Company No: 09675648 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2024		2023
		£		£
Fixed assets
Tangible assets	3	142,484		219,401
		142,484		219,401
Current assets
Stocks	4	18,802		56,622
Debtors	5	52,924		123,111
Cash at bank and in hand		13,536		33,166
		85,262		212,899
Creditors: amounts falling due within one year	6	( 105,303)		( 178,909)
Net current (liabilities)/assets		(20,041)		33,990
Total assets less current liabilities		122,443		253,391
Creditors: amounts falling due after more than one year	7	( 214,456)		( 69,147)
Provision for liabilities		0		( 26,014)
Net (liabilities)/assets		( 92,013)		158,230
Capital and reserves
Called-up share capital	8	1,000		1,000
Profit and loss account		( 93,013 )		157,230
Total shareholders' (deficit)/funds		( 92,013)		158,230

For the financial year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of The Chough Bakery (Padstow) Limited (registered number: 09675648) were approved and authorised for issue by the Director on 27 August 2025. They were signed on its behalf by:

W R Ead Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

The Chough Bakery (Padstow) Ltd (the Company) is a private company, limited by shares, incorporated in England and Wales.

The address of the Company's registered office is:
Unit 2D
Trecerus Industrial Estate
Padstow
PL28 8RW
United Kingdom

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. These financial statements have been prepared in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) - ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the requirements of the Companies Act 2006. These financial statements have been prepared using the historical cost convention, except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

The company entered into a Company Voluntary Arrangement (CVA) that was approved by creditors on 11 December 2024. This relates to unsecured liabilities of £241,456 which is repayable over 5 years from the date of the CVA. In the opinion of the directors following this CVA, the company is a going concern and the accounts have been prepared on this basis.

The balance of this is disclosed in other creditors under notes 6 and 7 in the notes to the financial statements.

Going concern

The director has assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Following a review of the business in the period it has become apparent that the Company is not in a position to survive in its current structure, and in particular during the winter low season. The issues that have been identified centre around overheads and also the manufacturing aspect of the Company.
A restructuring has therefore been enacted, and part of this requires the Company to enter into a CVA. The basic objectives of the restructuring, and the business changes that have been made are as follows:
- A redundancy consultation has been carried out and the manufacturing department has largely been made redundant.
- The Company has contacted the finance company that has hire purchase agreements in place over certain assets with a view to returning the goods and settlement of liabilities.
- Surplus assets are to be sold.
- The Company will exit certain parts of its leasehold premises, and retain those parts that are required.
- The Company will cease manufacturing its own goods and revert to purchasing goods from a wholesaler.
- A short-term cash injection which is forecast to be repaid from cashflow at the earliest opportunity.
- Contributions from trade will be made on a seasonally adjusted basis to allow the Company to build up reserves to trade through subsequent winter periods both during the CVA and thereafter.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenues can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.

Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Land and buildings	5 - 12 years straight line
Plant and machinery etc.	4 - 7 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as financial leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at the inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a financial lease obligation.

Lease payments are apportioned between financial costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is calculated using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit or loss.

Financial instruments

The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when, in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments,

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

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 that 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 Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	21		24

3. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 January 2024	189,726		302,436		492,162
Disposals	( 41,065)		( 72,995)		( 114,060)
At 31 December 2024	148,661		229,441		378,102
Accumulated depreciation
At 01 January 2024	94,272		178,489		272,761
Charge for the financial year	9,896		24,696		34,592
Disposals	( 39,946)		( 31,789)		( 71,735)
At 31 December 2024	64,222		171,396		235,618
Net book value
At 31 December 2024	84,439		58,045		142,484
At 31 December 2023	95,454		123,947		219,401

4. Stocks

	2024		2023
	£		£
Stocks	18,802		56,622

5. Debtors

	2024		2023
	£		£
Trade debtors	1,810		3,419
Other debtors	51,114		119,692
	52,924		123,111

6. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank loans	0		63,216
Trade creditors	16,788		55,578
Other taxation and social security	0		16,467
Obligations under finance leases and hire purchase contracts	0		16,129
Other creditors	88,515		27,519
	105,303		178,909

7. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Bank loans	0		50,832
Obligations under finance leases and hire purchase contracts	0		18,315
Other creditors	214,456		0
	214,456		69,147

There are no amounts included above in respect of which any security has been given by the small entity.

8. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
1,000 Ordinary Share shares of £ 1.00 each	1,000		1,000

9. Related party transactions

Transactions with the entity's director

	2024		2023
	£		£
BE Ead - owed to the company	0		27,713
WR Ead - owed to the company	0		25,817

The loans are repayable on demand with an interest rate of 0%.