Company registration number 06299517 (England and Wales)
CHERRYTREE BAKERY HOLDINGS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
CHERRYTREE BAKERY HOLDINGS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
CHERRYTREE BAKERY HOLDINGS LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,589,742
Investment property
5
2,433,990
2,433,990
1,589,742
Current assets
Debtors
7
1,322,794
911,709
Cash at bank and in hand
318,854
568,710
1,641,648
1,480,419
Creditors: amounts falling due within one year
8
(292,133)
(329,210)
Net current assets
1,349,515
1,151,209
Total assets less current liabilities
3,783,505
2,740,951
Creditors: amounts falling due after more than one year
9
(1,588,184)
(681,654)
Provisions for liabilities
10
(12,100)
Net assets
2,195,321
2,047,197
Capital and reserves
Called up share capital
12
2
1
Capital redemption reserve
2
2
Profit and loss reserves
2,195,317
2,047,194
Total equity
2,195,321
2,047,197
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CHERRYTREE BAKERY HOLDINGS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
Mr G J Entwistle
Director
Company registration number 06299517 (England and Wales)
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company finances its business operations through trading profits and the ongoing support of its bankers.true
The directors are not aware of any reasons why the bank loan facilities will not be maintained at their current levels.
The directors are satisfied that in preparing the financial statements they have taken into account all the
information that could reasonably be expected to be available.
On this basis they consider that it is appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents amounts receivable for rent net of VAT.
1.4
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% & 35% Reducing balance
Fixtures, fittings & equipment
15% & 25% Reducing balance & 20% Straight line
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 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
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.
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 payments 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. Amounts 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.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2022
1,260,953
1,017,439
2,278,392
Disposals
(1,017,439)
(1,017,439)
Transfers
(1,260,953)
(1,260,953)
At 31 July 2023
Depreciation and impairment
At 1 August 2022
688,650
688,650
Eliminated in respect of disposals
(688,650)
(688,650)
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 July 2022
1,260,953
328,789
1,589,742
Following the cessation of the company acting as the holding company of Cherrytree Bakery Limited, the company's leasehold properties were subsequently reclassified as investment properties.
5
Investment property
2023
£
Fair value
At 1 August 2022
Additions
1,173,037
Transfers
1,260,953
At 31 July 2023
2,433,990
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Investment property
(Continued)
- 7 -
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 a 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 acquired Units 1 - 4, Belshaw Court, Billington Road, Burnley for a total acquisition cost of £1,173,037. The directors consider that this acquisition cost is a reasonable estimate of the fair value of the properties at the balance sheet date.
On an historic cost basis the properties would have been included in the financial statements at an original cost of £2,769,380 (2022: £1,596,343).
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
6
Fixed asset investments
On 4 August 2022, Cherrytree Bakery Limited ceased to be a subsidiary of this company.
The historic cost of the investment capitalised was impaired in full and the loss recognised in the previous year.
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
661,709
Other debtors
1,322,794
250,000
1,322,794
911,709
Other debtors includes a loan to Cherrytree Bakery Limited, a connected company, of £1,300,000. A balance of £661,709 was owed to this company in the previous year when both companies were in the same group.
The above loan is unsecured and interest-free.
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
80,128
42,828
Trade creditors
15,000
Corporation tax
48,823
Other taxation and social security
59,698
69,648
Other creditors
103,484
201,734
292,133
329,210
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,588,184
681,654
The bank loans are secured by a debenture over the assets of the company, its parent company and those of two connected companies, Cherrytree Bakery Limited and Fina Holdings Limited, and by first legal charges over its investment properties.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
495,974
CHERRYTREE BAKERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
10
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
11
12,100
11
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
2023
2022
Balances:
£
£
Accelerated capital allowances
-
12,100
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
150 Ordinary shares of 1p each
150
150
2
1
13
Parent company
On 4 August 2022, the company became a wholly-owned subsidiary of Fina Developments Limited.
Fina Developments Limited is registered in England and Wales and is under the sole control of its director, Mr G J Entwistle.