BBC Coffee Limited false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of manufacturing roasted and ground coffee, Nespresso compatible capsules, cold brew concentrates and dilutions. true Digita Accounts Production Advanced 6.30.9574.0 true 13005466 2023-01-01 2023-12-31 13005466 2023-12-31 13005466 bus:OrdinaryShareClass1 2023-12-31 13005466 bus:PreferenceShareClass1 2023-12-31 13005466 core:ValueBeforeAllowanceForImpairmentLoss 2023-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2023-12-31 13005466 core:RetainedEarningsAccumulatedLosses 2023-12-31 13005466 core:ShareCapital 2023-12-31 13005466 core:SharePremium 2023-12-31 13005466 core:FinanceLeases core:CurrentFinancialInstruments 2023-12-31 13005466 core:FinanceLeases core:Non-currentFinancialInstruments 2023-12-31 13005466 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-12-31 13005466 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-12-31 13005466 core:CurrentFinancialInstruments 2023-12-31 13005466 core:Non-currentFinancialInstruments 2023-12-31 13005466 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 13005466 core:BetweenFourFiveYears 2023-12-31 13005466 core:BetweenOneTwoYears 2023-12-31 13005466 core:BetweenThreeFourYears 2023-12-31 13005466 core:BetweenTwoThreeYears 2023-12-31 13005466 core:WithinOneYear 2023-12-31 13005466 core:OwnedOrFreeholdAssets 2023-12-31 13005466 core:FurnitureFittingsToolsEquipment core:OwnedOrFreeholdAssets 2023-12-31 13005466 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 13005466 core:MotorVehicles core:OwnedOrFreeholdAssets 2023-12-31 13005466 core:OtherPropertyPlantEquipment core:OwnedOrFreeholdAssets 2023-12-31 13005466 bus:FRS101 2023-01-01 2023-12-31 13005466 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 13005466 bus:FullAccounts 2023-01-01 2023-12-31 13005466 bus:RegisteredOffice 2023-01-01 2023-12-31 13005466 bus:Director1 2023-01-01 2023-12-31 13005466 bus:Director2 2023-01-01 2023-12-31 13005466 bus:Director3 2023-01-01 2023-12-31 13005466 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 13005466 bus:PreferenceShareClass1 2023-01-01 2023-12-31 13005466 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 13005466 bus:Agent1 2023-01-01 2023-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2023-01-01 2023-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2023-01-01 2023-12-31 13005466 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 13005466 core:ShareCapital 2023-01-01 2023-12-31 13005466 core:SharePremium 2023-01-01 2023-12-31 13005466 core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 13005466 core:Buildings 2023-01-01 2023-12-31 13005466 core:FurnitureFittingsToolsEquipment core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 13005466 core:LandBuildings 2023-01-01 2023-12-31 13005466 core:LandBuildings core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 13005466 core:MotorVehicles 2023-01-01 2023-12-31 13005466 core:MotorVehicles core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 13005466 core:OfficeEquipment 2023-01-01 2023-12-31 13005466 core:OtherPropertyPlantEquipment core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 13005466 core:PlantMachinery 2023-01-01 2023-12-31 13005466 core:UKTax 2023-01-01 2023-12-31 13005466 countries:EnglandWales 2023-01-01 2023-12-31 13005466 2022-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2022-12-31 13005466 core:RetainedEarningsAccumulatedLosses 2022-12-31 13005466 core:ShareCapital 2022-12-31 13005466 core:SharePremium 2022-12-31 13005466 core:OwnedOrFreeholdAssets 2022-12-31 13005466 core:FurnitureFittingsToolsEquipment core:OwnedOrFreeholdAssets 2022-12-31 13005466 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 13005466 core:MotorVehicles core:OwnedOrFreeholdAssets 2022-12-31 13005466 core:OtherPropertyPlantEquipment core:OwnedOrFreeholdAssets 2022-12-31 13005466 2022-01-01 2022-12-31 13005466 2022-12-31 13005466 bus:OrdinaryShareClass1 2022-12-31 13005466 bus:PreferenceShareClass1 2022-12-31 13005466 core:ValueBeforeAllowanceForImpairmentLoss core:PreviouslyStatedAmount 2022-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2022-12-31 13005466 core:FinanceLeases core:CurrentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:FinanceLeases core:Non-currentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:HirePurchaseContracts core:CurrentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:HirePurchaseContracts core:Non-currentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:CurrentFinancialInstruments 2022-12-31 13005466 core:CurrentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:Non-currentFinancialInstruments 2022-12-31 13005466 core:Non-currentFinancialInstruments core:AfterOneYear core:PreviouslyStatedAmount 2022-12-31 13005466 core:Non-currentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 13005466 core:BetweenFourFiveYears 2022-12-31 13005466 core:BetweenOneTwoYears 2022-12-31 13005466 core:BetweenThreeFourYears 2022-12-31 13005466 core:BetweenTwoThreeYears 2022-12-31 13005466 core:WithinOneYear 2022-12-31 13005466 core:PreviouslyStatedAmount 2022-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2022-01-01 2022-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2022-01-01 2022-12-31 13005466 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 13005466 core:ShareCapital 2022-01-01 2022-12-31 13005466 core:SharePremium 2022-01-01 2022-12-31 13005466 core:PreviouslyStatedAmount 2022-01-01 2022-12-31 13005466 core:UKTax 2022-01-01 2022-12-31 13005466 2021-12-31 13005466 core:AcceleratedTaxDepreciationDeferredTax 2021-12-31 13005466 core:TaxLossesCarry-forwardsDeferredTax 2021-12-31 13005466 core:RetainedEarningsAccumulatedLosses 2021-12-31 13005466 core:ShareCapital 2021-12-31 13005466 core:SharePremium 2021-12-31 13005466 core:OwnedOrFreeholdAssets 2021-12-31 13005466 core:FurnitureFittingsToolsEquipment core:OwnedOrFreeholdAssets 2021-12-31 13005466 core:LandBuildings core:OwnedOrFreeholdAssets 2021-12-31 13005466 core:MotorVehicles core:OwnedOrFreeholdAssets 2021-12-31 13005466 core:OtherPropertyPlantEquipment core:OwnedOrFreeholdAssets 2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 13005466 (England and Wales)

BBC Coffee Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

BBC Coffee Limited

Contents

Company Information

1

Directors' Report

2 to 3

Accountants' Report

4

Profit and Loss Account

5

Statement of Comprehensive Income

6

Balance Sheet

7 to 8

Statement of Changes in Equity

9

Notes to the Unaudited Financial Statements

10 to 26

 

BBC Coffee Limited

Company Information

Directors

Mr D N Kochhar

Mr K R V Bodiam

Mr B J Goldkorn

Registered office

Adanac Business Park, Adanac North
Unit E3 & E4, Adanac Drive
Southampton
SO16 0BT

Accountants

Aventus Partners Limited
Chartered accountantsHygeia Building
Ground Floor
66-68 College Road
Harrow
Middlesex
HA1 1BE

 

BBC Coffee Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the unaudited financial statements for the year ended 31 December 2023.

Strategic report exemption
This report has been prepared in accordance with the special provisions of section 381 of the Companies Act 2006 relating to small companies. The directors has taken exemption under this regime not to disclose the strategic report.

Principal activity

The principal activity of the company is that of manufacturing roasted and ground coffee, Nespresso compatible capsules, cold brew concentrates and dilutions.

Directors' of the Company

The directors, who held office during the year, were as follows:

Mr D N Kochhar

Mr K R V Bodiam

Mr B J Goldkorn

Business review

Fair review of the business

The directors report a pre-tax loss of £1,472,013 (2022: £1,607,272) in the current period ending 31st December 2023. The directors are focused on developing fresh long-term arrangements with new customers and penetrating in the market.

Principal risks and uncertainties

The company, in conjunction with its parent company, has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The policies set out by the board and agreed with the parent company are implemented by the company's directors.

The directors monitor performance on a regular basis, using the financial information available to them for the company.

Financial instruments

Objectives and policies

Objectives and policies
The company has various financial assets and liabilities such as trade receivables and trade payables arise directly from its operations.

 

BBC Coffee Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Price risk, credit risk, liquidity risk and cash flow risk

Credit risk
Credit risk is the risk that a counterparty will be unable to pay amounts when they fall due. company plans to operate on advance payment basis on majority of its customers, hence the directors believe that the credit risk for the company is low.

Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for day-to-day working capital through cash net current assets. The company also has access to inter-company borrowing facilities.

Foreign Currency risk
The company imports a portion of its raw material and is therefore exposed to movement in currency exchange rate and the effects of these on the cost of its materials. The effects of these movements is monitored on weekly basis. The company’s revenue is expected to be in local currency for medium to short term, hence the directors believe that there is no currency risk in receivables.

Going concern

The financial statement has been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The company meets its day-to-day working capital requirement through net current assets. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

This report was approved by the Board on 31 January 2025 and signed on its behalf by:

.........................................
Mr D N Kochhar
Director

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of
[BBC CBBC Coffee Limited
for the Year Ended 31 December 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of BBC Coffee Limited for the year ended 31 December 2023 set out on pages 5 to 26 from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the board of Directors of BBC Coffee Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of BBC Coffee Limited and state those matters that we have agreed to state to them, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than BBC Coffee Limited and its board of Directors as a body for our work or for this report.

It is your duty to ensure that BBC Coffee Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of BBC Coffee Limited. You consider that BBC Coffee Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of BBC Coffee Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

......................................

Aventus Partners Limited
Chartered accountants
Hygeia Building
Ground Floor
66-68 College Road
Harrow
Middlesex
HA1 1BE

31 January 2025

 

BBC Coffee Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

4

1,619,525

638,937

Cost of sales

 

(1,046,660)

(450,396)

Gross profit

 

572,865

188,541

Administrative expenses

 

(2,024,233)

(1,767,341)

Other operating income

5

-

5,165

Operating loss

6

(1,451,368)

(1,573,635)

Interest receivable and similar income

7

18,160

9,269

Interest payable and similar expenses

8

(38,805)

(42,906)

 

(20,645)

(33,637)

Loss before tax

 

(1,472,013)

(1,607,272)

Tax on loss

11

220,674

774,485

Loss for the year

 

(1,251,339)

(832,787)

The above results were derived from continuing operations.

There are no recognised gains and losses for the current period other than as shown in Profit and Loss account above.

 

BBC Coffee Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Loss for the year

(1,251,339)

(832,787)

Total comprehensive income for the year

(1,251,339)

(832,787)

 

BBC Coffee Limited

(Registration number: 13005466)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

4,970,507

5,482,534

Right of use assets

13

726,560

830,355

 

5,697,067

6,312,889

Current assets

 

Stocks

14

1,070,945

1,322,736

Trade and other debtors

15

1,131,019

1,022,639

Cash at bank and in hand

16

31,589

142,446

Tax asset

 

1,289,255

1,068,581

 

3,522,808

3,556,402

Creditors: Amounts falling due within one year

17

(733,403)

(700,706)

Net current assets

 

2,789,405

2,855,696

Total assets less current liabilities

 

8,486,472

9,168,585

Creditors: Amounts falling due after more than one year

18

(6,439,488)

(7,870,762)

Net assets

 

2,046,984

1,297,823

Capital and reserves

 

Called up share capital

21

4,500,500

2,500,000

Share premium reserve

 

20,000

20,000

Retained earnings

 

(2,473,516)

(1,222,177)

Shareholders' funds

 

2,046,984

1,297,823

Under the Companies Act 2006, s454, on a voluntary basis, the directors can amend these financial statements if they subsequently prove to be defective.

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

 

BBC Coffee Limited

(Registration number: 13005466)
Balance Sheet as at 31 December 2023 (continued)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the Board on 31 January 2025 and signed on its behalf by:

.........................................
Mr D N Kochhar
Director

   
     
 

BBC Coffee Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022

500,000

-

(389,390)

110,610

Loss for the year

-

-

(832,787)

(832,787)

Total comprehensive income

-

-

(832,787)

(832,787)

New share capital subscribed

2,000,000

20,000

-

2,020,000

At 31 December 2022

2,500,000

20,000

(1,222,177)

1,297,823

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2023

2,500,000

20,000

(1,222,177)

1,297,823

Loss for the year

-

-

(1,251,339)

(1,251,339)

Total comprehensive income

-

-

(1,251,339)

(1,251,339)

New share capital subscribed

2,000,500

-

-

2,000,500

At 31 December 2023

4,500,500

20,000

(2,473,516)

2,046,984



Share capital: This represents the nominal value of equity shares in issue.

Share premium: This represents the premium paid above the nominal value of the shares in issue.

Retained earnings: This represents the accumulated profits and losses since inception of the business.
 

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
Adanac Business Park, Adanac North
Unit E3 & E4, Adanac Drive
Southampton
SO16 0BT
United Kingdom

These financial statements were authorised for issue by the Board on 31 January 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS101) and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

The principle accounting policies applied by the company in the preparation of these financial statements are set out below.

The financial statements are presented in Sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Financial reporting standard 101 - reduced disclosure exemptions

In these financial statements, the company has taken advantage of the disclosure exemptions available under FRS 101 in relation to share-based payment, business combinations, non-current assets held for sale, financial instruments, fair value measurements, capital management, revenue from contracts with customers, presentation of comparative period reconciliations for share capital, tangible fixed assets, intangible assets and investment property, presentation of a cash-flow statement, the effects of new standards not yet effective, impairment of assets and disclosures in respect of the compensation of key management personnel and of transactions with a management entity that provides key management personnel services to the company.

Going concern

The financial statement has been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The company meets its day-to-day working capital requirement through net current assets. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

Changes to accounting policies, disclosures, standards and interpretations


(a) New and amended standards adopted by the Company
There were no new International Financial Reporting Standards that were applicable for the current reporting period that materially impacted the company.

(b) New standards not yet adopted
There are no new International Financial Reporting Standards and Interpretations issued but not effective for the reporting period ending 31 December 2023 that will materially impact the company.

None of the standards, interpretations and amendments effective for the first time from 1 January 2023 have had a material effect on the financial statements.

Revenue recognition

Turnover comprises the fair value of consideration received or receivable for the sale of goods and provision for services in the ordinary course of the company’s activities. Turnover is shown net of sales/ value added tax, returns, rebates and discounts.

The company recognizes revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company’s activities.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Foreign currency transactions and balances

In preparing the Financial Statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Non‑monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising, if any, are recognised in profit or loss.

Tax

Tax expense represents the sum of the tax currently payable and any deferred tax. The taxable result differs from the net result as reported in the statement of comprehensive income 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 statement of financial position date.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each statement of financial position 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 realised.

Deferred tax is charged or credited to the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Tangible assets

Tangible assets is stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of Tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Asset class

Depreciation method and rate

Right of Use assets

Over 10 years straight line basis

Leasehold property

Over 20 years straight line basis

Plant and machinery

Over 10 to 20 years straight line basis

Office equipment

Over 5 years straight line basis

Motor vehicles

Over 5 years straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the trade debtors.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the Stocks to their present location and condition. At each reporting date, Stocks are assessed for impairment. If Stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss. Provision is made for obsolete, slow-moving, or defective items where appropriate.

Trade payables

Trade creditors 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 (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Borrowings

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Leases

At inception of the contract, the company assesses whether a contract is, or contains, a lease. It recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee. The right-of-use assets and the lease liabilities are presented as separate line items in the statement of financial position.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate. It is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, plus lease payments made on or before the commencement day, less any lease incentives received and plus any initial direct costs.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

Financial instruments

Initial recognition

Financial assets and liabilities are recognised in the company’s statement of financial position when the company becomes a party to the contractual provisions of the instrument. The company currently does not use derivative financial instruments to manage or hedge financial exposures or liabilities.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Classification and measurement

Financial assets at amortised cost

The financial assets currently held by the company are classified as financial assets held at amortised cost. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment under the expected credit loss model.

The expected credit loss is calculated as a function of the probability of default (PD), the exposure at default (EAD) and the loss given default (LGD). The amount of the expected credit loss is measured as the difference between all contractual cash flows that are due in accordance with the contract and all the cash flows that are expected to be received (i.e. all cash shortfalls), discounted at the original effective interest rate (EIR).

The carrying amount of the asset is reduced through use of allowance account and recognition of the loss in the Statement of Comprehensive Income. Allowances for credit losses on financial assets are assessed collectively. Collectively assessed impairment allowances cover credit losses inherent in portfolios of financial assets with similar credit risk characteristics when there is objective evidence to suggest that they contain impaired financial assets, but the individual impaired items cannot yet be identified.

Financial liabilities at amortised cost

The company classifies its financial liabilities into one category, being other financial liabilities measured at amortised cost.

The company's accounting policy for the other financial liabilities category is as follows:
Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. All interest and other borrowing costs incurred in connection with the above are expensed as incurred and reported as part of financing costs in profit or loss.

Derecognition

Financial assets

The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the asset and substantially all the risk and rewards of ownership of the asset to another entity.

Financial liabilities

The company derecognises financial liabilities when, and only when, the obligations are discharged, cancelled or they expire.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

3

Critical accounting judgements and key sources of estimation uncertainty

Amounts included in the financial statements involve the use of judgement and/or estimation. These estimates and judgements are based on management's best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in the accounting policies and/or the notes to the financial statements.

Judgements
The assessment of whether costs incurred should be capitalised or expensed involves judgement. Any expenditure where it is not probable that future economic benefits will flow to the Company are expensed. Management considers the nature of the costs incurred and the stage of project development and concludes whether it is appropriate to capitalise the costs. The key assumptions depend on whether it is probable that the expenditure will result future economic benefits that are attributable to the assets.

Estimates
The assessment of capitalised project costs for any indications of impairment involves judgement. When facts or circumstances suggest that impairment exists, a formal estimate of recoverable amount is performed, and an impairment loss recognised to the extent that the carrying amount exceeds recoverable amount. Recoverable amount is determined to be the higher of fair value less costs to sell and value in use. The key assumptions are the net income expected to be generated from the facilities, the cost of construction and the date from which the facilities become operational.

Valuation of assets
Management make judgements in respect of the valuation and carrying value of assets used in operations. At the period end management made a judgement that the basis for revaluations remained and that on the basis on future expected work there were no indications of impairment.

4

Turnover

The analysis of the Company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

1,457,531

499,605

Other revenue

161,994

139,332

1,619,525

638,937

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

5

Other operating income

The analysis of the Company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

5,165

6

Operating loss

Arrived at after charging:

2023
£

2022
£

Depreciation expense

768,589

364,160

Foreign exchange (losses)/gains

(160,539)

338,547

7

Interest receivable and similar income

2023
£

2022
£

Other finance income

18,160

9,269

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

5

5

Interest expense on leases - Right of use

38,800

42,901

38,805

42,906

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

9

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

723,031

599,612

Social security costs

84,533

71,581

Other short-term employee benefits

597

-

Pension costs, defined contribution scheme

10,595

7,855

Other employee expense

23,087

25,136

841,843

704,184

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

11

7

11

7

10

Directors' remuneration

The Directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

363,169

347,438

Contributions paid to money purchase schemes

2,642

2,311

365,811

349,749

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

11

Income tax

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax adjustment to prior periods

(112,419)

-

Deferred taxation

Arising from origination and reversal of temporary differences

(108,255)

(774,485)

Tax receipt in the profit and loss account

(220,674)

(774,485)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Loss before tax

(1,472,013)

(1,607,272)

Corporation tax at standard rate

(279,682)

(305,382)

Decrease in current tax from adjustment for prior periods

(112,419)

-

Decrease from effect of capital allowances depreciation

(30,485)

(1,989,353)

Increase from effect of expenses not deductible in determining taxable profit (tax loss)

724

1,370

Increase from effect of unrelieved tax losses carried forward

184,217

1,518,880

Other tax effects for reconciliation between accounting profit and tax expense

16,971

-

Total tax credit

(220,674)

(774,485)

No tax charge or credit arises in 2023 due to expenses not permitted for tax purposes and losses carried forward.

Factors that may affect the future tax charge
The company has trading losses of £9,434,352 (2022: £8,464,788) which may reduce future tax charges. Future tax charges may also be reduced by capital allowances on cumulative capital expenditure.

No balance is recognised due to the uncertainty of future results.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

11

Income tax (continued)

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

(1,181,752)

(1,181,752)

Tax losses carry-forwards

2,358,588

-

2,358,588

2,358,588

(1,181,752)

1,176,836

2022

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

(1,306,978)

(1,306,978)

Tax losses carry-forwards

2,375,559

-

2,375,559

2,375,559

(1,306,978)

1,068,581

Deferred tax movement during the year:

At 1 January 2023
£

Recognised in income
£

At
31 December 2023
£

Accelerated tax depreciation

(1,306,978)

125,226

(1,181,752)

Tax losses carry-forwards

2,375,559

(16,971)

2,358,588

1,068,581

108,255

1,176,836

Deferred tax movement during the prior year:

At 1 January 2022
£

Recognised in income
£

At
31 December 2022
£

Accelerated tax depreciation

(82,937)

(1,224,041)

(1,306,978)

Tax losses carry-forwards

377,033

1,998,526

2,375,559

294,096

774,485

1,068,581

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
£

Motor vehicles
£

Plant and equipment
£

Total
£

Cost or valuation

At 1 January 2023

217,808

299,930

122,000

5,127,462

5,767,200

Additions

-

29,937

-

122,831

152,768

At 31 December 2023

217,808

329,867

122,000

5,250,293

5,919,968

Depreciation

At 1 January 2023

15,418

73,121

13,303

182,824

284,666

Charge for the year

10,901

64,274

23,180

566,440

664,795

At 31 December 2023

26,319

137,395

36,483

749,264

949,461

Carrying amount

At 31 December 2023

191,489

192,472

85,517

4,501,029

4,970,507

At 31 December 2022

202,390

226,809

108,697

4,944,638

5,482,534

Included within the net book value of land and buildings above is £191,489 (2022: £202,390) in respect of short leasehold land and buildings.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

13

Right of use assets

Property
£

Cost or valuation

At 1 January 2023

1,037,945

At 31 December 2023

1,037,945

Depreciation

At 1 January 2023

207,590

Charge for the year

103,795

At 31 December 2023

311,385

Carrying amount

At 31 December 2023

726,560

At 31 December 2022

830,355

14

Stocks

2023
£

2022
£

Raw materials

746,078

771,802

Packaging materials

319,147

550,934

Finished goods and goods for resale

5,720

-

1,070,945

1,322,736

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

15

Trade and other debtors

Note

2023
£

2022
£

Trade debtors

 

314,420

225,652

Loans to related parties

23

66,297

-

Other debtors

 

747,720

746,608

Prepayments

 

1,502

34,417

Accrued income

 

1,080

15,962

   

1,131,019

1,022,639

16

Cash at bank and in hand

2023
£

2022
£

Cash at bank

31,589

142,446

Bank overdrafts

(40)

(1)

Cash at bank and in hand in statement of cash flows

31,549

142,445

17

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Trade creditors

 

305,807

422,000

Social security and other taxes

 

56,822

31,426

Outstanding defined contribution pension costs

22

2,123

1,840

Other creditors

 

74,868

6,885

Lease liabilities

19

119,820

108,610

Accrued expenses

 

29,344

50,943

Deferred income

 

144,619

79,002

 

733,403

700,706

18

Creditors: amounts falling due after more than one year

2023
£

2022
£

Loans and borrowings

6,439,488

7,836,122

Other creditors

-

34,640

6,439,488

7,870,762

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

19

Loans and borrowings

Note

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

 

46,823

62,255

Lease liability - right of use

 

701,667

804,688

Loans from related parties

23

5,690,998

6,969,179

 

6,439,488

7,836,122

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

40

1

Hire purchase contracts

15,432

15,432

Lease liability - right of use

104,348

93,177

119,820

108,610

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

20

Leases

Leases included in creditors

Right of use - Lease liabilities maturity analysis

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:

2023
£

2022
£

Less than one year

104,348

93,177

2 years

109,148

104,414

3 years

114,142

109,218

4 years

119,376

114,215

5 years

124,813

119,453

6 years

130,537

124,893

7 years

101,810

130,620

8 years

1,841

101,875

9 years

-

15,433

Total lease liabilities (undiscounted)

806,015

913,298

Total cash outflows related to leases

Total cash outflows related to leases are presented in the table below:

Payment

2023
£

2022
£

Right of use assets

104,348

93,177

21

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £10 each

250,050

2,500,500

50,000

500,000

Preference shares of £10 each

200,000

2,000,000

200,000

2,000,000

450,050

4,500,500

250,000

2,500,000

Authorised share capital

The company’s articles do not specify an authorised share capital.

 

BBC Coffee Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

22

Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £10,595 (2022: £7,855).

Contributions totalling £2,123 (2022: £1,840) were payable to the scheme at the end of the year and are included in creditors.

23

Related party transactions

The company received loans totalling £5,690,998 (2022: £6,969,179) from fellow group undertakings. The unsecured interest free loans are repayable on demand.

At the balance sheet date, the company was owed £28,505 (2022 :£Nil) by a company which has a common director. The loans are interest free and repayable on demand.

At the balance sheet date, the company was owed £37,792 (2022 :£Nil) by a company in which one of the director's spouse is a director. The loans are interest free and repayable on demand.

During the year, the company received advisory services from a Director totalling £24,000 (2022: £6,000). This has been reflected as directors fees. The amount outstanding at the year end was £Nil (2022: £Nil).

24

Parent and ultimate controlling party

The company's parent is Beacon Holdings Asset Limited. These financial statements are available upon request from:

P.O. Box 80962
Dubai
United Arab Emirates

There is no one controlling party.