Solange Limited - Period Ending 2020-08-31

Solange Limited

Contents

Company Information	1
Statement of Financial Position	2 to 3
Notes to the Financial Statements	4 to 8

Solange Limited

Company Information

Director

S Azagury-Partridge

Registered office

130 Shaftesbury Avenue 2nd Floor London W1D 5EU

Accountants

Brebners Chartered Accountants 130 Shaftesbury Avenue London W1D 5AR

Solange Limited

Statement of Financial Position as at 31 August 2020

	Note	2020 £	(As restated) 2019 £
Fixed assets
Tangible assets	6	49,429	72,214
Current assets
Stocks	7	2,532,036	1,795,013
Debtors	8	597,177	1,406,078
Cash at bank and in hand		467,793	307,664
		3,597,006	3,508,755
Creditors: Amounts falling due within one year	9	(4,365,670)	(4,588,988)
Net current liabilities		(768,664)	(1,080,233)
Net liabilities		(719,235)	(1,008,019)
Capital and reserves
Called up share capital		380	380
Share premium reserve		16,917,578	16,917,578
Merger reserve		2,891,243	2,891,243
Profit and loss account		(20,528,436)	(20,817,220)
Total equity		(719,235)	(1,008,019)

For the financial year ending 31 August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.

Solange Limited

Statement of Financial Position as at 31 August 2020

Approved and authorised by the director on 6 July 2021
 

.........................................

S Azagury-Partridge

Director

Company registration number: 06801935

Solange Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company during the year was that of jewellery designers and retailers.

2	Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention and are presented in sterling, which is the functional currency of the entity.

Group accounts not prepared

In the opinion of the director, the company and its subsidiary undertakings comprise a small group. The company has therefore taken advantage of the exemption provided by Section 399 of the Companies Act 2006 not to prepare group accounts.

Going concern

The company made a profit for the period ended 31 August 2020 but had a net deficit of assets at that date amounting to £719,235.

At 31 August 2020, an amount of £3,227,398 was due to the shareholder, who has confirmed that it is her intention not to call for repayment of this amount until the company has sufficient working capital.

The director has considered the potential effect of the COVID 19 pandemic, and although there is no certainty as to when this will end, the director's view is that the impact will be manageable. The company has continued to market and sell their products through online outlets, and expects demand for the products to improve as current restrictions continue to be eased in the retail sector. The director has been managing the company's fixed overheads, and reductions have been made where possible. The director therefore believes that the company has sufficient working capital to continue to meet its obligations as they fall due.

On the basis of the above, and after making enquiries and taking into account the combination of the circumstances outlined above, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.

Solange Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Revenue recognition

The turnover shown in the income statement represents amounts receivable for stock items supplied during the year in the normal course of business, exclusive of Value Added Tax and discounts.

The company recognises turnover at the point of despatch of online and wholesale orders.

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all the related conditions will be met, usually on submission of a valid claim for payment.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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 taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	Over the remaining length of the lease
Furniture, fittings and equipment	20% straight line
Property, plant and equipment	20% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Solange Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Operating lease agreements

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company during the year, was 12 (2019 - 12).

4	Profit/loss before tax

Arrived at after charging/(crediting)

	2020 £	2019 £
Depreciation expense	28,868	30,598

5	Prior year adjustment

In the previous year tangible assets with a carrying value of £33,443 were treated as disposals in error. This has been corrected in the current year and the comparatives restated.

The effect of the adjustment is to increase the profit after tax for the year ended 31 August 2019 by £33,443 and to increase fixed assets by the same amount from that previously reported.
 

Solange Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

6	Tangible assets

	Leasehold improvements £	Furniture, fittings and equipment  £	Property, plant and equipment  £	Total £
Cost or valuation
At 1 September 2019 (As restated)	51,777	272,341	26,101	350,219
Additions	-	6,083	-	6,083
At 31 August 2020	51,777	278,424	26,101	356,302
Depreciation
At 1 September 2019 (As restated)	19,448	238,041	20,516	278,005
Charge for the year	6,324	17,744	4,800	28,868
At 31 August 2020	25,772	255,785	25,316	306,873
Carrying amount
At 31 August 2020	26,005	22,639	785	49,429
At 31 August 2019 (As restated)	32,329	34,300	5,585	72,214

7

Stocks

	2020 £	2019 £
Stock	2,532,036	1,795,013

8

Debtors

	2020 £	2019 £
Trade debtors	23,715	31,301
Amounts owed by group undertakings	374,883	1,319,050
Other debtors	198,579	55,727
	597,177	1,406,078

Solange Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

9

Creditors

Creditors: amounts falling due within one year

	2020 £	2019 £
Trade creditors	72,102	97,068
Taxation and social security	6,430	47,288
Other creditors	4,287,138	4,444,632
	4,365,670	4,588,988

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments not included in the statement of financial position is £105,524 (2019 - £133,290).

11	Related party transactions

In accordance with FRS 102 paragraph 1AC.35, exemption is taken not to disclose transactions or amounts falling due in the year between wholly owned group undertakings.

12	Transaction with directors

At 31 July 2020 an amount of £23,888 (2019: £Nil) was due from the director. During the year, advances of £63,144 and repayments of £39,662 were made. Interest of £406 (2019: £Nil) has been charged at 2.5% and 2.25%. There are no set repayment terms in place.