HOULDEN_JEWELLERS_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Houlden Jewellers Limited is a private company limited by shares incorporated in Scotland. The registered office is Rowan House, 70 Buchanan Street, Glasgow, United Kingdom, G1 3JE.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Directors have reached this conclusion by preparing a detailed profit and loss projection for a minimum period of 12 months from the date of authorising these financial statements. The Directors have a reasonable expectation that the Company’s current cash resources existing overdraft facility and the ability to control the timing of members loans repayments will be sufficient for the company to meet its obligations as they fall due. Further, the Directors are continuing to focus on cost reductions and making use of Government Support Schemes where available. The impact of the new tiered systems on demand for the company’s services will be closely monitored. However, the level of recovery in sales and adaptiveness of its members to the challenging new trading environment have given the Directors a sense of cautious optimism that the Company can navigate the next 12 months. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

The accounts are prepared to the last day in February and as such have been prepared to the 29 February 2020. In the prior year, the accounts were prepared to 28 February 2019.

In respect of transactions where the Company acts as an agent, total transaction value represents the price at which the products have been sold, inclusive of any handling fees but excluding any value added tax, discount or other sales taxes.

Where the Company does not take ownership of the products being sold and acts as agent, receiving a handling fee from the member who sold the product, turnover represents the handling fee earned.

Where the Company operates as the principal supplier of the product and hence bears the risks and rewards of the sale transaction, turnover represents the gross value of the product sold excluding any value added tax, discounts or other sales taxes. The full cost of such products is included within cost of sales.

Turnover is recognised in the period in which the goods are provided to the member.

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:

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 credited or charged to profit or loss.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

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.

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.

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, 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.

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, 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 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.

Equity instruments issued by the company 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 company.

Derivatives, including forward exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately in finance costs or income as appropriate where material. The Company does not currently apply hedge accounting for foreign exchange derivatives.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 when the company has 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 tax authority.

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.

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 Profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from those of the Company in independently administered funds.

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.

Other Operating Income

Management fees receivable and other income represents sums receivable for the period, accounted for on an accruals basis.

Members' loans

Members provide loans to the Company in amounts, as stipulated by the terms governing their membership agreement. On resignation as a member, the loan will be paid to the member within twelve months of production of audited accounts of the Company for the first financial period ending on or after date of cessation and on delivery to the Company of a duly signed transfer of the Qualifying Share as instructed by the Board.

In the application of the company’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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases entered into by the Company either as a lessor or a lessee are classified as either operating leases or finance leases. The decision on how to classify a lease depends on an assessment of whether the risks and regards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

The average monthly number of persons (including directors) employed by the company during the Period was 16 (2019 - 18).

Jewellers of Excellence Limited is a 100% subsidiary of Houlden Jewellers Limited. The Company is incorporated in Scotland and is non-trading.

The net assets of the subsidiary at the balance sheet date were £2 (2019 - £2).

The above noted overdraft was secured via a floating charge held by the Company's bankers over the Company's assets.

During the year, the company issued one new share at par value for cash.

This reserve records the nominal value of shares repurchased by the Company.

This reserve contains all retained profits and losses for the current and prior periods .

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

At the balance sheet date, the Company had committed to no event costs relating to conferences to be held after year end. In the prior year there was a non-cancellable commitment value of £43,247, in relation to conferences to be held.

At the balance sheet date, the company had entered into various forward exchange contracts in respect of Euros, US Dollars and Swiss Francs. The principal values of these contracts at the balances sheet date were €121,900 (2019 - €73,300), $54,500 (2019- $294,500) and CHF 850 (2019 - CHF100). The fair value of these contracts has been calculated using observable forward exchange rates corresponding to the maturity of the contract. The fair value of these contracts as the Balance sheet date is a liability of £2,682 (2019 - £11,172). Accordingly no forward rate adjustment has been incorporated into the financial statements in either year on the basis that it is immaterial.

Post year-end, the Covid-19 crisis resulted in the temporary closure of all retail businesses from late March until early May with a phased re-opening over summer and autumn. Retail closures were re-introduced from October in Ireland and November in England and parts of Scotland. Despite the significant disruption to the business, the board are confident that the company has sufficient cash resources to navigate the wider economic uncertainty and have concluded no adjustments are required to the financial statements at 29 February 2020.

In the furtherance of the principal activity and objectives of the Company, namely the importing and wholesaling of jewellery products and the provision of buying, marketing and training services to the jewellery sector, the Company transacts with it's members on a daily basis in the normal course of business. These transactions are entered into on an arm's length basis.

In the opinion of the directors there is no individual controlling party of the Company.