Registered number:
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
COMPANY INFORMATION
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WENZELS THE BAKERS LIMITED
CONTENTS
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WENZELS THE BAKERS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 7 APRIL 2024
The directors present the Strategic Report for the period ended 7 April 2024.
Wenzels the Bakers Limited ('Wenzels') is an independent baker established in 1975 and a favourite brand of locals in and around the North West London area. In order to meet increasing demand for our products we have opened 10 new shops during the period and at the balance sheet date, the business was operating from a total of 109 shops.
During the period we invested into our Head office and Bakery in order to be able to service the opening of more shops in the coming years. The directors are pleased with the results for the period, as reported in these financial statements, with increases in KPIs. The company generated revenue of £67.1m (2023 - £61.4m), an increase of 9.2%.
Principal risks and uncertainties include:
Commercial environment The business faces many challenges in respect of the commercial trading environment including general footfall across high streets, the 'cost of living' crisis giving rise to an uncertain economic outlook for our customers and increasing high street competition. While the business has relied primarily on its loyal customer base, buying our products in store, the company expanded it's profile on delivery/food ordering platforms, which remains a strong source of revenue. Our confidence and dedication to high quality, competitively price products is synonymous with the growing reputation of the Wenzels brand. The directors are committed to supporting the UK high street and making our stores accessible to our growing customer base through the continued growth in the number of Wenzels stores. Supply risk Supply risk includes the risks associated with the cost of raw materials, production, logistics and staff talent. The cost of raw materials is affected by the UK weather, demand and the general market conditions. In addition, the business is reliant on its extraordinary skilled work force, both in the central bakery and across its stores, to meet production requirements while maintaining the high standards of product quality and delivery of fresh baked goods across our network of stores. The company has forged strong relationships with suppliers which has been critical in meeting the increasing demands of servicing a larger client base through our growing number of stores and across on-line platforms. Our team values the importance of our dedicated workforce and is dedicated to talent recruitment and training. Our people's commitment to meet both production and customer service needs is paramount for the continued success of the Wenzels brand. The directors continue to support the growth of the business through review, assessment and investment in technology and infrastructure to facilitate the delivery of our freshly produced products in a timely manner to our customers. Regulatory risk The business continuously reviews and assess compliance with legislation including employment law, health and safety regulations, and food hygiene.
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WENZELS THE BAKERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
The board monitors the progress of the company by reference to the following KPIs:
- Increase in total turnover - Increase in like for like sales by shop - Gross margin - Wage percentage - Net profit percentage
Other key performance indicators which are monitored include the number of stores and the number of new stores opened during the period, as well as customer feedback and our own assessments of the quality of the products sold.
The directors of the company, in line with their duties under section 172 of the Companies Act 2006, have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members and stakeholders as a whole, in the decisions taken during the period ended 31 March 2024. In doing so, the directors are required to have regard for the following:
- the likely long-term consequences of any decision; - the interests of the company’s employees; - the need to foster the company’s business relationships with suppliers, customers and others; - the impact of the company’s operations on the community and the environment; - the desirability of the company maintaining a reputation for high standards of business conduct; and - the need to act fairly as between shareholders of the company. The board have considered the following matters, amongst others, in regard to the points above: Long-term planning and shareholders Through working collaboratively with management and having an open and transparent dialogue with the company´s many stakeholders, the board believes that Wenzels has been able to develop a clear understanding of their needs, assess their perspectives and is well positioned to promote the long-term success of the company. Employees The directors recognize that Wenzels' employees are key to its success and to the delivery of the company's ambitions. The success of the business depends on attracting, retaining, and motivating employees. The company seeks to remain a responsible employer regarding pay and benefits, whilst health, safety and well-being of our employees is one of the primary considerations. We aim to provide an enjoyable, unique working environment where staff feel valued and are excited to be part of our success story. Suppliers and customers The majority of our products are produced by our dedicated team. Notwithstanding that, we are reliant on our network of service and product suppliers that form our supply chain. The company has forged strong relationships with our suppliers, regularly meeting with them and keeping open dialogue to facilitate and meet the demands of our growing business. Delivery of quality, fresh products and customer satisfaction is key to our business. As a family owned business, established in 1975, our customer base has been the core of our growth and success. Customer feedback and recommendations have been paramount in the development of our product and service offering. In addition to offering our customers a mouth watering menu, we offer a host of other benefits as a 'thank you', including competitions and loyalty schemes.
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WENZELS THE BAKERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
Community
The UK high street is a national treasure and has been an ever important part of our ability to meet our customer's needs. The directors take a vested interest in our continued commitment to support local communities. Our ongoing strategic plan to increase the number of physical stores provides employment opportunities, support to food banks and local/national charities. High standards of business conduct The board is constantly looking at ways to improve the business across its products, service and strategic management. In doing so, the board evaluate and assess the strategic requirements needed to maintain the high standards expected and have successfully appointed new members to the board to assist in the delivery and execution of these plans.
This report was approved by the board and signed on its behalf.
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WENZELS THE BAKERS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 7 APRIL 2024
The directors present their report and the financial statements for the period ended 7 April 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the period, after taxation, amounted to £2,064,414 (2023 - £1,644,728).
Ordinary interim dividends were paid amounting to £5,115,000 (2023 - £2,500,000).
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WENZELS THE BAKERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
The directors who served during the period were:
Based on our principle of delivering quality products, at affordable prices with outstanding customer service, we have seen increasing demand for our products in recent years. We plan to meet this demand by opening additional shops and the directors anticipate a further increase in both turnover and operating profit. Furthermore, to assist with the level of demand created by these additional shops, we are in the process of developing and expanding the bakery.
The company's policy is to consult and discuss with employees; through management and departmental meetings, matters likely to affect employees' interests.
Matters of concern to employees are given through regular meetings which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
The company's current policy concerning the payment of trade creditors is to:
• settle the terms of payment with suppliers when agreeing the terms of each transaction; • ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and • pay in accordance with the company's contractual and other legal obligations.
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WENZELS THE BAKERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
The company's greenhouse gas emissions and energy consumption for the period are:
• Total energy consumption (kWh) calculated across the company from electricity, gas and transport is 8,746,448 kwh (2023: 7,923,559 kwh). • The combined scope one and two carbon emissions for the period was recorded at 1,846 tCO2e (2023: 1,581 tCO2e). • The specific carbon consumption (SCC) for the period is calculated at 0.028 kgCO2e/£k turnover (2023: 0.02564 kgCO2e/£k).
The methodology taken to comply with the requirements of reporting follows a number of defined steps, outlined as follows:
• Identify the boundary of compliance (i.e. financial or operational control) • Determine the scope of report (i.e. Scope One, Two, Three) • Identify the assets to be included within the scope (i.e. buildings, vehicles) • Identify a suitable metric for the intensity ratio • Collate the data from all sources • Audit the data sufficiency, relevance and quality • Detail any assumptions or estimations made • Determine steps taken to improve efficiency • Collate into the annual report detail • Obtain sign off from primary contact and board level senior officer The scope for reporting includes the requirements of scope one and two of a carbon footprint as defined under the Green House Gas Protocol Corporate Standard (https://ghgprotocol.org /corporate-standard ). The inclusion in this scope is: Scope One • Imported natural gas • Owned and leased transport (diesel and petrol) Scope Two • Imported electricity Wider sources as defined as scope three are voluntary for reporting under SECR are excluded from reporting. All fuels have been converted from their raw units of measure to kWh using industry standard conversion factors sourced from UK Government Department for Business, Energy and Industrial Strategy (BEIS). There are no assumptions or estimations made.
We have engaged a specialist consultancy firm to manage our approach to the Energy Savings Opportunity Scheme (ESOS III) and will look to implement energy saving measures as a result of the findings.
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WENZELS THE BAKERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
As set out in note 32, Post balance sheet events, HMRC issued a winding-up petition against the company which was subsequently withdrawn.
Discussions between the company and HMRC remain ongoing and the directors are confident the matter will be resolved with the liability settled in the forthcoming months, having already made several payments towards the liability. As set out in note 2.2, Going concern the directors have reviewed the company's detailed financial forecasts and cash flows and consider that the company will have the necessary resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
The auditors, Adler Shine LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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WENZELS THE BAKERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED
We have audited the financial statements of Wenzels The Bakers Limited (the 'company') for the period ended 7 April 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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WENZELS THE BAKERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial period 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.
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.
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WENZELS THE BAKERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED (CONTINUED)
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 Auditors' 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.
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 obtained an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements.
We obtained an understanding in this regard through discussions with management and the application of our cumulative audit knowledge and experience of this sector. The key laws and regulations we considered in this context included the Companies Act 2006 and applicable tax legislation. We considered the nature of the industry and sector, control environment and business performance. We discussed mattered amongst the audit team regarding how and where fraud might occur in the financial statements and the potential indicators of fraud. We address the risk of fraud arising from management override of journals by performing audit procedures which included, but were not limited to, the test of journals, enquiries of management, reviewing accounting estimates for evidence of bias, and evaluation the business rationale of any significant transactions which appeared unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
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WENZELS THE BAKERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
N3 1LF
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WENZELS THE BAKERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
REGISTERED NUMBER: 06080714
BALANCE SHEET
AS AT 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
REGISTERED NUMBER: 06080714
BALANCE SHEET (CONTINUED)
AS AT 7 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 37 form part of these financial statements.
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WENZELS THE BAKERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
Wenzels the Bakers Limited is a private company limited by shares registered in England and Wales. Its principal place of business and registered office address is Sunley House, Old's Approach, Watford, WD18 9TB.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The company's functional and presentational currency is Sterling (£), shown in these financial statements rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
As set out in note 32, Post balance sheet events, HMRC issued a winding-up petition against the company which was subsequently withdrawn.
The directors have prepared detailed financial forecasts and cash flows looking at the next 12 months from the date of approval of these financial statements. In developing these forecasts, the directors have made assumptions based upon their view of the current and future economic conditions that are expected to prevail over the forecast period. The directors estimate that the cash held by the company, together with anticipated additional new finance and cash generated from operating activities, will be sufficient to support the current forecasted activities of the company. In addition, the company is in discussions with its bankers to secure an additional £2m loan which will support the company with its future activities. In addition, the directors have reviewed the company's operations and made strategic changes to both the group structure and the management board, so as to ensure the company's future operations are aligned with expectations, ambitions and targets. The directors therefore consider that the company will have the necessary resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as set out below.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
2.Accounting policies (continued)
settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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 key assumptions and other key sources of uncertainty that have a significant effect on the amount recognised in the financial statements are described below: Stock valuation Stock is included at the lower of cost and net realisable value. The directors have reviewed the stock obsolescence policy and are satisfied that stock is fairly valued at the period end. Recoverability of debtors Judgements have been made on the recoverability of trade debtors and the valuation of provisions and the directors are satisfied that the debtors are recoverable. Tangible and intangible fixed assets Judgements have been made in relation to the lives of tangible and intangible assets. In particular, the valuation and the useful economic life and residual values of fixtures and fittings and motor vehicles. The directors have concluded that the asset values and residual values are appropriate.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
12.Taxation (continued)
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
15.Tangible fixed assets (continued)
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £313,490 (2023 - £297,533). Contributions totalling £62,732 (2023 - £4,295) were payable to the fund at the balance sheet date and are included in other creditors.
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WENZELS THE BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
30.Other financial commitments
The company has access to a debenture facility which is secured on a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.
The company has also issued a cross guarantee in respect of a company under common control. As at the balance sheet date the company had a potential liability of £nil (2023 - £2,600,400). No provision has been made in respect of this balance as there is no indication that the company under common control will be unable to service these debts. The company remains in open dialogue with HMRC and has made significant progress towards settling the liability, including making payments towards the outstanding liability and has sought to offset tax recoverable against the liability. Furthermore, the company is in advanced discussion with its bankers to secure an additional £2m loan. The finalisation of the loan is subject to final acceptance procedures, and the directors are confident that this loan will be approved.
At the balance sheet date, the ultimate controlling party was P Wenzel, a director, by virtue of his majority shareholding in the company.
Since the balance sheet date, Wenzels Holdings Limited became the immediate parent company. P Wenzel remains the ultimate controlling party.
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