Beech's Fine Chocolates Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04545164 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

BEECH'S FINE CHOCOLATES LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

A D Whiting

P Whiting

SECRETARY:

A D Whiting

REGISTERED OFFICE:

The Chocolate Factory

Fletcher Road

Preston

Lancashire

PR1 5AD

REGISTERED NUMBER:

04545164 (England and Wales)

ACCOUNTANTS:

Fairhurst

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

HSBC

60 Church Street

Blackburn

Lancashire

BB1 5AS

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

1,540,204

1,589,562

1,540,204

1,589,562

CURRENT ASSETS

Stocks

6

596,017

484,104

Debtors

7

474,114

1,325,681

Cash at bank and in hand

241,139

104,140

1,311,270

1,913,925

CREDITORS

Amounts falling due within one year

8

1,398,715

960,469

NET CURRENT (LIABILITIES)/ASSETS

(87,445

)

953,456

TOTAL ASSETS LESS CURRENT LIABILITIES

1,452,759

2,543,018

CREDITORS

Amounts falling due after more than one year

9

689,896

1,475,442

NET ASSETS

762,863

1,067,576

CAPITAL AND RESERVES

Called up share capital

45,000

45,000

Revaluation reserve

11

907,724

907,724

Retained earnings

11

(189,861

)

114,852

SHAREHOLDERS' FUNDS

762,863

1,067,576

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 December 2023 and were signed on its behalf by:

P Whiting - Director

1.	STATUTORY INFORMATION

Beech's Fine Chocolates 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 as modified by the revaluation of certain assets.

Going concern

The company meets its day to day working capital requirements through a bank loan, invoice discounting facilities and family loans.

Management have prepared profit projections and cash flow forecasts for 2023/24 and, on the basis of current management accounts and these forecasts, the directors anticipate that the company will be profitable and able to operate within available bank and loan facilities. On this basis the directors believe it is appropriate to prepare the financial statements on a going concern basis.

Turnover

Turnover is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer, which is usually at the point the customer has signed for the goods. Turnover is measured at the fair value of the consideration received or receivable for goods and services and is shown net of VAT.

Intangible fixed assets

Patents and trade marks are stated at cost and amortised over 10 years, being the directors estimate of their useful economic life.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation and any impairment.

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its estimated useful life. The annual depreciation rates used are as follows:

Freehold property

-1% straight line

Freehold property additions

- 10% - 20% straight line

Plant and machinery

- 6.67% - 33.33% straight line

Fixtures and fittings

- 10% - 33.33% straight line

Computer equipment

- 33.33% - 50% straight line

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the profit or loss.

Government income

Government income comprises grants and subsidies provided as a direct result of the Covid-19 pandemic.

Stocks

Stocks are measured at the lower of cost and selling price less cost to complete and sell. Cost is measured at the most recent purchase price and other costs incurred in bringing the stocks to their present location and condition. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture/completion.

Taxation

Taxation expense represents the sum of the current and deferred tax payable.

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting period using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases

Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. All other leases are classified as operating leases.

Rentals payable under operating leases are charged to the profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight-line basis.

Employee 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.

Short term employee benefits are recognised as an expense in the period in which they are incurred.

Financial instruments

Basic financial instruments that are payable or receivable within one year, typically trade creditors and debtors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration that is expected to be paid or received less impairment losses for bad and doubtful debts.

Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted amount due.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 53 (2021 - 56 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2022

and 31 December 2022

5,731

AMORTISATION

At 1 January 2022

and 31 December 2022

5,731

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2022

785,000

1,607,294

53,958

48,703

2,494,955

Additions

5,700

28,330

-

-

34,030

At 31 December 2022

790,700

1,635,624

53,958

48,703

2,528,985

DEPRECIATION

At 1 January 2022

21,126

798,970

41,991

43,306

905,393

Charge for year

7,200

74,748

480

960

83,388

At 31 December 2022

28,326

873,718

42,471

44,266

988,781

NET BOOK VALUE

At 31 December 2022

762,374

761,906

11,487

4,437

1,540,204

At 31 December 2021

763,874

808,324

11,967

5,397

1,589,562

Cost or valuation at 31 December 2022 is represented by:

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

Valuation in 2019

604,326

231,980

-

-

836,306

Cost

186,374

1,403,644

53,958

48,703

1,692,679

790,700

1,635,624

53,958

48,703

2,528,985

The historical cost of the freehold property included at valuation is as follows:

2022

2021

£

£

Cost

186,374

180,674

Accumulated depreciation

37,524

35,660

148,850

145,014

The freehold property was valued on 25 January 2019 by Parkinson Real Estate (Registered Valuers), on an existing use open market value basis at £785,000. Management consider the valuations of property and certain plant and machinery to be not materially different to their net book values at 31 December 2022.

6.

STOCKS

2022

2021

£

£

Raw materials

399,627

369,592

Work-in-progress

16,119

18,140

Finished goods

180,271

96,372

596,017

484,104

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

369,618

1,087,086

Amounts owed by group undertakings

101,105

101,105

Other debtors

3,391

137,490

474,114

1,325,681

The company has an invoice discounting arrangement against which certain trade debtors are assigned.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

59,601

73,741

Other loans

99,176

-

Trade creditors

239,588

369,215

Social security and other taxes

137,912

236,773

Other creditors

19,674

7,901

Invoice discounting

188,963

224,043

Director's current account

619,848

1,000

Accrued expenses

33,953

47,796

1,398,715

960,469

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

689,896

1,475,442

10.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

749,497

1,549,183

Invoice discounting

188,963

224,043

938,460

1,773,226

There are fixed and floating charges, along with cross company guarantees to/from Beech's Confectionery Group Limited in favour of HSBC Bank Plc and Close Brothers Limited.

11.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 January 2022

114,852

907,724

1,022,576

Deficit for the year

(304,713

)

-

(304,713

)

At 31 December 2022

(189,861

)

907,724

717,863

12.	GUARANTEES AND OTHER FINANCIAL COMMITMENTS

A personal guarantee has been provided to the bank by the director, A D Whiting in the amount of £875,000.

The total amount of commitments in respect of operating leases is £46,669 (2021 : £72,034).

13.	RELATED PARTY DISCLOSURES

14.	PARENT COMPANY

The company is a wholly owned subsidiary of Beech's Confectionery Group Limited, a company registered in England and Wales whose registered office is The Chocolate Factory, Fletcher Road, Preston, Lancashire, PR1 5AD.