REGISTERED NUMBER: 10670252 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
for |
Blends Holdings Limited |
REGISTERED NUMBER: 10670252 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
for |
Blends Holdings Limited |
Blends Holdings Limited (Registered number: 10670252) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Blends Holdings Limited |
Company Information |
for the Year Ended 30 September 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Westminster House |
10 Westminster Road |
Macclesfield |
Cheshire |
SK10 1BX |
Blends Holdings Limited (Registered number: 10670252) |
Group Strategic Report |
for the Year Ended 30 September 2022 |
The directors present their strategic report of the company and the group for the year ended 30 September 2022. |
The principal activity of the group in the year under review was that of the distribution of commodities to the catering industry and associated concerns. |
REVIEW OF BUSINESS |
The group is a family-owned business which has been trading as a reputable distributor to the food and drinks industry since 1998 celebrating 24 years this year. |
Although the group and company registered address is at Overbrook Lane, it primarily operates from Picton House on Kitling Road. Since October 2018 the group has traded solely for the distribution of commodities. This is the fourth financial accounts since the separation. |
We are a British Retail Consortium (BRC) accredited company and achieved another AA grade certificate in January 2022. We are one of the largest distributor of packed glycerine in the UK. |
This year has seen a difficult year for the Glycerine market, but turnover has continued to rise, due to increased market prices. The group continues to invest heavily in developing the current premises and staff welfare. Our employee number total is 16 for the group. |
Our achievements have been recognised in the past, where we have won awards such as Excellence in Manufacturing/Logistics in November 2018, winner of the Echo Regional Business of the year in June 2019, and we were also incredibly pleased to be shortlisted for Manufacturer of the Year (Made in the North West awards 2019) and more recently Medium Business of the Year (Knowsley Business Awards 2022) |
PRINCIPAL RISKS AND UNCERTAINTIES |
With market penetration one of our key growth strategies, we are conscious of the competitive rivalry within our market. Product and service extension strategies will help us to continue to differentiate ourselves from other suppliers. As we purchase most of our commodities from Europe, we always have the risk of potential supply issues, due to product shortages. We have an external customs agent who deals with all of our transport and customs declarations, ensuring a smooth process from start to finish of the import of our Glycerine. We also continue to forward book our Euros in advance, in order to take advantage of preferential exchange rates. However, this is always a risk, as we never know what the rates will be from one day to the next. However, we ensure we're kept abreast of this by researching market data and forecasts. |
The glycerine business has been built up over the last 24 years with major growth in the last 14 years. However, the Glycerine supply has been very volatile this year. The product trebled in price at the beginning of 2022 and in turn has made the market even more competitive. We operate a returnable IBC policy which helps with reducing costs in this area. |
The Ukrainian/Russian war created an unprecedented rise in Glycerine prices, which impacted greatly on our overall result this year. It also had and continues to have a knock on effect with availability of Glycerine. |
ANALYSIS OF DEVELOPMENT AND PERFORMANCE |
It is important that the group recognises its key strengths. For this reason, we must continue to focus on our key products and markets which have formed the backbone of our success. This will involve focussing on our position in commodity markets, in addition, growing our share in the markets for other key commodities and adding specific new products to our existing customer base. |
Any new bulk products must complement our current range and take advantage of our very low-cost operation. Almost any bulk food liquid falls into this category, but our immediate short-term focus is on Glucose, Dextrose, Citric and Potassium Sorbate. |
The last 12 months have seen unprecedented increases in price and shortages of product. However, we are confident that as a business, we have highlighted these issues early enough to ensure we are ahead of the curve going into the next financial year. We hope to continue opening new opportunities to achieve more competitive pricing which benefits the business. The ability for group to sell products that are also ingredients to Blends Flavours & Colours Limited, a company under common control, reduces costs, improves competitiveness of product offer which helps grow sales and widen customer base. The risk in buying in these products for re-sale are reduced by the fact the group also use the same products as Production ingredients. |
Blends Holdings Limited (Registered number: 10670252) |
Group Strategic Report |
for the Year Ended 30 September 2022 |
The group is well placed to increase its product and service offer not just to existing customers but also to new customers. In many instances, there are synergies between the group and Blends Flavours and Colours Limited and new customers to one side of the business often have the potential to buy products or services from the other company too. Therefore, maintaining communication between both Sales Teams of both companies will further support these opportunities. |
Our ERP, which went live last year continues to improve our efficiency and traceability processes. It is adaptable to our business needs, so given the right attention, can really improve the accuracy of our business. |
The quality of our employees contributes to the success of group. We will continue to invest in them in training and development. We ensure that opportunities are given to our employees, to progress within the business, and will support them in this path. |
Analysis |
Sales were up by 28.8%: |
2021 - £10,562,116 |
2022 - £13,607,431 |
Gross Profit for the fourth financial year as a commodity only company achieved 5.2%, as opposed to 14.0% the previous year. This was due to the increased price of Glycerine in the market. |
FUTURE DEVELOPMENT AND RESEARCH |
Due to the uncertainty of the Glycerine market this year, there are currently no plans for development until we see a more stable market. |
ON BEHALF OF THE BOARD: |
Blends Holdings Limited (Registered number: 10670252) |
Report of the Directors |
for the Year Ended 30 September 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2022. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2022 will be £86,500 (2021: £86,500). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report. |
MATTERS COVERED IN THE STRATEGIC REPORT |
As permitted by S414c(11) of Companies Act 2006, the director has elected to disclose information, required to be in the director's report by schedule 7 of the 'Large and Medium-sized Companies, and Groups (Accounts and Reports) Regulation 2008, in the Strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group 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; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
Blends Holdings Limited (Registered number: 10670252) |
Report of the Directors |
for the Year Ended 30 September 2022 |
AUDITORS |
The auditors, Harts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Blends Holdings Limited |
Opinion |
We have audited the financial statements of Blends Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 September 2022 and of the group's loss 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Blends Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and 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 group or the parent 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: |
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
Our approach was as follows: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and company and determined that the most significant are the Companies Act 2006, Health and Safety and general food regulations.. |
We understood how Blends Holdings Limited is complying with those frameworks by making inquiries of management responsible for company legislation and certification procedures. |
We corroborated our enquiries through discussion with the Directors to identify any non-compliance with laws and regulations. |
We assessed the susceptibility of the group and company's financial statements to material misstatement, including how fraud might occur by discussion with directors to understand where its considered there was a susceptibility to fraud. We considered the controls that the group and company have established to address risks identified, or that otherwise prevent, deter and detect fraud. |
To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify and unusual or unexpected relationships; investigated the rationale behind significant or unusual transactions; and tested journal entries to identify unusual transactions. |
Report of the Independent Auditors to the Members of |
Blends Holdings Limited |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Material misstatement that arises due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations that could materially impact the financial statements. Taking into accounts our understanding of the group and company, our procedures involved enquires of management and focussed testing as appropriate with consideration to risk assessment. |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Westminster House |
10 Westminster Road |
Macclesfield |
Cheshire |
SK10 1BX |
Blends Holdings Limited (Registered number: 10670252) |
Consolidated Income Statement |
for the Year Ended 30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
TURNOVER | 3 | 13,607,431 | 10,562,116 |
Cost of sales | (12,907,104 | ) | (9,082,817 | ) |
GROSS PROFIT | 700,327 | 1,479,299 |
Administrative expenses | (962,237 | ) | (1,147,432 | ) |
(261,910 | ) | 331,867 |
Other operating income | 86,660 | 67,902 |
OPERATING (LOSS)/PROFIT | 6 | (175,250 | ) | 399,769 |
Interest receivable and similar income | 5,050 | 1,417 |
(170,200 | ) | 401,186 |
Interest payable and similar expenses | 8 | (27,206 | ) | (9,070 | ) |
(LOSS)/PROFIT BEFORE TAXATION | (197,406 | ) | 392,116 |
Tax on (loss)/profit | 9 | 46,851 | (124,643 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (150,555 | ) | 267,473 |
Blends Holdings Limited (Registered number: 10670252) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (150,555 | ) | 267,473 |
OTHER COMPREHENSIVE INCOME |
Profit and loss |
Revaluation reserve | - | 72,229 |
Capital redemption reserve |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
72,229 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(150,555 |
) |
339,702 |
Total comprehensive income attributable to: |
Owners of the parent | (150,555 | ) | 339,702 |
Blends Holdings Limited (Registered number: 10670252) |
Consolidated Balance Sheet |
30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 2,076,994 | 2,052,945 |
Investments | 13 | - | - |
2,076,994 | 2,052,945 |
CURRENT ASSETS |
Stocks | 14 | 895,494 | 503,899 |
Debtors | 15 | 6,951,600 | 5,062,468 |
Cash at bank | 133,207 | 153,326 |
7,980,301 | 5,719,693 |
CREDITORS |
Amounts falling due within one year | 16 | (4,870,739 | ) | (3,153,372 | ) |
NET CURRENT ASSETS | 3,109,562 | 2,566,321 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 5,186,556 | 4,619,266 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,114,931 |
) |
(316,110 |
) |
PROVISIONS FOR LIABILITIES | 21 | (33,870 | ) | (28,346 | ) |
NET ASSETS | 4,037,755 | 4,274,810 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 50 | 50 |
Share premium | 23 | 3,184,027 | 3,184,027 |
Revaluation reserve | 23 | (658,960 | ) | (658,960 | ) |
Capital redemption reserve | 23 | 50 | 50 |
Retained earnings | 23 | 1,512,588 | 1,749,643 |
SHAREHOLDERS' FUNDS | 4,037,755 | 4,274,810 |
The financial statements were approved by the Board of Directors and authorised for issue on 13 December 2023 and were signed on its behalf by: |
Mr M D Rowark - Director |
Blends Holdings Limited (Registered number: 10670252) |
Company Balance Sheet |
30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Capital redemption reserve | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 86,500 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Blends Holdings Limited (Registered number: 10670252) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 September 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 October 2020 | 50 | 1,496,441 | 3,184,027 |
Changes in equity |
Dividends | - | (86,500 | ) | - |
Total comprehensive income | - | 339,702 | - |
Balance at 30 September 2021 | 50 | 1,749,643 | 3,184,027 |
Changes in equity |
Dividends | - | (86,500 | ) | - |
Total comprehensive income | - | (150,555 | ) | - |
Balance at 30 September 2022 | 50 | 1,512,588 | 3,184,027 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 October 2020 | (586,731 | ) | 50 | 4,093,837 |
Changes in equity |
Dividends | - | - | (86,500 | ) |
Total comprehensive income | (72,229 | ) | - | 267,473 |
Balance at 30 September 2021 | (658,960 | ) | 50 | 4,274,810 |
Changes in equity |
Dividends | - | - | (86,500 | ) |
Total comprehensive income | - | - | (150,555 | ) |
Balance at 30 September 2022 | (658,960 | ) | 50 | 4,037,755 |
Blends Holdings Limited (Registered number: 10670252) |
Company Statement of Changes in Equity |
for the Year Ended 30 September 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2020 |
Changes in equity |
Balance at 30 September 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2022 |
Blends Holdings Limited (Registered number: 10670252) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,473,617 | ) | 559,667 |
Interest paid | (27,206 | ) | (9,070 | ) |
Tax paid | - | (88,797 | ) |
Net cash from operating activities | (1,500,823 | ) | 461,800 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (81,624 | ) | (190,585 | ) |
Sale of tangible fixed assets | 12,474 | 38,615 |
Interest received | 5,050 | 1,417 |
Net cash from investing activities | (64,100 | ) | (150,553 | ) |
Cash flows from financing activities |
New loans in year | 778,640 | - |
Loan repayments in year | - | (83,535 | ) |
Santander Invoice Financing | 931,694 | - |
Amount introduced by directors | 117,125 | 86,500 |
Amount withdrawn by directors | (196,155 | ) | (171,047 | ) |
Equity dividends paid | (86,500 | ) | (86,500 | ) |
Net cash from financing activities | 1,544,804 | (254,582 | ) |
(Decrease)/increase in cash and cash equivalents | (20,119 | ) | 56,665 |
Cash and cash equivalents at beginning of year |
2 |
153,326 |
96,661 |
Cash and cash equivalents at end of year | 2 | 133,207 | 153,326 |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.22 | 30.9.21 |
£ | £ |
(Loss)/profit before taxation | (197,406 | ) | 392,116 |
Depreciation charges | 57,574 | 93,141 |
Profit on disposal of fixed assets | (12,473 | ) | (11,536 | ) |
Loss on revaluation of fixed assets | - | 72,229 |
Finance costs | 27,206 | 9,070 |
Finance income | (5,050 | ) | (1,417 | ) |
(130,149 | ) | 553,603 |
(Increase)/decrease in stocks | (391,595 | ) | 401,352 |
Increase in trade and other debtors | (1,810,102 | ) | (807,905 | ) |
Increase in trade and other creditors | 858,229 | 412,617 |
Cash generated from operations | (1,473,617 | ) | 559,667 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 133,207 | 153,326 |
Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 153,326 | 422,585 |
Bank overdrafts | - | (325,924 | ) |
153,326 | 96,661 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.21 | Cash flow | At 30.9.22 |
£ | £ | £ |
Net cash |
Cash at bank | 153,326 | (20,119 | ) | 133,207 |
153,326 | (20,119 | ) | 133,207 |
Debt |
Debts falling due within 1 year | (1,059,665 | ) | (911,513 | ) | (1,971,178 | ) |
Debts falling due after 1 year | (316,110 | ) | (798,821 | ) | (1,114,931 | ) |
(1,375,775 | ) | (1,710,334 | ) | (3,086,109 | ) |
Total | (1,222,449 | ) | (1,730,453 | ) | (2,952,902 | ) |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
1. | STATUTORY INFORMATION |
Blends Holdings Limited is a |
Although Blends holdings limited registered address is at Overbrook lane, it primarily operates from Picton House, Knowsley Business Park, Kitling Rd, Knowsley, Prescot, L34 9JA. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The Group’s financial statements consolidate those of the parent company and all of its subsidiaries as of 30 September 2022. All subsidiaries have a reporting date of 30 September. |
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. |
The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. |
The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. |
Turnover |
Sale of goods: |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount 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 despatch date. |
Rendering of services: |
Turnover from services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to finalisation of work completed. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the revaluation reserve. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
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 asset (or cash-generating unit) 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 asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Government grants |
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. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. |
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. |
Financial instruments |
A financial asset or a financial liability is recognised only when the company 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. |
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Hire purchase and leasing commitments |
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services |
are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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 |
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. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, 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. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
3. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30.9.22 | 30.9.21 |
£ | £ |
Products | 13,492,656 | 10,457,607 |
Service | 114,775 | 104,363 |
Commission | - | 146 |
13,607,431 | 10,562,116 |
An analysis of turnover by geographical market is given below: |
30.9.22 | 30.9.21 |
£ | £ |
United Kingdom | 13,584,436 | 10,546,577 |
Europe | 22,995 | 15,539 |
13,607,431 | 10,562,116 |
30.9.22 | 30.9.21 |
£ | £ |
Other revenue |
Interest income | 5,050 | 1,417 |
Grants received | 2,660 | 3,033 |
4. | EMPLOYEES AND DIRECTORS |
30.9.22 | 30.9.21 |
£ | £ |
Wages and salaries | 509,755 | 548,366 |
Social security costs | 48,821 | 46,766 |
Other pension costs | 10,465 | 10,843 |
569,041 | 605,975 |
The average number of employees during the year was as follows: |
30.9.22 | 30.9.21 |
Directors | 1 | 1 |
Sales | 2 | 2 |
Administration | 2 | 2 |
Production | 7 | 7 |
Cleaning | 2 | 2 |
Repack | 1 | 1 |
Technical | 1 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was 16 (2021 - 16 ) . |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
5. | DIRECTORS' EMOLUMENTS |
30.9.22 | 30.9.21 |
£ | £ |
Directors' remuneration | 54,168 | 52,974 |
Directors' pension contributions to money purchase schemes | 1,761 | 745 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
30.9.22 | 30.9.21 |
£ | £ |
Hire of plant and machinery | 12,000 | 19,081 |
Depreciation - owned assets | 57,574 | 93,109 |
Profit on disposal of fixed assets | (12,473 | ) | (11,536 | ) |
7. | AUDITORS' REMUNERATION |
30.9.22 | 30.9.21 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
9,006 |
7,500 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.22 | 30.9.21 |
£ | £ |
Bank interest | 27,206 | 9,070 |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Current tax: |
UK corporation tax | (34,095 | ) | 114,964 |
(Over) Under provision in prior year | (18,280 | ) | 45 |
Total current tax | (52,375 | ) | 115,009 |
Deferred tax | 5,524 | 9,634 |
Tax on (loss)/profit | (46,851 | ) | 124,643 |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
9. | TAXATION - continued |
Reconciliation of total tax (credit)/charge 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: |
30.9.22 | 30.9.21 |
£ | £ |
(Loss)/profit before tax | (197,406 | ) | 392,116 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(37,507 |
) |
74,502 |
Effects of: |
Expenses not deductible for tax purposes | 2,456 | 31,425 |
Capital allowances in excess of depreciation | - | (15,631 | ) |
Depreciation in excess of capital allowances | 3,143 | - |
Adjustments to tax charge in respect of previous periods | (18,280 | ) | 45 |
Deferred tax | 5,524 | 9,634 |
Profit of disposal of assets | (2,187 | ) | (2,192 | ) |
Tax payable under S455 | - | 26,860 |
Total tax (credit)/charge | (46,851 | ) | 124,643 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30 September 2022. |
30.9.21 |
Gross | Tax | Net |
£ | £ | £ |
Profit and loss |
Revaluation reserve | 72,229 | - | 72,229 |
Capital redemption reserve |
72,229 | - | 72,229 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
Dividends of £86,500 have been declared this year. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2021 | 1,900,000 | 787,520 | 4,500 | 2,692,020 |
Additions | 29,729 | 51,895 | - | 81,624 |
Disposals | - | (11,508 | ) | - | (11,508 | ) |
At 30 September 2022 | 1,929,729 | 827,907 | 4,500 | 2,762,136 |
DEPRECIATION |
At 1 October 2021 | - | 634,673 | 4,402 | 639,075 |
Charge for year | - | 57,549 | 25 | 57,574 |
Eliminated on disposal | - | (11,507 | ) | - | (11,507 | ) |
At 30 September 2022 | - | 680,715 | 4,427 | 685,142 |
NET BOOK VALUE |
At 30 September 2022 | 1,929,729 | 147,192 | 73 | 2,076,994 |
At 30 September 2021 | 1,900,000 | 152,847 | 98 | 2,052,945 |
Cost or valuation at 30 September 2022 is represented by: |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2017 | (204,509 | ) | - | - | (204,509 | ) |
Valuation in 2019 | 133,110 | - | - | 133,110 |
Valuation in 2021 | (72,229 | ) | - | - | (72,229 | ) |
Cost | 2,073,357 | 827,907 | 4,500 | 2,905,764 |
1,929,729 | 827,907 | 4,500 | 2,762,136 |
Last year, Freehold property was valued on an open market basis on 17 December 2021 by Matthews & Goodman . |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Blends House, Overbrook lane, Knowsley, Prescot, Merseyside, L34 9FB |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
14. | STOCKS |
Group |
30.9.22 | 30.9.21 |
£ | £ |
Stocks | 895,494 | 503,899 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.22 | 30.9.21 | 30.9.22 | 30.9.21 |
£ | £ | £ | £ |
Trade debtors | 3,255,298 | 2,452,107 |
Other debtors | 3,244,344 | 2,300,399 |
Directors' current accounts | 161,676 | 82,646 | - | - |
Prepayments | 290,282 | 227,316 |
6,951,600 | 5,062,468 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.22 | 30.9.21 | 30.9.22 | 30.9.21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 72,042 | 92,223 |
Other loans (see note 18) | 1,899,136 | 967,442 |
Trade creditors | 2,170,275 | 1,226,066 |
Amounts owed to group undertakings | - | - |
Corporation tax | 62,589 | 114,964 |
Social security and other taxes | 14,122 | 10,195 |
VAT | 579,161 | 549,706 | - | - |
Other creditors | 11,661 | 84,886 |
Accrued expenses | 61,753 | 107,890 |
4,870,739 | 3,153,372 |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Included in creditors due within one year is a bank loan with a 5 year term. The loan bears an interest |
rate of 2.35% above the Bank of England base rate. |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.9.22 | 30.9.21 |
£ | £ |
Bank loans (see note 18) | 1,114,931 | 316,110 |
Included in creditors due within one year is a bank loan with a 5 year term. The loan bears an interest |
rate of 2.35% above the Bank of England base rate. |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 72,042 | 92,223 |
Santander invoice financing | 1,899,136 | 967,442 |
1,971,178 | 1,059,665 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 72,042 | 92,235 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 216,125 | 223,875 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 826,764 | - |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.9.22 | 30.9.21 |
£ | £ |
Bank loans | 1,186,973 | 408,333 |
Bank loans and overdrafts are secured by way of a debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future. |
The loans are over a 5 year term. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
20. | FINANCIAL INSTRUMENTS |
Last year 2021, the subsidiary Blends Limited entered into foreign currency option contracts through the year to mitigate the exchange rate risk for certain foreign currency payables and had committed to buy €100,000 which translated to £85,146, as at 30 September 2021, using the year- end forex rate. |
During current year 2022, the subsidiary did not enter into any foreign currency option contracts. |
21. | PROVISIONS FOR LIABILITIES |
Group |
30.9.22 | 30.9.21 |
£ | £ |
Deferred tax | 33,870 | 28,346 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2021 | 28,346 |
Charge to Income Statement during year | 5,524 |
Balance at 30 September 2022 | 33,870 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.22 | 30.9.21 |
value: | £ | £ |
Ordinary J | 0.1 | - | - |
Ordinary G | 0.1 | 50 | 50 |
Ordinary K | 0.1 | - | - |
50 | 50 |
23. | RESERVES |
Group |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 October 2021 | 1,749,643 | 3,184,027 | (658,960 | ) | 50 | 4,274,760 |
Deficit for the year | (150,555 | ) | (150,555 | ) |
Dividends | (86,500 | ) | (86,500 | ) |
At 30 September 2022 | 1,512,588 | 3,184,027 | (658,960 | ) | 50 | 4,037,705 |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
23. | RESERVES - continued |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 October 2021 | 3,184,077 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 September 2022 | 3,184,077 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 September 2022 and 30 September 2021: |
30.9.22 | 30.9.21 |
£ | £ |
Mr M D Rowark |
Balance outstanding at start of year | 60,244 | (1,136 | ) |
Amounts advanced | 135,437 | 122,630 |
Amounts repaid | (91,875 | ) | (61,250 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 103,806 | 60,244 |
Mr P W Rowark |
Balance outstanding at start of year | 13,472 | (436 | ) |
Amounts advanced | 37,259 | 29,533 |
Amounts repaid | (15,625 | ) | (15,625 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 35,106 | 13,472 |
Mr M R Rowark |
Balance outstanding at start of year | 8,929 | (330 | ) |
Amounts advanced | 23,459 | 18,884 |
Amounts repaid | (9,625 | ) | (9,625 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 22,763 | 8,929 |
Loans incur interest at 2% per anum. |
25. | POST BALANCE SHEET EVENTS |
On 7 June 2023, a claim was raised against the group by a large supplier for breach of contract. A compensation amount of €200,000 has been agreed in settlement to be paid by Blends Limited and to date €80,000 has been paid. A further €80,000 is due before the end of 2023 and the remainder is to be paid in 2024. |
Blends Holdings Limited (Registered number: 10670252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
26. | GOVERNMENT GRANTS |
Grant income is recognised at its fair value in the profit and loss. |
30.09.22 | 30.09.21 |
£ | £ |
Capital grant | 2,660 | 3,033 |
Revenue grant | - | - |
2,660 | 3,033 |