REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
BRAND FUEL LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
FOR |
BRAND FUEL LIMITED |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 10 |
Balance Sheet | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
BRAND FUEL LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
4 Grovelands |
Boundary Way |
Hemel Hempstead |
Hertfordshire |
HP2 7TE |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
STRATEGIC REPORT |
for the Year Ended 31 May 2024 |
The Directors present their report and the audited financial statements for the year ended 31 May 2024 |
Brand Fuel Limited ('the Company') is a private company limited by shares and is incorporated, registered and domiciled in the United Kingdom and the registered number is 05317566. The address of the registered office is 15-19 Bloomsbury Way, London, England, WC1A 2TH. |
REVIEW OF BUSINESS |
Brandfuel is an award winning creative experience agency that specialises in events, conferences, exhibitions, brand experiences, identity and digital services. Our mission is to solve problems with a relentless focus on creativity, integrity and client satisfaction - championing our partners brands and reputations in the moments that matter. |
The loss before taxation was £619,786 (2023: £2,927,352 profit) and net assets were £9,930,906 (2023: £10,429,002). Turnover achieved in the period amounted to £36,868,063 (2023: £35,980,385). |
Analysis of Performance |
PRINCIPAL RISKS AND UNCERTAINTIES |
Based in London, Brandfuel plans and executes projects on a global scale. We are committed to exceeding expectations and to delivering creative experiences that resonate across the world. |
The company therefore maintains considerable financial reserves in a range of different currencies. The company mitigates against fluctuations in currency values by hedging against market changes. |
Financial Instrument Risk |
The company only uses basic financial instruments. The directors do not perceive any significant risk to the company from the use of financial instruments, apart from the risks associated with non-payment of invoices by clients. The company adopts strict credit control policies to mitigate the risk of incurring bad debts. |
SECTION 172(1) STATEMENT |
We are required to include a separate statement in our strategic report that explains how our directors have had regard to wider stakeholder needs when performing their duty under S172 of the Companies Act 2006. |
As directors of a company we must act in the way we consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to the following: |
1. The likely consequences of any decision in the long term |
2. The interest of the company's employees |
3. The need to foster the company's business relationships with suppliers, customers and others |
4. The impact of the company's operations on the community and the environment |
5. The desirability of the company maintaining a reputation for high standards of business conduct |
6. The need to act fairly between members of the company |
The Directors of the company follow a Triple Bottom Line Sustainability Framework, which is underpinned by the ISO 20121 accreditation and further supported by ISO 9001 (Quality), ISO 27001 (IT Security), ISO 45001/3 (H&S with Wellbeing) and PAS 2060 (Carbon Neutrality). Rather than focusing solely on generating financial success through financial profit, this approach measures Brandfuel's long term success in the three keys areas of environmental-economic, socio-environmental and socio-economic impact. The Directors have integrated sustainable practices into every facet of the business operations including high standards of governance, supply chain management, stakeholder engagement and energy efficiency. |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
STRATEGIC REPORT |
for the Year Ended 31 May 2024 |
BUSINESS MODEL |
Brandfuel retains a well trained, range of full time employees with a gamut of skills appropriate to the market in which we operate. Our workforce is then supplemented by specialised freelance resources to ensure a seamless, efficient, and trustworthy operation that will benefit our clients. |
TRENDS AND FACTORS |
1. New Ways of Working: Remote work became more prevalent following the pandemic and we have adopted flexible work policies, allowing employees to work on a hybrid basis. We have also invested in new central London offices. |
2. Labour Shortages: Where the industry has experienced some labour shortage, we retained our staff and sub-contractors and continue to do so. |
3. Focus on Well-being: Brandfuel places emphasis on employee well-being, recognising the value of good mental health and we have expanded our initiatives to support our employees' mental and physical well-being. |
4. Increased Digital Transformation: The pandemic accelerated our digital transformation and we continue to invest more in technology to facilitate remote work, enhance customer experiences, and streamline operations. |
5. Green Initiatives: We have continued to prioritise sustainability and green initiatives, aiming to reduce our carbon footprint with the aim of becoming carbon-neutral in 2024, 1 year ahead of schedule. |
FUTURE DEVELOPMENTS |
The company will continue to focus on growth and winning new and exciting clients to fuel that growth. We will do so by continuing to promote our Triple Bottom Line Sustainability Framework, as we are confident that we can use Brandfuel to effect positive change without compromising our financial performance. In fact, we will use sustainability initiatives to drive that success. |
KEY PERFORMANCE INDICATORS |
The company has a number of key performance indicators which allow the senior management team to control the business without introducing unnecessary layers of bureaucracy. These cover both financial and non-financial data. The principal financial key performance indicators are as follows: |
Turnover increased by 2.5% from £36M to £36.9M. The Gross margin fell from 26.6% to 20% as the mix of business changed. Administrative expenses rose by 12% as the company had office space once more for the whole 12 months. Cash and bank balances decreased by £3m year on year. |
ON BEHALF OF THE BOARD: |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 May 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
Brandfuel is an award winning creative experience agency that specialises in events, conferences, exhibitions, brand experiences, identity and digital services. Our mission is to solve problems with a relentless focus on creativity, integrity and client satisfaction - championing our partners brands and reputations in the moments that matter. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The company made charitable donations during the year amounting to £6,494 (2023 - £1,401). |
STREAMLINED ENERGY AND CARBON REPORTING |
Brand Fuel Limited are considered exempt from disclosing a Streamlined Energy and Carbon Reporting statement on the basis they are a Low energy usage company generating less than 40,000 kWh per annum. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 May 2024 |
AUDITORS |
The auditors, Kings CAP Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRAND FUEL LIMITED |
Opinion |
We have audited the financial statements of Brand Fuel Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 May 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRAND FUEL LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRAND FUEL LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was to ensure the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by way of discussions with the directors and from our commercial knowledge and experience in the hospitality sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, ISO Standards, employment and health and safety legislation. |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRAND FUEL LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
4 Grovelands |
Boundary Way |
Hemel Hempstead |
Hertfordshire |
HP2 7TE |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 6 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year |
Dividends | 7 | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
BALANCE SHEET |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
CASH FLOW STATEMENT |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Loans to subsidiary undertakings | ( |
) | ( |
) |
Loan write off |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
7,364,806 |
Cash and cash equivalents at end of year | 2 | 5,296,132 | 8,374,014 |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
£ | £ |
(Loss)/profit for the financial year | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance income | (351,371 | ) | (98,732 | ) |
Taxation | ( |
) |
(735,119 | ) | 3,001,805 |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 5,296,132 | 8,374,014 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 8,374,014 | 7,364,806 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 8,374,014 | (3,077,882 | ) | 5,296,132 |
8,374,014 | ( |
) | 5,296,132 |
Total | 8,374,014 | (3,077,882 | ) | 5,296,132 |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
Brand Fuel Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis of accounting in preparing the financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Brand Fuel Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 405(2) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Significant judgements and estimates |
In the application of the company's accounting policies, which are described in note 1, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, 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. |
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, 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.5.24 | 31.5.23 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.5.24 | 31.5.23 |
£ | £ |
United Kingdom |
Europe |
Rest of world | 3,224,347 | 4,658,540 |
4. | EMPLOYEES AND DIRECTORS |
31.5.24 | 31.5.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
Sales and Design - full time | 60 | 58 |
Administration - full time | 8 | 8 |
Administration - part time | 3 | 3 |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
31.5.24 | 31.5.23 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Emoluments etc |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
31.5.24 | 31.5.23 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Foreign exchange differences | ( |
) | ( |
) |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Current tax: |
UK corporation tax |
Under provision of tax | (95,486 | ) | (4,061 | ) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 19% . |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
6. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.24 | 31.5.23 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses |
Research and Development | (95,486 | ) | - |
Prior year tax adjustment | - | (4,060 | ) |
Total tax (credit)/charge | (121,690 | ) | 578,969 |
7. | DIVIDENDS |
31.5.24 | 31.5.23 |
£ | £ |
A Ordinary Shares shares of £0.0001 each |
Final |
B Ordinary Shares shares of £0.0001 each |
Final |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 June 2023 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
9. | FIXED ASSET INVESTMENTS |
31.5.24 | 31.5.23 |
£ | £ |
Shares in group undertakings |
Loans to group undertakings |
Additional information is as follows: |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2023 |
Disposals | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.5.24 | 31.5.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) |
Brandfuel Inc is a company registered in the US State of Delaware. The registered office is 3500 South Dupont Highway, Dover, DE19901, Kent, Delaware, United States of America. The entire issued capital of the company is 1,500 shares, which were acquired by BrandFuel Limited on 9 December 2020 for a consideration of £1. |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.5.24 | 31.5.23 |
£ | £ |
Aggregate capital and reserves |
Brandfuel (Ireland) Ltd is a company incorporated in Ireland. The registered office is 6-9 Trinity Street, Dublin 2, Ireland. The entire issued capital of the company is 100 ordinary shares of €1 each, which was acquired by Branduel Limited on 9 December 2020 for a consideration of £1. |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
9. | FIXED ASSET INVESTMENTS - continued |
Loans to |
group |
undertakings |
£ |
At 1 June 2023 |
New in year |
Repayment in year | ( |
) |
At 31 May 2024 |
10. | DEBTORS |
31.5.24 | 31.5.23 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Value added tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Trade creditors |
Taxation |
Other creditors |
Accruals |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Within one year |
Between one and five years |
13. | PROVISIONS FOR LIABILITIES |
31.5.24 | 31.5.23 |
£ | £ |
Deferred tax | 45,350 | 71,554 |
BRAND FUEL LIMITED (REGISTERED NUMBER: 05317566) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 May 2024 |
13. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 June 2023 |
Provided during year | ( |
) |
Balance at 31 May 2024 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | £ | £ |
A Ordinary Shares | £0.0001 | 1 | 1 |
B Ordinary Shares | £0.0001 | - | - |
1 | 1 |
15. | RELATED PARTY DISCLOSURES |
During the year the company provided financial support to Brandfuel Inc, a subsidiary undertaking. Financial support provided amounted to £4,227 (2023: £492). The balance owed by Brandfuel Inc as at 31 May 2024 amounted to £59,754 (2023: £55,527). |
The company provided financial support to Brandfuel Ireland Ltd, a subsidiary undertaking. Financial support provided amounted to £15,138 (2023: £24). The balance owed by Brandfuel Ireland Ltd as at 31 May 2024 amounted to £15,952 (2023: £814). |
During the year the company provided financial support to Jadda Ltd, a company under common control. Financial support provided amounted to £37,700 (2023: Nil). The balance owed by Jadda Ltd as at 31 May 2024 amounted to £37,700 (2023: Nil). |
All loans are considered repayable on demand and are interest free. |
During the year, a total of key management personnel compensation of £ |