REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 28 February 2024 |
for |
BAFFLED COFFEE LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
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. |
Chartered Accountants |
11 Laura Place |
Bath |
BA2 4BL |
BAFFLED COFFEE LIMITED (REGISTERED NUMBER: 10021197) |
Balance Sheet |
28 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
7 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
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 were approved by the director and authorised for issue on |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
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 |
Additions |
At 28 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
At 28 February 2024 |
NET BOOK VALUE |
At 28 February 2024 |
At 28 February 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans |
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: | £ | £ |
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). |