Baketime Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07300779 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

FOR

BAKETIME LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

N M Ismail Abdoola

Dr D Hitihamu

REGISTERED OFFICE:

Imperial Food Park

Imperial Avenue

South Bank

Middlesbrough

TS6 6BA

REGISTERED NUMBER:

07300779 (England and Wales)

AUDITORS:

Sedulo Audit Limited

Statutory Auditors

Regency Court

62-66 Deansgate

Manchester

M3 2EN

FIXED ASSETS

Tangible assets

3

634,623

862,738

CURRENT ASSETS

Stocks

4

145,299

113,799

Debtors

5

967,902

946,013

Cash at bank and in hand

75,407

96,011

1,188,608

1,155,823

CREDITORS

Amounts falling due within one year

6

2,816,385

2,442,616

NET CURRENT LIABILITIES

(1,627,777

)

(1,286,793

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(993,154

)

(424,055

)

CREDITORS

Amounts falling due after more than one year

7

7,204,769

7,661,150

NET LIABILITIES

(8,197,923

)

(8,085,205

)

CAPITAL AND RESERVES

Called up share capital

9

1,975

1,975

Share premium

974,025

974,025

Retained earnings

(9,173,923

)

(9,061,205

)

SHAREHOLDERS' FUNDS

(8,197,923

)

(8,085,205

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 10 October 2019 and were signed on its behalf by:

N M Ismail Abdoola - Director

1.	STATUTORY INFORMATION

Baketime Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

Subsequent to the year end the company is receiving an increasing number of new product development

enquiries and sales enquiries which they expect to realise into significant sales growth over the course of the year

and beyond. Although an accounting loss on ordinary activities has been recorded in the first quarter and

turnover was less than forecast, the directors note that turnover was still more than double that of the same period

last year, and that the reported loss for the period was lower than that forecast and nearly half that of the previous

year, with the improvement being attributable to both sales mix and cost efficiencies.

Future forecasts prepared by the directors indicate that the company is expected to continue to record losses in

the short term as sales levels build up and the effect of sales enquiries and new product developments takes full

effect; this is expected to realise from the 2nd quarter onwards with sales increasing throughout the 3rd and 4th

quarters, resulting in the company breaking even in the second half. Thereafter the directors expect that increased

sales levels will be maintained into the 1st and 2nd quarters of 2020/21 and the company will report profits.

The directors acknowledge that short term losses and uncertainty over sales patterns will necessarily impact on

cash flow moving forward, and that additional sources of funding and careful management of working capital are

needed to ensure funds are available as required to finance activity.

The Lion Match Company (Pty) Limited, the parent of the company's immediate parent, LMC Baketime

Holdings Limited, has provided confirmation that it will not seek repayment of existing loans for a period of at

least one year from the date of the signing of these financial statements. Other loan creditors have provided

confirmation that they will not seek repayment of loans until such time as the company has sufficient funds

available. The Lion Match Company (Pty) Limited has also confirmed that it will provide additional funding as

and when required, this latter being subject to the approval of the South African Reserve Bank. The directors

acknowledge that such approval is not certain but note that historically it has been received as part of the

business case put forward, and note that actual and forecast improved performance will strengthen that case

whilst reducing the requirement for such funding.

Subsequent to the year end the directors are pleased to report that the company successfully settled a long

running trade dispute (see note 15) as a result of which an additional £250,000 was released into cash flow,

which has greatly improved the company's financial position and alleviated working capital difficulties.

In addition, the company is seeking financing for new plant and equipment and potential grant funding towards

anticipated expansion.

Accordingly, the directors are satisfied that sufficient resources will be available to enable the company to meet

its operational requirements as and when they fall due, and they continue to adopt the going concern basis of

accounting in preparing the financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In preparing these financial statements the directors have had to make the following judgements which may have

a material effect thereon:

- the directors have had to determine whether there are indicators of impairment of the company's tangible assets,

taking into consideration the economic viability and expected future performance of the asset and, where it is a

component of a large cash generating unit, the viability and expected performance of that unit.

- the directors have had to determine that preparing the accounts on a going concern basis is appropriate having

regard to the company's ongoing performance and confirmed ongoing financial support from fellow group

undertakings.

- tangible fixed assets are depreciated over their useful lives taking into account residual values. The directors

have assessed the estimated lives of the assets having regard to factors such as technological innovation, product

life cycles and maintenance programmes, and have assessed residual values having considered issues such as

future market conditions, the remaining life of the asset and projected disposal values.

Turnover

Turnover represents sale of goods at invoiced amounts net of local sales taxes. Sales of goods are recognised

when the company has substantially transferred all the risks and rewards of ownership to the buyer, retains no

effective control over the goods sold, can be reliably measured, and it is probable that the company will receive

the consideration due under the transaction.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

25% on cost and 10% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets are initially recognised at historic cost, which includes expenditure incurred in bringing the

asset to its present location and condition.

They are assessed at each reporting date for evidence of impairment. Impairment losses are recognised for the

amount by which the carrying amount exceeds recoverable amount. Assets that have been previously impaired

are reviewed at each reporting date to assess whether there is any indication that previously recognised

impairment losses may no longer exist or be reduced, and any reversal recognised in the accounts.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

- Raw materials and goods for resale are valued at purchase cost on a first in first out basis

- Work in progress and finished goods are valued at the cost of direct materials and labour

Net realisable value is based on estimated selling price less further costs expected to be incurred to completion

and sale.

Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

The company only enters into transactions in 'basic' financial instruments which result in the recognition of assets

and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other

third parties, and loans to related parties.

Basic financial assets (other than those classified as payable within one year) are initially measured at cost, and

are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses.

Basic financial assets classified as receivable within one year are not amortised.

Basic financial liabilities (other than those classified as payable within one year) are initially recognised at

present value of future cash flows and subsequently at amortised costs using the effective interest method. Basic

financial liabilities classified as payable within one year are not amortised.

Financial assets and liabilities are offset, with the net amounts reported 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

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.

Research and development

Research and development expenditure on new product development and production processes is written off in

the year in which it is incurred.

Foreign currencies

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of

transaction. Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of

exchange ruling at the balance sheet date.

Exchange differences arising from translation are taken into account in arriving at the operating result and are

presented in 'finance income or costs' where they relate to borrowings and cash balances, and 'other operating

income' in all other cases.

The company's functional currency is considered to be GBP.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Finance costs

Finance costs are charged to the statement of comprehensive income over the terms of the loan using the

effective interest method so that the amount charged is at a constant rate on the carrying amount. Transaction

costs are initially recognised as a reduction in the proceeds of the associated loan.

3.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 July 2018

2,678,529

445,856

23,124

3,147,509

Additions

2,400

15,120

-

17,520

At 30 June 2019

2,680,929

460,976

23,124

3,165,029

DEPRECIATION

At 1 July 2018

1,823,148

441,580

20,043

2,284,771

Charge for year

239,998

3,788

1,849

245,635

At 30 June 2019

2,063,146

445,368

21,892

2,530,406

NET BOOK VALUE

At 30 June 2019

617,783

15,608

1,232

634,623

At 30 June 2018

855,381

4,276

3,081

862,738

4.

STOCKS

30.6.19

30.6.18

£

£

Raw materials

121,690

95,189

Finished goods

23,609

18,610

145,299

113,799

There is no material difference between the replacement cost of stocks and the amounts stated above.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.19

30.6.18

£

£

Trade debtors

94,984

140,495

Amounts owed by group undertakings

750,000

750,000

Other debtors

77,900

8,122

Prepayments

45,018

47,396

967,902

946,013

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.19

30.6.18

£

£

Trade creditors

145,966

99,231

Amounts owed to group undertakings

2,106,246

2,121,428

Social security and other taxes

33,035

8,866

Other creditors

465,916

182,300

Accrued expenses

65,222

30,791

2,816,385

2,442,616

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.19

30.6.18

£

£

Amounts owed to group undertakings

7,204,769

7,661,150

8.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.19

30.6.18

£

£

Owed to group undertakings

7,204,769

7,661,150

Amounts owed to group undertakings bear interest at LIBOR+3%.

Amounts owed to group undertakings are secured by fixed and floating charges over the assets and undertakings

of the company.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.6.19

30.6.18

value:

£

£

1,975

ordinary

£1

1,975

1,975

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw attention to note 2 to the financial statements which explains the basis on which directors consider the

company to be a going concern.

David Miller (Senior Statutory Auditor)

for and on behalf of Sedulo Audit Limited

11.	RELATED PARTY DISCLOSURES

Included within Other creditors is a loan of £29,650 (2018: £nil) owing to D Hitihamu, a director.

Included in Other creditors is a loan of £352,300 (2018: £182,300) owing to Imperial Property Development

Limited, a company in which N M I Abdoola and D Hitihamu are directors in common.

12.	POST BALANCE SHEET EVENTS

Subsequent to the year end the company settled a long running trade dispute in its favour, as a result of which it

received compensation of £200,000 and return of a £50,000 deposit held in a Court Escrow account.

13.	ULTIMATE PARENT COMPANY

The immediate parent undertaking is LMC Baketime Holdings Limited, a company registered in England and

Wales. The ultimate parent undertaking is Fasic Investment Corporation Limited, a company registered in South

Africa.

The largest group in which the results of the company are consolidated is that headed by Fasic Investment

Corporation Limited. The smallest group in which they are consolidated is that headed by LMC Baketime

Holdings Limited. These consolidated accounts are available to the public and may be obtained from Companies

House, Crown Way, Cardiff, CF14 3UZ.