Company registration number 12257877 (England and Wales)
GRIND COFFEE ROASTERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
GRIND COFFEE ROASTERS LIMITED
COMPANY INFORMATION
Directors
Mr D Abrahamovitch
Mr D Sherfield
(Appointed 1 July 2023)
Company number
12257877
Registered office
Telephone House
69 Paul Street
Shoreditch
London
United Kingdom
EC2A 4NG
Auditor
Azets Audit Services
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
Business address
Unit B1 Galleywall Trading Estate
Galleywall Road
London
SE16 3PB
GRIND COFFEE ROASTERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
3
Directors' responsibilities statement
2
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 23
GRIND COFFEE ROASTERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The Directors present their Strategic Report and audited financial statements for the 52 week period ended 30th April 2024.
Review of the business
For the last financial year to 30th April 2024, the company achieved record annual sales of £16m, an increase of 44% vs FY23.
The business continues to grow strongly and now consistently delivers monthly sales in excess of £1m. A huge part of its success has been down to partnerships and collaborations with global brands, and the business will continue to drive sales and reach more customers with the new product launches and collaborations planned in the upcoming year.
Principal risks and uncertainties
As with any business in a consumer facing industry, it is vulnerable to certain risks which may impact on consumer confidence and the cost of running the business. The directors and management team regularly review these risks to ensure they continue to be managed effectively.
Inflationary pressures continue to impact staff costs and supply prices. The company continues to review all costs to the business and undertake supplier negotiations in order to mitigate these pressures.
There is little credit risk in the company as the majority of customers on the high street and online pay by credit or debit card at point of sale.
The company had bank loans totalling £1m at year end that are on variable interest rates between 2.98-3.99% above the base rate, representing a continued exposure to interest rate rises. We are working closely with our bank to transition from the term debt we have held historically towards structured inventory and debtor backed facilities, and post year end the business has paid back £1.5m of this debt.
Brexit has not had a material impact on the business beyond the indirect inflationary pressures all businesses are currently facing. As the online and wholesale business grows, imports from South America, the EU and China will increase and management is continuing to ensure the most effective routes are used to manage this supply chain.
Key performance indicators
Management utilises a number of qualitative and quantitative indicators to monitor and improve the company’s performance. The company considers turnover and EBITDA to be key financial performance indicators.
Mr D Abrahamovitch
Director
31 January 2025
GRIND COFFEE ROASTERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
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.
GRIND COFFEE ROASTERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of the wholesale of other intermediate products.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D Abrahamovitch
Mr D Sherfield
(Appointed 1 July 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of the business and information material to the Company's strategy and management of financial risk exposure.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr D Abrahamovitch
Director
31 January 2025
GRIND COFFEE ROASTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRIND COFFEE ROASTERS LIMITED
- 4 -
Opinion
We have audited the financial statements of Grind Coffee Roasters Limited (the 'Company') for the year ended 30 April 2024 which comprise the Statement of Comprehensive Income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 year 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
The other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' Report have been prepared in accordance with applicable legal requirements.
GRIND COFFEE ROASTERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIND COFFEE ROASTERS LIMITED
- 5 -
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 and the directors' Report.
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies' regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
GRIND COFFEE ROASTERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIND COFFEE ROASTERS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Richard Hutchinson
Senior Statutory Auditor
For and on behalf of Azets Audit Services
31 January 2025
Chartered Accountants
Statutory Auditor
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
GRIND COFFEE ROASTERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,933,660
11,098,273
Cost of sales
(9,740,641)
(6,747,510)
Gross profit
6,193,019
4,350,763
Administrative expenses
(9,952,275)
(7,826,892)
Operating loss
4
(3,759,256)
(3,476,129)
Interest payable and similar expenses
7
(81,563)
(38,328)
Loss before taxation
(3,840,819)
(3,514,457)
Tax on loss
8
Loss for the financial year
(3,840,819)
(3,514,457)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GRIND COFFEE ROASTERS LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
462,627
350,472
Tangible assets
9
1,563,453
1,181,538
2,026,080
1,532,010
Current assets
Stocks
11
3,165,371
2,855,625
Debtors
12
4,011,595
3,841,353
Cash at bank and in hand
314,985
295,468
7,491,951
6,992,446
Creditors: amounts falling due within one year
13
(3,359,659)
(13,373,461)
Net current assets/(liabilities)
4,132,292
(6,381,015)
Total assets less current liabilities
6,158,372
(4,849,005)
Creditors: amounts falling due after more than one year
14
(109,781)
(109,070)
Net assets/(liabilities)
6,048,591
(4,958,075)
Capital and reserves
Called up share capital
18
1
1
Share premium account
2
2
Other reserves
14,847,485
Profit and loss reserves
(8,798,897)
(4,958,078)
Total equity
6,048,591
(4,958,075)
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
Mr D Abrahamovitch
Director
Company Registration No. 12257877
GRIND COFFEE ROASTERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Share premium account
Capital contribution
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2022
1
2
-
(1,443,621)
(1,443,618)
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
-
-
(3,514,457)
(3,514,457)
Balance at 30 April 2023
1
2
-
(4,958,078)
(4,958,075)
Year ended 30 April 2024:
Loss and total comprehensive income for the year
-
-
-
(3,840,819)
(3,840,819)
Transfers
-
-
14,847,485
14,847,485
Balance at 30 April 2024
1
2
14,847,485
(8,798,897)
6,048,591
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
1
Accounting policies
Company information
Grind Coffee Roasters Limited is a private company, limited by shares, incorporated in England and Wales (registered number: 12257877). The registered office is Telephone House, 69 Paul Street, Shoreditch, London, United Kingdom, EC2A 4NG. The principal place of business is Unit B1 Galleywall Trading Estate, Galleywall Road, London, SE16 3PB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Grind Holdings Limited. These consolidated financial statements are available from its registered office, Telephone House 69 Paul Street, Shoreditch, London, EC2A 4NG.
The financial statements relate to Grind Coffee Roasters Limited as a single entity.
1.2
Going concern
As at the balance sheet date, the company had net assets of £6,048,591 (2023 liabilities of £4,958,076). The company made a loss in the year of £3,840,819 (2023: £3,268,638), having recorded losses in previous years. The Company is reliant on support of its parent company. At the year end a capital contribution was made as such £14,847,485 was transferred from amounts due to parent to equity. The holding company's directors have confirmed to the Board that there is no intention to call in the inter-company loan until such time as they can be afforded, and post year end are reviewing the option of capitalising such amounts as necessary to provide a stable net asset base.true
Having considered the group’s plans, projections, and scenario modelling, the directors consider that these investments provide more than sufficient working capital to fund the group to continue trading across all sectors and invest in future expansion, despite ongoing challenging market conditions. The going concern basis is therefore considered appropriate.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -
1.3
Turnover
Revenue 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 which is considered to be on dispatch of the goods.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Development costs
20% straight-line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight-line
Plant and equipment
20% straight-line
Computers
25% straight-line
Motor vehicles
25% straight-line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
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.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
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.
Leases
In determining whether a lease meets the definition of a finance lease or operating lease the directors have used their experience to review and consider whether the Company has obtained all the risks and rewards of ownership of the asset, what the useful economic life of the asset is, the term of the lease and what the residual value of the asset is expected to be. On the basis of these considerations the directors have determined that all leases meet the definition of operating leases and have been accounted for as such.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The directors use their experience to review and estimate useful economic lives and residual values of all assets, taking into account both standards of maintenance and technical obsolescence. Depreciation policies as noted within the accounting policies are based upon these estimates.
Deferred tax
The directors have included a deferred tax assets based upon their best estimate of tax losses that are probable to be recovered. This includes looking at detailed forecasts and expected rate of recovery.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
15,933,660
11,098,273
4
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Exchange losses
11,511
28,644
Research and development costs
67,571
26,124
Depreciation of owned tangible fixed assets
323,250
204,359
Amortisation of intangible assets
108,067
74,883
Operating lease charges
27,851
40,110
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,000
16,000
6
Employees
The average monthly number of persons (including directors) employed by the Company during the year was:
2024
2023
Number
Number
Directors
2
2
Direct
48
30
Total
50
32
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,103,620
1,508,890
Social security costs
230,610
154,910
Pension costs
35,976
25,548
2,370,206
1,689,348
No remuneration was paid to the directors.
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
-
9,328
Other interest
81,563
29,000
81,563
38,328
8
Taxation
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(3,840,819)
(3,514,457)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
(960,205)
(685,319)
Tax effect of expenses that are not deductible in determining taxable profit
7,252
3,483
Unutilised tax losses carried forward
1,156,463
901,997
Depreciation on assets not qualifying for tax allowances
5,033
(21,721)
Change in rate
(208,543)
(198,440)
Taxation charge for the year
-
-
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
635,773
1,060,648
53,763
1,750,184
Additions
146,784
522,949
30,589
4,843
705,165
At 30 April 2024
782,557
1,583,597
84,352
4,843
2,455,349
Depreciation and impairment
At 1 May 2023
149,700
395,967
22,979
568,646
Depreciation charged in the year
69,604
238,314
15,332
323,250
At 30 April 2024
219,304
634,281
38,311
891,896
Carrying amount
At 30 April 2024
563,253
949,316
46,041
4,843
1,563,453
At 30 April 2023
486,073
664,681
30,784
1,181,538
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
10
Intangible fixed assets
Development costs
£
Cost
At 1 May 2023
461,568
Additions
220,222
At 30 April 2024
681,790
Amortisation and impairment
At 1 May 2023
111,096
Amortisation charged for the year
108,067
At 30 April 2024
219,163
Carrying amount
At 30 April 2024
462,627
At 30 April 2023
350,472
11
Stocks
2024
2023
£
£
Raw materials and consumables
3,165,371
2,855,625
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,225,798
611,651
Amounts owed by group undertakings
1,147,512
1,791,925
Other debtors
751,115
576,288
Prepayments and accrued income
425,486
399,805
3,549,911
3,379,669
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
461,684
461,684
Total debtors
4,011,595
3,841,353
Included within other debtors above is £70,985 (2023 £48,750) which is due after one year.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
890,794
775,371
Trade creditors
1,877,457
1,788,168
Amounts owed to group undertakings
10,313,095
Taxation and social security
77,323
43,073
Other creditors
244,055
201,282
Accruals and deferred income
270,030
252,472
3,359,659
13,373,461
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
109,781
109,070
The bank loans are secured by a fixed and floating charge over the group's assets.
15
Loans and overdrafts
2024
2023
£
£
Bank loans
1,000,575
884,441
Payable within one year
890,794
775,371
Payable after one year
109,781
109,070
The bank loans are secured by a fixed and floating charge over the group's assets.
There are three hire purchase agreements and one trade finance agreement in place at the year end. The hire purchase agreements finish in September 2025, June 2025 and December 2025.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(126,716)
(126,716)
Tax losses
588,400
588,400
461,684
461,684
There were no deferred tax movements in the year.
The directors review the level of losses provided for annually in light of the foreseeable profits and where these are considered probable they will be recovered.
The Company has unused tax losses of £10,036,574 (2023: £5,894,409). The directors have not provided in full for all unused tax losses. The amount unprovided for in the financial statements is £7,682,974 (2023: £3,540,809). The directors review the level of losses provided for annually in light of the foreseeable profits and where these are considered probable they will be recovered.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,976
25,548
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.001p each
102,564
102,564
1
1
The Company has one class of ordinary shares which carry no rights to fixed income. These shares carry voting rights.
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
19
Operating lease commitments
Lessee
At the reporting end date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
195,000
195,000
Between two and five years
780,000
780,000
In over five years
97,500
292,500
1,072,500
1,267,500
20
Related party transactions
Transactions with related parties
The company has taken advantage of exemption under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Ireland' not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
606,067
484,920
Other related parties
905,411
358,876
-
-
GRIND COFFEE ROASTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
20
Related party transactions
(Continued)
- 23 -
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
8,198,417
Other related parties
-
2,114,678
21
Ultimate controlling party
The immediate and ultimate parent undertaking is Grind Holdings Ltd, a company registered in England and Wales.
In the opinion of the directors, R Koch is the ultimate controlling party.
The smallest and largest group of undertakings for which group accounts for the year ending 30 April 2024 have been drawn up, is that headed by Grind Holdings Ltd. Copies of the group accounts are available from Companies House.
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