Celtic Sea Spice Company Ltd Filleted accounts for Companies House (small and micro)

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COMPANY REGISTRATION NUMBER: SC390829

Celtic Sea Spice Company Ltd

Filleted Unaudited Financial Statements

For the year ended

31 December 2019

Celtic Sea Spice Company Ltd

Statement of Financial Position

31 December 2019

	2019		2018
Note	£	£	£

Fixed assets

Tangible assets	5		20,384	18,714

Current assets

Stocks		172,218	259,823
Debtors	6	30,140	78,863
Cash at bank and in hand		61,988	27,969
		---------	---------
		264,346	366,655

Creditors: amounts falling due within one year	7	407,588		555,659
		---------		---------
Net current liabilities			143,242	189,004
			---------	---------
Total assets less current liabilities			( 122,858)	( 170,290)

Creditors: amounts falling due after more than one year	8	243,013	162,308
		---------	---------
Net liabilities		( 365,871)	( 332,598)
		---------	---------

Capital and reserves

Called up share capital	1,748	1,738
Share premium account	1,739,817	1,714,827
Profit and loss account	( 2,107,436)	( 2,049,163)
	------------	------------
Shareholders deficit	( 365,871)	( 332,598)
	------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 9 April 2020 , and are signed on behalf of the board by:

Ms F Houston
Director

Company registration number: SC390829

Celtic Sea Spice Company Ltd

Notes to the Financial Statements

Year ended 31 December 2019

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is 6 Long Craig Rigg, West Shore Road, Edinburgh, EH5 1QT.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements are prepared in sterling, which is the presentational and functional currency of the entity.

Going concern

During the year the company posted a loss of £72,022 (2018: £391,117) and at the year end had negative reserves of £365,871 (2018: £332,598). Within creditors is an amount of £162,308 (2018: £162,308) due to the founder directors. The founder directors have confirmed they will not seek repayment of this to the detriment of the company's ability to trade. Additionally, the company is in discussion with potential strategic partners in order to increase profitability. The director is therefore of the opinion that the accounts should be prepared on a going concern basis.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	33% straight line
Computer equipment	-	33% straight line
Leasehold improvements	-	33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets .

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial assets, which include trade and other debtors and cash, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Basic financial liabilities, which include trade and other creditors, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provision is recognised immediately in profit or loss.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 15 (2018: 23 ).

5. Tangible assets

	Plant and machinery	Computer equipment	Leasehold improvements	Total
	£	£	£	£
Cost or valuation
At 1 January 2019	171,366	2,376	13,092	186,834
Additions	–	812	–	812
Disposals	–	( 858)	–	( 858)
Revaluations	13,750	–	–	13,750
	---------	-------	--------	---------
At 31 December 2019	185,116	2,330	13,092	200,538
	---------	-------	--------	---------
Depreciation
At 1 January 2019	159,744	2,376	6,000	168,120
Charge for the year	8,407	122	4,364	12,893
Disposals	–	( 859)	–	( 859)
	---------	-------	--------	---------
At 31 December 2019	168,151	1,639	10,364	180,154
	---------	-------	--------	---------
Carrying amount
At 31 December 2019	16,965	691	2,728	20,384
	---------	-------	--------	---------
At 31 December 2018	11,622	–	7,092	18,714
	---------	-------	--------	---------

The director revalued the plant and machinery held at 31 December 2019 and is satisfied that this represents the market value.

6. Debtors

	2019	2018
	£	£
Trade debtors	14,784	59,610
Other debtors	15,356	19,253
	--------	--------
	30,140	78,863
	--------	--------

7. Creditors: amounts falling due within one year

	2019	2018
	£	£
Trade creditors	88,930	160,562
Social security and other taxes	5,958	35,590
Company credit card	9,444	10,272
Other creditors	303,256	349,235
	---------	---------
	407,588	555,659
	---------	---------

8. Creditors: amounts falling due after more than one year

	2019	2018
	£	£
Loans	80,705	–
Directors' loans	162,308	162,308
	---------	---------
	243,013	162,308
	---------	---------

There is a bond and floating charge over the assets of the company in favour of Scottish Growth Scheme - Business Loans Scotland Debt Finance L.P.

9. Convertible loan notes

The convertible loan notes were issued on 29 August 2017 at an issue price of £200,000. During the year to 31 December 2018, loan notes were redeemed against issuance of ordinary shares of the company. The conversion price was £25 per share.

Interest was accrued on convertible loan notes to 19 December 2018 at a rate of the Bank of England rate plus 3% per annum.

10. Called up share capital

	2019	2018
	£	£
Ordinary share capital issued and fully paid
170,666 (2018: 169,666) Ordinary A shares of 1p each	1,707	1,697
4,095 (2018: 4,095) Ordinary B shares of 1p each	41	41
	-------	-------
	1,748	1,738
	-------	-------

During the year, the company issued 1,000 ordinary shares of 1p each for £25 each (a premium of £24.99 per share).

11. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2019	2018
	£	£
Not later than 1 year	1,542	4,625
	-------	-------

12. Events after the end of the reporting period

Subsequent to the year-end the Director is aware of material uncertainties in respect of the effects of Covid-19 that may cast significant doubt upon the company's ability to continue as a going concern. However, the Director is developing and implementing mitigating actions and processes to ensure that the company continues to function and manage future operations and those of their workforce and stakeholders.

13. Related party transactions

The following amounts were outstanding at the reporting end date:

	2019	2018
	£	£
Key management personnel	203,842	201,429

The loans amounting to £162,308 (2018: £162,308) are interest free and other loans amounting to £41,534 (including interest charged to date) are charged interest at a rate of 6% per annum. These loans have no fixed term of repayment.