Company Registration No. 04936110 (England and Wales)
PEPPERMINT EVENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
PEPPERMINT EVENTS LIMITED
COMPANY INFORMATION
Directors
A Hempenstall
A Brooke
J Reid
Company number
04936110
Registered office
Lower Ground
04 Edinburgh House
154 - 182 Kennington Lane
London
SE11 5DP
Auditor
Lindeyer Francis Ferguson Limited
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
Lower Ground
04 Edinburgh House
154 - 182 Kennington Lane
London
SE11 5DP
PEPPERMINT EVENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
PEPPERMINT EVENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 1 -
The directors present the strategic report for the year ended 28 February 2021.
Review of the business
An event services business, primarily servicing UK Music Festivals with Food and Beverage services including: public bars, food, marketing and consultancy services.
Business structure
The share capital of Peppermint Events Limited is 100% owned by Adam Hempenstall and Alex Brooke.
Aims and objectives
The Company's ultimate objective is to grow profits and cash flows via a strategy centred on a 7 Stage Plan – focussing on margin improvement, reduction of risk, growth into complementary sectors of the market and improving margin from incumbent / contracted events. The business has targeted a number of growth sectors and actively seeks strategic partners for the 12-24 month period ahead.
Performance
The Company achieved sales of £2.4m for the year ending 28 February 2021 (2020: £19.7m) as a result of the Covid-19 pandemic.
The business has widely adopted the 7 Stage plan on an ongoing basis and continues to focus on margin improvement, reducing risk and stabilising overall overheads.
Principal risks and uncertainties
Competition
The Company's competitors can be broken down into a number of sectors:
Legal and regulatory environment
The Company acknowledges that it operates in an environment that has both a developing and increasing regulatory agenda, in the areas of health and safety, quality control, environmental obligations and employee welfare. The Company seeks to ensure that it works in an appropriate manner with the relevant regulatory bodies, obtains recognised accreditations and encourages a proactive approach to changes in the legal environment. In addition, anti-bribery and money laundering policies are regularly reviewed and relevant employees provided the training required to implement them.
Risk/uncertainty
The Company uses a consistent documented approach in its treatment of risk, ensuring appropriate mitigation over legal, regulatory and financial exposures. Regular management review and strategic exercises seek to identify those areas of risk and uncertainty that need to be addressed and put in place appropriate actions to moderate them.
PEPPERMINT EVENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 2 -
Measurement
The Company has a well-established performance measurement system that focuses the business on the key levers of sales volume and margin growth, together with cost control through rigorous monthly departmental budgeting. Detailed financial information can be found on pages 8 to 23 of these financial statements. A detailed annual planning process ensures that targets relating to business growth and development are set in conjunction with the Company's long term strategy.
Financial risk management
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The main exposure to credit risk in the Company is represented by receivables owing to the Company. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of those assets, net of any provisions, as disclosed in the Balance Sheet and notes to the financial statements (see note 14).
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by maximising cash generation by its operations and ensuring adequate borrowing facilities are maintained.
Covid-19
The Covid-19 pandemic put the whole industry into unprecedented times. Management recognised the requirement of a readily available funding facility and effective cost cutting exercise to mitigate uncertainties that may cause concern around Peppermint Events as a going concern as detailed in note 1.2.
Employees
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the Company continues and the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.
Employee involvement
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests. All employees are communicated on the performance of the Company as a whole at appropriate times throughout the year, with additional communications occurring through in-house emails and meetings.
A Hempenstall
Director
29 March 2022
PEPPERMINT EVENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 3 -
The directors present their annual report and financial statements for the year ended 28 February 2021.
Principal activities
The principal activity of the company continued to be that of
the operation of corporate events and temporary licensed bars.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £81,000 (2020: £54,000). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Hempenstall
A Brooke
J Reid
Auditor
The auditor, Lindeyer Francis Ferguson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 of 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 judgements 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
PEPPERMINT EVENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 4 -
On behalf of the board
A Hempenstall
Director
29 March 2022
PEPPERMINT EVENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PEPPERMINT EVENTS LIMITED
- 5 -
Opinion
We have audited the financial statements of Peppermint Events Limited (the 'company') for the year ended 28 February 2021 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 28 February 2021 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Material uncertainty relating to going concern
We draw attention to note 1.2 of the financial statements, which describes the company’s ability to continue as a
going concern. The events and conditions as described in note 1.2 indicate the existence of a material
uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of these matters
.
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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit
:
-
the information given in the strategic report and the directors'
r
eport 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.
PEPPERMINT EVENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEPPERMINT EVENTS LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where 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
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'
r
esponsibilities
s
tatement, 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
.
-
We obtained an understanding of the legal and regulatory framework applying to the society, in particular the Companies Act 2006, FRS 102, Employment law including health and safety regulations and regulations relation to the running of events;
-
We assessed the susceptibility of the society's financial statements to material misstatement due to fraud, including consideration of how fraud might occur, management's assessment of the risk of fraud and whether they are aware of any actual or suspected incidences of fraud;
-
We considered whether management have incentives and opportunities to manipulate financial results (including overriding controls) and determined the key risks related to completeness of income and the going concern status of the company;
-
We obtained the board of Directors’ assessment of fraud risk and enquired as to any known or suspected instances of fraud in the year; and
-
We designed and performed audit procedures to obtain sufficient and appropriate audit evidence, including review of relevant correspondence and minutes, discussions with management and corroboration of their statements, a review of systems and controls, a review of accounting estimates and journal entries and performing substantive testing in respect of completeness of income, recognition of payroll costs and review of the existence and value of both stock and fixed assets.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PEPPERMINT EVENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEPPERMINT EVENTS LIMITED
- 7 -
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.
Jonathan Healey FCA (Senior Statutory Auditor)
For and on behalf of Lindeyer Francis Ferguson Limited
31 March 2022
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
PEPPERMINT EVENTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 8 -
2021
2020
Notes
£
£
Turnover
2,378,067
19,683,393
Cost of sales
(1,910,694)
(17,678,121)
Gross profit
467,373
2,005,272
Administrative expenses
(1,370,079)
(2,406,628)
Operating loss
3
(902,706)
(401,356)
Interest payable and similar expenses
(492)
(2,113)
Amounts written back to financial liabilities
6
3,466,700
(Loss)/profit before taxation
(903,198)
3,063,231
Tax on (loss)/profit
5
13,547
67,213
(Loss)/profit for the financial year
(889,651)
3,130,444
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PEPPERMINT EVENTS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2021
28 February 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
8
12,170
52,413
Tangible assets
9
404,533
689,483
Investments
10
100
100
416,803
741,996
Current assets
Stocks
12
280,471
327,693
Debtors
13
868,809
715,642
Cash at bank and in hand
81,727
403,742
1,231,007
1,447,077
Creditors: amounts falling due within one year
14
(1,180,144)
(745,933)
Net current assets
50,863
701,144
Total assets less current liabilities
467,666
1,443,140
Creditors: amounts falling due after more than one year
15
(200,000)
(204,823)
Net assets
267,666
1,238,317
Capital and reserves
Called up share capital
17
900
900
Capital redemption reserve
100
100
Profit and loss reserves
266,666
1,237,317
Total equity
267,666
1,238,317
The financial statements were approved by the board of directors and authorised for issue on 29 March 2022 and are signed on its behalf by:
A Hempenstall
Director
Company Registration No. 04936110
PEPPERMINT EVENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2019
900
100
(1,839,127)
(1,838,127)
Period ended 29 February 2020:
Profit and total comprehensive income for the period
-
-
3,130,444
3,130,444
Dividends
7
-
-
(54,000)
(54,000)
Balance at 29 February 2020
900
100
1,237,317
1,238,317
Year ended 28 February 2021:
Loss and total comprehensive income for the year
-
-
(889,651)
(889,651)
Dividends
7
-
-
(81,000)
(81,000)
Balance at 28 February 2021
900
100
266,666
267,666
PEPPERMINT EVENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(273,029)
(3,759,408)
Interest paid
(492)
(2,113)
Income taxes refunded/(paid)
80,760
Net cash outflow from operating activities
(192,761)
(3,761,521)
Investing activities
Purchase of intangible assets
(1,200)
(7,297)
Purchase of tangible fixed assets
(42,358)
(167,531)
Proceeds on disposal of subsidiaries
(100)
Proceeds on disposal of fixed asset investments
(39,408)
Net cash used in investing activities
(43,558)
(214,336)
Financing activities
Repayment of borrowings
3,506,108
Repayment of bank loans
(10,922)
Payment of finance leases obligations
(4,726)
(42,130)
Dividends paid
(81,000)
(54,000)
Net cash (used in)/generated from financing activities
(85,726)
3,399,056
Net decrease in cash and cash equivalents
(322,045)
(576,801)
Cash and cash equivalents at beginning of year
403,742
980,543
Cash and cash equivalents at end of year
81,697
403,742
Relating to:
Cash at bank and in hand
81,727
403,742
Bank overdrafts included in creditors payable within one year
(30)
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 12 -
1
Accounting policies
Company information
Peppermint Events Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Lower Ground, 04 Edinburgh House, 154 - 182 Kennington Lane, London, SE11 5DP.
1.1
Accounting convention
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
During the year ended 28 February 2021, the company suffered an operating loss of £902,706 (2020; £401,356). Based on budgets and forecasts, the company initially expected to turn a profit for the year ended 28 February 2021.
Peppermint applied for a number of grants from the arts and cultural sector but were unsuccessful in these (most went to cultural heritage sites such as theatres, museums etc) – however some small local authority grants were obtained. The DCMS provided for a small amount of secured loans and Peppermint were successful with our application in January 2021 with just over £1m secured for working capital on favourable commercial terms.
Peppermint continues to operate on a reduced cost base – both through people reduction (redundancies) and overheads. Due to a reduction in the use of cash at events (especially due to Covid) we sold our cash machines business in July 2020, which helped with working capital during the difficult Covid period.
Peppermint’s core business is in the outdoor events and festival sector – in the summer of 2021 events were a challenge due to Covid and Brexit putting inflationary pressures on staff, stock, equipment prices and availability of equipment. We expect this to continue into 2022 and have already accounted for staff, stock and transport inflationary increases in our forecasts. Given the current Covid situation we have a high degree of certainly that events will go ahead in 2022 unhindered. Virtually all of the events that cancelled in 2021 due to Covid are back for 2022.
We continue our discussions with Levy UK & Ireland (a contract catering business specialising in large scale sports stadiums and venues - part of Compass) and we have a partnership agreement to work together collaboratively at their sports events and venues and jointly pitch for new opportunities in the festival sector. We have already worked on a number of projects in 2021 and this is set to grow in 2022.
Outlook
Even though summer 2021 was challenging operationally, financially it was a success. Even with the backdrop of Covid regulations and restriction we managed to deliver over 20+ large events successfully. The summer calendar for 2022 is looking extremely busy, to a point where we have closed parts of our calendar as we are full up. Our continuing work with Levy/Compass is driving diversified growth into sports and helping smooth out some seasonality in our business during the winter months.
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 13 -
The directors recognise that the company's position at the year-end may indicate the existence of a material uncertainty over its going concern status, however with the DCMS loan there is a much more positive outlook that the number of events will return to pre-covid levels in 2022.
For these reasons, the directors are confident that the company will remain in operation for the foreseeable future, and therefore consider it appropriate to continue to adopt the going concern basis of accounting. There are no other significant issues causing the directors to believe that the going concern assumption is not appropriate for Peppermint Events Limited.
1.3
Turnover
Turnover represents amounts receivable for the operation of temporary licensed bars, ATM transactions, sponsorship and management charges in the UK, all net of VAT and trade discounts.
1.4
Intangible fixed assets other than goodwill
Intangible fixed assets are stated at cost less accumulated amortisation.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website
3 Years
Bespoke software
3 Years
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
3-5 years
Bar equipment
3-5 years
Misc. equipment
3-5 years
Motor vehicles
3 years
Office equipment
3 years
ATMs
5 years
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
.
1.6
Fixed asset investments
Interests in subsidiaries 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.
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 14 -
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell
, after making due allowance for obsolete and slow moving stock.
1.9
Cash and cash equivalents
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.
1.10
Financial instruments
The company only has financial instruments which are classified as basic financial instruments.
Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are
recognised in profit and loss.
1.11
Taxation
The tax expense represents the sum of the tax currently payable.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 interest 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 lease
s
asset are consumed.
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
1
Accounting policies
(Continued)
- 15 -
1.14
Foreign exchange
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Non-current assets
Estimates are made by the directors in determining depreciation and amortisation rates for tangible and intangible non-current assets.
Bad debt provision
Bad debts are provided for where there is doubt over the recoverability of the balance.
3
Operating loss
2021
2020
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,500
7,500
Depreciation of owned tangible fixed assets
327,308
438,965
(Profit)/loss on disposal of tangible fixed assets
6,142
Amortisation of intangible assets
41,443
45,669
Operating lease charges
100,677
110,148
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Operational staff
10
49
Adminstration staff
14
11
24
60
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
4
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
687,469
1,659,142
Social security costs
62,045
161,169
Pension costs
23,425
70,532
772,939
1,890,843
5
Taxation
2021
2020
£
£
Current tax
Adjustments in respect of prior periods
(13,547)
(67,213)
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
(Loss)/profit before taxation
(903,198)
3,063,231
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(171,608)
582,014
Tax effect of income not taxable in determining taxable profit
(666,161)
Permanent capital allowances in excess of depreciation
(27,941)
35,814
Research and development tax credit
(13,547)
(67,213)
Expenses not deductable for tax purposes
70,063
2,748
Unrecognised losses carried forward
129,486
45,585
Taxation credit for the year
(13,547)
(67,213)
The company has taxable losses totalling £2,988,050 (2020: £2,295,799) to utilise against future profits.
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 17 -
6
Amounts written back to financial liabilities
2021
2020
£
£
Amounts written back to financial liabilities
-
3,506,108
Expenses relating to the above transaction
-
(39,408)
3,466,700
In 2020, as part of the management buyout, an amount due to Matthew Clark Bibendum Limited of £3,506,108 was written back to the profit and loss account.
7
Dividends
2021
2020
£
£
Interim paid
81,000
54,000
8
Intangible fixed assets
Website
Bespoke software
Total
£
£
£
Cost
At 1 March 2020
27,067
115,920
142,987
Additions
1,200
1,200
At 28 February 2021
28,267
115,920
144,187
Amortisation and impairment
At 1 March 2020
23,527
67,047
90,574
Amortisation charged for the year
41,443
41,443
At 28 February 2021
23,527
108,490
132,017
Carrying amount
At 28 February 2021
4,740
7,430
12,170
At 29 February 2020
3,540
48,873
52,413
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 18 -
9
Tangible fixed assets
Plant and machinery
Bar equipment
Misc. equipment
Motor vehicles
Office equipment
ATMs
Total
£
£
£
£
£
£
£
Cost
At 1 March 2020
77,979
912,660
636,161
67,719
137,542
525,640
2,357,701
Additions
15,573
25,636
1,149
42,358
At 28 February 2021
77,979
912,660
651,734
93,355
138,691
525,640
2,400,059
Depreciation and impairment
At 1 March 2020
63,565
576,467
547,453
54,233
123,615
302,885
1,668,218
Depreciation charged in the year
7,442
140,712
51,970
13,473
8,583
105,128
327,308
At 28 February 2021
71,007
717,179
599,423
67,706
132,198
408,013
1,995,526
Carrying amount
At 28 February 2021
6,972
195,481
52,311
25,649
6,493
117,627
404,533
At 29 February 2020
14,414
336,193
88,708
13,486
13,927
222,755
689,483
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
9
Tangible fixed assets
(Continued)
- 19 -
The net carrying value of tangible fixed assets includes £3,110 (2020: £15,573) in respect of assets held under finance leases or hire purchase contracts.
10
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
11
100
100
11
Subsidiaries
Details of the company's subsidiaries at 28 February 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
POP (Purveyors of Plenty) Collective Limited
England and Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
POP (Purveyors of Plenty) Collective Limited
100
12
Stocks
2021
2020
£
£
Goods for resale
280,471
327,693
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
264,811
178,552
Corporation tax recoverable
67,213
Other debtors
58,299
22,226
Prepayments and accrued income
545,699
447,651
868,809
715,642
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 20 -
14
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
30
Obligations under finance leases
16
8,657
8,560
Trade creditors
239,992
190,380
Other loans
50,000
50,000
Taxation and social security
144,697
118,055
Other creditors
92,091
55,838
Accruals and deferred income
644,677
323,100
1,180,144
745,933
15
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
16
4,823
Other loans
200,000
200,000
200,000
204,823
16
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
8,657
8,560
In two to five years
4,823
8,657
13,383
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 1 year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
550
550
550
550
B Ordinary shares of £1 each
350
350
350
350
900
900
900
900
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 21 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
29,610
136,871
Between two and five years
104,167
29,610
241,038
19
Related party transactions
During the year goods and services were purchased totalling £23,668 (2020 £Nil), and sales of £28,402 (2020: £Nil) made to Equals Agency Limited, a company under common control.
20
Cash absorbed by operations
2021
2020
£
£
(Loss)/profit for the year after tax
(889,651)
3,130,444
Adjustments for:
Taxation credited
(13,547)
(67,213)
Finance costs
492
2,113
(Gain)/loss on disposal of tangible fixed assets
6,142
Amortisation and impairment of intangible assets
41,443
45,669
Depreciation and impairment of tangible fixed assets
327,308
438,965
Amounts written back to financial liabilities
-
(3,466,700)
Movements in working capital:
Decrease in stocks
47,222
46,756
(Increase)/decrease in debtors
(220,380)
635,495
Increase/(decrease) in creditors
434,084
(4,531,079)
Cash absorbed by operations
(273,029)
(3,759,408)
PEPPERMINT EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
- 22 -
21
Analysis of changes in net funds
1 March 2020
Cash flows
28 February 2021
£
£
£
Cash at bank and in hand
403,742
(322,015)
81,727
Bank overdrafts
(30)
(30)
403,742
(322,045)
81,697
Obligations under finance leases
(13,383)
4,726
(8,657)
390,359
(317,319)
73,040
2021-02-28
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