The Grown Up Chocolate Company Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07457856 (England and Wales)

Financial Statements

for the Year Ended 31 March 2018

for

The Grown Up Chocolate Company Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

S C Bennett (Chairman)

J M Ecclestone (Chief Executive)

J A Steinberg (Finance Director)

A M Cohen (Non Exec. Director)

REGISTERED OFFICE:

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

REGISTERED NUMBER:

07457856 (England and Wales)

AUDITORS:

Mudd Partners LLP

Statutory Auditors

Chartered Accountants

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

FIXED ASSETS

Intangible assets

4

245,042

262,550

Tangible assets

5

238,574

319,394

483,616

581,944

CURRENT ASSETS

Stocks

6

416,257

357,829

Debtors

7

817,347

418,195

Cash at bank

7,079

23,248

1,240,683

799,272

CREDITORS

Amounts falling due within one year

8

1,142,913

786,446

NET CURRENT ASSETS

97,770

12,826

TOTAL ASSETS LESS CURRENT LIABILITIES

581,386

594,770

CREDITORS

Amounts falling due after more than one year

9

6,843

34,677

NET ASSETS

574,543

560,093

CAPITAL AND RESERVES

Called up share capital

12

434

434

Share premium

1,382,080

1,382,080

Retained earnings

(807,971

)

(822,421

)

SHAREHOLDERS' FUNDS

574,543

560,093

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 31 December 2018 and were signed on its behalf by:

S C Bennett (Chairman) - Director

1.	STATUTORY INFORMATION

The Grown Up Chocolate Company 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 the provisions of Section 1A "Small Entities" of 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.

Turnover

Turnover from the sale of chocolate bars is recognised when significant risks and rewards of ownership of the

goods have transferred to the buyer, the fair value of turnover can be measured reliably, it is probable that the

economic benefits associated with the transaction will flow to the company and the costs incurred or to be

incurred in respect of the transaction can be measured reliably.This is usually on dispatch of the goods.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of fifteen years.

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.

Tangible fixed assets

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

Improvements to property

-

25% on reducing balance

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

In-store displays

-

50% on cost

Computer equipment

-

25% on reducing balance

Stocks

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

moving items.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement 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.

Financial instruments

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,

they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement

constitutes a finance transaction it is measured at present value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2017 - 21 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2017

and 31 March 2018

262,550

AMORTISATION

Charge for year

17,508

At 31 March 2018

17,508

NET BOOK VALUE

At 31 March 2018

245,042

At 31 March 2017

262,550

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 April 2017

131,576

254,919

35,369

Additions

148

3,684

7,155

At 31 March 2018

131,724

258,603

42,524

DEPRECIATION

At 1 April 2017

46,195

51,024

20,290

Charge for year

21,382

51,607

4,903

At 31 March 2018

67,577

102,631

25,193

NET BOOK VALUE

At 31 March 2018

64,147

155,972

17,331

At 31 March 2017

85,381

203,895

15,079

In-store

Computer

displays

equipment

Totals

£

£

£

COST

At 1 April 2017

23,760

4,480

450,104

Additions

-

-

10,987

At 31 March 2018

23,760

4,480

461,091

DEPRECIATION

At 1 April 2017

10,220

2,981

130,710

Charge for year

13,540

375

91,807

At 31 March 2018

23,760

3,356

222,517

NET BOOK VALUE

At 31 March 2018

-

1,124

238,574

At 31 March 2017

13,540

1,499

319,394

6.

STOCKS

31.3.18

31.3.17

£

£

Stocks

416,257

357,829

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Trade debtors

787,144

402,525

Other debtors

30,203

15,670

817,347

418,195

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Hire purchase contracts (see note 10)

25,824

29,992

Trade creditors

182,650

156,120

Taxation and social security

177,810

86,649

Other creditors

756,629

513,685

1,142,913

786,446

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.18

31.3.17

£

£

Hire purchase contracts (see note 10)

6,843

34,677

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.3.18

31.3.17

£

£

Net obligations repayable:

Within one year

25,824

29,992

Between one and five years

6,843

34,677

32,667

64,669

Non-cancellable

operating leases

31.3.18

31.3.17

£

£

Within one year

21,200

20,400

Between one and five years

11,000

-

32,200

20,400

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.18

31.3.17

£

£

Invoice financing

602,969

303,381

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.18

31.3.17

value:

£

£

43,369

Ordinary

£0.01

434

434

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jeffrey Stanley (Senior Statutory Auditor)

for and on behalf of Mudd Partners LLP

14.	GOING CONCERN BASIS

Trading has been challenging for a lot of British companies and GUCC is no exception, with the continuing

effect of the Brexit vote, the fall in the value of sterling affecting raw material prices and volatility in some of

those key raw material prices.

The company made a profit in 2018 after a number of years of losses. Profit projections show the company's

profitability continuing to recover over the 24 month period following the balance sheet date. However, cash

flow projections show the financial headroom is tight.

In December 2018, funds of £400,000 were introduced into the company to facilitate payment of some historic

liabilities and provide working capital. A further fundraising exercise is planned in 2019 to finance an increase in

production capacity and a restructure of the manufacturing process which will drive the improvement in

profitability.

The company is dependent on this funding to secure the improvements to its production facilities and financing.

The directors are confident that they will be able to achieve a successful outcome although the future is

inherently uncertain. They continue to believe that the going concern basis is appropriate for the company.