Lavenham Leisure Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03171370 (England and Wales)

Lavenham Leisure Limited

Strategic Report,

Report of the Directors and

Financial Statements

For The Year Ended

31st December 2021

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

6

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

to

16

DIRECTORS:

Mr J T S Flynn

N E Santomauro

Mr K Tanabe

REGISTERED OFFICE:

37 Mount Pleasant

Clerkenwell

London

WC1X 0AA

REGISTERED NUMBER:

03171370 (England and Wales)

AUDITORS:

Haines Watts

Statutory Auditor

8 Hopper Way

Diss

Norfolk

IP22 4GT

The directors present their strategic report for the year ended 31st December 2021.

REVIEW OF BUSINESS

Lavenham Leisure Limited's principal activities are the manufacture of superior quality quilted jackets, waistcoats and horse rugs. The company's principal market is Japan.

PRINCIPAL RISKS AND UNCERTAINTIES

As for many businesses of the same size, the environment the company operates in remains challenging. The company faces competition from other businesses which manufacture abroad in lower cost environments.

Retail sales are subject to consumers' spending patterns and their disposable income. The company counteracts this risk by ensuring that it actively manages the brand's identity through marketing and controlled product distribution to ensure that the value of the brand is inherently strong and a continual demand for its products is maintained.

We are still a weather dependant brand, with later, shorter winters affecting sell through. However, we are focusing on gilets as a layering piece and trying to strengthen this offering in our seasonal collections. This has been quite successful the last few seasons and we are becoming recognised as the brand that specialises in gilets, we do not have any competitors specialising in the same.

DEVELOPMENT AND PERFORMANCE

Unfortunately, our sales in Japan in 2021 were lower than anticipated, much of this can be attributed to lockdowns imposed during the covid pandemic and therefore our customers carrying stock into 2021.

We found much the same in our other markets, buyers were still concerned about the uncertainty of Covid and the threat of further lockdowns leading to cautious buying patterns.

From a production point of view, although we felt 2020 had been difficult, 2021 proved to be even more challenging. At the beginning of the year we had issues with staff not being able to return from Europe after the Christmas holidays as borders were closed, due to the pandemic. We faced supply chain issues due both to the new border controls after Brexit and logistic companies not being fully prepared and mills closing in Europe due to Covid outbreaks.

In addition to this, due to Covid and travel restrictions, we couldn't have our quilting machines serviced in November 2020 as the engineer is based in Italy. This meant we had numerous breakdowns and problems quilting our base material until June 2021, when thankfully the machines were able to be serviced.

Overall, it was a very difficult year and we fell behind on our targets and were late with deliveries.

Our spring summer 22 collection was well received and our second spring collection with Kazu, our Tokyo designer. Kazu has now been designing for the brand for four seasons, he designs with the factory's capabilities and productivity in mind, which has helped with efficiencies. He also recognises the need to have a very lightweight collection that still holds onto the brands ethos.

Our e-comm performed very well and continues to see growth.

FINANCIAL KEY PERFORMANCE INDICATORS

The company's KPIs were in line with expectations:

In £

31/12/2021

31/12/2020

Variance %

Turnover

2,191,124

2,665,566

-17.80

Gross margin %

4.03%

25.37%

-21.34

Loss Before Tax %

-35.11%

-2.81%

-32.30

FUTURE DEVELOPMENTS

The company intends to continue to focus on building the brand by:

- continually improving the quality and depth of the products offered through the brand's core segments of

menswear, womenswear, children's wear, and accessories.

- Develop and introduce more sustainable raw materials. We are using 100% recycled polyester fibres in our outer and lining fabric, 65% recycled fibres in our wadding and 100% organic cotton trim. But this is an ongoing project, which internally we call 'being better'

- continue innovative collaborations with iconic brands and designers like Labour and Wait, Phoebe English, Tsumura Kosuke and Beams

- Our Brand Development Manager continues to make connections with key UK independent stores with the intention of having capsule collaborations

- continue to target the North American market.

- continue to grow the South Korean market

- building on the unique relationship with the brand's customer base through social media using better product images and a seasonal brand film.

- Continue to have more communication with our markets out of season to build stronger relationships and strengthen the brand message

In October 2022 we will open our first store in Japan, closely followed by a second in November. We have four pop up stores in other areas of Japan between October and November, this is the second year in having pop up stores in Japan and they worked very well with sales, customer awareness and building our all-important customer data base

Lavenham.jp continues to grow as does our Japanese social media which means we can deliver a much clearer brand message in our biggest market, which can only strengthen the brand.

Many countries in the world still follow Japanese fashion so strengthening the brand in Japan has a global affect.

We continue having forecast orders from HU, ahead of the main selling season, which smooths out the peaks and troughs in our production capacity and makes the factory more efficient.

We had a new cutting machine installed in March 2022, which services two cutting tables. This machine has increased capacity and instead of being able to cut a maximum of 100 jackets per cut lay this has now increased to 140 jackets.

We will start to replace our end-of-life flatbed sewing machines and have placed our first order of 10 machines, for delivery in March 2023.

Due to the ongoing lack of trained sewing machinists, since the beginning of 2022, we are employing candidates that have home sewing experience or have an interest in being trained on an industrial sewing machine. This has proved relatively successful so far, however it takes time for new employees to be productive. It is a long term strategy.

We have tried to deskill some operations on the sewing line by investing in two PLK machines, which stitch our factory and back neck label onto a jacket. Operatives are able to be trained within days with no prior skill needed. This has freed up skilled sewing machinists for different skilled operations.

We have invested in a production tracking system for the factory, which tracks both jackets from an order but also records productivity and compares this to the allowed timings for an operation. The development of this is still on going but already we are seeing benefits.

POST BALANCE SHEET EVENTS

We have had problems with our main supplier of our base polyester fabric during the year, they have not dealt with rejected batches or complaints in a timely manner, which has led us to look for alternative suppliers for the future. This has been the main cause of delays in production in 2022.

ON BEHALF OF THE BOARD:

N E Santomauro - Director

30th September 2022

The directors present their report with the financial statements of the company for the year ended 31st December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture, retail and export of high quality clothing and accessories.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report.

Mr J T S Flynn

N E Santomauro

Mr K Tanabe

DISCLOSURE IN THE STRATEGIC REPORT

Please refer to the Strategic Report for comments on future developments in accordance with s.414 C (II) of CA 2006.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N E Santomauro - Director

30th September 2022

Opinion

We have audited the financial statements of Lavenham Leisure Limited (the 'company') for the year ended 31st December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2021 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We considered the risk of fraud through management override and in response, we incorporated testing of manual journal entries into our audit approach throughout the financial year.

- We also considered the risk of fraud through assumptions and judgements used within accounting estimates and in response, reviewed and scrutinised these estimates in order to detect possible management bias.

- We also considered the risk of fraud associated with the preparation of the financial statements and in response, tested the disclosures prepared against relevant supporting documentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Simonetta Castellano FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

Statutory Auditor

8 Hopper Way

Diss

Norfolk

IP22 4GT

30th September 2022

TURNOVER

3

2,191,124

2,657,419

Cost of sales

2,102,860

1,983,309

GROSS PROFIT

88,264

674,110

Distribution costs

72,538

114,423

Administrative expenses

796,959

742,404

869,497

856,827

(781,233

)

(182,717

)

Other operating income

4

2,757

84,351

(778,476

)

(98,366

)

Interest receivable and similar income

9,087

22,345

(769,389

)

(76,021

)

Interest payable and similar expenses

6

-

(1,253

)

LOSS BEFORE TAXATION

7

(769,389

)

(74,768

)

Tax on loss

8

13,546

(14,203

)

LOSS FOR THE FINANCIAL YEAR

(782,935

)

(60,565

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(782,935

)

(60,565

)

FIXED ASSETS

Tangible assets

9

121,813

96,903

Investments

10

100

100

121,913

97,003

CURRENT ASSETS

Stocks

11

624,986

541,850

Debtors

12

214,226

812,175

Cash at bank and in hand

6,901,646

7,235,436

7,740,858

8,589,461

CREDITORS

Amounts falling due within one year

13

92,279

138,183

NET CURRENT ASSETS

7,648,579

8,451,278

TOTAL ASSETS LESS CURRENT LIABILITIES

7,770,492

8,548,281

PROVISIONS FOR LIABILITIES

15

21,266

16,120

NET ASSETS

7,749,226

8,532,161

CAPITAL AND RESERVES

Called up share capital

16

4

4

Retained earnings

17

7,749,222

8,532,157

SHAREHOLDERS' FUNDS

7,749,226

8,532,161

The financial statements were approved by the Board of Directors and authorised for issue on 30th September 2022 and were signed on its behalf by:

N E Santomauro - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2020

4

8,592,722

8,592,726

Changes in equity

Total comprehensive income

-

(60,565

)

(60,565

)

Balance at 31st December 2020

4

8,532,157

8,532,161

Changes in equity

Total comprehensive income

-

(782,935

)

(782,935

)

Balance at 31st December 2021

4

7,749,222

7,749,226

1.	STATUTORY INFORMATION

Lavenham Leisure Limited is a private company, limited by shares, registered in England. The company's registered number, registered office address and trading address can be found on the Company Information Page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention on a going concern basis.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Consolidation

The company was, at the end of the year, a wholly-owned subsidiary of another company incorporated in the EEA and in accordance with Section 400 of the Companies Act 2006, is not required to produce, and has not published, consolidated accounts. These financial statements therefore include information relating to the company as an individual entity and not about its group.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements relate mainly to stock obsolescence and provision for doubtful debts.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no significant judgements (apart from those involving estimates) that have had an effect on amounts recognised in the financial statements and there are key sources of estimation uncertainty.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of clothing and accessories is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

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

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual

arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any

contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

551,233

483,841

Europe

59,615

61,307

Rest of the world

1,580,276

2,112,271

2,191,124

2,657,419

4.	OTHER OPERATING INCOME

2021

2020

£

£

Other operating income

2,757

506

Government grants

-

83,845

2,757

84,351

During the year, the company received furlough claims from the government totalling £2,757 under the Coronavirus Job Retention Scheme (2020: £83,845).

The sums assisted the company in paying for staff members who were put on temporary leave ("furlough") due to coronavirus (COVID-19) global pandemic.

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

1,740,804

1,529,531

Social security costs

116,017

106,246

Other pension costs

29,269

24,692

1,886,090

1,660,469

The average number of employees during the year was as follows:

2021

2020

Administration

-

8

Development

-

2

Director

1

1

Manufacturing

69

70

Marketing

-

1

70

82

2021

2020

£

£

Directors' remuneration

116,578

114,292

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Corporation tax interest

-

(1,253

)

7.	LOSS BEFORE TAXATION

The loss is stated after charging:

2021

2020

£

£

Other operating leases

130,000

130,000

Depreciation - owned assets

23,379

18,274

Loss on disposal of fixed assets

-

1,896

Auditors' remuneration

6,950

4,500

Foreign exchange

-

385

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the loss for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

-

(11,577

)

CT over/under provision

8,400

-

Total current tax

8,400

(11,577

)

Deferred tax

5,146

(2,626

)

Tax on loss

13,546

(14,203

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Loss before tax

(769,389

)

(74,768

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

(146,184

)

(14,206

)

Effects of:

Expenses not deductible for tax purposes

-

363

Depreciation in excess of capital allowances

5,143

2,265

Deferred tax

5,146

(2,625

)

Losses carried forward

141,041

-

Under/overprovision from previous years

8,400

-

Total tax charge/(credit)

13,546

(14,203

)

All deferred tax balances have been calculated at 19%. There is no expiry date on timing differences, unused tax losses or tax credits.

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1st January 2021

999,030

14,548

36,274

1,049,852

Additions

45,755

1,080

1,454

48,289

At 31st December 2021

1,044,785

15,628

37,728

1,098,141

DEPRECIATION

At 1st January 2021

907,766

13,164

32,019

952,949

Charge for year

20,886

407

2,086

23,379

At 31st December 2021

928,652

13,571

34,105

976,328

NET BOOK VALUE

At 31st December 2021

116,133

2,057

3,623

121,813

At 31st December 2020

91,264

1,384

4,255

96,903

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st January 2021

and 31st December 2021

100

NET BOOK VALUE

At 31st December 2021

100

At 31st December 2020

100

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Lavenham Retail Limited

Registered office: 37 Mount Pleasant, Clerkenwell, London, WC1X 0AA

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

2021

2020

£

£

Aggregate capital and reserves

100

100

11.

STOCKS

2021

2020

£

£

Stocks

315,968

300,408

Work-in-progress

10,156

12,922

Finished goods

298,862

228,520

624,986

541,850

Stock expensed in the year amounts to £506,746 (2020 - £505,887).