Investments in unlisted entities are recognised at cost less any impairment losses. The company holds minority equity interests in three private companies, which are strategically aligned with its core business activities.
Investment Strategy
The company has invested in these entities to support business expansion, improve supply chain synergies, and develop international market presence in the premium gelato and café sector. Each investment is assessed periodically for potential impairment, with reference to financial performance, market conditions, and expected future cash flows.
Nature of Investments
Cremeria Italiana LLC (USA) – 30% Stake (£25,176.91)
Cremeria Italiana LLC is a premium gelato and dessert company based in the United States.
The investment provides Unico Gelato & Caffe Ltd with strategic access to the North American market.
The directors consider this investment to be long-term, with potential future synergies in branding and product distribution.
IBB Srl (Italy) – 10% Stake (£22,610.44)
IBB Srl is an Italian-based supplier of artisanal gelato ingredients and café products.
The company’s investment in IBB Srl is aimed at securing quality supply chains and collaborating on product innovation.
Italy remains a key supplier of raw materials for Unico Gelato & Caffe Ltd, making this investment strategically significant.
Unico Gelato & Caffe Portugal (Portugal) – 20% Stake (£4,540.87)
Unico Gelato & Caffe Portugal operates gelato and café locations in Portugal under the Unico brand.
This investment aligns with the company’s European expansion plans and allows for localised brand presence in a growing market.
The directors believe this investment will enhance Unico Gelato & Caffe Ltd’s brand awareness and sales footprint in Southern Europe.
Impairment Considerations
As at 31 December 2023, the directors reviewed the carrying value of investments and determined that:
No impairment provisions were required, as the investments remain viable.
The financial performance of Cremeria Italiana LLC, IBB Srl, and Unico Gelato & Caffe Portugal was in line with expectations.
Market conditions in the USA, Italy, and Portugal remain favourable for business growth.
Any future indicators of impairment, such as declining financial performance, market contraction, or changes in strategic direction, will be considered in subsequent reporting periods.