Ecoffee Cup Limited

Contents
	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. Accounting Policies

1.1. Basis of Preparation of Financial Statements

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 Disclosure

The financial statements have been prepared on a going concern basis, based on the directors' assessment of the company’s financial position and future plans. The directors believe the company will continue to operate for the foreseeable future and have confirmed their intention to support the company if necessary.

1.3. Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4. Research and Development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	25% reducing balance
Fixtures & Fittings	25% reducing balance
Computer Equipment	33% 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.

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Ecoffee Cup Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

1.6. Leasing and Hire Purchase Contracts

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 interes 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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.7. Stocks and Work in Progress

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8. 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 and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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 subsequently measured at amortised cost using the effective interest method.

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Ecoffee Cup Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

1.9. Foreign Currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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. Government Grant

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.

1.12. Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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Ecoffee Cup Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

1.13. Cash at bank and in hand

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.

1.14. Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2. Average Number of Employees

Average number of employees, including directors, during the year was as follows: 9 (2023: 9)

3. Tangible Assets

	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 January 2024	28,209	6,813	12,871	47,893
Additions	15,888	-	1,728	17,616
Disposals	-	-	(1,345 )	(1,345 )

As at 31 December 2024	44,097	6,813	13,254	64,164

Depreciation
As at 1 January 2024	11,123	2,881	7,941	21,945
Provided during the period	5,832	984	2,186	9,002
Disposals	-	-	(469 )	(469 )

As at 31 December 2024	16,955	3,865	9,658	30,478

Net Book Value
As at 31 December 2024	27,142	2,948	3,596	33,686

As at 1 January 2024	17,086	3,932	4,930	25,948

4. Investments

	Other
	£
Cost
As at 1 January 2024	20

As at 31 December 2024	20

Provision
As at 1 January 2024	-

As at 31 December 2024	-

...CONTINUED

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Ecoffee Cup Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Net Book Value
As at 31 December 2024	20

As at 1 January 2024	20

5. Stocks

	2024	2023
	£	£
Finished goods	446,674	611,949

6. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	108,645	165,240
Prepayments and accrued income	54,193	69,997
Other debtors	60,391	49,108
Directors' loan accounts	2,219	1,578
Amounts owed by group undertakings	114,547	92,373

	339,995	378,296

7. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	195,758	260,042
Bank loans and overdrafts	109,101	48,321
Corporation tax	-	17,639
Other taxes and social security	9,972	11,773
VAT	12,111	34,696
Other creditors	99,159	113,941
Other Loans (Non-director)	4,064	4,967
Accruals and deferred income	7,283	10,194
Directors' loan accounts	19,051	23,285

	456,499	524,858

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Ecoffee Cup Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

8. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Bank loans	1,775	14,806

	1,775	14,806

HSBC UK Bank PLC holds fixed and floating charges over all assets. HSBC Invoice Finance (UK) Limited holds fixed and floating charges over the property or undertaking of the company.

9. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	261	261

The company has two classes of ordinary shares which carry voting rights but do not carry any right to fixed income. Additionally, the company has in issue 326,531 non-redeemable preference shares of £0.0001 each, classified as equity. These shares also carry voting rights.

10. Other Commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

	Land and buildings
	2024	2023
	£	£
Within 1 year	31,826	47,804
Between 1 and 5 years	-	65,616

	31,826	113,420

11. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 January 2024	Amounts advanced	Amounts repaid	Amounts written off	As at 31 December 2024
	£	£	£	£	£
Mr David McLagan	789	26,298	25,977	-	1,110
Mrs Alison McLagan	789	26,298	25,977	-	1,110

The above loans are unsecured, interest free and repayable on demand.

12. General Information

Ecoffee Cup Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04545094 . The registered office is 3 Queen Square, London, WC1N 3AR.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	3		33,686		25,948
Investments	4		20		20

			33,706		25,968
CURRENT ASSETS
Stocks	5	446,674		611,949
Debtors	6	339,995		378,296
Cash at bank and in hand		16,203		186,714

		802,872		1,176,959
Creditors: Amounts Falling Due Within One Year	7	(456,499 )		(524,858 )

NET CURRENT ASSETS (LIABILITIES)			346,373		652,101

TOTAL ASSETS LESS CURRENT LIABILITIES			380,079		678,069

Creditors: Amounts Falling Due After More Than One Year	8		(1,775 )		(14,806 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(9,094 )		(6,488 )

NET ASSETS			369,210		656,775

CAPITAL AND RESERVES
Called up share capital	9		261		261
Share premium account			533,316		533,316
Profit and Loss Account			(164,367 )		123,198

SHAREHOLDERS' FUNDS			369,210		656,775