Company registration number 12812342 (England and Wales)
GRIND HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
GRIND HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr D W Abrahamovitch
Mr D Sherfield
Mr J A C Ayton
Mr T Bunting
(Appointed 1 November 2021)
Mr J Reeve
(Appointed 1 November 2021)
Mr E Robinson
(Appointed 1 November 2021)
Company number
12812342
Registered office
8-10 New North Place
Shoreditch
London
United Kingdom
EC2A 4JA
Auditor
Azets Audit Services
24 Park Road South
Havant
Hampshire
United Kingdom
PO9 1HB
GRIND HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
GRIND HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 1 -
The directors present the strategic report for the year ended 30 April 2022.
Fair review of the business
The Group operates thirteen cafés, coffee shops and trucks in London from its trading subsidiary Grind & Co Ltd, and the retail and wholesale of coffee and coffee products from its trading subsidiary Grind Coffee Roasters Ltd. During the period the group did not open any new permanent Highstreet locations.
The Highstreet has bounced back well from the pandemic, posting annual sales of £8.3m compared with £2.1m in the heavily COVID19 impacted year before. Our larger café sites (representing over 80% of Highstreet sales) are back trading at pre-pandemic levels, however our smaller coffee shops in the city continue to see slower footfall with increased work from home. The business also suffered from the de-facto lockdown in December 2021 and January 2022, which curtailed trade at a key point in the year for the Highstreet business.
Grind Trucks have been a real success in the last twelve months, and post year end we have opened locations in Battersea Power Station and Bicester Village. We will continue to look for opportunities to position trucks and open new permanent locations.
Grind Coffee Roasters sales grew 41% to £8.7m driven by continued growth in online sales and an increasing portfolio of wholesale, supermarket, office and hotel customers.
More than 200,000 customers have now tried Grind at Home via our website, shipping from our distribution centres in the UK and our recently added distribution capability in the EU and USA. International distribution means we can now reach over 800m customers across the UK, EU and US via ground shipping in just a few days. Our US and EU websites have soft-launched, and we are receiving orders and adding subscribers daily.
In addition, we’ve launched Grind at Work - a secondary subscription product catering for the needs offices and other B2B customers with greater pricing flexibility. With businesses returning to the office, looking for greater incentives for their team to return and under increasing pressure to evidence their commitment to sustainability, we see this as a big opportunity.
Towards the end of the financial year, we upgraded our coffee pods and launched the UK’s first certified home compostable coffee pods, as well as adding a new blend to our permanent range (Long Blend) and introducing ‘Grind Editions’; two seasonal single origin coffee pods. We also improved the blends and grinds of the existing pods in response to customer feedback, and since this we have seen improvements in customer retention and re-ordering rates. We have further expansion of the coffee pod range planned for the next financial year, as we seek to meet the tastes of a broader and international pod drinking customer.
Principal risks and uncertainties
As with any business in a consumer facing industry, it is vulnerable to certain risks which may impact on consumer confidence and the cost of running the business. The directors and management team regularly review these risks to ensure they continue to be managed effectively.
Inflationary pressures continue to impact staff costs and supply prices. The company continues to review all costs to the business and undertake supplier negotiations in order to mitigate these pressures.
There is little credit risk in the company as the majority of customers on the Highstreet and online pay by credit or debit card at point of sale.
The group has bank loans totalling £5.6m at year end that are on variable interest rates between 2.98-3.99% above the base rate, representing a continued exposure to interest rate rises.
Brexit has not had a material impact on the business beyond the indirect inflationary pressures all businesses are currently facing. As the online and wholesale business grows, imports from South America, the EU and China will increase and management is continuing to ensure the most effective routes are used to manage this supply chain. The Group is also looking to hedge the currency exposure this increased international trade creates wherever possible.
GRIND HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 2 -
Key performance indicators
Management utilises a number of qualitative and quantitative indicators to monitor and improve the company’s performance. The company considers turnover and EBITDA to be key financial performance indicators.
The above results show the consolidated results for Grind Holdings Ltd, Grind & Co Ltd, Grind Coffee Roasters Ltd and Grind USA Incorporated, following the group reorganisation in September 2020 which placed Grind Holdings Ltd as the ultimate parent company.
Mr D W Abrahamovitch
Director
9 December 2022
GRIND HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2022.
Principal activities
The principal activity of the company and group continued to be that of the operation and management of cafes and restaurants.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D W Abrahamovitch
Mr D J D Ogilvy
(Resigned 24 August 2021)
Mr D Sherfield
Mr J A C Ayton
Mr T Bunting
(Appointed 1 November 2021)
Mr J Reeve
(Appointed 1 November 2021)
Mr E Robinson
(Appointed 1 November 2021)
Auditor
The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming annual general meeting.
Strategic report
The
true
group
has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the
group
's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
review of the business and information material to the Company's strategy and management of financial risk exposure
.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
The
Group
has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the
C
ompany's
S
trategic
R
eport information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the
D
irectors'
R
eport. It has done so in respect of
review of the business and information material to the Company's strategy and management of financial risk exposure
.
On behalf of the board
Mr D W Abrahamovitch
Director
9 December 2022
GRIND HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2022
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GRIND HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRIND HOLDINGS LTD
- 5 -
Opinion
We have audited the
financial statements of
Grind Holdings Ltd
(the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2022 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
group and
parent company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GRIND HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIND HOLDINGS LTD
- 6 -
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
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the
parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor's 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 an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
GRIND HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIND HOLDINGS LTD
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the
entity
through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Richard Hutchinson (Senior Statutory Auditor)
For and behalf of Azets Audit Services
15 December 2022
Chartered Accountants
Statutory Auditor
GRIND HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2022
- 8 -
Year
Period
ended
ended
30 April
30 April
2022
2021
Notes
£
£
Turnover
3
16,893,251
8,242,849
Cost of sales
(7,036,954)
(3,588,994)
Gross profit
9,856,297
4,653,855
Administrative expenses
(13,189,117)
(9,363,777)
Other operating income
197,294
2,311,802
Operating loss
4
(3,135,526)
(2,398,120)
Interest receivable and similar income
8
914
952
Interest payable and similar expenses
9
(220,823)
(150,683)
Loss before taxation
(3,355,435)
(2,547,851)
Tax on loss
10
248,783
388,531
Loss for the financial year
(3,106,652)
(2,159,320)
Loss for the financial year is attributable to:
- Owners of the parent company
(3,076,585)
(2,154,639)
- Non-controlling interests
(30,067)
(4,681)
(3,106,652)
(2,159,320)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(3,076,585)
(2,154,639)
- Non-controlling interests
(30,067)
(4,681)
(3,106,652)
(2,159,320)
GRIND HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 30 APRIL 2022
30 April 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
11
730,829
604,269
Tangible assets
12
3,344,879
4,182,674
4,075,708
4,786,943
Current assets
Stocks
15
3,652,905
1,248,494
Debtors
16
3,790,478
2,841,421
Cash at bank and in hand
7,035,413
1,585,991
14,478,796
5,675,906
Creditors: amounts falling due within one year
17
(5,781,210)
(4,212,585)
Net current assets
8,697,586
1,463,321
Total assets less current liabilities
12,773,294
6,250,264
Creditors: amounts falling due after more than one year
18
(3,771,872)
(4,142,193)
Net assets
9,001,422
2,108,071
Capital and reserves
Called up share capital
22
47,220
37,983
Share premium account
9,990,766
Profit and loss reserves
(1,000,474)
2,076,111
Equity attributable to owners of the parent company
9,037,512
2,114,094
Non-controlling interests
(36,090)
(6,023)
9,001,422
2,108,071
The financial statements were approved by the board of directors and authorised for issue on 9 December 2022 and are signed on its behalf by:
09 December 2022
Mr D W Abrahamovitch
Director
GRIND HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 30 APRIL 2022
30 April 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
13
37,984
37,984
Current assets
Debtors
16
4,339,547
102,688
Cash at bank and in hand
5,775,686
16,215
10,115,233
118,903
Creditors: amounts falling due within one year
17
(115,233)
(118,904)
Net current assets/(liabilities)
10,000,000
(1)
Net assets
10,037,984
37,983
Capital and reserves
Called up share capital
22
47,220
37,983
Share premium account
9,990,764
Total equity
10,037,984
37,983
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £0 (2021 - £0 profit).
The financial statements were approved by the board of directors and authorised for issue on 9 December 2022 and are signed on its behalf by:
09 December 2022
Mr D W Abrahamovitch
Director
Company Registration No. 12812342
GRIND HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 27 April 2020
37,983
10,182,734
(5,951,984)
4,268,733
(1,342)
4,267,391
Period ended 30 April 2021:
Loss and total comprehensive income for the period
-
-
(2,154,639)
(2,154,639)
(4,681)
(2,159,320)
Other movements
-
(10,182,734)
10,182,734
-
-
-
Balance at 30 April 2021
37,983
2,076,111
2,114,094
(6,023)
2,108,071
Year ended 30 April 2022:
Loss and total comprehensive income for the year
-
-
(3,076,585)
(3,076,585)
(30,067)
(3,106,652)
Issue of share capital
22
9,237
9,990,765
-
10,000,002
-
10,000,002
Other movements
-
1
-
1
-
1
Balance at 30 April 2022
47,220
9,990,766
(1,000,474)
9,037,512
(36,090)
9,001,422
GRIND HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 12 -
Share capital
Share premium account
Total
Notes
£
£
£
Balance at 27 April 2020
-
Period ended 30 April 2021:
Profit and total comprehensive income for the period
-
-
Issue of share capital
22
37,983
37,983
Balance at 30 April 2021
37,983
37,983
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
-
Issue of share capital
22
9,237
9,990,764
10,000,001
Balance at 30 April 2022
47,220
9,990,764
10,037,984
GRIND HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2022
- 13 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(3,886,150)
(1,164,811)
Interest paid
(220,823)
(150,683)
Income taxes paid
(1)
Net cash outflow from operating activities
(4,106,973)
(1,315,495)
Investing activities
Purchase of intangible assets
(254,831)
(106,280)
Purchase of tangible fixed assets
(559,742)
(731,719)
Proceeds on disposal of tangible fixed assets
28,000
-
Receipts arising from loans made
53,186
(12,188)
Interest received
914
952
Net cash used in investing activities
(732,473)
(849,235)
Financing activities
Proceeds from issue of shares
10,000,002
-
Proceeds of new bank loans
1,211,947
2,913,004
Repayment of bank loans
(923,081)
(179,076)
Net cash generated from financing activities
10,288,868
2,733,928
Net increase in cash and cash equivalents
5,449,422
569,198
Cash and cash equivalents at beginning of year
1,585,991
1,016,793
Cash and cash equivalents at end of year
7,035,413
1,585,991
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 14 -
1
Accounting policies
Company information
Grind Holdings Ltd (“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
8-10 New North Place, London, United Kingdom, EC2A 4JA.
The group consists of Grind Holdings Ltd and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
A company statement of cash flows has not been prepared as there is no requirement to present this for the company in the consolidated financial statements under FRS 102.
1.2
Business combinations
During the prior period the group underwent a reorganisation which resulted in Grind Holdings Ltd being incorporated on 14 August 2020. The group reorganisation saw Grind Holdings Limited being the new parent of the group following a share for share transfer. The financial statements have been prepared on this basis using merger accounting. The corresponding figures include the results for all combined entities.
The names of the combining enties, other than the reporting entity are; Grind & Co Ltd, Grind Coffee Roasters Limited, Caffeine Machine Ltd, Exmouth Market Grind Ltd, Grind (Broadgate) Limited, Grind (London Bridge) Ltd and Grind USA Inc.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
Grind Holdings Ltd
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
. Group accounts have been consolidated using merger accounting.
All
financial statements
are made up to 30 April 2022
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 15 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
The group recorded a loss of £3.1m for the year, having recorded losses in previous years. However, its net current assets remain positive at £8.7m, and it has closing cash reserves of £7.0m. During the year end a substantial £10.0m equity investment was made in the group, giving a significant increase in working capital. Having considered the group’s plans, projections, access to funding and scenario modelling, the directors consider that this investment provides more than sufficient working capital to fund the group to continue trading across all sectors and invest in future expansion, despite ongoing challenging market conditions in the hospitality sector. The going concern basis is therefore considered appropriate.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
5 years
Development costs
5 years
Lease rights
Over term of the lease
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 16 -
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10% straight line
Plant and equipment
25% straight line
Computers
25% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.9
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany
financial statements,
investments in associates are accounted for at cost less impairment.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 17 -
1.10
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.11
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.
1.12
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 18 -
1.13
Financial instruments
The group 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 group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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
m
ethod 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 recogn
ised 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 group 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 group after deducting all of its liabilities.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or inv
estment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end
date.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 20 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same t
ax authority.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 21 -
1.18
Leases
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 lease
d
asset are consumed.
1.19
Government grants
Government grants are recognised at the fair value of the asset receive
d
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 recogni
sed as a liability.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In determining whether a lease meets the definition of a finance lease or operating lease the directors have used their experience to review and consider whether the company has obtained all the risks and rewards of ownership of the asset, what the useful economic life of the asset is, the term of the lease and what the residual value of the asset is expected to be. On the basis of these considerations the directors have determined that all leases meet the definition of operating leases and have been accounted for as such.
Depreciation
The directors use their experience to review and estimate useful economic lives and residual values of all assets, taking into account both standards of maintenance and technical obsolescence. Depreciation policies as noted within the accounting policies are based upon these estimates.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 22 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sale of goods
16,774,943
8,060,810
Rental income
118,308
182,039
16,893,251
8,242,849
2022
2021
£
£
Other revenue
Interest income
914
952
Grants received
168,532
2,250,683
4
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(8,951)
(1,369)
Research and development costs
56,720
7,323
Government grants
(168,532)
(2,250,683)
Depreciation of owned tangible fixed assets
888,634
957,530
Loss on disposal of tangible fixed assets
480,903
Amortisation of intangible assets
128,271
96,602
Operating lease charges
1,105,341
523,043
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,500
41,500
Audit of the financial statements of the company's subsidiaries
25,500
-
38,000
41,500
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 23 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Directors
5
4
6
4
Admin
8
13
-
1
Direct
187
194
-
-
Total
200
211
6
5
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
4,775,606
3,673,723
542,221
231,584
Social security costs
406,107
281,359
69,755
26,176
Pension costs
70,765
60,253
12,214
4,181
5,252,478
4,015,335
624,190
261,941
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
496,804
177,873
Company pension contributions to defined contribution schemes
10,846
1,317
507,650
179,190
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
172,083
116,474
Company pension contributions to defined contribution schemes
3,750
2,694
There are no other key management personnel other than the directors noted above.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 24 -
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
67
Other interest income
847
952
Total income
914
952
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
206,139
150,596
Interest on finance leases and hire purchase contracts
14,223
Other interest
461
87
Total finance costs
220,823
150,683
10
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
(248,783)
(388,531)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Loss before taxation
(3,355,435)
(2,547,851)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(637,533)
(484,092)
Tax effect of expenses that are not deductible in determining taxable profit
132,802
37,658
Depreciation on assets not qualifying for tax allowances
29,420
45,088
Other non-reversing timing differences
12,815
Change in rate
226,528
Taxation credit
(248,783)
(388,531)
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 25 -
11
Intangible fixed assets
Group
Patents & licences
Development costs
Lease rights
Total
£
£
£
£
Cost
At 1 May 2021
22,875
302,458
499,999
825,332
Additions
254,831
254,831
At 30 April 2022
22,875
557,289
499,999
1,080,163
Amortisation and impairment
At 1 May 2021
14,382
99,846
106,835
221,063
Amortisation charged for the year
4,575
78,823
44,873
128,271
At 30 April 2022
18,957
178,669
151,708
349,334
Carrying amount
At 30 April 2022
3,918
378,620
348,291
730,829
At 30 April 2021
8,493
202,612
393,164
604,269
The company had no intangible fixed assets at 30 April 2022 or 30 April 2021.
Lease rights relate to the acquisition of an unconnected company in the year before last. The acquisition price was £500,000 of which £499,999 has been allocated to intangible assets and £1 to investments. The cost of £499,999 is being written off over the term of the lease.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 26 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2021
4,348,982
2,380,811
252,614
54,500
7,036,907
Additions
100,547
259,643
27,152
172,400
559,742
Disposals
(657,813)
(147,641)
(7,237)
(812,691)
At 30 April 2022
3,791,716
2,492,813
272,529
226,900
6,783,958
Depreciation and impairment
At 1 May 2021
1,350,124
1,303,825
179,028
21,256
2,854,233
Depreciation charged in the year
352,499
478,356
38,417
19,362
888,634
Eliminated in respect of disposals
(196,522)
(102,060)
(5,206)
(303,788)
At 30 April 2022
1,506,101
1,680,121
212,239
40,618
3,439,079
Carrying amount
At 30 April 2022
2,285,615
812,692
60,290
186,282
3,344,879
At 30 April 2021
2,998,858
1,076,986
73,586
33,244
4,182,674
The company had no tangible fixed assets at 30 April 2022 or 30 April 2021.
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
37,984
37,984
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2021 and 30 April 2022
37,984
Carrying amount
At 30 April 2022
37,984
At 30 April 2021
37,984
14
Subsidiaries
Details of the company's subsidiaries at 30 April 2022 are as follows:
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
14
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Grind & Co Limited
UK
Ordinary, A,B,C,CC-A.CC-B,R,S,T
100.00
-
Grind Coffee Roasters Limited
UK
Ordinary
97.50
-
Exmouth Market Grind Limited
UK
Ordinary
0
100.00
Caffeine Machine Limited
UK
Ordinary
0
100.00
Grind (Broadgate) Limited
UK
Ordinary
0
100.00
Grind (London Bridge) Limited
UK
Ordinary
0
100.00
Grind USA Inc
USA
Ordinary
0
100.00
The registered office of all subsidiaries is 8-10 New North Place, London, EC2A 4JA.
15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and consumables
3,652,905
1,248,494
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
535,541
424,698
64,592
Amounts owed by group undertakings
-
-
4,280,315
-
Other debtors
665,626
466,812
6,986
3,500
Prepayments and accrued income
776,344
369,727
52,246
34,596
1,977,511
1,261,237
4,339,547
102,688
Amounts falling due after more than one year:
Other debtors
230,641
246,641
Deferred tax asset (note 20)
1,582,326
1,333,543
1,812,967
1,580,184
-
-
Total debtors
3,790,478
2,841,421
4,339,547
102,688
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 28 -
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
19
1,802,595
1,143,408
Trade creditors
2,618,981
1,966,553
68,414
55,744
Amounts owed to group undertakings
47,014
Other taxation and social security
358,411
520,308
14,611
11,826
Other creditors
363,924
312,104
18,583
470
Accruals and deferred income
637,299
270,212
13,625
3,850
5,781,210
4,212,585
115,233
118,904
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
3,771,872
4,142,193
Amounts included above which fall due after five years are as follows:
Payable by instalments
30,000
153,334
-
-
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
5,574,467
5,285,601
Payable within one year
1,802,595
1,143,408
Payable after one year
3,771,872
4,142,193
The bank loans are secured by a fixed and floating charge over the group's assets.
There are three bank loans in place at year end. These are due to mature in August 2024, September 2026 and August 2027. Interest is charged at 2.98%, 3.99% and 3.99% above base rate respectively. No repayments are due for the first 12 months of the last two loans as these relate to CBILs.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 29 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2022
2021
Group
£
£
Accelerated capital allowances
(411,621)
(369,172)
Tax losses
1,993,947
1,702,715
1,582,326
1,333,543
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Asset at 1 May 2021
(1,333,543)
-
Credit to profit or loss
(248,783)
-
Asset at 30 April 2022
(1,582,326)
-
The group has unused tax losses of £11,167,502 (2021 £8,961,656).
21
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,765
60,253
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 30 -
22
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.1p each
-
14,565,000
-
14,565
Ordinary A of 0.1p each
45,313,322
888,000
45,313
888
Ordinary B of 0.1p each
1,018,589
5,172,000
1,019
5,172
Ordinary C of 0.1p each
-
1,939,000
-
1,939
Ordinary CC-A of 0.1p each
-
6,828,963
-
6,829
Ordinary CC-B of 0.1p each
-
1,055,284
-
1,055
Ordinary R of 0.1p each
-
2,594,000
-
2,594
Ordinary S of 0.1p each
-
3,334,000
-
3,334
Ordinary T of 0.1p each
-
1,607,153
-
1,607
Ordinary A of 0.024269p each
3,658,940
-
888
-
49,990,851
37,983,400
47,220
37,983
During the year there has been 9,236,511 Ordinary A shares of £0.001 issued at £1.08266 per share. Also, 888,000 issued Ordinary A shares has been subdivided into and redesignated as 3,658,940 Ordinary A shares of £0.00024269 each. The existing CC-A shares, B shares, C shares, R shares, S shares and T shares of £0.001 were redesignated as Ordinary A shares of £0.001. CC-B shares of £0.001 were redesignated as Ordinary B shares.
Ordinary A shares rank equally for voting purposes. On a show of hands, each member shall have one vote and on a poll each member shall have one vote per share held. Each share ranks equally for any dividend declared and on distribution rights on winding up. B shares do not have voting rights or pre-emption rights on new issues of shares.
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
1,254,916
1,133,436
-
-
Between two and five years
4,373,968
4,816,367
-
-
In over five years
5,682,782
6,647,097
-
-
11,311,666
12,596,900
-
-
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
23
Operating lease commitments
(Continued)
- 31 -
Lessor
The operating leases represent short term leases in relation to spare office space that the group rent.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
191,333
185,500
-
-
Between two and five years
42,500
225,083
-
-
233,833
410,583
-
-
During the period the group benefited from temporary rent concessions occurring as a direct consequence of the Covid-19 pandemic. The result of this was a deduction in the P&L charge of £62,183 (£241,867)
24
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Group
Entities that provide key management personnel services to the group
-
-
52,581
76,333
Company
Entities over which the company has control, joint control or significant influence
69,143
214,974
-
-
Entities that provide key management personnel services to the group
-
-
52,581
53,000
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2022
2021
£
£
Group
Entities that provide key management personnel services to the group
24,000
21,000
Company
Entities that provide key management personnel services to the group
24,000
21,000
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
24
Related party transactions
(Continued)
- 32 -
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2022
2021
Balance
Balance
£
£
Company
Entities with control, joint control or significant influence over the company
3,631,887
64,592
25
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Director
2.25
53,954
765
(53,000)
1,719
53,954
765
(53,000)
1,719
26
Controlling party
The directors consider there to be no one single controlling party.
27
Cash absorbed by group operations
2022
2021
£
£
Loss for the year after tax
(3,106,652)
(2,159,320)
Adjustments for:
Taxation credited
(248,783)
(388,531)
Finance costs
220,823
150,683
Investment income
(914)
(952)
Loss on disposal of tangible fixed assets
480,903
20,400
Amortisation and impairment of intangible assets
128,271
96,602
Depreciation and impairment of tangible fixed assets
888,634
957,530
Movements in working capital:
Increase in stocks
(2,404,411)
(493,046)
(Increase)/decrease in debtors
(584,385)
40,783
Increase in creditors
740,364
611,040
Cash absorbed by operations
(3,886,150)
(1,164,811)
GRIND HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 33 -
28
Analysis of changes in net funds/(debt) - group
1 May 2021
Cash flows
30 April 2022
£
£
£
Cash at bank and in hand
1,585,991
5,449,422
7,035,413
Borrowings excluding overdrafts
(5,285,601)
(288,866)
(5,574,467)
(3,699,610)
5,160,556
1,460,946
2022-04-30
2021-05-01
false
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