and allocate different levels accordingly, and hold credit insurance for extra protection. |
Future developments & strategy |
Sweetdreams is expecting an increase in turnover in the year to 30th April 2025. Since acquisition, Sweetdreams are in discussions with a number of the existing groups suppliers with a view to commence supply into the business. The commercial team have very clear targets in respect of the materials required that will be needed to meet the objectives. The conversion of these targets though is likely to take time to feed into the financial results of the business. |
The business has recruited additional staff to deliver the expected growth. |
The business will continue to focus on its core competence, providing the highest possible level of service to its food factory customers, and manufacturing a high quality but affordable range of confectionery products for the FMCG sector. |
Sweetdreams | Limited (Registered number: 03554243) |
Strategic Report |
for the Period 1 September 2023 to 30 April 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
RISK MANAGEMENT APPROACH |
The company takes opportunities and risks to enable it to realise its strategic, operational and financial objectives. The company understands the importance of properly functioning internal risk management and control systems in identifying and managing risks. Risk management is actively monitored and steps taken to increase risk awareness throughout the organisation. Key personnel are designated to implement controls and other various measures. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses various financial instruments including cash and other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to provide finance for all of the company's operations. This exposes the company to a number of financial risks as described below: |
Price Risk |
The company enters into price fixings for materials, but manages any pricing risk by ensuring all costs are agreed back to back therefore minimising any price risk. |
Most fixings are created monthly and reviewed by management, and significant material fixings will be referred to the board to ensure proper scrutiny has been placed on the account. |
Credit Risk |
When appropriate, relevant credit checks are performed on potential customers services are agreed. The amount of exposure to any individual customer or service provider is controlled by means of a credit limit that is monitored regularly by management and in the case of a financially material value, by the Finance Director. |
Liquidity Risk |
Sweetdreams uses a number of different short and medium term financing in order to maintain liquidity. This is managed to ensure the business always has sufficient funds to meet its ongoing liabilities and working capital needs, as well as planned capital expenditure and expansion capital. The debt is monitored and reviewed monthly by the Finance Director. |
Interest Rate Risk |
The business has finance on variable interest rates on its banking and finance facilities. The risk is monitored and reviewed by the Directors at group level. The Directors keep under regular review current market rates and anticipated future market trends, and discuss this regularly at board meetings. The risk is assessed as low currently, due to the relatively low nature of the debt involved. |
Health and Safety |
The business has a strong and proactive compliance regime, with all accidents and incidents reported to board level and reviewed for any remedial actions. The businesses stated aim is to continue to improve health & safety and working environments for its entire staff. |
Standards |
The businesses internal focus is to drive up standards in all areas, including in engineering, production, logistics, health & safety, compliance and QA, employee & stakeholder engagement. |
Sweetdreams | Limited (Registered number: 03554243) |
Strategic Report |
for the Period 1 September 2023 to 30 April 2024 |
SECTION 172(1) STATEMENT |
Engaging with our stakeholders |
Section 172 of the Companies Act 2006 ("the act") requires Directors to take into consideration the interests of stakeholders in their decision-making. A Director of a company must act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole, taking into account the factors as listed in section 172 of the Company Act 2006. The short form statement should be read in conjunction with the longer strategic report. |
Sweetdreams Limited is a wholly owned subsidiary of SugaRich Limited, engagement with our shareholders and wider stakeholder groups plays a vital role throughout the SugaRich business. |
Stakeholders and engagement |
As part of the identification of key stakeholders, the directors have identified the following stakeholder groups with whom engagement is fundamental to the Company's ongoing success: |
" Employees |
" Suppliers |
" Customers |
" Communities and Environment |
" Governments |
" Shareholders |
Employees |
The company employs 32 people. Our people are central to the Company's success and employee engagement is crucial to embedding the Company culture and values, and to helping our people see how their efforts contribute to their Company's strategic objectives. Key issues include, health and safety, diversity and inclusion and engagement and development. During the year, the Company undertook regular surveys, a regular newsletter with quality content, and provided an updated intranet and continued internal communications. A yearly management meeting is held for all the senior managers in the business. |
Suppliers |
We use a wide variety of suppliers with many complex supply chains. Our supplier code of conduct sets out the values and standards on which we seek to build and maintain relationships, including commitments on ethical, environmental and other relevant matters including on key issues such as payment practices, responsible sourcing, supply chain sustainability, human rights and modern slavery. Most conversations are maintained on a face to face basis, and reported back into the board at regular meetings. |
Customers |
As well as providing a product that is great value for money. The company engages with its customers on a daily basis mostly by phone or face to face meetings, ensuring their feedback is properly considered. The Board is regularly updated by each business division on key customers and key issues impacting customers and consumers. |
Communities and Environment |
Supporting our local community is an important part of the Company's approach to spread our values and mission. The Company has an energy reduction initiative and is committed to seeking sustainable solutions to environmental challenges and adapting our operations to respond to changes in the natural environment. |
To achieve these goals the Company is always looking for ways to reduce energy use, reduce greenhouse gas emissions, manage waste, improve water management, and push waste up the waste hierarchy. |
Sweetdreams | Limited (Registered number: 03554243) |
Strategic Report |
for the Period 1 September 2023 to 30 April 2024 |
Governments |
The Company can be impacted by changes in laws and public policy, and to ensure that the company is represented in discussions, we take a leading role with our industry, liaising with Government on issues affecting our sector. |
The Board is briefed on the engagement at regular meetings. |
Shareholders |
The Company reports up to its shareholders, and ultimately to the board of SugaRich Limited, through the senior management of the business, the Company takes appropriate steps to ensure that its shareholders are kept up to date on key business activities and decisions. |
ON BEHALF OF THE BOARD: |
Sweetdreams | Limited (Registered number: 03554243) |
Report of the Directors |
for the Period 1 September 2023 to 30 April 2024 |
The directors present their report with the financial statements of the company for the period 1 September 2023 to 30 April 2024. |
DIVIDENDS |
No dividends will be distributed for the period ended 30 April 2024. |
DIRECTORS |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
Donations during the year total £4,005 and this was made to a charity in Colombia to support water consumption. No political donations were made. |
GOING CONCERN |
The company has prepared budgets and forecasts that cover the period of 12 months from the date of the financial statements being authorised for issue in order to assess going concern It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. 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. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis. |
Sweetdreams | Limited (Registered number: 03554243) |
Report of the Directors |
for the Period 1 September 2023 to 30 April 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, PKB Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Sweetdreams | Limited |
Opinion |
We have audited the financial statements of Sweetdreams Limited (the 'company') for the period ended 30 April 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 April 2024 and of its loss 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 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 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. |
Emphasis of matter |
We could not verify the opening stock due to the comparatives not being audited. |
Report of the Independent Auditors to the Members of |
Sweetdreams | Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Sweetdreams | Limited |
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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
. We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the Food Hygiene Regulations, Environmental Act regulations, Health and Safety Regulations, labelling requirement regulations, the reporting framework FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", Companies Act 2006, Bribery Act 2010, Money Laundering regulations and relevant tax compliance regulations in the United Kingdom. |
. Other indirect laws and regulations that have an impact on the financial statements are the compliance with relevant employment law, health and safety regulations and the UK General Data Protection Regulation (UK GDPR). |
. We understood how SWEETDREAMS Limited is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through the review of the following documentation or completion of the following procedures: |
. Review of action points from board meetings held during the period and through to the most recent meeting held prior to the approval of these financial statements; |
. Review of accounting policies and completion of a disclosure checklist to assess compliance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Company law requirements; |
. Review of any relevant correspondence with local tax authorities; and |
. Review of any relevant correspondence received from regulatory bodies |
. We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by holding a discussion within the audit team which included identification of related parties, understanding the company's business, the control environment and assessing the inherent risk for relevant assertions at the significant account level. We also held discussions with management and those charged with governance to gain an understanding of those areas of the financial statements which are susceptible to fraud, as identified by management. Following these procedures, we identified a risk of management override of control and risk of inappropriate revenue recognition. We gained an understanding of the entity level of controls and policies that the company applies. |
Report of the Independent Auditors to the Members of |
Sweetdreams | Limited |
. Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved testing of journal entries, with focus on journals indicating large or unusual transactions, or meeting our defined risk criteria based on our understanding of the business, reviewing accounting estimates for evidence of management bias and enquiries of senior members of the management team regarding their knowledge of any instances of non-compliance with laws and regulations that could impact the financial statements. |
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. |
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. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditor |
Beechey House |
87 Church Street |
Crowthorne |
Berkshire |
RG45 7AW |
Sweetdreams | Limited (Registered number: 03554243) |
Income Statement |
for the Period 1 September 2023 to 30 April 2024 |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(126,201 | ) | 178,104 |
Other operating income |
OPERATING (LOSS)/PROFIT | 4 | ( |
) |
Interest receivable and similar income |
(109,361 | ) | 216,776 |
Interest payable and similar expenses | 5 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 6 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
Sweetdreams | Limited (Registered number: 03554243) |
Other Comprehensive Income |
for the Period 1 September 2023 to 30 April 2024 |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE PERIOD | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
Sweetdreams | Limited (Registered number: 03554243) |
Balance Sheet |
30 April 2024 |
30.4.24 | 31.8.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sweetdreams | Limited (Registered number: 03554243) |
Statement of Changes in Equity |
for the Period 1 September 2023 to 30 April 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2023 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2024 |
Sweetdreams | Limited (Registered number: 03554243) |
Cash Flow Statement |
for the Period 1 September 2023 to 30 April 2024 |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loans from related parties | 396,823 | 77,757 |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | 52,663 | (58,837 | ) |
Share issue |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
261,006 |
299,229 |
Cash and cash equivalents at end of period |
2 |
162,806 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Cash Flow Statement |
for the Period 1 September 2023 to 30 April 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Impairment losses | 69,405 | - |
Government grants | ( |
) |
Finance costs | 36,990 | 75,873 |
Finance income | (4,609 | ) | (6,988 | ) |
43,176 | 358,746 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 April 2024 |
30.4.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 162,806 | 422,205 |
Bank overdrafts | ( |
) |
162,806 | 261,006 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 422,205 | 537,911 |
Bank overdrafts | ( |
) | ( |
) |
261,006 | 299,229 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Cash Flow Statement |
for the Period 1 September 2023 to 30 April 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank | 422,205 | (259,399 | ) | 162,806 |
Bank overdrafts | (161,199 | ) | 161,199 | - |
261,006 | ( |
) | 162,806 |
Debt |
Finance leases | (127,527 | ) | 10,060 | (117,467 | ) |
Debts falling due within 1 year | (61,940 | ) | (3,920 | ) | (65,860 | ) |
Debts falling due after 1 year | (661,826 | ) | 595,351 | (66,475 | ) |
(851,293 | ) | 601,491 | (249,802 | ) |
Total | (590,287 | ) | 503,291 | (86,996 | ) |
4. | MAJOR NON-CASH TRANSACTIONS |
Government grant income that has been released to trading profit and loss account for the year from deferred income. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements |
for the Period 1 September 2023 to 30 April 2024 |
1. | STATUTORY INFORMATION |
Sweetdreams Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The company has prepared budgets and forecasts that cover the period of 12 months from the date of the financial statements being authorised for issue in order to assess going concern It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. 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. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and any costs of disposal and are recognised in the Profit and Loss Account. |
Assets held under finance leases are depreciated in the same manner as owned assets. |
At each balance sheet date, the Company reviews the carrying amounts of its Tangible Fixed Assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
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. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined ( net of depreciation ) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income |
Gains and losses on disposal are determined by comparing the proceeds with the carrying amounts and are recognised within 'other operating income' in the Income Statement. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and Cash Equivalents |
Cash and cash equivalents are basic financial instruments 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. |
Creditors |
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Finance costs |
Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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 trade and other debtors, amounts owed by group undertakings and accrued income, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Impairment of financial assets |
Financial assets 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 and 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. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
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 |
Basic financial liabilities, including trade and other creditors, amounts due to fellow group companies, accruals, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers, Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables with no stated interest rate or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Provisions for liabilities |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, and it is probable that the company will be required to settle the obligation and that the amount of the obligation can be reliably estimated. |
Provisions are charged as an expense to the Income Statement in the year the company becomes aware of the obligation and are measured at the best estimate of the amount required to settle the obligation at the reporting date, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance Sheet. |
Interest income |
Interest income is recognised in the Income Statement using the effective interest method. |
Borrowing costs |
All borrowing costs are recognised in the Profit and Loss Account in the year in which they are incurred. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Judgements in applying accounting policies and key sources of estimation uncertainty |
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period. |
(a) Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on physical condition and economic utilisation of the assets. See note 11 for the carrying amount of the assets and the accounting policies note Tangible Fixed Assets for the useful economic lives of each class of asset. |
(ii) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 12 for the net carrying amount of the debtors. |
(iii) Impairment of creditors |
The company makes an estimate of the payable value of trade and other creditors including accruals. When assessing impairment of trade and other creditors including accruals, management considers factors including the ageing profile of the balances and historical experience. See note 13 to 16 for the net carrying amount of the creditors. |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
3. | EMPLOYEES AND DIRECTORS |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
Directors | 2 | 2 |
Admin | 4 | 4 |
Warehouse/Production | 24 | 17 |
Sales | 2 | 2 |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Foreign exchange differences |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
Invoice Finance Charges |
Other Loan Interest |
Hire purchase interest |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 25% . |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
6. | TAXATION - continued |
Factors that may affect future tax charges |
The UK corporation tax rate has been enacted at 19% effective until 31 March 2023. Additionally, Finance Act 2021 increased the corporation tax rate to 25%, effective from 1 April 2023. |
Deferred tax assets and liabilities are measured at the rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates (and the tax laws) that have been enacted or substantively enacted by the balance sheet date. The deferred tax has been calculated at 25%19% and 25% (2023: 25%) |
7. | DIVIDENDS |
Period |
1.9.23 |
to | Year Ended |
30.4.24 | 31.8.23 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 September 2023 |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 April 2024 |
AMORTISATION |
At 1 September 2023 |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 31 August 2023 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Impairments | (158,130 | ) | - | - | - | (158,130 | ) |
At 30 April 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for period |
Impairments | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 31 August 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 September 2023 |
and 30 April 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for period |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 31 August 2023 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 September 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 31 August 2023 |
11. | STOCKS |
30.4.24 | 31.8.23 |
£ | £ |
Raw materials |
Finished goods |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.4.24 | 31.8.23 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | - | 52,663 |
Prepayments |
Accrued income |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.4.24 | 31.8.23 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 73,374 | 54,751 |
Other creditors |
Pensions creditor | 6,614 | - |
Accruals |
Deferred income |
The amounts payable to group undetakings are interest free and are payable on demand. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.4.24 | 31.8.23 |
£ | £ |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Deferred government grants |
15. | LOANS |
An analysis of the maturity of loans is given below: |
30.4.24 | 31.8.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 66,475 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
15. | LOANS - continued |
30.4.24 | 31.8.23 |
£ | £ |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Other loans more 5yrs non-inst | - | 550,000 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.4.24 | 31.8.23 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
30.4.24 | 31.8.23 |
£ | £ |
Within one year |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
17. | PROVISIONS FOR LIABILITIES |
30.4.24 | 31.8.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 96,019 | 111,053 |
Tax on losses | (42,915 | ) | (41,967 | ) |
53,104 | 69,086 |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
On ACA's | (15,034 | ) |
On losses | (948 | ) |
Balance at 30 April 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.4.24 | 31.8.23 |
value: | £ | £ |
A Ordinary | £1 | 105 | 105 |
B Ordinary | £1 | 13 | 13 |
C Ordinary | £1 | 12 | 12 |
D Ordinary | £1 | 50 | 50 |
E Ordinary | £1 | 20 | 20 |
60 | F Ordinary | £1 | 60 | 60 |
980 | G Ordinary | 10p | 98 | 92 |
358 | 352 |
The following shares were issued during the period for cash at par : |
60 G Ordinary shares of 10p |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 September 2023 |
Deficit for the period | ( |
) |
At 30 April 2024 |
Sweetdreams | Limited (Registered number: 03554243) |
Notes to the Financial Statements - continued |
for the Period 1 September 2023 to 30 April 2024 |
20. | CAPITAL COMMITMENTS |
30.4.24 | 31.8.23 |
£ | £ |
Contracted but not provided for in the |
financial statements |