Company registration number 11825296 (England and Wales)
PATISSERIE VALERIE PRODUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PATISSERIE VALERIE PRODUCTION LIMITED
COMPANY INFORMATION
DIRECTORS
Mr V K Patel
Mr M R Scaife
COMPANY NUMBER
11825296
REGISTERED OFFICE
146-156 Sarehole Road
Birmingham
B28 8DT
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
PATISSERIE VALERIE PRODUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 11
Profit and loss account
12
Statement of comprehensive income
13
Balance sheet
14 - 15
Statement of changes in equity
16
Notes to the financial statements
17 - 32
PATISSERIE VALERIE PRODUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
REVIEW OF THE BUSINESS
The company operates a freehold bakery producing lovingly handmade cakes and pastries. Its products are sold through three channels:
- ecommerce via the company’s website and other online retailers
- retail via cake shops operated either by the group or third-party franchisees
- wholesale via partners which retail the company’s products to their customers
During the financial period ended 31 March 2023 revenue increased by 11% on the previous financial year.
The ecommerce channel traded well with revenue up 5% on the prior year to £5.3m and accounted for 47% of the sales mix (2022: 49% of the sales mix). Revenue growth was driven by a mixture of pricing and volume.
Revenue from the retail channel reduced during the period due the reduction of the number of stores operated by the group.
The wholesale channel saw considerable growth during the period with sales up 27% on the prior year and now contributing 36% of the sales mix.
Gross margin pre-exceptional cost of sales increased by 3% to 27% from careful cost management of labour and raw materials combined with modest price increases.
Looking to the future, the business is focused on developing new opportunities for more people to enjoy the company’s handmade cakes and pastries. This will be done by creating new, convenient ways for customers to buy across all three channels and by introducing new handmade products for different occasions.
ECONOMY AND MARKET CONDITIONS;
The impact of the current and future economic downturns and rising inflation costs is also a risk to the business. Having a diverse product offering with multiple price banding options enables the business to cater to all customer profiles.
Our vertically integrated business model along with careful procurement and fixed term pricing contracts protects the business from large unseen cost price increases.
PRINCIPLE RISKS & UNCERTAINTIES
The directors recognise that exposure to certain risks and the company’s ability to manage them will influence how successful the business is. The following matters are considered by the directors to be the principal risks:
DEVELOPMENT AND PERFORMANCE
PRODUCT AND INNOVATION:
The company needs to ensure it is continually developing and improving its product offering to ensure it remains competitive within the market place and meeting the requirements of a diverse consumer base. The company continually reviews customer feedback and market trends to ensure its product is in line with consumer expectations and demands.
PATISSERIE VALERIE PRODUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
SUPPLY CHAIN:
Supply chain management and the sourcing of high quality raw materials is a key risk to the business to ensure our products are of the high standard by our customers and sourced at competitive prices. Supplier risk is also managed through alternative sourcing or dual sourcing where appropriate.
HEALTH AND SAFETY:
The business recognises that the safety of customers and employees is imperative and that operational disruption can result from poor health and safety management. Therefore, systems and standards are in place to mitigate the risk across all areas of the business, which are subject to regular monitoring and review by senior management,
DATA SECURITY:
The group needs to ensure it is compliant with the General Data Protection Regulation ("GDPR") in relation to collecting, storing and processing customers personal information. Training is in place with appropriate members of staff to ensure the group remains compliant at all times.
LIQUIDITY:
The directors have prepared a cash flow forecast for the group and performed a number of sensitivities to consider potential scenarios which the directors consider to be reasonable using their judgement based on available information
This gives the directors reasonable assurance that the group will have adequate resources to meet its financial obligations as they fall due for the foreseeable future without the requirement for the additional funding from its shareholders or senior secured lender.
FINANCIAL KEY PERFORMANCE INDICATORS
The primary financial performance indicators are Revenue and EBITDA. the directors measure the performance of the business using these key metrics.
A summary of the key financial performance indicators are:
KEY PERFORMANCE INDICATORS
2023
2022
Turnover
£11,353,720
£10,261,731
Average number of employees
139
133
Operating margin pre exceptional expenses
-5%
-8%
EBITDA pre exceptional expenses
(£444,417)
(£644,971)
Net current assets
£685,047
£3,376,830
PATISSERIE VALERIE PRODUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) MATTERS
Patisserie Valerie recognises the importance of reducing its impact on the environment, its broader social responsibilities and seeks to maintain appropriate standards of governance for a business of its size. These matters are reviewed and regularly discussed by the directors at board meetings. The group made considerable progress on a number of ESG matters during the financial year and during the subsequent period. The directors plan to include a more detailed summary of these initiatives in future annual report and accounts.
DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE COMPANY
The directors have acted in a way they consider, in good faith, promotes the success of the company for the benefit of its members as a whole, and in doing so have given regard to (amongst other matters):
OUR PEOPLE
The company is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, customers, shareholders, communities and society as a whole. People are at the heart of delivering quality products and service both internally and externally and we have continuous development programmes in order to keep our people up to date with the most modern processes. For our business to continue to succeed we continually manager our peoples performance and develop and bring through talent whilst ensuring we operate as efficiently as possible.
The company places considerable value on the involvement of its employees, and has continued to keep them informed on matters affecting them as employees and on various factors affecting the performance of the company.
DISABLED EMPLOYEES
It is the company's policy that all persons should be considered for employment training, career development and promotion based on the basis of their abilities and aptitudes, regardless of physical ability, age, gender, sexual orientation, religion or ethnic origin.
Where existing employees become disabled, it is the company's policy to provide continued employment wherever practical in the same or alternative position and to provide appropriate training to achieve this aim.
MODERN SLAVERY ACT 2015
The company has defined policies on legislation, child labour, conditions of employment, wages and benefits, health and safety and the environment. These policies include our policy of antislavery and zero tolerance of human trafficking.
The company undertakes all reasonable and practical steps to ensure that standards are being implemented throughout the company's own operational and administrative business, along with that of our suppliers, in addition to local legislation and regulations being complied with. Any instances of non-compliance will be assessed on a case by case basis with appropriate remedial action when required.
The company will only trade with those who fully comply with this policy or are taking verifiable steps towards full compliance. This statement is approved and will be reviewed on a timely basis by the full Board of Directors pursuant to section 54(1) of the Modern Slavery Act 2015.
PATISSERIE VALERIE PRODUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
CULTURE AND VALUES
The company recognised the importance of having the right corporate structure. Our long term success depends on achieving our strategic goals the right fair way, so we look after the best interest of our shareholders, customers, people, suppliers and other stakeholders.
Mr M R Scaife
Director
17 March 2025
PATISSERIE VALERIE PRODUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
PRINCIPAL ACTIVITIES
The principal activity of the company is the manufacture and distribution of high end patisserie through various sales channels. These being Patisserie Valerie branded cafes and restaurants, direct to consumer through Patisserie Valerie online and wholesale product.
RESULTS AND DIVIDENDS
The loss for the period, after taxation, amounted to £7,540,213 (2022: £2,682,387). The directors do not recommend the payment of a dividend.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J A Fleming
(Resigned 29 October 2024)
Mr V K Patel
Mr M R Scaife
Ms J L Hughes-Ward
(Resigned 24 January 2024)
FUTURE DEVELOPMENTS
The directors remain focused on the company’s long-term growth strategy. Over the next 12 months, we aim to increase our market share by launching new product lines and strengthening our digital presence through targeted marketing campaigns.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the annual report 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
PATISSERIE VALERIE PRODUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
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 OF DISCLOSURE TO AUDITOR
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
GOING CONCERN
The directors have evaluated the company and group’s ability to continue as a going concern, considering its financial position and future obligations. Post year end the results of the group shows losses of £2,530,108 with an EBITDA of £198,633 to 31 January 2025. The groups’ forecasts show that in the following 12 months to 31 January 2026 it will generate losses and EBITDA of £1,813,000 and £600,000 respectively. Outstanding amounts owed to the group’s senior lender, totalling £1.15 million, are due for repayment on 10 August 2025. The group is actively engaged in discussions with its lenders to refinance this facility and, based on the progress of these discussions and the improving trade performance of the group, the directors are reasonably confident that the refinancing will be completed within the required timeframe. The directors expect the debt to be refinanced over a further 5 years.
Additionally, the parent company and senior secured creditor, Causeway Capital Partners 1 LP, has confirmed they do not intend to demand repayment of shareholder loans for at least 12 months from the approval date of these financial statements.
Considering these factors, the directors have prepared detailed cash flow forecasts and conducted sensitivity analyses to assess various reasonable scenarios. These projections indicate that the company and group is expected to have sufficient resources to meet its financial obligations as they arise for the foreseeable future. Hence, the directors continue to adopt the going concern basis in the financial statements.
Hence the directors continue to adopt the going concern basis in the financial statements.
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M R Scaife
Director
17 March 2025
PATISSERIE VALERIE PRODUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATISSERIE VALERIE PRODUCTION LIMITED
- 7 -
Opinion
We have audited the financial statements of Patisserie Valerie Production Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 March 2023 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.
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 Auditor's 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.
Material uncertainty related to going concern
We draw attention to Note 1.3 in the financial statements, which indicates that the company incurred a net loss of £7,540,214 during the year ended 31 March 2023 and, as of that date, the company's current liabilities exceeded its total assets by £20,463,627. As stated in Note 1.3, these events or conditions, along with other matters as set forth in Note 1.3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
PATISSERIE VALERIE PRODUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATISSERIE VALERIE PRODUCTION LIMITED (CONTINUED)
- 8 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
PATISSERIE VALERIE PRODUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATISSERIE VALERIE PRODUCTION LIMITED (CONTINUED)
- 9 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Detecting irregularities
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
PATISSERIE VALERIE PRODUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATISSERIE VALERIE PRODUCTION LIMITED (CONTINUED)
- 10 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PATISSERIE VALERIE PRODUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PATISSERIE VALERIE PRODUCTION LIMITED (CONTINUED)
- 11 -
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 an auditor's report 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.
Jonathan Harrhy
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
18 March 2025
PATISSERIE VALERIE PRODUCTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
TURNOVER
11,353,719
10,261,731
Cost of sales
(8,456,944)
(7,915,816)
GROSS PROFIT
2,896,775
2,345,915
Administrative expenses
(3,463,799)
(3,069,944)
Exceptional item
3
(4,624,709)
(95,237)
OPERATING LOSS
4
(5,191,733)
(819,266)
Interest payable and similar expenses
8
(2,348,481)
(1,863,121)
LOSS BEFORE TAXATION
(7,540,214)
(2,682,387)
Tax on loss
9
LOSS FOR THE FINANCIAL YEAR
(7,540,214)
(2,682,387)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PATISSERIE VALERIE PRODUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
£
£
LOSS FOR THE YEAR
(7,540,214)
(2,682,387)
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(7,540,214)
(2,682,387)
PATISSERIE VALERIE PRODUCTION LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 14 -
31 March 2023
27 March 2022
Notes
£
£
FIXED ASSETS
Goodwill
11
128,889
Other intangible assets
11
4,072
Total intangible assets
132,961
Tangible assets
12
337,210
230,754
337,210
363,715
CURRENT ASSETS
Stocks
13
1,047,608
1,303,794
Debtors
14
1,756,517
4,183,365
Cash at bank and in hand
409,057
127,389
3,213,182
5,614,548
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15
(2,528,135)
(2,237,718)
NET CURRENT ASSETS
685,047
3,376,830
TOTAL ASSETS LESS CURRENT LIABILITIES
1,022,257
3,740,545
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
16
(21,485,884)
(16,663,958)
NET LIABILITIES
(20,463,627)
(12,923,413)
CAPITAL AND RESERVES
Called up share capital
19
1,000
1,000
Profit and loss reserves
(20,464,627)
(12,924,413)
TOTAL EQUITY
(20,463,627)
(12,923,413)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
PATISSERIE VALERIE PRODUCTION LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
Mr M R Scaife
Director
Company registration number 11825296 (England and Wales)
PATISSERIE VALERIE PRODUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
Share capital
Profit and loss reserves
Total
£
£
£
BALANCE AT 29 MARCH 2021
1,000
(10,242,026)
(10,241,026)
YEAR ENDED 27 MARCH 2022:
Loss and total comprehensive income
-
(2,682,387)
(2,682,387)
BALANCE AT 27 MARCH 2022
1,000
(12,924,413)
(12,923,413)
YEAR ENDED 31 MARCH 2023:
Loss and total comprehensive income
-
(7,540,214)
(7,540,214)
BALANCE AT 31 MARCH 2023
1,000
(20,464,627)
(20,463,627)
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
1
ACCOUNTING POLICIES
Company information
Patisserie Valerie Production Limited is a private company limited by shares incorporated in England and Wales. The registered office is 146-156 Sarehole Road, Birmingham, B28 8DT.
The presentation currency of the company is sterling £.
1.1
Reporting period
The financial statements are for a period of 52 weeks ended 2 April 2023 (2022: 52 week period ended 27 March 2022).
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Flour Power Group Limited. These consolidated financial statements are available from its registered office, 146 - 156 Sarehole Road, Birmingham, England, B28 8DT.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.3
Going concern
The directors have evaluated the company and group’s ability to continue as a going concern, considering its financial position and future obligations. Post year end the results of the group shows losses of £2,530,108 with an EBITDA of £198,633 to 31 January 2025. The groups’ forecasts show that in the following 12 months to 31 January 2026 it will generate losses and EBITDA of £1,813,000 and £600,000 respectively. Outstanding amounts owed to the group’s senior lender, totalling £1.15 million, are due for repayment on 10 August 2025. The group is actively engaged in discussions with its lenders to refinance this facility and, based on the progress of these discussions and the improving trade performance of the group, the directors are reasonably confident that the refinancing will be completed within the required timeframe. The directors expect the debt to be refinanced over a further 5 years. true
Additionally, the parent company and senior secured creditor, Causeway Capital Partners 1 LP, has confirmed they do not intend to demand repayment of shareholder loans for at least 12 months from the approval date of these financial statements.
Considering these factors, the directors have prepared detailed cash flow forecasts and conducted sensitivity analyses to assess various reasonable scenarios. These projections indicate that the company and group is expected to have sufficient resources to meet its financial obligations as they arise for the foreseeable future. Hence, the directors continue to adopt the going concern basis in the financial statements.
Hence the directors continue to adopt the going concern basis in the financial statements.
1.4
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods:
Revenue from the sale of goods should be recognised when all of the following conditions are satisfied:
The company has transferred the significant risks and rewards of ownership to the buyer;
The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
The amount of turnover can be measured reliably;
It is probable that the company will receive the consideration due under the transaction;
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 19 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Brand
20% straight line
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line
Computers
33 % straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in and first out basis. Finished goods include labour and overheads.
At each statement of financial position 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 the statement of comprehensive income.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 21 -
1.11
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, which include debtors and cash and bank balances, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 22 -
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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
ACCOUNTING POLICIES
(Continued)
- 23 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Foreign exchange
At each period end, foreign currency monetary items are translated using the closing rate. Non - monetary items are measured at historical cost are translated using the exchange rate at the date of transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Exceptional items are those that the company considered to be non-recurring and significant in size or nature.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
(Continued)
- 24 -
3
Exceptional costs
The company incurred the following costs during the period which were deemed exceptional in nature
2023
2022
£
£
Restructure costs
69,808
77,820
Finance costs
-
10,417
Charitable donation
9,778
7,000
Impairment of related party balances
4,315,232
-
ESG costs
26,580
-
Recruitment costs
75,000
-
Other
22,556
-
Impairment of goodwill
105,755
-
Total
4,624,709
95,237
4
OPERATING LOSS
2023
2022
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
95,400
51,256
Amortisation of intangible assets
27,206
27,801
Impairment of intangible assets
105,755
Total
228,361
79,057
5
AUDITOR'S REMUNERATION
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
68,041
77,225
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
6
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production
108
107
Management
31
26
Total
139
133
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,753,441
3,135,134
Social security costs
285,886
262,091
Pension costs
49,917
44,412
3,089,244
3,441,637
7
DIRECTORS' REMUNERATION
2023
2022
£
£
Remuneration for qualifying services
140,000
296,737
Directors' social security costs
19,019
38,813
Company pension contributions to defined contribution schemes
1,321
2,311
160,340
337,861
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
DIRECTORS' REMUNERATION
(Continued)
- 26 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
128,333
Company pension contributions to defined contribution schemes
n/a
1,211
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2022
£
£
Interest on bank overdrafts and loans
216,832
-
Interest on invoice finance arrangements
57,444
Other interest on financial liabilities
2,074,205
1,863,121
2,348,481
1,863,121
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
9
TAXATION
The standard rate of corporation tax in the UK changed from 19% to 25% effective 1 April 2023.
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(7,540,214)
(2,682,387)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(1,432,641)
(509,654)
Tax effect of expenses that are not deductible in determining taxable profit
839,115
Permanent capital allowances in excess of depreciation
882
Super-deduction
(5,026)
Deferred tax asset not recognised
786,407
509,654
Marginal relief/rate differences
(188,737)
Taxation charge for the year
-
-
10
IMPAIRMENTS
Goodwill
11
105,755
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
11
INTANGIBLE FIXED ASSETS
Goodwill
Brand
Total
£
£
£
Cost
At 28 March 2022 and 31 March 2023
198,291
20,003
218,294
Amortisation and impairment
At 28 March 2022
69,402
15,931
85,333
Amortisation charged for the year
23,134
4,072
27,206
Impairment losses
105,755
105,755
At 31 March 2023
198,291
20,003
218,294
Carrying amount
At 31 March 2023
At 27 March 2022
128,889
4,072
132,961
During the year, the company recognized an impairment loss of £105,755 (2022: £nil) relating to Goodwill. More information on impairment movements in the year is given in note 10.
The impairment losses were recognized due to changes in market conditions and revised expectations regarding future cash flows. The recoverable amounts of these assets were determined based on value in use. The carrying amount of intangible assets after impairment were £nil for Goodwill.
The company assessed the recoverable amount of the cash-generating unit to which the goodwill is allocated, and recognized an impairment loss of £105,755 during the year.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
12
TANGIBLE FIXED ASSETS
Plant and equipment
Computers
Total
£
£
£
Cost
At 28 March 2022
273,466
44,130
317,596
Additions
191,686
10,170
201,856
At 31 March 2023
465,152
54,300
519,452
Depreciation and impairment
At 28 March 2022
74,268
12,574
86,842
Depreciation charged in the year
88,041
7,359
95,400
At 31 March 2023
162,309
19,933
182,242
Carrying amount
At 31 March 2023
302,843
34,367
337,210
At 27 March 2022
199,198
31,556
230,754
13
STOCKS
2023
2022
£
£
Raw materials and consumables
692,854
724,615
Finished goods and goods for resale
354,754
579,179
1,047,608
1,303,794
14
DEBTORS
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
734,493
1,074,482
Amounts owed by group undertakings
502,154
2,812,573
Other debtors
85,338
73,461
Prepayments and accrued income
434,532
222,849
1,756,517
4,183,365
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
2022
£
£
Trade creditors
945,524
746,562
Amounts owed to group undertakings
405,660
131,214
Taxation and social security
305,601
287,159
Other creditors
664,013
521,581
Accruals and deferred income
207,337
551,202
2,528,135
2,237,718
16
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
2022
Notes
£
£
Other borrowings
17
21,485,884
16,663,958
17
LOANS AND OVERDRAFTS
2023
2022
£
£
Loans from group undertakings
21,485,884
16,663,958
Payable after one year
21,485,884
16,663,958
Shareholder loans payable to Causeway Capital are repayable on demand at the earliest of September 2022 however formal confirmation has been received that the loans will not be recalled for repayment for a period of at least twelve months from the date of signing the financial statements. Shareholder loans attract an interest rate of 12% above the Bank of England base rate.
Causeway Capital Partners 1LP are a secured creditor by way of a charge over the Group's tangible fixed assets, current assets, investments and proceeds from any insurance policy claims and rank ahead of any unsecured creditors.
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
18
RETIREMENT BENEFIT SCHEMES
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,917
44,412
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The company contributes to company personal pensions schemes in respect of their employees. The schemes' funds are independent of the company's finances. Premiums are charged against the statement of comprehensive income in the period in which they are payable. At 31 March 2023, there were outstanding pension contributions of £10,690 (2022 - £8,976). There was a pension expense in the period of £49,917 (2022 - £44,412).
19
SHARE CAPITAL
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
20
FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES
Intercompany assets are also held as security for the group's CBILS borrowings.
21
RELATED PARTY TRANSACTIONS
Transactions with related parties
During the year the company entered into transactions in the ordinary course of business with a company related through a common shareholder. Transactions entered into and trading balances outstanding at 31 March 2023 were as follows:
Purchases
Purchases
2023
2022
£
£
Related common shareholder
260,335
100,000
2023
2022
Amounts due to related parties
£
£
Related common shareholder
62,584
77,156
PATISSERIE VALERIE PRODUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
RELATED PARTY TRANSACTIONS
(Continued)
- 32 -
The company has taken advantage of the exemption under FRS 102 Section 33.1A not to disclose transactions and balances with wholly-owned subsidiaries, as it is included in the consolidated financial statements of Flour Power Group Limited.
22
ULTIMATE CONTROLLING PARTY
Flour Power Holdco Limited is the immediate parent undertaking, a company registered in England and Wales. Flour Power Group Limited is the largest group for which consolidated accounts are prepared. Flour Power Group limited is a company registered in England and Wales. A copy of the group accounts can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate parent undertaking is Causeway Capital Partners 1 LP, a Limited Partnership registered in Ireland. There is no ultimate controlling party.
23
PRIOR PERIOD ADJUSTMENT
The prior period adjustment, relates to a £1,615,520 reclassification between debtor balances.
RECONCILIATION OF CHANGES IN EQUITY
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2022
£
Total adjustments
-
Loss as previously reported
(2,682,387)
Loss as adjusted
(2,682,387)
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