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Registered number: 04642831
SALON FOCUS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
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SALON FOCUS LIMITED
REGISTERED NUMBER: 04642831
BALANCE SHEET
AS AT 30 JUNE 2020
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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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Net current (liabilities)/assets
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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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The director considers 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 15 months in question in accordance with section 476 of the Companies Act 2006.
The director acknowledges his 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.
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SALON FOCUS LIMITED
REGISTERED NUMBER: 04642831
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2020
The Company has opted not to file the statement of comprehensive income 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 on 30 June 2021.
The notes on pages 3 to 12 form part of these financial statements.
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
Salon Focus Limited is a company limited by shares, incorporated in England and Wales. Its registered office is at 33 Gibfield Park, Atherton, Manchester, M46 OSY.
The principal activity of the company is the wholesale of hairdressing supplies.
2.Accounting policies
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Basis of preparation of financial statements
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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 following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Finance costs are charged to profit or loss 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.
All borrowing costs are recognised in profit or loss in the 15 months in which they are incurred.
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 profit or loss 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 the Company in independently administered funds.
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the 15 months comprises current and deferred tax. Tax is recognised in profit or loss 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 balance sheet 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 Balance sheet 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 balance sheet date.
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as shown below.
Depreciation is provided on the following basis:
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S/Term Leasehold Property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if 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 profit or loss.
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet 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.
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.
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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 profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet 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 Balance sheet.
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 ordinary shares.
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 comprehensive income.
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
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
2.Accounting policies (continued)
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Financial instruments (continued)
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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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
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The average monthly number of employees, including directors, during the 15 months was 14 (2019 - 14).
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L/Term Leasehold Property
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Charge for the 15 months on owned assets
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
4.Tangible fixed assets (continued)
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The net book value of land and buildings may be further analysed as follows:
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Cash and cash equivalents
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
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Creditors: Amounts falling due within one year
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Other taxation and social security
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The following liabilities were secured:
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Details of security provided:
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Bank overdraft and loans are secured by a personal guarantee provided by Mr P. Naylor.
The Factor account is secured on the book debts of the company
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
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Creditors: Amounts falling due after more than one year
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The following liabilities were secured:
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Details of security provided:
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Bank loans are secured by a personal guarantee provided by Mr P. Naylor
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
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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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Charged to profit or loss
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SALON FOCUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTHS ENDED 30 JUNE 2020
10.Deferred taxation (continued)
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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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 £7,274 (2019 - £4,601). Contributions totalling £797 (2019 - £795) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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The company has recharged expenses to Bits4Hair Limited amounting to £35,027 (2019 - £30,344) in respect of management charges. During the year Salon Focus Limited has paid expenses on behalf of Bits4Hair limited amounting to £5,685 and Bits4Hair Limited have paid expenses on behalf of Salon Focus Limited amounting to £28,741. In addition Salon Focus Limited has received a loan from Bits4Hair Limited of £88,169. The balance outstanding at the year end amounts to £61,615 (2019 - £14,583 Debtor) and this is shown as "Other Creditors" in note 7 of the accounts (2019 "Other Debtors" note 5).
The company has recharged expenses to Branded Hair Limited a balance outstanding at the year end from Branded Hair Limited amounting to £nil (2019 - £8,420) and this is shown as "Other Debtors" in note 5 of the accounts.
The company operates from premises that are rented from the director at an annual rental of £24,000 (2019- £24,000) which is considered to be a fair rental value for the property.
Bits4Hair Limited and Branded Hair Limited are companies in which P Naylor is a director and the sole shareholder.
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