Registered number: 03549959
BLUE APPLE CONTRACT CATERING LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2023
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BLUE APPLE CONTRACT CATERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
We are very pleased to report that 2022/23 continued to see the bounce back from the impact of the pandemic. Despite a slow first quarter, our turnover for this 12-month period was £13.7m, an increase of 175% compared to the previous 12-month period. This generated an EBITDA of £0.92m, up from £0.23m in 2021/22.
This growth includes the return of several clients, where services had been suspended during the pandemic, as well as a number of new clients.
The directors continue to be very optimistic about the future trading and profitability of the company and are confident that the full year results for 23/24 will see turnover back to pre-pandemic levels with significant improvements to profitability.
PRINCIPAL RISKS AND UNCERTAINTIES
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The comapny uses various financial instruments including cash and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.
The existence of these financial instruments exposes the company to a number of financial; risks which are described in more detail below.
The main risks arising from the company's financial statements are liquidity risk and credit risk.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet forseeable needs to invest cash assets safely and profitably.
Credit risk
The company's principal financial asset is cash.
FINANCIAL KEY PERFORMANCE INDICATORS
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The company uses key performance indicators suitable for the size and nature of the business. The key financial performance indicators are turnover, margin and profit before tax.
OTHER KEY PERFORMANCE INDICATORS
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Internally, management use a variety of non-financial key performance indicators includng new customer take- ons and unit performance indicators. These are monitored and reported weekly.
This report was approved by the board and signed on its behalf.
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BLUE APPLE CONTRACT CATERING LIMITED
REGISTERED NUMBER: 03549959
BALANCE SHEET
AS AT 31 MARCH 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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BLUE APPLE CONTRACT CATERING LIMITED
REGISTERED NUMBER: 03549959
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The notes on pages 5 to 15 form part of these financial statements.
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BLUE APPLE CONTRACT CATERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 5 to 15 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 5 to 15 form part of these financial statements.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Blue Apple Contract Catering Limited is a limited liability Company which is incorporated in the United Kingdom. Its principal activity is that of supplying catering services.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The company, being a subsidiary undertaking of a group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 102.
Revenue represents the amounts received for the sale of food and beverages, together with subsidy charges and management fees, excluding value added tax.
Revenue is recognised in the period in which services are provided and charged in accordance with the relevant contractual agreement.
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INTANGIBLE ASSETS AND AMORTISATION
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Goodwill is the difference between amounts paid on acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and Loss account over its estimated economic life.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (CONTINUED)
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TANGIBLE FIXED ASSETS AND DEPRECIATION
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Tangible fixed assets are stated at cost less depreciation.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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15%, 25% and 33% straight line
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15%, 25% and 50% straight line
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15%, 25%, 33% and 50% straight line
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15%, 25%, 33% and 50% straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments held as fixed assets are shown at cost less provision for impairment.
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (CONTINUED)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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HIRE PURCHASE AND LEASING COMMITMENTS
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Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
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PROVISIONS FOR LIABILITIES
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (CONTINUED)
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CURRENT AND DEFERRED TAXATION
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The operating profit is stated after charging:
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Fees payable to the Company's auditor for the audit of the Company's annual financial statements
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Fees payable to the Company's audit in relation to non audit services
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Defined contribution pension costs
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Investments in subsidiary companies
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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CREDITORS: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The hire purchase contracts are secured on the assets to which they relate.
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CREDITORS: Amounts falling due after more than one year
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Bank loans relate to a CBILS loan with Natwest. The loan is repayable over 48 monthly instalments beginning 13 months after the date on which the loan is drawn. Interest to be charged at 0% for the first 12 months, and subsequently at the bank's fixed rate.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Short term timing differences
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Allotted, called up and fully paid
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36,000 (2022 - 36,000) Ordinary A shares of £1.00 each
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24,000 (2022 - 24,000) Ordinary B shares of £1.00 each
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Profit & loss account
Includes all current and prior year retained profits and losses.
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £108,964 (2022: £87,469). Contributions totalling £24,668 (2022: £18,905) were payable to the fund at the balance sheet date and are included in creditors.
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BLUE APPLE CONTRACT CATERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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COMMITMENTS UNDER OPERATING LEASES
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At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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RELATED PARTY TRANSACTIONS
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The company is exempt from disclosing related party transactions with group companies by virtue of the provisions of FRS102 section 33.
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ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
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The ultimate parent company during the year was Blue Apple Catering Holdings Limited.
By virtue of the shareholdings in Blue Apple Catering Holdings Limited the company is not under the control of any one individual.
The auditor's report on the financial statements for the year ended 31 March 2023 was unqualified.
The audit report was signed on 28 July 2023 by Darren O'Connor BSc (Hons) ACA FCCA (Senior statutory auditor) on behalf of James Cowper Kreston Audit LLP.
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