Artisan Biscuits Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01138283 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2023

for

ARTISAN BISCUITS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

P J Darvill

J I Siddall

REGISTERED OFFICE:

29 And 31 Walcot Street

Bath

BA1 5BN

REGISTERED NUMBER:

01138283 (England and Wales)

AUDITORS:

Richardson Swift Audit Ltd

Chartered Accountants

Statutory Auditor

11 Laura Place

Bath

BA2 4BL

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

REVIEW OF BUSINESS

The Company's financial position has improved, principally as the result of the efforts of a new strong Finance team in putting together accurate and timely detailed financial reporting and in preparing sound budget forecasts and responsible cost control.

This remains true for the financial year 2023-2024 where continued improvement is confidently predicted.

Revenue across each of the following parts of the business is growing despite depressed overall domestic and overseas market conditions: manufacturing, domestic wholesale, export and e-commerce.

ON BEHALF OF THE BOARD:

J I Siddall - Director

20 December 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

An interim dividend of £6.95 per share was paid on . The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £ 86,920 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

P J Darvill

J I Siddall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J I Siddall - Director

20 December 2023

Opinion

We have audited the financial statements of Artisan Biscuits Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 company's affairs as at 31 March 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

-	the 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by discussion with a director and consideration of our experience of clients in similar sectors and group arrangements.

We determined that the most significant laws and regulations which have a direct impact on the form and content of the financial statements of the entity are the Companies Act and UK GAAP, specifically FRS102.

We determined that the most significant operational laws and regulations for the entity are those governing the sales of food products, in particular food hygiene and health and safety legislation, as well as export regulation.

Based on the results or our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

We gained an understating of the entity's policy and procedures by discussion with a director and substantive audit work.

We assessed the risk of material misstatement in respect of fraud through our planning processes, and no significant risks were identified.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Catherine Edwards BSc FCA (Senior Statutory Auditor)

for and on behalf of Richardson Swift Audit Ltd

Chartered Accountants

Statutory Auditor

11 Laura Place

Bath

BA2 4BL

21 December 2023

TURNOVER

10,469,103

11,937,546

Cost of sales

8,291,087

9,870,271

GROSS PROFIT

2,178,016

2,067,275

Distribution costs

590,392

464,458

Administrative expenses

1,605,039

1,505,121

2,195,431

1,969,579

OPERATING (LOSS)/PROFIT

4

(17,415

)

97,696

Interest receivable and similar income

-

944

(17,415

)

98,640

Interest payable and similar expenses

5

56,974

52,016

(LOSS)/PROFIT BEFORE TAXATION

(74,389

)

46,624

Tax on (loss)/profit

6

(141,511

)

(9,587

)

PROFIT FOR THE FINANCIAL YEAR

67,122

56,211

PROFIT FOR THE YEAR

67,122

56,211

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

67,122

56,211

FIXED ASSETS

Intangible assets

8

8,034

10,237

Tangible assets

9

3,888,912

4,289,781

Investments

10

66,000

66,000

3,962,946

4,366,018

CURRENT ASSETS

Stocks

11

1,382,365

1,050,394

Debtors

12

3,120,740

7,343,610

Cash at bank and in hand

84,588

2,128,028

4,587,693

10,522,032

CREDITORS

Amounts falling due within one year

13

3,348,982

9,691,104

NET CURRENT ASSETS

1,238,711

830,928

TOTAL ASSETS LESS CURRENT LIABILITIES

5,201,657

5,196,946

CREDITORS

Amounts falling due after more than one year

14

(566,142

)

(512,171

)

PROVISIONS FOR LIABILITIES

18

(113,750

)

(143,212

)

NET ASSETS

4,521,765

4,541,563

CAPITAL AND RESERVES

Called up share capital

19

12,500

12,500

Capital redemption reserve

20

7,500

7,500

Retained earnings

20

4,501,765

4,521,563

SHAREHOLDERS' FUNDS

4,521,765

4,541,563

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by:

J I Siddall - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2021

12,500

4,543,580

7,500

4,563,580

Changes in equity

Dividends

-

(78,228

)

-

(78,228

)

Total comprehensive income

-

56,211

-

56,211

Balance at 31 March 2022

12,500

4,521,563

7,500

4,541,563

Changes in equity

Dividends

-

(86,920

)

-

(86,920

)

Total comprehensive income

-

67,122

-

67,122

Balance at 31 March 2023

12,500

4,501,765

7,500

4,521,765

1.	STATUTORY INFORMATION

Artisan Biscuits 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

No significant judgements or key assumptions have had to be made by the directors in preparing these financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised when goods are dispatched.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Trademarks are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant & machinery

-

at varying rates on cost

Fixtures and fittings

-

10% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, loans from banks and other third parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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.

3.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

924,782

1,032,254

The average number of employees during the year was as follows:

2023

2022

Production staff

99

110

Administration staff

24

17

123

127

2023

2022

£

£

Directors' remuneration

-

-

4.	OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023

2022

£

£

Depreciation - owned assets

434,467

446,475

Trademarks amortisation

2,203

2,199

Auditors' remuneration

10,363

16,487

Foreign exchange differences

(37,162

)

(172,842

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Bank interest

15,467

7,200

Bank loan interest

7,169

15,100

Interest on subordinated debt

6,401

10,266

Hire purchase

27,937

19,450

56,974

52,016

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

(112,049

)

-

Deferred tax

(29,462

)

(9,587

)

Tax on (loss)/profit

(141,511

)

(9,587

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

(Loss)/profit before tax

(74,389

)

46,624

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(14,134

)

8,859

Effects of:

Expenses not deductible for tax purposes

82

10,658

Income not taxable for tax purposes

-

(179

)

Capital allowances in excess of depreciation

-

(8,296

)

Depreciation in excess of capital allowances

35,104

-

Utilisation of tax losses

(320,263

)

-

Unused tax losses carried forward

-

(20,629

)

Deferred tax

29,462

-

R&D tax credit

128,238

-

Total tax credit

(141,511

)

(9,587

)

7.

DIVIDENDS

2023

2022

£

£

Ordinary shares of £1 each

Interim

86,920

78,228

8.	INTANGIBLE FIXED ASSETS

Trademarks

£

COST

At 1 April 2022

and 31 March 2023

64,891

AMORTISATION

At 1 April 2022

54,654

Amortisation for year

2,203

At 31 March 2023

56,857

NET BOOK VALUE

At 31 March 2023

8,034

At 31 March 2022

10,237

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant &

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 April 2022

3,091,344

4,305,658

136,973

7,533,975

Additions

-

33,598

-

33,598

At 31 March 2023

3,091,344

4,339,256

136,973

7,567,573

DEPRECIATION

At 1 April 2022

719,920

2,427,495

96,779

3,244,194

Charge for year

59,873

363,944

10,650

434,467

At 31 March 2023

779,793

2,791,439

107,429

3,678,661

NET BOOK VALUE

At 31 March 2023

2,311,551

1,547,817

29,544

3,888,912

At 31 March 2022

2,371,424

1,878,163

40,194

4,289,781

Net book value of assets held under hire purchase agreements was £801,281 (2022: £890,312).

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2022

and 31 March 2023

66,000

NET BOOK VALUE

At 31 March 2023

66,000

At 31 March 2022

66,000

The investment represents 100% of the issued share capital of Millers Damsel Limited.

11.

STOCKS

2023

2022

£

£

Raw materials

664,905

539,104

Finished goods

717,460

511,290

1,382,365

1,050,394

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

1,272,104

4,176,901

Amounts owed by group undertakings

1,711,085

3,050,853

Other debtors

7,231

7,071

VAT

84,767

59,724

Prepayments

45,553

49,061

3,120,740

7,343,610

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts (see note 15)

365,829

4,299,487

Hire purchase contracts (see note 16)

125,560

364,264

Trade creditors

2,075,554

2,621,531

Amounts owed to group undertakings

204,117

1,726,412

Corporation tax

16,189

-

Social security and other taxes

104,870

101,048

Other creditors

57,279

-

Directors' current accounts

56,188

236,000

Accrued expenses

343,396

342,362

3,348,982

9,691,104

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans (see note 15)

330,142

406,844

Hire purchase contracts (see note 16)

-

105,327

Directors' loan accounts

236,000

-

566,142

512,171

15.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

281,146

4,138,779

Bank loans

84,683

160,708

365,829

4,299,487

Amounts falling due between two and five years:

Bank loans - 2-5 years

330,142

406,844