Company Registration No. 06299517 (England and Wales)
CHERRYTREE BAKERY HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
CHERRYTREE BAKERY HOLDINGS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CHERRYTREE BAKERY HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,962,826
2,063,743
Investments
4
8,317
8,317
1,971,143
2,072,060
Current assets
Debtors
6
705,120
498,545
Cash at bank and in hand
76,626
122,401
781,746
620,946
Creditors: amounts falling due within one year
7
(244,914)
(288,761)
Net current assets
536,832
332,185
Total assets less current liabilities
2,507,975
2,404,245
Creditors: amounts falling due after more than one year
8
(12,634)
(60,592)
Provisions for liabilities
10
(49,701)
(38,244)
Net assets
2,445,640
2,305,409
Capital and reserves
Called up share capital
11
1
1
Profit and loss reserves
2,445,639
2,305,408
Total equity
2,445,640
2,305,409
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 8 November 2019 and are signed on its behalf by:
G J Entwistle
Director
Company Registration No. 06299517
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 2 -
1
Accounting policies
Company information
Cherrytree Bakery Holdings Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Belshaw Court, Billington Road, Burnley, Lancashire, BB11 5UB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention as modified to include the revaluation of leasehold properties at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover represents amounts receivable for rent
and hire charges
net of VAT.
1.3
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:
Land and buildings Leasehold
No depreciation charged
Plant and machinery
15% Reducing balance
Fixtures, fittings & equipment
15% - 20% Reducing balance
Motor vehicles
20% Reducing balance
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
.
The company does not depreciate leasehold buildings as they are maintained to such a standard that the estimated residual value of the asset is not materially different from the book value and as such any charge to depreciation would also be immaterial.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 3 -
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
Deferred tax assets and liabilities are not discounted.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 5 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 3 (2018 - 3).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 August 2018
1,200,000
1,334,196
2,534,196
Transfer from subsidiary
35,910
-
35,910
At 31 July 2019
1,235,910
1,334,196
2,570,106
Depreciation and impairment
At 1 August 2018
-
470,453
470,453
Depreciation charged in the year
-
136,827
136,827
At 31 July 2019
-
607,280
607,280
Carrying amount
At 31 July 2019
1,235,910
726,916
1,962,826
At 31 July 2018
1,200,000
863,743
2,063,743
The company's properties at Units E5, E6, E7, E8 and F1, Belshaw Court, Billington Road, Burnley were valued at a market value of £1,200,000 at the previous balance sheet date by a director of the company. The director's valuation was based on an external valuation undertaken in November 2017 by a third party professional valuer. This valuation was incorporated into the accounts at the 2018 balance sheet date. The directors still consider this valuation to be appropriate at the current balance sheet date.
During the year the company made improvements to the above properties totalling £35,910. These improvements have been recognised in the balance sheet at their historic cost.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
3
Tangible fixed assets
(Continued)
- 6 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2019
2018
£
£
Cost
1,571,300
1,535,390
Accumulated depreciation
-
-
Carrying value
1,571,300
1,535,390
4
Fixed asset investments
2019
2018
£
£
Investments in subsidiaries
8,317
8,317
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 August 2018 & 31 July 2019
8,317
Carrying amount
At 31 July 2019
8,317
At 31 July 2018
8,317
5
Subsidiaries
Details of the company's subsidiaries at 31 July 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Cherrytree Bakery Limited
Belshaw Court, Billington Road, Burnley, Lancashire, BB11 5UB
Ordinary
100
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 7 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
705,120
444,796
Other debtors
-
53,749
705,120
498,545
7
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
47,958
46,114
Trade creditors
6,767
-
Corporation tax
32,829
32,829
Other taxation and social security
14,953
-
Other creditors
54,000
100,000
Accruals and deferred income
88,407
109,818
244,914
288,761
The long-term bank loan is secured by a debenture over the assets of the company and its subsidiary company and first legal charges over its properties.
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
12,634
60,592
9
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
10
49,701
38,244
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 8 -
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
49,701
38,244
2019
Movements in the year:
£
Liability at 1 August 2018
38,244
Charge to profit or loss
11,457
Liability at 31 July 2019
49,701
The deferred tax liability set out above is expected to reverse within five years and relates to accelerated capital allowances that are expected to mature within the same period.
11
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of 1p each
1
1
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Linda Wilkinson.
The auditor was Pierce C A Limited.
13
Financial commitments, guarantees and contingent liabilities
The company has given a guarantee, supported by a debenture over its assets and a first legal charge over its leasehold property, in respect of the bank borrowings of its subsidiary company, Cherrytree Bakery Limited. At 31 July 2019 there was an amount of £nil (2018 - £nil) outstanding.
2019-07-31
2018-08-01
false
08 November 2019
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
G J Entwistle
Mrs M M A Turkington
Mrs C A Milburn
Ms H E Colley
G J Entwistle
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