The Drift Cafe Limited
Unaudited Filleted Accounts
31 May 2024
Registered number 04752759
The Drift Cafe Limited
Registered number: 04752759
Balance Sheet
as at 31 May 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 3 328,049 335,200
Current assets
Stocks 2,500 2,500
Debtors 4 220,912 1,742
Cash at bank and in hand 94,634 111,742
318,046 115,984
Creditors: amounts falling due within one year 5 (177,525) (105,368)
Net current assets 140,521 10,616
Total assets less current liabilities 468,570 345,816
Creditors: amounts falling due after more than one year 6 (159,223) (105,101)
Provisions for liabilities (21,506) -
Net assets 287,841 240,715
Capital and reserves
Called up share capital 100 100
Profit and loss account 287,741 240,615
Shareholders' funds 287,841 240,715
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr D S E Lawrence
Director
Approved by the board on 4 March 2025
The Drift Cafe Limited
Notes to the Accounts
for the year ended 31 May 2024
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings 2% straight line
Plant and machinery 25% reducing balance
Motor vehicles 25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 34 33
3 Tangible fixed assets
Property and improvements Plant and machinery etc. Motor vehicles Total
£ £ £ £
Cost
At 1 June 2023 140,000 522,124 - 662,124
Additions - - 65,599 65,599
At 31 May 2024 140,000 522,124 65,599 727,723
Depreciation
At 1 June 2023 19,000 307,924 - 326,924
Charge for the year 2,800 53,550 16,400 72,750
At 31 May 2024 21,800 361,474 16,400 399,674
Net book value
At 31 May 2024 118,200 160,650 49,199 328,049
At 31 May 2023 121,000 214,200 - 335,200
4 Debtors 2024 2023
£ £
Other debtors 220,912 1,742
5 Creditors: amounts falling due within one year 2024 2023
£ £
Bank loans and overdrafts 51,189 39,356
Obligations under finance lease and hire purchase contracts 12,126 -
Trade creditors 16,416 13,317
Taxation and social security costs 85,035 20,057
Other creditors 12,759 32,638
177,525 105,368
6 Creditors: amounts falling due after one year 2024 2023
£ £
Bank loans 133,228 105,101
Obligations under finance lease and hire purchase contracts 25,995 -
159,223 105,101
7 Loans to directors
B/fwd Advanced Repaid C/fwd
£ £ £ £
Mr DSE and Mrs KE Lawrence - 163,012 - 163,012
- 163,012 - 163,012
8 Controlling party
The company is controlled by Mr DSE Lawrence who holds 51% of the ordinary share capital.
9 Other information
The Drift Cafe Limited is a private company limited by shares and incorporated in England. Its registered office is:
The Drift
Cresswell
Morpeth
Northumberland
NE61 5LA
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