The Little Kitchen Company (Winchester) Limited

	Page
Statement of Financial Position	1—2
Notes to the Financial Statements	3—6

1. General Information

The Little Kitchen Company (Winchester) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 10296507 . The registered office is London Road, Kings Worthy, Winchester, Hampshire, SO23 7QN.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Significant judgements and estimations

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In preparing these financial statements the directors have made the following judgements:

- Determined that the accounting policy in place in respect of turnover recognition and measurement is reasonable.

- Determined that the measurement and recognition policies in place in respect of stock is reasonable and appropriate.

- Determined whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the financial viability and expected future financial performance of the asset.

2.3. 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.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to income statement over its estimated economic life of 10 years.

2.5. 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:

Leasehold	Over the lease term
Plant & Machinery	20% on cost
Motor Vehicles	20% on cost
Fixtures & Fittings	20% on cost
Computer Equipment	3 years straight line basis

2.6. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and 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 income statement 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 income statement as incurred.

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The Little Kitchen Company (Winchester) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. 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.

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.

2.8. 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 statement of financial position 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

2.9. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 78 (2023: 80)

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The Little Kitchen Company (Winchester) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 January 2024	16,000

As at 31 December 2024	16,000

Amortisation
As at 1 January 2024	5,200
Provided during the period	1,600

As at 31 December 2024	6,800

Net Book Value
As at 31 December 2024	9,200

As at 1 January 2024	10,800

5. Tangible Assets

	Plant & Machinery etc.
	£
Cost
As at 1 January 2024	267,251
Additions	1,945

As at 31 December 2024	269,196

Depreciation
As at 1 January 2024	128,606
Provided during the period	37,621

As at 31 December 2024	166,227

Net Book Value
As at 31 December 2024	102,969

As at 1 January 2024	138,645

6. Stocks

	2024	2023
	£	£
Stocks	20,000	20,000

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	51,020	47,439
Other debtors	21,792	25,335

	72,812	72,774

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The Little Kitchen Company (Winchester) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	86,095	90,928
Bank loans and overdrafts	-	15,513
Other creditors	299,781	371,836
Taxation and social security	98,669	112,913

	484,545	591,190

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

	2024	2023
	£	£
Other creditors	-	1,624

10. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	100	100

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	61,600	61,600
Later than one year and not later than five years	246,400	246,400
Later than five years	69,800	131,400

	377,800	439,400

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		9,200		10,800
Tangible Assets	5		102,969		138,645

			112,169		149,445
CURRENT ASSETS
Stocks	6	20,000		20,000
Debtors	7	72,812		72,774
Cash at bank and in hand		555,287		587,122

		648,099		679,896
Creditors: Amounts Falling Due Within One Year	8	(484,545 )		(591,190 )

NET CURRENT ASSETS (LIABILITIES)			163,554		88,706

TOTAL ASSETS LESS CURRENT LIABILITIES			275,723		238,151

Creditors: Amounts Falling Due After More Than One Year	9		-		(1,624 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(15,043 )		(22,230 )

NET ASSETS			260,680		214,297

CAPITAL AND RESERVES
Called up share capital	10		100		100
Income Statement			260,580		214,197

SHAREHOLDERS' FUNDS			260,680		214,297