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Registered number: 01064068
HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
REGISTERED NUMBER:01064068
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STATEMENT OF FINANCIAL POSITION
AS AT 29 SEPTEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
REGISTERED NUMBER:01064068
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 29 SEPTEMBER 2019
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 12 form part of these financial statements.
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
1.Accounting policies
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Basis of preparation of financial statements
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House of Clive (Hair and Beauty) Limited is a private limited company incorporated in England and Wales. The address of the registered office is Reflections House, 26 Oakfield Road, Bristol, BS8 2AT.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements have been prepared on a going concern basis. The directors have considered the company's ability to continue as a going concern in the wake of the COVID-19 pandemic and are satisfied that any disruptions to the ordinary activities of the business will not affect the company such that it will not be able to continue for at least 12 months.
The following principal accounting policies have been applied:
Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax. Turnover is recognised at the point of sale or when the risks and rewards of ownership are transferred to the customer.
Turnover from a contract to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
1.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the costs of the assets less their residual value over their estimated useful lives, using the straight-line method for property and reducing balance method for other assets as mentioned below.
Depreciation is provided on the following basis:
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over the term of the lease
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The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively is appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of income and retained earnings.
Stocks are stated at the lower of cost and net realisable value. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
1.Accounting policies (continued)
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Financial instruments (continued)
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discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Income in the form of government grants is recognised as turnover over the period to which the grant relates.
Finance costs are charged to the Statement of comprehensive income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight line basis over the lease term.
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Leased assets: the Company as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of income and retained earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
1.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of income and retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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The average monthly number of employees, including directors, during the period was 207 (2018 - 215).
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Period to 29
September
2019
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Year to 30
September
2018
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
3.Taxation (continued)
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Factors affecting tax charge for the period/year
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The tax assessed for the period/year is higher than (2018 - higher than) the standard rate of corporation tax in the UK of 19% (2018 - 19%). The differences are explained below:
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Period to 29
September
2019
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Year to 30
September
2018
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Fixed asset timing differences
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Adjustments to tax charge in respect of prior periods
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Adjust opening deferred tax to average rate of 19% (2017 - 19.5%)
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Adjust closing deferred tax to average rate of 19% (2017 - 19.5%)
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Total tax charge for the period/year
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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Charge for the period on owned assets
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Secured loans
The bank loans are secured by an unlimited debenture dated 19 June 2015 incorporating a fixed and floating charge over the assets of the Company.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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Secured loans
The bank loans are secured by an unlimited debenture dated 19 June 2015 incorporating a fixed and floating charge over the assets of the Company.
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £40,054 (2018 - £23,643).
Contributions totaling £8,971 (2018 - £5,728) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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At 29 September 2019 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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HOUSE OF CLIVE (HAIR AND BEAUTY) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2019
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Related party transactions
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The Company was under the control of C W Barrett throughout the current and previous years.
During the period the Company paid rent of £385,640 (2018 - £326,478) to CWB Properties and £101,325 (2018 - £141,030) to House of Clive Executive Pension Fund. C W Barrett is the proprietor of CWB Properties and is a trustee and beneficiary of House of Clive Executive Pension Fund. At the period end, £98,410 was due to CWB Properties (2018 - £98,410) and £45,160 was due to House of Clive Executive Pension Fund (2018 - £30,360).
During the period the Company paid rent and insurance of £21,000 (2018 - £21,000) to CCB Properties and £32,000 (2018 - £32,000) to MB Properties. C C Rendle, a company director, is the proprietor of CCB Properties and M Barrett, son of director C W Barrett, is the proprietor of MB Properties.
During the period dividends of £33,254 (2018 - £36,277) were paid to C W Barrett and dividends of £78,020 (2018 - £75,774) were paid to C C Rendle. Both persons are directors of the Company.
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Post balance sheet events
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On 11 March 2020 the World Health Organisation declared COVID-19 was a global pandemic.
The directors have considered the company's ability to continue as a going concern and are satisfied that the business will be able to continue for at least the next 12 months and therefore the financial statements have been prepared on a going concern basis.
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