Company Registration No. 03211714 (England and Wales)
PATCHWORK FOODS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
PATCHWORK FOODS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
PATCHWORK FOODS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
30 April 2024
31 December 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
25,000
Tangible assets
5
40,000
761,025
40,000
786,025
Current assets
Stocks
82,295
111,079
Debtors
6
165,610
359,335
Cash at bank and in hand
118
402
248,023
470,816
Creditors: amounts falling due within one year
7
(696,198)
(645,743)
Net current liabilities
(448,175)
(174,927)
Total assets less current liabilities
(408,175)
611,098
Creditors: amounts falling due after more than one year
8
(103,745)
Provisions for liabilities
(4,169)
Net (liabilities)/assets
(408,175)
503,184
Capital and reserves
Called up share capital
9
133,000
133,333
Share premium account
16,667
16,667
Equity reserve
333
Profit and loss reserves
(558,175)
353,184
Total equity
(408,175)
503,184
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
PATCHWORK FOODS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr S Davies
Director
Company Registration No. 03211714
PATCHWORK FOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2024
- 3 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
100,000
376,402
476,402
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(23,218)
(23,218)
Issue of share capital
9
33,333
16,667
-
-
50,000
Balance at 31 December 2023
133,333
16,667
353,184
503,184
Period ended 30 April 2024:
Loss and total comprehensive income for the period
-
-
-
(911,359)
(911,359)
Conversion of loan to shares
9
333
-
333
Other movements
(333)
-
-
-
(333)
Balance at 30 April 2024
133,000
16,667
333
(558,175)
(408,175)
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2024
- 4 -
1
Accounting policies
Company information
Patchwork Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5-6, Llys Parcwr, Ruthin, Denbighshire, United Kingdom, LL15 1NJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have not been prepared on a going concern basis. Subsequent to the year-end, the company decided to enter liquidation, which resulted in the cessation of its trading activities. As a result, the company is no longer considered a going concern, and the financial statements have been prepared on a break-up basis.
1.3
Turnover
Turnover represents net invoiced sales of goods, excluding VAT, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration.
1.4
Intangible fixed assets - goodwill
The goodwill was generated on the acquisition of the business and is being written off over its estimated useful life of nil years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
14% straight line
Plant and equipment
15% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. As all financial assets are classified within one year, they are not amortised but carried at face value.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price. Financial liabilities classified as payable within one year are carried at face value.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and continue to be measured at face value.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 7 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Change in accounting policy
During the period, Patchwork Foods Limited changed its depreciation policy for leasehold improvements, plant & equipment, fixtures & fittings and motor vehicles from the reducing balance method to the straight-line method effective from 1 Janaury 2024. This change was made to better reflect the pattern of economic benefits consumed by the assets, as the company believes that the assets will provide more uniform utility over their expected useful lives.
The change in accounting policy has been applied prospectively from 1 January 2024. Due to the impracticability of obtaining the necessary historical data, the cumulative effect of undercharged depreciation for the past 9 years, resulting from the previous method, has been recognised in the current period, leading to a one-time increase of £258,942 in depreciation expense for the year.
There has been no retrospective adjustment to prior periods as the change has been applied prospectively.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Total
27
23
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 8 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 30 April 2024
25,000
Amortisation and impairment
At 1 January 2024
Impairment losses
25,000
At 30 April 2024
25,000
Carrying amount
At 30 April 2024
At 31 December 2023
25,000
5
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
166,308
1,113,164
128,394
45,137
1,453,003
Additions
2,500
10,758
13,258
Disposals
(128,545)
(490,965)
(84,739)
(25,797)
(730,046)
Transfers
233,395
(208,136)
(25,259)
At 30 April 2024
273,658
424,821
18,396
19,340
736,215
Depreciation and impairment
At 1 January 2024
556,124
91,043
44,811
691,978
Depreciation charged in the period
102,644
184,865
6,704
326
294,539
Impairment losses
132,627
104,909
2,287
239,823
Eliminated in respect of disposals
(19,293)
(408,024)
(77,011)
(25,797)
(530,125)
Transfers
35,559
(30,551)
(5,008)
At 30 April 2024
251,537
407,323
18,015
19,340
696,215
Carrying amount
At 30 April 2024
22,121
17,498
381
40,000
At 31 December 2023
166,308
557,040
37,351
326
761,025
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 9 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
94,231
264,959
Corporation tax recoverable
26,256
26,256
Other debtors
45,123
68,120
165,610
359,335
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
277,316
245,797
Trade creditors
225,579
234,619
Taxation and social security
110,479
90,215
Other creditors
82,824
75,112
696,198
645,743
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
99,578
Other creditors
4,167
103,745
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
133,333
133,333
133,000
133,333
The shareholdings of the directors at 30 April 2024 were as follows:
Mr R P C Carter (19%)
Ms M M Carter (14%)
Ms J S Whitham (14%)
Dr G M Jackson (28%)
Ms R M Jones (25%)
PATCHWORK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2024
- 10 -
10
Going concern
Post Balance Sheet Event
Subsequent to the period end, the company made the decision to cease trading and enter liquidation. As a result, the financial statements have been prepared on a break-up basis, with assets and liabilities measured at their expected realisable or settlement values, rather than under the going concern assumption.
This decision has been reflected in the financial statements, leading to impairments of assets to reflect their expected recoverable amounts. No adjustments have been made to the carrying values of liabilities as of the balance sheet date, but further adjustments may be required as the liquidation process progresses.
The final treatment of the share premium account, along with other equity balances, will be determined as part of the liquidation process, in accordance with applicable legal requirements.