REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Speciality Brands Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Speciality Brands Ltd |
Speciality Brands Ltd (Registered number: 06301175) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Speciality Brands Ltd |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
173 Cleveland Street |
London |
W1T 6QR |
Speciality Brands Ltd (Registered number: 06301175) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The principal activity of the company during the year continued to be the distribution of various brands of whiskies, fine spirits, and other alcoholic beverages on which the company has exclusive distribution rights in the UK. The products are sold to hospitality venues like pubs, restaurants, online and other retailers. |
The market for the company's products remains competitive but the directors continue to source new products and promote them to increase growth in sales. |
RESULTS AND PERFORMANCE |
The turnover for the year decreased by 15.4% to £11,662,495 (2023: £13,791,983). The analysis of turnover into the various activities or on geographical basis is considered commercially sensitive by the directors and hence is not included here. |
The gross profit margin marginally improved to 37.8% (2023: 36.2%) and this resulted in gross profit of £4,404,860 (2023: £4,990,493). |
However, there was a loss before tax of £69,221 (2023: profit before tax £505,739) in the year. This is mainly due to decrease in turnover as the client lost distribution rights to one major brand in the year and a charge of £237,000 (2023: £Nil) to the profit and loss account in respect of the share based payment to a director. Administrative costs have remained at the same level as 2023. |
BUSINESS ENVIRONMENT AND FUTURE GROWTH |
The company enjoys multiple source of demand for its products as described in the Business Review above. However, it faces strong competition in the market as demand for products go through cyclical changes. |
The directors ensure there is sufficient budget allocated to promoting the products to increase the awareness and desirability of these products to the end consumers, to provide a sustained growth to the business. |
STRATEGY |
The company personnel have expertise in the industry and therefore are able to acquire exclusive UK distribution rights for various brands to suit varying demands from trade. The company further continues to advertise and promote its brands through various shows and tasting events. |
The company's aim is to increase the range of products with exclusive distribution rights. |
KEY PERFORMANCE INDICATORS |
The key performance indicators used by the company include gross profit margin, which it compares to data for competitors that is available to it. The company does not have any non-financial key performance indicators. The directors believe the company performs well in its sector. |
Speciality Brands Ltd (Registered number: 06301175) |
Strategic Report |
for the Year Ended 30 June 2024 |
MANAGEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES |
The Companies Act 2006 requires that the strategic report contains a description of the principal risks and uncertainties facing the company. The Board is responsible for the company's system of internal control and risk management, and for reviewing its effectiveness. This section describes some of the risks that the directors consider could materially affect the company's business. Some risks are not yet known to the company and some that it does not currently believe to be material could later turn out to be material. All such risks could materially affect the company's business, revenue, operating profit, earnings, net assets and liquidity and/or capital resources. |
Products |
The company carries substantial stocks of branded products and there is a risk that some product ranges could become slow moving due to changes in trends. |
The company has expertise in assessing demand and marketing of these products which are reviewed on a regular basis so that the products sourced are such that they remain in demand and the products are marketed appropriately so any stocks remaining continue to sell. |
Foreign currency rates |
The company purchases goods in sterling as well as foreign currencies. The effect of currency rates is carefully monitored and reflected in the pricing of the goods. |
Supply chain disruptions |
Global supply chain issues such as those experienced during prior years resulting from Covid-19, Brexit and shortages of HGV drivers in the UK could impact the company's ability to source sufficient products in its range to fulfill customer orders. |
Where such issues arise, the directors' source and sell alternative supplies to mitigate any loss in trading. The directors also ensure sufficient stock levels are maintained where possible as per anticipated demand. |
ON BEHALF OF THE BOARD: |
Speciality Brands Ltd (Registered number: 06301175) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the distribution of various brands of whiskies, fine spirits and other alcoholic beverages. |
DIVIDENDS |
Dividends of £250,000 (2023: £250,000) were paid during the year. The directors do not recommend any further dividends. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
POLITICAL DONATIONS |
No political donations were made in the year (2023: £Nil). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Speciality Brands Ltd (Registered number: 06301175) |
Report of the Directors |
for the Year Ended 30 June 2024 |
AUDITORS |
Shah Dodhia & Co, is deemed to have been re-appointed in accordance with Section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Speciality Brands Ltd |
Opinion |
We have audited the financial statements of Speciality Brands Ltd (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Speciality Brands Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Speciality Brands Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, auditor's responsibilities section, 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 made enquires of the directors' policies and procedures to prevent and detect fraud, as well as, whether |
they have knowledge of any actual, suspected or alleged fraud. |
- we gained an understanding of the legal and regulatory framework applicable to the company and the industry |
in which it operates through discussion with directors and considered the risk of acts by the company that were |
contrary to applicable laws and regulations, including fraud. |
- we designed audit procedures including analytical 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; |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, |
data protection, anti-money laundering, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries |
of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards, For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the |
inherently limited procedures required by auditing standards would identify it. |
The company is subject to many laws and regulations where non-compliance could have a material effect in the |
financial statements, e.g. health and safety, employment law, anti-bribery, certain aspects of company |
legislation recognising the nature of the company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors |
and other management and inspection of regulatory and legal correspondence, if any. Therefore a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect |
that breach. |
Report of the Independent Auditors to the Members of |
Speciality Brands Ltd |
In addition, as with any audit, there remained a higher risk of non-detecting of fraud, as these may involve collusion, forgery, intentional omission, misrepresentations or the override of internal controls. Our audit |
procedures are designed to detect material misstatement, We are not responsible for preventing non- compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
173 Cleveland Street |
London |
W1T 6QR |
Speciality Brands Ltd (Registered number: 06301175) |
Statement of Comprehensive |
Income |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(128,152 | ) | 486,849 |
Other operating income |
OPERATING (LOSS)/PROFIT | 4 | ( |
) |
Interest receivable and similar income |
(69,221 | ) | 505,739 |
Interest payable and similar expenses | 5 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 6 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Speciality Brands Ltd (Registered number: 06301175) |
Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Share premium | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Speciality Brands Ltd (Registered number: 06301175) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 June 2024 |
Speciality Brands Ltd (Registered number: 06301175) |
Cash Flow Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,260,323 |
Cash and cash equivalents at end of year |
2 |
1,126,280 |
742,102 |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit for the financial year | ( |
) |
Depreciation charges |
Employment related securities | 237,000 | - |
Finance costs | - | 6,206 |
Finance income | (39,862 | ) | (18,890 | ) |
Taxation |
136,798 | 495,894 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 1,126,280 | 742,102 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 742,102 | 2,260,323 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/7/23 | Cash flow | At 30/6/24 |
£ | £ | £ |
Net cash |
Cash at bank | 742,102 | 384,178 | 1,126,280 |
742,102 | 1,126,280 |
Total | 742,102 | 384,178 | 1,126,280 |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Speciality Brands Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal activity of the company during the year was the distribution of various brands of whiskies, fine spirits and other alcoholic beverages. |
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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Going concern |
The company's cashflow projections for the period to June 2026 indicate that it is likely to generate sufficient income and have sufficient cash reserves. Having considered post year end trading and financial reserves, cash reserves, company's cashflow projections to June 2026 and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and continue to meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing these financial statements. |
Significant judgements and estimates |
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. |
The judgements (apart from these involving estimations) that management has made in the process of applying the entity's accounting policies and that have the significant effect on the amounts recognised in the financial statements are as follows: |
Provision of slow moving and obsolete stock - The directors have used their experience and expertise in assessing the provision for slow moving stock which at 30 June 2024 was £54,348 (2023: £168,728). |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. |
Depreciation is provided at the following annual rate in order to write off each asset over its estimated useful life. |
Plant and Machinery - 20% on cost |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
At each Balance Sheet date, stock is 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 in profit and loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income , except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. |
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. |
Basic financial instruments |
Financial assets and liabilities |
Trade and other debtors/creditors |
Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Interest-bearing loan classified as basic financial instruments |
Loans are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, borrowings are stated at amortised cost using the effective interest method, less any impairment losses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Operation,Sales&Marketing&administration |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Over provision in |
prior years | (8,304 | ) | - |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Remeasurement of deferred tax - change in UK tax rate | - | (370 | ) |
Over provision in prior years | (8,304 | ) | - |
Total tax charge | 1,618 | 129,764 |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
7. | DIVIDENDS |
2024 (£ | ) | 2023 (£ | ) |
Ordinary shares of £1 each | 250,000 | 250,000 |
8. | TANGIBLE FIXED ASSETS |
Plant and |
Machinery |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
9. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Directors' loan accounts | - | 760 |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to related undertakings | - | 31,007 |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | (866 | ) | (335 | ) |
3,436 | 4,302 |
Deferred tax |
£ |
Balance at 1 July 2023 |
Accelerated capital allowances | (866 | ) |
Balance at 30 June 2024 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares of £1 each | £1 | 650 | 600 |
On 30 October 2023, the company made a share based payment to a director by issue of 50 ordinary shares to him. This resulted in a share premium account of £236,950. |
There is a single class of ordinary shares and each share carries one vote. All the issued shares have equal rights to dividends, voting and capital participation in a winding up. |
14. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 4,555,928 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
Share issue | - | 236,950 | 236,950 |
At 30 June 2024 | 4,472,039 |
Speciality Brands Ltd (Registered number: 06301175) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
15. | RELATED PARTY DISCLOSURES |
On 30 October 2023, the company made a share based payment to a director, issuing 50 ordinary shares to him for £Nil consideration. The fair value of this payment was calculated at £237,000, based on the net asset value of the company at 30 June 2023 and discounted for minority interest. |
The company sold goods net of retro discount including marketing support to a related undertaking totalling £310,000 (2023: £192,000). The net amount outstanding from the related company at the Balance Sheet date was £Nil (2023: £6,000). |
The company purchased goods totalling £893,000 (2023: £729,000) from a related undertaking in the year. The total amount outstanding to the related company at the Balance Sheet date was £Nil (2023: £37,000). |
Other than the transactions disclosed above, the directors confirm that there are no other related party transactions that require disclosure in these financial statements. |
16. | ULTIMATE CONTROLLING PARTY |
The company is owned by the three directors who are also the shareholders. There is no one controlling party. |