DIGBY FINE ENGLISH LTD - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 08020783 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

DIGBY FINE ENGLISH LTD

Page

Statement of Financial Position

1

to

2

Notes to the Financial Statements

3

to

8

FIXED ASSETS

Intangible assets

4

2,604

3,587

Tangible assets

5

345,682

-

Investments

6

1

1

348,287

3,588

CURRENT ASSETS

Debtors

7

1,980,476

3,039,734

Cash at bank

167,133

19,352

2,147,609

3,059,086

CREDITORS

Amounts falling due within one year

8

(59,852

)

(68,219

)

NET CURRENT ASSETS

2,087,757

2,990,867

TOTAL ASSETS LESS CURRENT LIABILITIES

2,436,044

2,994,455

CREDITORS

Amounts falling due after more than one year

9

(298,084

)

(1,506,861

)

NET ASSETS

2,137,960

1,487,594

CAPITAL AND RESERVES

Called up share capital

339

275

Share premium

2,441,417

1,778,662

Retained earnings

(303,796

)

(291,343

)

2,137,960

1,487,594

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 and authorised for issue on 21 December 2022 and were signed on its behalf by:

T Clough - Director

1.	STATUTORY INFORMATION

DIGBY FINE ENGLISH LTD is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

08020783

Registered office:

55-57 High Street

Arundel

West Sussex

BN18 9AJ

The principal activity of the company is that of a holding company.

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.

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

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.

Going concern

Subsequent to the period covered in this report, Digby Fine English Limited reduced its debt on 29 July 2022 through the conversion of the final £265k remaining convertible debt into new shares and raised a further £290k by selling and issuing additional new shares, all of which has improved the capital and working capital positions of the company. Going forward, the Directors will continue with additional fundraising as and when needed.

The company therefore continues to adopt the going concern basis in preparing the financial statements.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: .

Trademarks - 10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows:

Freehold property - 25 years straight line

Plant and machinery - 10 years straight line

Land is not depreciated.

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.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Investments in subsidiaries

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

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 instruments 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.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Hire purchase and leasing commitments

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2021 - 4 ) .

4.	INTANGIBLE FIXED ASSETS

Trademarks

£

COST

At 1 April 2021

and 31 March 2022

9,829

AMORTISATION

At 1 April 2021

6,242

Amortisation for year

983

At 31 March 2022

7,225

NET BOOK VALUE

At 31 March 2022

2,604

At 31 March 2021

3,587

5.	TANGIBLE FIXED ASSETS

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

Additions

280,290

69,714

350,004

At 31 March 2022

280,290

69,714

350,004

DEPRECIATION

Charge for year

1,417

2,905

4,322

At 31 March 2022

1,417

2,905

4,322

NET BOOK VALUE

At 31 March 2022

278,873

66,809

345,682

Included in freehold property is land of £195,290 (2021: nil) which is not depreciated.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST

At 1 April 2021

and 31 March 2022

1

NET BOOK VALUE

At 31 March 2022

1

At 31 March 2021

1

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.22

31.3.21

£

£

Amounts owed by group undertakings

1,948,434

3,039,734

Other debtors

30,903

-

VAT

1,139

-

1,980,476

3,039,734

Amounts owed by group undertakings are unsecured, interest free, and are repayable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.22

31.3.21

£

£

Bank loans and overdrafts

10,000

8,333

Other creditors

457

3,525

Accruals and deferred income

49,395

56,361

59,852

68,219

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.22

31.3.21

£

£

Bank loans - 1-2 years

10,000

10,000

Bank loans - 2-5 years

22,890

30,000

Bank loans payable more than

5 years by instalments

-

1,667

Other creditors

265,194

1,465,194

298,084

1,506,861

Amounts falling due in more than five years:

Repayable by instalments

Bank loans payable more than

5 years by instalments

-

1,667

-

1,667

The bank loan is a Government Bounce Back Loan. The loan was taken out in June 2020 with a repayment holiday of 12 months. The loan is repayable in June 2026. Loan interest for the first 12 months was funded by the UK Government, thereafter the interest is 2.5% per annum and is payable by the company.

Other creditors relates to loan notes. £65,487 (2021 : £1,167,357) of the loan notes is secured via a floating charge over all property and assets of the company.

10.	EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no significant events up to the date of approval of the financial statements by the Board.

11.	GOING CONCERN

Subsequent to the period covered in this report, Digby Fine English Limited reduced its debt on 29 July 2022 through the conversion of the final £265k remaining convertible debt into new shares and raised a further £290k by selling and issuing additional new shares, all of which has improved the capital and working capital positions of the company. Going forward, the Directors will continue with additional fundraising as and when needed.

The company therefore continues to adopt the going concern basis in preparing the financial statements.