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REGISTERED NUMBER: 10021197 (England and Wales)















Unaudited Financial Statements for the Year Ended 28 February 2024

for

BAFFLED COFFEE LIMITED

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)






Contents of the Financial Statements
for the year ended 28 February 2024




Page

Company Information 1

Chartered Accountants' Report 2

Balance Sheet 3

Notes to the Financial Statements 5


BAFFLED COFFEE LIMITED

Company Information
for the year ended 28 February 2024







DIRECTOR: F A K McMurray





REGISTERED OFFICE: 11 Laura Place
Bath
BA2 4BL





REGISTERED NUMBER: 10021197 (England and Wales)





ACCOUNTANTS: Richardson Swift
Chartered Accountants
11 Laura Place
Bath
BA2 4BL

Chartered Accountants' Report to the Director
on the Unaudited Financial Statements of
Baffled Coffee Limited

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Baffled Coffee Limited for the year ended 28 February 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

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

It is your duty to ensure that Baffled 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 Baffled Coffee Limited. You consider that Baffled 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 Baffled 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.






Richardson Swift
Chartered Accountants
11 Laura Place
Bath
BA2 4BL


26 February 2025

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Balance Sheet
28 February 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 39,925 47,806

CURRENT ASSETS
Stocks 8,000 6,000
Debtors 5 47,282 34,177
Cash at bank 21,000 14,008
76,282 54,185
CREDITORS
Amounts falling due within one year 6 143,441 74,439
NET CURRENT LIABILITIES (67,159 ) (20,254 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(27,234

)

27,552

CREDITORS
Amounts falling due after more than one
year

7

48,308

67,158
NET LIABILITIES (75,542 ) (39,606 )

CAPITAL AND RESERVES
Called up share capital 8 100 100
Retained earnings (75,642 ) (39,706 )
SHAREHOLDERS' FUNDS (75,542 ) (39,606 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Balance Sheet - continued
28 February 2024


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 February 2025 and were signed by:





F A K McMurray - Director


BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Notes to the Financial Statements
for the year ended 28 February 2024

1. STATUTORY INFORMATION

Baffled Coffee Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Details of the companies trade during the year and future position are provided under going concern.

The Director is confident that the company remains a going concern.

Critical accounting estimates and uncertainties
No significant judgements or key assumptions have had to be made by the directors in preparing these financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised when goods have been sold.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - 10% on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the 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.


BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Notes to the Financial Statements - continued
for the year ended 28 February 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the 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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, loans from banks and other third parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Notes to the Financial Statements - continued
for the year ended 28 February 2024

2. ACCOUNTING POLICIES - continued

Going concern
During the reporting year Baffled Coffee Limited made a loss in the accounts to the end of February 2024 and it had negative reserves at this date. This was in part due to the opening of the new site in Old Portsmouth which required significant investment as part of the initial set up costs. The site was opened in September 2022 and is predominantly in a seasonal tourist location. The early trading conditions have been challenging, but it has gone on to show good growth into the financial year 2023/2024.

Further challenges to the business were the increased costs linked to the well-publicised cost of living crisis. As a business the company is susceptible to increases in food costs, packaging costs and fuel costs. The company also saw a lot of pressure on staffing and competition around hiring staff which resulted in some pay increases in order to stabilise the existing team. However, the company did incur additional training costs as a result of some staff losses. The company tried to pass on some of these increases through targeted price rises across the menu, but some had to be adsorbed.

The Beach Kiosk site, which is heavily weather dependant as it has no internal seating, has faced challenges due to the particularly inclement weather. This was very much felt during the school summer holidays where the company had previously enjoyed better trading.

The director of Baffled Coffee Limited is confident that the company remains a going concern and has taken the following steps to return the business to profitability in the next twelve month from the signing date of this report.

Plan for the future:

- The company has introduced seven day a week opening in the Fawcett Road location from February 2023 from our previous six days a week opening to generate additional turnover.

- Adjusted opening hours at the Beach Kiosk to be more reactive to poor weather conditions to save labour costs.

- Introduced Uber Eats to Old Portsmouth branch which currently generates in the region of £700 per week additional turnover.

- Introduced opening evenings at Fawcett Road from November 2023 to increase turnover during the winter where we traditionally see a decline in sales compared with the summer months.

- The company has been able to reduce some of its menu offering without impacting sales in order to reduce the reliance on staff. This has allowed the company to reduce its staffing costs within our main site at Fawcett Road.

- In order to further reduce the company's reliance on experienced staff, the business has outsourced elements of the menu and baking where we saw the highest labour expenditure. This has reduced the need to train staff to such a high level and reduced the associated costs of doing so.

- The company has negotiated a rent reduction at it's Beach Kiosk site of 30% meaning a saving of £4,800 per year.

- The company introduced regular quarterly pricing reviews in order to mitigate the inflationary pressures on it's costs of sale and energy costs.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2023 - 17 ) .

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Notes to the Financial Statements - continued
for the year ended 28 February 2024

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Motor Computer
property fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2023 18,569 53,626 6,450 1,206 79,851
Additions - 3,005 - - 3,005
At 28 February 2024 18,569 56,631 6,450 1,206 82,856
DEPRECIATION
At 1 March 2023 3,722 24,764 2,822 737 32,045
Charge for year 1,857 7,967 907 155 10,886
At 28 February 2024 5,579 32,731 3,729 892 42,931
NET BOOK VALUE
At 28 February 2024 12,990 23,900 2,721 314 39,925
At 28 February 2023 14,847 28,862 3,628 469 47,806

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 137 447
Other debtors 47,145 33,730
47,282 34,177

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 30,865 26,767
Trade creditors 23,869 11,436
Taxation and social security 39,677 25,885
Other creditors 49,030 10,351
143,441 74,439

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans 48,308 67,158

The bank loan includes a government supported bounce back loan.

BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197)

Notes to the Financial Statements - continued
for the year ended 28 February 2024

8. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary A £1 100 100

9. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

At the year-end, the directors owed the company a balance of £24,032 (2023: £16,359).