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03818920
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COMPANY REGISTRATION NUMBER:
03818920
T&S ENTERPRISES (LONDON) LIMITED |
|
T&S ENTERPRISES (LONDON) LIMITED |
|
YEAR ENDED 31 DECEMBER 2022
Independent auditor's report to the members |
6 |
|
|
Statement of income and retained earnings |
10 |
|
|
Statement of financial position |
11 |
|
|
Notes to the financial statements |
12 |
|
|
T&S ENTERPRISES (LONDON) LIMITED |
|
YEAR ENDED 31 DECEMBER 2022
Introduction The business continued as an importer/distributor of premium seafood & products globally including Japan, such as Wagyu beef, Vegetables, the company developed a supply chain so that it could maintain a stable supply of a wider range products. Fair review of the company's business U.K. economy recovered further more from Covid in 2022 almost to pre-COVID level. The demand from the market has grown significantly, we have managed to source products from more suppliers in previous year so that we could maintain good supply chain which provided us more products that attracted more customers from other area of the market From our successful 2022 with global economic growth also supported us to expand our customer base as well as transaction volume. In addition we managed to diversify our customer portfolio by the category and by geography for our further expansion of our business. Principal risks and uncertainties Recovery from COVID created some inventory and purchasing order shortage in 2021 and price increased due to the supply and demand mismatch in early 2022. The risk of supply and demand gap is a thread however, we managed to diversify supplier and aim to have stable supply for our customer. Cash flow risk The company has been importing a lot of products from other countries and our major customers are UK based. Therefore, the company has been exposed to foreign exchange risk. The currencies used for imports are JPY, EUR and USD. Depreciation of GBP against these 3 currencies would increase our cost. Credit risk The company is exposed to credit risk because majority of our customers are medium and small sized restaurants. However, the company has maintained a credit insurance policy with a major insurance company and the company's credit risk has been appropriately mitigated. Liquidity risk The company ensure it has sufficient funds and bank credit lines to meet its working capital requirements and future developments. The company has maintained invoice financing facilities with a major UK bank where the company can sell whole or part of eligible account portfolio if required.
Balance and comprehensive analysis of development and performance during the year and the position at the end of it T&S managed to maintain right number of staff to meet market demand from recovery especially factory operation and delivery. We also managed to diversify customer portfolio by segment and location and the number of new customers increased during 2022. Analysis using financial KPI
Revenue growth and maintenance of gross profit margin are considered to be the key performance indicators. * Revenue - has increased by £4,137,968 from 2021 * Overhead Costs - has decreased by £11,325 from 2021 * Net profit - has increased by £302,158 from 2021 * Inventory - have increased by £434,959 from 2021 * Debtor's - owed by group company's has decreased by £133,276 from 2021 * Creditors - have decreased by £637,067 from 2021
Future developments The main future development is to focus on growth. The company has planned to hire more staff, machineries and to achieve different hygiene certification to approach major customers that require a higher standard of traceability & food safety standard. Position of the company at the year end The results for the year and the financial position at the year end were considered satisfactory by the directors. Companies Act S172 Statement This section serves as our s172 statement and should be read in conjunction with the whole strategic report. s172 of the Companies Act 2006 requires directors to take into consideration the interests of stakeholders in their decision making. The directors continue to have regard to the interests of the company's employees and other stakeholders including the impact of its activities on the community, the environment and the company's reputation when making decisions. The directors consider that acting in good faith and fairly between stakeholders is most likely to promote the success of the company. Our principal stakeholders are engaged with on a regular basis.
This report was approved by the board of directors on 27 September 2023 and signed on behalf of the board by:
Registered office: |
168 Church Road |
Hove |
England |
BN3 2DL |
|
T&S ENTERPRISES (LONDON) LIMITED |
|
YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements of the company for the year ended
31 December 2022
.
Directors
The directors who served the company during the year were as follows:
K Kanno |
|
M Morishita |
|
S Higaki |
|
I Kubo |
(Resigned
1 May 2022) |
|
|
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
27 September 2023
and signed on behalf of the board by:
Registered office: |
168 Church Road |
Hove |
England |
BN3 2DL |
|
T&S ENTERPRISES (LONDON) LIMITED |
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
T&S ENTERPRISES (LONDON) LIMITED |
|
YEAR ENDED 31 DECEMBER 2022
Opinion
We have audited the financial statements of T&S Enterprises (London) Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company which were contrary to applicable laws and regulations including fraud and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit. Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, review of correspondence with legal advisors, enquiries of management and in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
David Guest FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
UHY Hacker Young (S.E.) Limited |
Chartered accountants & statutory auditor |
168 Church Road |
Hove |
East Sussex |
BN3 2DL |
|
27 September 2023
T&S ENTERPRISES (LONDON) LIMITED |
|
STATEMENT OF INCOME AND RETAINED EARNINGS |
|
YEAR ENDED 31 DECEMBER 2022
|
2022 |
2021 |
Note |
£ |
£ |
Turnover |
4 |
15,945,913 |
11,807,945 |
|
|
|
|
Cost of sales |
12,876,392 |
9,511,514 |
|
--------------- |
--------------- |
Gross profit |
3,069,521 |
2,296,431 |
|
|
|
Distribution costs |
623,664 |
531,087 |
Administrative expenses |
1,630,681 |
1,642,006 |
Other operating income |
5 |
– |
86,633 |
|
|
------------- |
------------- |
Operating profit |
6 |
815,176 |
209,971 |
|
|
|
|
Other interest receivable and similar income |
10 |
2,099 |
2,307 |
Interest payable and similar expenses |
11 |
11,728 |
14,917 |
|
------------- |
------------- |
Profit before taxation |
805,547 |
197,361 |
|
|
|
|
Tax on profit |
12 |
114,753 |
(
191,275) |
|
---------- |
---------- |
Profit for the financial year and total comprehensive income |
690,794 |
388,636 |
|
---------- |
---------- |
|
|
|
|
Retained earnings at the start of the year |
1,484,246 |
1,095,610 |
|
------------- |
------------- |
Retained earnings at the end of the year |
2,175,040 |
1,484,246 |
|
------------- |
------------- |
|
|
|
All the activities of the company are from continuing operations.
T&S ENTERPRISES (LONDON) LIMITED |
|
STATEMENT OF FINANCIAL POSITION |
|
31 December 2022
Fixed assets
Intangible assets |
13 |
1,150 |
1,533 |
Tangible assets |
14 |
489,867 |
333,183 |
|
---------- |
---------- |
|
491,017 |
334,716 |
|
|
|
|
Current assets
Stocks |
15 |
698,471 |
263,512 |
Debtors |
16 |
2,960,907 |
3,102,123 |
Cash at bank and in hand |
585,515 |
981,832 |
|
------------- |
------------- |
|
4,244,893 |
4,347,467 |
|
|
|
|
Creditors: amounts falling due within one year |
17 |
2,559,870 |
3,196,937 |
|
------------- |
------------- |
Net current assets |
1,685,023 |
1,150,530 |
|
------------- |
------------- |
Total assets less current liabilities |
2,176,040 |
1,485,246 |
|
------------- |
------------- |
Net assets |
2,176,040 |
1,485,246 |
|
------------- |
------------- |
|
|
|
|
Capital and reserves
Called up share capital |
21 |
1,000 |
1,000 |
Profit and loss account |
2,175,040 |
1,484,246 |
|
------------- |
------------- |
Shareholders funds |
2,176,040 |
1,485,246 |
|
------------- |
------------- |
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
27 September 2023
, and are signed on behalf of the board by:
Company registration number:
03818920
T&S ENTERPRISES (LONDON) LIMITED |
|
NOTES TO THE FINANCIAL STATEMENTS |
|
YEAR ENDED 31 DECEMBER 2022
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 168 Church Road, Hove, England, BN3 2DL.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Financial reporting standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements. as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; * the requirements of Section 7 Statements of Cash Flows; * the requirement of paragraph 3.17(d); * the requirement of paragraph 33.7 This information is included in the consolidated financial statements of Atariya Foods Limited as at 31 December 2021 and these financial statements may be obtained from 168 Church Road, Hove, East Sussex, United Kingdom, BN3 2DL.
Judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may defer from these estimates. In respect of the judgements, estimates and assumptions made by management in preparing these financial statements, none are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities presented.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Short leasehold property |
- |
Over the life of the lease
|
|
Plant and machinery |
- |
10% reducing balance |
|
Fixtures and fittings |
- |
25% reducing balance |
|
Motor vehicles |
- |
25% reducing balance |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. At each reporting date, inventory is assessed for impairment with reference to damaged or slow moving inventory, inventory past its expiry date, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
2022 |
2021 |
|
£ |
£ |
Sale of goods |
15,945,913 |
11,807,945 |
|
--------------- |
--------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2022 |
2021 |
|
£ |
£ |
Government grant income |
– |
86,633 |
|
---- |
--------- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2022 |
2021 |
|
£ |
£ |
Amortisation of intangible assets |
383 |
67 |
Depreciation of tangible assets |
56,392 |
28,692 |
Impairment of trade debtors |
79,145 |
(26,510) |
Foreign exchange differences |
(
67,151) |
(
145,987) |
|
--------- |
---------- |
|
|
|
7.
Auditor's remuneration
|
2022 |
2021 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
21,500 |
20,000 |
|
--------- |
--------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2022 |
2021 |
|
No. |
No. |
Production staff |
36 |
32 |
Distribution staff |
12 |
6 |
Administrative staff |
4 |
7 |
Management staff |
9 |
6 |
|
---- |
---- |
|
61 |
51 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2022 |
2021 |
|
£ |
£ |
Wages and salaries |
1,771,854 |
1,822,114 |
Social security costs |
189,973 |
199,084 |
Other pension costs |
37,760 |
14,282 |
|
------------- |
------------- |
|
1,999,587 |
2,035,480 |
|
------------- |
------------- |
|
|
|
9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2022 |
2021 |
|
£ |
£ |
Remuneration |
82,706 |
112,611 |
|
--------- |
---------- |
|
|
|
The number of directors who accrued benefits under company pension plans was as follows:
|
2022 |
2021 |
|
No. |
No. |
Defined contribution plans |
2 |
2 |
|
---- |
---- |
|
|
|
10.
Other interest receivable and similar income
|
2022 |
2021 |
|
£ |
£ |
Interest on cash and cash equivalents |
2,099 |
2,307 |
|
------- |
------- |
|
|
|
11.
Interest payable and similar expenses
|
2022 |
2021 |
|
£ |
£ |
Interest due to group undertakings |
11,728 |
14,917 |
|
--------- |
--------- |
|
|
|
12.
Tax on profit
Major components of tax expense/(income)
Deferred tax:
Origination and reversal of timing differences |
114,753 |
(
191,275) |
|
---------- |
---------- |
Tax on profit |
114,753 |
(
191,275) |
|
---------- |
---------- |
|
|
|
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is lower than (2021: lower than) the
standard rate of corporation tax in the UK
of
19
% (2021:
19
%).
|
2022 |
2021 |
|
£ |
£ |
Profit on ordinary activities before taxation |
805,547 |
197,361 |
|
---------- |
---------- |
Profit on ordinary activities by rate of tax |
153,054 |
37,499 |
Effect of expenses not deductible for tax purposes |
1,154 |
(
1,875) |
Effect of capital allowances and depreciation |
(
43,740) |
(
12,710) |
Utilisation of tax losses |
(
110,468) |
(
22,914) |
Deferred tax |
114,753 |
(
191,275)
|
|
---------- |
---------- |
Tax on profit |
114,753 |
(
191,275) |
|
---------- |
---------- |
|
|
|
13.
Intangible assets
|
Domain Names |
|
£ |
Cost |
|
At 1 January 2022 and 31 December 2022 |
|
|
------- |
Amortisation |
|
At 1 January 2022 |
|
Charge for the year |
|
|
------- |
At 31 December 2022 |
|
|
------- |
Carrying amount |
|
At 31 December 2022 |
|
|
------- |
At 31 December 2021 |
|
|
------- |
|
|
14.
Tangible assets
|
Short leasehold property |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
At 1 January 2022 |
341,049 |
651,106 |
153,058 |
31,000 |
1,176,213 |
Additions |
– |
116,325 |
5,241 |
91,510 |
213,076 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
At 31 December 2022 |
341,049 |
767,431 |
158,299 |
122,510 |
1,389,289 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
Depreciation |
|
|
|
|
|
At 1 January 2022 |
257,394 |
448,584 |
135,115 |
1,937 |
843,030 |
Charge for the year |
– |
30,724 |
6,656 |
19,012 |
56,392 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
At 31 December 2022 |
257,394 |
479,308 |
141,771 |
20,949 |
899,422 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
Carrying amount |
|
|
|
|
|
At 31 December 2022 |
83,655 |
288,123 |
16,528 |
101,561 |
489,867 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
At 31 December 2021 |
83,655 |
202,522 |
17,943 |
29,063 |
333,183 |
|
---------- |
---------- |
---------- |
---------- |
------------- |
|
|
|
|
|
|
15.
Stocks
|
2022 |
2021 |
|
£ |
£ |
Raw materials and consumables |
698,471 |
263,512 |
|
---------- |
---------- |
|
|
|
16.
Debtors
|
2022 |
2021 |
|
£ |
£ |
Trade debtors |
1,115,233 |
1,079,334 |
Amounts owed by group undertakings |
1,419,478 |
1,552,754 |
Deferred tax asset |
42,499 |
157,252 |
Prepayments and accrued income |
261,184 |
192,347 |
Other debtors |
122,513 |
120,436 |
|
------------- |
------------- |
|
2,960,907 |
3,102,123 |
|
------------- |
------------- |
|
|
|
17.
Creditors:
amounts falling due within one year
|
2022 |
2021 |
|
£ |
£ |
Bank loans and overdrafts |
– |
20,570 |
Trade creditors |
1,124,588 |
1,086,911 |
Amounts owed to group undertakings |
1,086,935 |
1,865,263 |
Accruals and deferred income |
110,376 |
122,028 |
Social security and other taxes |
86,915 |
85,208 |
Other creditors |
151,056 |
16,957 |
|
------------- |
------------- |
|
2,559,870 |
3,196,937 |
|
------------- |
------------- |
|
|
|
Included within other creditors are advances of £nil (2021 £Nil) made under an invoice discounting facility and are secured on the trade debtors of the company.
18.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2022 |
2021 |
|
£ |
£ |
Included in debtors (note 16) |
42,499 |
157,252 |
|
--------- |
---------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2022 |
2021 |
|
£ |
£ |
Accelerated capital allowances |
64,561 |
60,170 |
Unused tax losses |
(
106,137) |
(
216,605) |
Pension plan obligations |
(
923) |
(
817) |
|
---------- |
---------- |
|
(42,499) |
(157,252) |
|
---------- |
---------- |
|
|
|
19.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
37,760
(2021: £
14,282
).
20.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants recognised directly in income |
– |
86,633 |
|
---- |
--------- |
|
|
|
21.
Called up share capital
Issued, called up and fully paid
|
2022 |
2021 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
1,000 |
1,000 |
1,000 |
1,000 |
|
------- |
------- |
------- |
------- |
|
|
|
|
|
22.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2022 |
2021 |
|
£ |
£ |
Not later than 1 year |
307,486 |
55,184 |
Later than 1 year and not later than 5 years |
1,432,497 |
972,667 |
Later than 5 years |
486,271 |
650,146 |
|
------------- |
------------- |
|
2,226,254 |
1,677,997 |
|
------------- |
------------- |
|
|
|
23.
Controlling party
The company is a wholly owned subsidiary of Atariya Foods Limited which owns 100% of the share capital of the company. The Company's smallest parent undertaking is Atariya Foods Limited. The address of Atariya Foods Limited is 168 Church Road, Hove, England, BN3 2DL, where copies of the consolidated financial statements can be obtained. Atariya Foods Limited is regarded as the controlling party. The parent of the smallest group in which the results are consolidated is Atariya Foods Limited. The largest group of which the company is a member and which prepares consolidated accounts is JFLA Holdings Inc, whose registered office address is 1-5-6 Nihonbash-kakigara-cho, Tokyo 103-0014, Japan where copies of the consolidated financial statements can be obtained.