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Registered number: 10360756
Firetree Chocolate Limited
Unaudited
Financial statements
For the year ended 31 December 2020
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Firetree Chocolate Limited
Registered number: 10360756
Balance sheet
As at 31 December 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Page 1
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Firetree Chocolate Limited
Registered number: 10360756
Balance sheet (continued)
As at 31 December 2020
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 June 2021.
The notes on pages 4 to 12 form part of these financial statements.
Page 2
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Firetree Chocolate Limited
Statement of changes in equity
For the year ended 31 December 2020
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Shares issued during the year
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Shares issued during the year
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The notes on pages 4 to 12 form part of these financial statements.
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Page 3
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
Firetree Chocolate Limited (the Company) is a limited company incorporated and domiciled in the United Kingdom. The address of its registered office is Third Floor, 24 Chiswell Street, London EC1Y 4YX. The company's operating addresses are as follows:
Factory - 3 Holkham Road, Orton Southgate, Peterborough, PE2 6TE
Office - Willoughby House, 2 Broad Street, Stamford, Lincolnshire PE9 1PB.
The principal activity of the company is that of manufacture of cocoa and chocolate confectionery.
The accounts are presented in Pounds Sterling rounded to the nearest whole pound.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. While the impact of the Covid-19 virus has been assessed by the directors, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company's trade, its customers and suppliers. However, taking into consideration the UK Government's response and the company's planning, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is pounds sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Page 4
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of comprehensive income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 5
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
2.Accounting policies (continued)
All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Development costs include capitalised brand development costs which are amortised over 5 years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 6
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 7
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
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The average monthly number of employees, including directors, during the year was 11 (2019 - 10).
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Page 8
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
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Charge for the year on owned assets
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Raw materials and consumables
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Finished goods and goods for resale packaging
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Called up share capital not paid
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Prepayments and accrued income
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Page 9
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Finance and shareholder loans
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HP liabilities and finance leases
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As at the balance sheet date, IGF Business Credit Limited and FSE MEIF LP held fixed and floating charges over the assets of the company.
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Finance and shareholder loans
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Analysis of the maturity of loans is given below:
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Finance and shareholder loans
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Page 10
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
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Finance and shareholder loans and finance leases
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Minimum payments under finance and shareholder loans and finance leases fall due as follows:
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Allotted, called up and fully paid
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5,864,646 (2019 - 5,437,371) B Ordinary Shares shares of £0.002 each
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57,000,000 (2019 - 57,000,000) Preference shares shares of £0.010 each
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2,305,568 (2019 - 1,805,600) A Ordinary Shares shares of £0.010 each
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During the year the company allotted 500,000 A Ordinary and 427,275 B Ordinary shares at a nominal value of £0.01 and £0.002 respectively.
Share premium account
This represent the exessess paid over the nominal value of shares that have been issued by the company.
Other reserves
The other reserve represents the equity element of the company's convertible loan notes in issue.
Profit and loss account
The profit and loss account comprises all current period retained profits and losses after deducting any distributions made to the company's shareholders.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £4,530 (2019 - £7,110). Contributions totalling £230 (2019 - £360) were payable to the fund at the balance sheet date and are included in creditors.
Page 11
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Firetree Chocolate Limited
Notes to the financial statements
For the year ended 31 December 2020
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Commitments under operating leases
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At 31 December 2020 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Post balance sheet events
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Since the balance sheet date, the company has granted 1,486,998 share options in C Ordinary Shares.
The company is managed and controlled by its 3 directors.
Page 12
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