CoCoChemistry Limited
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Notes to the Accounts |
for the year ended 31 March 2022
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 3 - 10 years straight line or 25% reducing balance |
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Fixtures, fittings, tools and equipment |
over 3 - 10 years straight line or 25% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2022 |
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2021 |
Number |
Number |
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Average number of persons employed by the company |
12 |
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12 |
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3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 April 2021 |
10,000 |
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At 31 March 2022 |
10,000 |
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Amortisation |
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At 1 April 2021 |
4,000 |
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Provided during the year |
1,000 |
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At 31 March 2022 |
5,000 |
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Net book value |
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At 31 March 2022 |
5,000 |
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At 31 March 2021 |
6,000 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years. |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 April 2021 |
248,355 |
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Additions |
957 |
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At 31 March 2022 |
249,312 |
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Depreciation |
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At 1 April 2021 |
104,959 |
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Charge for the year |
36,834 |
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At 31 March 2022 |
141,793 |
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Net book value |
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At 31 March 2022 |
107,519 |
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At 31 March 2021 |
143,396 |
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5 |
Debtors |
2022 |
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2021 |
£ |
£ |
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Trade debtors |
4,374 |
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14,568 |
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Other debtors |
15,000 |
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15,000 |
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Prepayments and accrued income |
500 |
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2,683 |
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19,874 |
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32,251 |
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6 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
£ |
£ |
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Taxation and social security costs |
41,367 |
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22,770 |
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Other creditors |
2,426 |
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5,209 |
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Directors' loan acounts |
292,546 |
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288,474 |
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Accruals and deferred income |
10,226 |
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12,415 |
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346,565 |
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328,868 |
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7 |
Creditors: amounts falling due after one year |
2022 |
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2021 |
£ |
£ |
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Deferred income |
26,487 |
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32,327 |
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Deferred income comprises EU grants received for the purchase of plant and machinery and is being released to the profit and loss account over the estimated useful life of those assets, being 10 years. |
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8 |
Other financial commitments |
2022 |
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2021 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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33,300 |
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21,300 |
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9 |
Going concern |
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The company has been materially affected by the effects of the Covid-19 pandemic. Following on from the previous year, when for the greater part of the year under review the company's shops were closed and the company's focus had switched to selling through its website and a number of online sales channels, incurring high unbudgeted costs as a result, the company's shops were able to open for most of the year and generated most of the turnover, whilst online sales diminished as customers adapted to the post Covid-19 landscape. The company benefitted to a smaller degree than last year from the various government Covid-19 support schemes, and enjoyed continued support from the company's landlords, which helped the company to maintain its capacity and form. However, the future of the company remains uncertain due to the lingering effects of the pandemic and now, with the invasion of Ukraine, it is experiencing rising costs and reduced sales as people's disposable income is squeezed by the cost of living crisis. Further, it is not apparent that overseas visitors have returned in substantial numbers to the UK, and thus to the company's retail outlets. However, the directors are of the view that sufficient resources are available to the company for the foreseeable future and therefore these financial accounts have been prepared on the going concern basis. |
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10 |
Controlling party |
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Dr RW Phillips and JA Wishart control the company by virtue of owning 100% of the company's issued share capital.
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11 |
Other information |
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CoCoChemistry Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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6 Nethercote Hill |
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Lacock |
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Wiltshire |
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SN15 2LD |