GREEN_AND_FORTUNE_HOLDING - Accounts

The directors present the strategic report for the year ended 31 March 2023.

The group returned to positive trading growth with revenues more than doubling on last years numbers and 15% ahead of pre-covid levels. The business has rebuilt strongly. We have expanded our commercial reach whilst building a platform for the future. We continue to see growth and expect to report further double-digit growth in the current financial year, with a significant increase in EBITDA.

This was a positive, tansitionary year. Whilst restaurants and bars bounced back, both strongly and quickly from the pandemic, the events, conference and hospitality world had to wait longer for full recovery. The effect of Omnicrom, which ran into early 2022, stalled the confidence and recovery. This affected the first quarter of our financial year. However, since then there has been an insatiable appetite for gatherings - social, corporate and around the workplace. We have been well placed to take advantage of this, which is reflected in our numbers. Our clients and day to day customers have returned.

Our people are key to our success and growth. We continually review and refocus on what the business requires and employ people suitable for the ever-changing nature of our business. We employ 40 different nationalities. The gender split of our employees is 45% male, 55% female. Our leadership team has an equal split of female to male. Within the year, the Green & Fortune Supports scheme was extended to reach out to, and look after all employees. The scheme, which started in lockdown, was set up to support our extended teams. In this financial year ‘cost of living payments’ were made on two occasions to assist with our peoples’ rising costs and the general cost of living crisis. This was extended to all employees, with those on lower earnings, benefiting most from the scheme.

We are pleased to report that all financial challenges relating to the pandemic have been dealt with. There is no outstanding debt with landlords or HMRC. We are on regular terms with suppliers and are proud that there is no historical debt in the company. Our cash position is solid. Our CBILS loan is on schedule to be repaid on agreed terms.

Like many in the sector and the wider business community, we had the challenge of rising energy costs, rampant food inflation and increased payroll pressures. We have carefully navigated these constant challenges and are in a continual state of review. We are building for the future. There is a supportive ownership, which allows the company to take long term views on future growth and profitability, which will deliver better outcomes.

At our core is community, engagement and charity. We continue to raise significant funds for many charities - Hospitality Action, The Clink, The London Irish Centre. In addition we facilitate significant fund-raising opportunities within our spaces for many charities. We contribute to and are active members of both the business and local communities where we work.

We have dedicated in house resource which combines focus on our supply partners linked to sustainability and supply chain integrity. We pursue long-term relationships and support emerging suppliers as well as working with larger scale, quality suppliers. We drive margin through quality products and enhanced service levels.

The key performance indicators are Revenue, Gross profit, EBITDA, adjusted EBITDA and Profit before tax. Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation and excess utilities costs. Excess utility costs of £231,000 apply to 2023 only.

We continue to look at suitable and robust business opportunity, in line with the company’s strategy. The scale, quality of the opportunity and potential partners are key to this. We are also very aware that there remains undeveloped capacity within our existing estate. This is a continuous key focus for the executive team to use our existing assets, to grow revenue streams which delivers higher returns.

This section describes the principal risks and uncertainties which may affect the group’s business, financial results and strategic objectives. This list is not intended to be exhaustive.

There are uncertainties revolving around Brexit negotiations, inflation, the current economic climate and the ongoing disturbances in Ukraine, all of which could have an impact on consumer spending and government policies in the near future.

The directors strive to mitigate these risks by restructuring the workforce, renegotiating all credit contracts and working closely with our partners. These processes are under constant review.

Due to this approach, the directors expect the group's stable financial performance to continue in the ensuing period.

On behalf of the board

Our business is one centred around food and drink, and the realisation of its importance to any social occasion. We are, across our entire organisation, driven by our passion for people, exceptional products and to positively impact the community and environment around us.

The people that make up Green and Fortune are integral to who we are. Our culture is to recruit and manage through our PEARLS

P = Personality        E = Exceeds Expectations        A = Achieves Results

R = Respect Each Other    L = Love What We Do

We celebrate these through our annual Pearl awards where our staff are nominated and rewarded for embodying these principles.

We are proud to have been nominated and recognised by our industry colleagues through a number of awards. These include

• Retail and Leisure Caterer of the Year,

• Event Caterer of the Year

• Salesperson of the Year

• Catering Manager of the Year

• Boutique Caterer of the Year

• Best Conference Venue and Best Catering at a Venue

Our approach can be summarised through our pillars;

Colleagues,     Customers,     Shareholders,      Suppliers,     Communities.

Wellbeing is embedded in our culture. we are here for our employees, we are open and approachable and we prefer to deal with life’s challenges together.

During Covid, the Green & Fortune Supports scheme was launched, to look after employees who were having difficult times. We introduced a new element to this scheme for all employees over the past autumn and winter with ‘cost of living/energy payments’ to all our people. The lowest paid people received the most financial support.

We know that the customer experience is crucial and that not all our customers are the same, so a single approach will not work. We rely on customer and delegate feedback that come post event or dining experience, from questionnaires sent to the customer and ensure that these are part of our monthly reporting and are used to actively develop our service and menus.

The investors of Green and Fortune are in whole the Chairman and the Chief Executive Officer. There is complete transparency in the approach and goals we set as a business.

When we partner with new suppliers or select new products, we evaluate their approach to social enterprise and ensure that we are collating data on their ESG activity to encourage essential progress on our ESG strategy.

Charity is at our heart, including involvement in social regeneration schemes and support of local business initiatives. We have worked closely and championed initiatives to raise money for charities such as New Horizons and London Irish Centre as well as industry charities such as Street Smart, The Clink, Food Chain and Hospitality Action. Through our partnerships with these charities, we have helped to raise more than £110,000. We are board members of Urban Partners, a voluntary BID like organisation supporting the wider community of Kings Cross, St Pancras and Euston. We work with them to commit funds, expertise, and time to deliver initiatives that benefit the neighbourhood for those working and living there as well as working with next generation youth projects. Our focus for 2023 is building vocational opportunities across our business portfolio to engage with parts of the community that might struggle with finding employment.

Identify opportunities

Our new Head of Sustainability joined this year. Under his guidance we conducted a desk-based analysis and stakeholder engagement, speaking with team members, investors and industry and sustainability experts to understand the relevant issues for our business. This has focused on responsible and sustainable sourcing, ethical business practices and regulatory compliance.

Social Impact

We are currently focusing on the following

• Colleague health and wellbeing

• Community engagement

• Economic impact and charity work

• Customer health, safety and security

• Colleague safety and security

• Colleague training and development.

The ENVIRONMENT

Carbon Emission Scope 1 & 2

Our Corporate Social and Environmental Responsibility (CSER) strategy incorporates internal initiatives such as sustainable sourcing, zero waste targets, biodegradable disposables and healthy eating. We believe these should be the backbone of every hospitality business.

Carbon - Our Buildings (BREEAM - Performance of our Buildings)

Through our partnerships at our venues we have contributed to the success of accreditations of ISO 4001, ISO 9001, BREEAM and ECOsmart platinum venue awards. Our central resource is based at Kings Place which boasts the highest BREEAM operational sustainability rating for property management ever accomplished in the UK.

Responsible Sourcing of Suppliers & Services

Where we can, we use local produce and suppliers. Our beef and lamb come from our own farm. When we do have to source goods from afar, such as tea and coffee, we make sure we partner with companies that share our vision and have the highest accreditations for CSG.

Eliminating single use plastics

We have completely reviewed our disposable service ware purchases and we no do not use single use plastics in this area.

SOCIAL

We absolutely recognise the benefits of a diverse workforce and are committed to providing a working environment that is free from discrimination. Specifically, we ensure that no employee or job applicant is subject to unlawful discrimination, either directly or indirectly.

Our Diversity Commitments

With a workforce of over 200 employees from different backgrounds, we have an almost 50/50 gender split, we represent over 30 nationalities, and have employees aged from 18 to 63. We celebrate individual differences. Not being afraid to show that personality is one of our core values.

To view our full ESG report please refer to our website www.greeandfortune.co.uk.

Carbon emission scope 1 & 2

Our Corporate Social and Environmental Responsibility (CSER) strategy incorporates internal initiatives such as sustainable sourcing, zero waste targets, biodegradable disposables and healthy eating. We believe these should be the backbone of every hospitality business.

Carbon - our buildings (breeam - performance of our buildings)

Through our partnerships at our venues we have contributed to the success of accreditations of ISO 4001, ISO 9001, BREEAM and ECOsmart platinum venue awards. Our central resource is based at Kings Place which boasts the highest BREEAM operational sustainability rating for property management ever accomplished in the UK.

Responsible sourcing of suppliers & services

Where we can, we use local produce and suppliers. Our beef and lamb come from our own farm. When we do have to source goods from afar, such as tea and coffee, we make sure we partner with companies that share our vision and have the highest accreditations for CSG.

Eliminating single use plastics

In the last three months we have completely reviewed our disposable serviceware purchases to ensure we no longer use single use plastics in this area.

Social

We absolutely recognise the benefits of a diverse workforce and are committed to providing a working environment that is free from discrimination. Specifically, we ensure that no employee or job applicant is subject to unlawful discrimination, either directly or indirectly.

Our diversity commitments

With a workforce of over 200 employees from different backgrounds, we have an almost 50/50 gender split, we represent over 30 nationalities, and have employees aged from 18 to 63. We celebrate individual differences as not being afraid to show that personality is one of our core values.

Colleague wellbeing, listening to our teams

Wellbeing is embedded in our culture; we are there for employees and we are open and approachable as we prefer to deal with life’s challenges together.

The directors present their annual report and financial statements for the year ended 31 March 2023.

The principal activity of the company continued to be that of a holding company.

The principal activity of the group continued to be that of the provision of catering services to conferences and other events, as well as running the bar, cafe and private dining areas at Kings Place and the provision of catering services at Sea Containers House.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £320,000.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

In accordance with the company's articles, a resolution proposing that Beavis Morgan Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;

•     prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Green And Fortune Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's profit for the year then ended;

•     have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•     have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The other information comprises of the Strategic Report, Environmental, Social and Governance Statement and the Directors' Report. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

• Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law and Tax and Pensions legislation.

• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £257,679 (2022 - £7,784 loss).

Green and Fortune Holdings Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Narrow Quay House, Narrow Quay, Bristol, BS1 4QA.

The group consists of Green and Fortune Holdings Limited and its two directly owned, 100% subsidiaries, Green and Fortune Limited and Green and Fortune Associates Limited, which are both incorporated in England and Wales.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The consolidated financial statements incorporate those of Green and Fortune Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

In the opinion of the directors, the group has adequate financial resources with which to meet its day to day obligations for the foreseeable future, and therefore believe that use of the going concern basis is appropriate. At the time of approving the financial statements, the directors of the company continue to adopt the going concern basis of accounting.

Turnover represents amounts receivable for food, beverages, events and hospitality services net of VAT, and is recognised when provided to the customer.

Revenue from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is the remaining term of the group's lease over space at Kings Place, which ended in October 2033 at the time of the acquisition.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment is subsidiaries are measured at cost less provision for impairment.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the group are recorded at the proceeds received,

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing the provision against trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and management's historical experience.

Estimation is required in determining the useful lives of such assets and their residual values.

An analysis of the group's turnover is as follows:

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 March 2023 are as follows:

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. Deferred tax is charged at 25% (2022: 25%). The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Barclays Bank Plc holds a fixed and floating charge over all assets of Green And Fortune Holdings Limited and subsidiary companies: Green And Fortune Limited and Green And Fortune Associates Limited. The charges are held as security over all amounts owed to Barclays Bank Plc. The amounts owed by the parent company to Barclays Bank Plc at year end were £1,125,000 (2021: £1,425,000). £900,000 of this amount is guaranteed by the Secretary of State for Business, Energy and Industrial Strategy (BEIS).

Operating lease payments represent rentals payable for the property at Kings Place. The lease is being renegotiated post year end. Amounts shown represent rentals payable on the lease in place at year end.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Company

The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with group companies that are wholly owned on the grounds that consolidated financial statements are prepared by the ultimate parent company.

At the balance sheet date, the company owed £2,052,135 (2022: £2,029,669) to its directors.

Group

During the year, the group made purchases of £1,612,601 (2022: £648,273) from, and made sales of £24,259 (2022: £8,766) to a charity in which a director and shareholder of the group is a trustee. At the balance sheet date the group was owed £21,338 from this charity (2022: £23,011 owed to) .

At the balance sheet date the group owed £346,964 (2022: £350,630) to a shareholder and director of the group.

The company is under the joint control of its director P Millican and J Nugent by virtue of their equal shareholdings.