| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements for the Period 1 October 2023 to 30 November 2024 |
| for |
| PREP KITCHEN LIMITED |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements for the Period 1 October 2023 to 30 November 2024 |
| for |
| PREP KITCHEN LIMITED |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Contents of the Financial Statements |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 5 |
| Report of the Independent Auditors | 6 | to | 9 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Statement of Financial Position | 12 |
| Statement of Changes in Equity | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 16 | to | 25 |
| PREP KITCHEN LIMITED |
| Company Information |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| Chartered Accountants |
| & Statutory Auditors |
| 1 Beauchamp Court |
| 10 Victors Way |
| Barnet |
| Hertfordshire |
| EN5 5TZ |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Strategic Report |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| The directors present their strategic report for the period 1 October 2023 to 30 November 2024. |
| REVIEW OF BUSINESS |
| The directors monitor the performance of the company by reference to key performance indicators including turnover, gross profit and margin, operating profit and key areas influencing working capital. These are discussed in more detail below. |
| The loss for the year after tax amounted to £36,734 (2023: Profit £674,968) |
| The company retained a positive combined bank balance of £125,763 (2023: £126,066) |
| The directors are satisfied with the results in the year under review in a progressively competitive industry with tough |
| trading conditions. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company's principal financial instruments comprise cash, short term deposits and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to fund the company's operation as well as to manage working capital, liquidity and invest surplus funds. |
| The directors continue to assess the risks facing the company, Both the securing of new business and maintaining |
| existing relationship are key to the company's success. |
| Other ongoing challenges are overhead cost control which is kept under regular review by the directors. |
| The directors of the Company reviews on a regular basis the company's risk exposure and risk appetite. The key risks broadly fall into the following categories: |
| MARKET |
| The performance of the domestic economy directly reflects upon the performance of the Company. The directors |
| monitor economic movements and key customer strategic plans, so that he can react promptly to changes in projected sales volumes to ensure that the company's business remains competitive and profitable. |
| COMPETITIVE |
| The main competitive risks to the Company arise from changing customer requirements based on market demand. The Company continues to invest in providing qualitative service and by working in partnership with customers in |
| developing effective procedures to satisfy their current and future needs. |
| LEGISLATIVE RISK |
| On a regular basis the directors review the company legislative risk exposure and ensure that all applicable directions are observed |
| FINANCIAL INSTRUMENT RISK |
| The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievements of its performance objectives. The objectives aim to limit undue counterparty exposure, ensure efficient working capital exists and monitor the management of risk at a business unit level. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Strategic Report |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| KEY PERFORMANCE INDICATORS |
| The continuous measurement and monitoring of the business performance is a critical element of the management |
| process. In order to provide consistent and comprehensive information the Company use a number of key performance indicators (KPI's) to provide a timely and well-balanced review of the financial performance against predefined targets. |
| The Company's key and other performance indicators during the period were as follows: |
| 2024 | 2023 | 2022 |
| £'000 | £'000 | £'000 |
| Turnover | 26,607 | 13,942 | 5,157 |
| Gross Profit | 9,861 | 4,832 | 1,493 |
| Gross Profit Margin | 37.1% | 34.7% | 28.9% |
| Operating Profit/(Loss) | 174 | 665 | (194) |
| Profit/(Loss) for the year | (37) | 675 | (210) |
| Other key KPI's that demonstrate the level of performance in different parts of the business include: |
| Average salary levels |
| EBITDA |
| Performance against budget and prior year. |
| The directors are satisfied with the KPI's delivered in the year and is confident that expected performance levels can be maintained for the foreseeable future. |
| ON BEHALF OF THE BOARD: |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Report of the Directors |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| The directors present their report with the financial statements of the company for the period 1 October 2023 to 30 November 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the period under review was that of sales of healthy, high protein meals. |
| DIVIDENDS |
| No dividends will be distributed for the period ended 30 November 2024. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
| DONATIONS |
| The company made a donation of £18,581 during the year, which is disclosed in the financial statements as a charitable Donation . |
| 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. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Report of the Directors |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| AUDITORS |
| The auditors, BBK Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Prep Kitchen Limited |
| Opinion |
| We have audited the financial statements of Prep Kitchen Limited (the 'company') for the period ended 30 November 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 November 2024 and of its loss for the period 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 |
| Prep Kitchen Limited |
| 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. |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| 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. |
| 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. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - 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 identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's operating sector; |
| - 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, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
| Report of the Independent Auditors to the Members of |
| Prep Kitchen Limited |
| - 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. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| -considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships; |
| - tested journal entries to identify unusual transactions; |
| - assessed whether judgements and assumptions made in determining the accounting estimates set out in the financial statements were indicative of potential bias; and |
| - investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - reading the minutes of meetings of those charged with governance; |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Prep Kitchen Limited |
| 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 |
| Chartered Accountants |
| & Statutory Auditors |
| 1 Beauchamp Court |
| 10 Victors Way |
| Barnet |
| Hertfordshire |
| EN5 5TZ |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Income Statement |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| Notes | £ | £ |
| TURNOVER |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 144,335 | 655,430 |
| Other operating income |
| OPERATING PROFIT | 4 |
| Interest payable and similar expenses | 5 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 6 | ( |
) |
| (LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Other Comprehensive Income |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE PERIOD | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Statement of Financial Position |
| 30 NOVEMBER 2024 |
| 30.11.24 | 30.9.23 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 7 |
| Tangible assets | 8 |
| CURRENT ASSETS |
| Stocks | 9 |
| Debtors | 10 |
| Cash in hand |
| CREDITORS |
| Amounts falling due within one year | 11 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 15 |
| Retained earnings | 16 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Statement of Changes in Equity |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 October 2022 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 30 September 2023 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 30 November 2024 |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Statement of Cash Flows |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | ( |
) | ( |
) |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Capital repayments in year | ( |
) |
| Amount withdrawn by directors | 436 | (55,000 | ) |
| Net cash from financing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of period |
2 |
12,373 |
| Cash and cash equivalents at end of period |
2 |
125,763 |
126,066 |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Statement of Cash Flows |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Finance costs | 117,045 | 92,064 |
| 409,940 | 804,302 |
| Increase in stocks | ( |
) | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Period ended 30 November 2024 |
| 30.11.24 | 1.10.23 |
| £ | £ |
| Cash and cash equivalents | 125,763 | 126,066 |
| Year ended 30 September 2023 |
| 30.9.23 | 1.10.22 |
| £ | £ |
| Cash and cash equivalents | 126,066 | 12,373 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| At 1.10.23 | Cash flow | At 30.11.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 126,066 | (303 | ) | 125,763 |
| 126,066 | ( |
) | 125,763 |
| Debt |
| Finance leases | (88,295 | ) | (8,811 | ) | (97,106 | ) |
| (88,295 | ) | (8,811 | ) | (97,106 | ) |
| Total | 37,771 | (9,114 | ) | 28,657 |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Prep Kitchen Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
| 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 the 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 estimates are 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. |
| Critical judgements |
| The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
| Tangible assets |
| The directors determine whether there are indicators of impairment on the company's tangible assets. In particularr since depreciation is not charged on freehold land and buildings the directors assess whether there are indicators of impairment on the freehold land and buildings that would result in a change in the estimate of the residual value of the assets, depreciation method or useful life. Factors taken into consideration in reaching such a decision include changes in market prices and expected future financial performance of the asset |
| . |
| Key sources of estimation uncertainty |
| The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
| Property, plant and equipment |
| Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate.. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives and residual value assessments, the directors consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
| Inventory' provisioning |
| The company sells meal kits which are subject to change in price due to changing consumer demands and trends. As a result the stock held by the company are reviewed on a regular basis to ensure that the inventory i.e. held at the lower of cost and estimated selling price. This mitigates the need for an inventory provision. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances. |
| Sale of goods |
| Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
| Rendering of services |
| Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses. |
| Financial instruments |
| Cash and cash equivalents |
| Cash and cash equivalents comprises cash on hand and all deposits, and other short-term highly liquid |
| investments that are readily convertible to a known amount of cash and are subject to and insignificant risk of change in value. |
| Foreign currency transactions and balances |
| Transactions in foreign currency are initially recorded at the functional currency rate prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective financial currency of the entity at the rate prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Trade debtors |
| Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary |
| course of business. Trade debtors are recognised initially at the transaction price. They are subsequently |
| measured at amortised cost using the effective interest method less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
| Trade creditors |
| Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
| business from suppliers. Accounts payables are classified as current liabilities of the company does not have an unconditional right at the end of the reporting period to refer settlements of the creditor for at least twelve |
| months after the reporting date. If there is an unconditional right to defer settlements for at least twelve months after the reporting date they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
| Borrowings |
| Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing |
| borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of |
| transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 period 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. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
| Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred. |
| Pension costs and other post-retirement benefits |
| When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
| The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
| Provisions |
| Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
| Going concern |
| The directors of the company have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements. These demonstrate the company has sufficient cash reserves to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. |
| As such, the directors are satisfied that the company has adequate resources to continue to operate for the |
| foreseeable future. For this reason the company continues to adopt the going concern basis in preparing these financial statements. |
| Loans and borrowings |
| Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
| Impairment |
| Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
| Employee benifits |
| When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
| The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 3. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the period was as follows: |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| Production staff | 76 | 122 |
| Admin staff | 36 | 12 |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Directors' remuneration |
| Information regarding the highest paid director is as follows: |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Emoluments etc |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss on disposal of fixed assets |
| Other intangibles amortisation |
| Auditors' remuneration |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Bank interest payable |
| HMRC Interest |
| Hire purchase charge |
| Operating leases |
| 6. | TAXATION |
| Analysis of the tax charge/(credit) |
| The tax charge/(credit) on the profit for the period was as follows: |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) | ( |
) |
| Deferred tax |
| Tax on profit | ( |
) |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge/(credit) included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.10.23 |
| to | Year Ended |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | - | ( |
) |
| Utilisation of tax losses | ( |
) |
| R&D tax credit | (129,468 | ) | (169,399 | ) |
| Deferred tax | 223,492 | 67,797 |
| Total tax charge/(credit) | 94,024 | (101,602 | ) |
| 7. | INTANGIBLE FIXED ASSETS |
| Other |
| intangibles |
| £ |
| COST |
| At 1 October 2023 |
| Additions |
| At 30 November 2024 |
| AMORTISATION |
| At 1 October 2023 |
| Amortisation for period |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| At 30 September 2023 |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 8. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Plant and | and |
| machinery | fittings | Totals |
| £ | £ | £ |
| COST |
| At 1 October 2023 |
| Additions |
| At 30 November 2024 |
| DEPRECIATION |
| At 1 October 2023 |
| Charge for period |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| At 30 September 2023 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Fixtures |
| and |
| fittings |
| £ |
| COST |
| Additions |
| At 30 November 2024 |
| DEPRECIATION |
| Charge for period |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| 9. | STOCKS |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Stocks |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Trade debtors |
| Other debtors |
| VAT |
| Prepayments and accrued income |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Hire purchase contracts (see note 13) |
| Trade creditors |
| Tax | ( |
) |
| Social security and other taxes |
| Other creditors <1 year |
| Accruals and deferred income |
| Accrued expenses |
| Bank loans and OD |
| Net wages | - | 10,026 |
| 12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Hire purchase contracts (see note 13) |
| Bank loans |
| 13. | LEASING AGREEMENTS |
| Minimum lease payments under hire purchase fall due as follows: |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| 14. | PROVISIONS FOR LIABILITIES |
| 30.11.24 | 30.9.23 |
| £ | £ |
| Deferred tax | 291,288 | 67,797 |
| PREP KITCHEN LIMITED (REGISTERED NUMBER: 09775617) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 OCTOBER 2023 TO 30 NOVEMBER 2024 |
| 14. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 October 2023 |
| Provided during period |
| Balance at 30 November 2024 |
| 15. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 30.11.24 | 30.9.23 |
| value: | £ | £ |
| A Ordinary | 0.001 | 167 | 167 |
| B Ordinary | 0.001 | 233 | 233 |
| C Ordinary | 0.001 | 100 | 100 |
| 500 | 500 |
| 16. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 October 2023 |
| Deficit for the period | ( |
) |
| At 30 November 2024 |
| 17. | PENSION COMMITMENTS |
| The company provides a defined contribution pension plan to its employees. The pension plan is administered by an external pension provider. The company is required to contribute to a specified percentage of payroll costs to the scheme to fund the benefit and has no other obligation under the scheme other than to make the required contributions. The pension cost charge for the 12 month period represents contributions payable by the company to the scheme and amounted to £27,414 (2023: £4,462). |