Daisy's Nail Company Ltd - Limited company accounts 20.1
Daisy's Nail Company Ltd - Limited company accounts 20.1
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 March 2021 |
for |
DAISY'S NAIL COMPANY LTD |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Contents of the Financial Statements |
for the year ended 31 March 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
DAISY'S NAIL COMPANY LTD |
Company Information |
for the year ended 31 March 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Preston Park House |
South Road |
Brighton |
East Sussex |
BN1 6SB |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Strategic Report |
for the year ended 31 March 2021 |
The directors present their strategic report for the year ended 31 March 2021. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Strategic Report |
for the year ended 31 March 2021 |
OUR PURPOSE |
Our purpose is to meet the needs of our customers, delivering the experience, products and services that matter to them. |
Our success as a business depends on delivering value to all our customers and stakeholders. We plan and anticipate what they want and develop products, services and an overall experience that meet their needs. |
REVIEW OF BUSINESS |
The directors are pleased with the performance of the company during the year ended 31 March 2021 which has seen a 32.48% increase in revenue. |
The results for the year are shown in the statement of comprehensive income on page 10. The directors' consider that the company's balance sheet as detailed on page 11 shows a satisfactory position at the year end. |
The key financial highlights are as follows: |
2021 | 2020 |
Gross profit | £8,872,131 | £7,580,574 |
Gross profit margin | 64.57% | 71.01% |
Profit before tax | 6,197,704 | 4,936,535 |
The company has kept and continues to keep close control over costs and seeks to maximise its profit margins. |
The Board confirms its understanding that the audit report has been qualified this year due to the appointment of an auditor after the stock take had taken place at 31 March 2020 which rendered the auditor unable to audit the opening stock. |
FUTURE DEVELOPMENTS |
The company will also continue to add to its successful range of cosmetic products. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are several risks and uncertainties that can impact the performance of the company, some of which are beyond the control of company and its Board. These trends and risks are the focus of management meetings where each departments performance is assessed versus budget, forecast and prior year results. Key performance indicators are also used to benchmark operational performance for all departments. An annual assessment of trends and risks is an integral part of each department's annual review of its strategic plan and budget, which are submitted to the Board for consideration and approval. A combination of all of this, in what is a bottom up and top down approach, enables the Board to determine and assess the companies risk environment. |
The principal risks and uncertainties facing the company are outlined below: |
Key resources |
The company is managed by certain key personnel, including executive directors and senior management who have significant experience within the company and who may be difficult to replace. Furthermore, the company depends on being able to recruit and retain employees of an appropriate calibre. The company has sought to mitigate this resource risk by investing in staff training programmes, competitive reward and compensation packages. |
Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. |
Liquidity risk |
The company maintains appropriate finance and cash in hand has improved in the year. The company also has availability of external finance if required, which is considered sufficient to further mitigate business risks relating t market and economic uncertainties. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Strategic Report |
for the year ended 31 March 2021 |
Brexit |
Management continues to closely monitor developments in relation to Brexit and the potential consequential political and economic uncertainties to mitigate any risks to the business. |
Market conditions |
Our products are targeted at many different sectors, which include high street retailers and salons. As a result, demand is dependent on activity levels in these respective sectors, which vary by location and are subject to the usual drivers of retail activity (i.e. general economic conditions and volatility, interest rates, business/consumer confidence levels, unemployment, population growth, etc.). |
PRINCIPAL RISKS AND UNCERTAINTIES |
Competitive pressures |
The company continually faces competition and the competitive environment is a function of several factors including the number of competitors, pricing and the availability of substitute products. While such competitive forces can impact profitability in the short-term the company looks to offset such adverse effects by: |
(i) a program of continuous process improvement; |
(ii) a permanent emphasis on product enhancement, and |
(iii) providing a best in class service to customers by offering short delivery times and products that come with a guaranteed performance. |
Information technology and business continuity |
The company uses a range of information technology and decision support systems across its business for efficient processing of orders, control procedures and financial management. These systems are constantly reviewed and updated to meet the needs of the company. Business continuity and disaster recovery planning is regularly assessed and tested to ensure the company is adequately resourced and maintains an appropriately robust environment including preventative processes on cybercrime. This is further mitigated through consequential loss insurance and business continuity plans which are updated regularly. |
Data protection and back-up |
The company holds a significant volume of confidential data. Failure to comply with data privacy regulations and standards (GDPR) or weakness in internet security may result in a major data privacy breach causing reputational damage to the company's brands and financial loss. |
Breach of IT security may cause data to be lost, corrupted or accessed by unauthorised users, impacting the company's reputation. This could give rise to legal or regulatory penalties as well as commercial costs. The company has processes and procedures in place to monitor effectiveness of customer back-up and is continually upgrading security equipment and software and making improvements to physical security processes. |
Coronavirus |
The Directors have implemented a Business Continuity Plan due to the impact of Coronavirus and the business is following the COVID 19 Government guidelines. |
The key risk is that customers are unable to settle debts on a timely basis due to the impact of the virus either where businesses have temporarily closed or where people have been laid off. To mitigate against this the Directors have increased the level of experience within credit control. |
The other key risk is a slow down in the supply chain. To mitigate against this stock is being purchased from the supplier in a timely manner. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Strategic Report |
for the year ended 31 March 2021 |
GOING CONCERN |
After receiving the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
ON BEHALF OF THE BOARD: |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Report of the Directors |
for the year ended 31 March 2021 |
The directors present their report with the financial statements of the company for the year ended 31 March 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the wholesale and retail of cosmetic products. |
DIVIDENDS |
An interim dividend of £1,000,000 per Ordinary share of £1 each was paid on 8 September 2020. An additional interim dividend of £500,000 per Ordinary share of £1 each was paid on 17 September 2020. A third interim dividend of £2,000,000 per Ordinary share of £1 each was paid on 13 October 2020. The directors do not recommend the payment of a final dividend. |
FUTURE DEVELOPMENTS |
The directors are confident that the company will continue to be profitable in the forthcoming year and has been trading well during the new financial year when considering the challenging trading conditions and continued restrictions as a result of the Covid 19 pandemic. As the effects of the pandemic continue to be on ongoing with further restrictions possible in the future, the longer term effects are difficult to quantify. However the directors are confident that the business will continue to grown over the coming years. |
DIRECTORS |
Other changes in directors holding office are as follows: |
GOING CONCERN |
The directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
ENGAGEMENT WITH EMPLOYEES |
The company recognises the importance of good communications and relations with staff and uses a number of methods of keeping staff informed of performance and developments in the group. |
New members of staff attend an induction course which gives them an initial understanding of the company and its business and makes them aware of matters directly concerning their employment. Great importance is attached to staff training and development and all levels. |
DISCLOSURE IN THE STRATEGIC REPORT |
Certain matters required by regulation to be dealt with in the annual report have been dealt with in the Strategic Report rather than in the Directors' Report. These include principal risks and uncertainties. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Report of the Directors |
for the year ended 31 March 2021 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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, Feist Hedgethorne Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Daisy's Nail Company Ltd |
Qualified Opinion |
We have audited the financial statements of Daisy's Nail Company Ltd (the 'company') for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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, except for the effects of the matter described in the Basis for Qualifies Opinion section of our report, the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its profits 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 qualified opinion |
We were appointed as auditors of the company on 23 March 2021 and thus did not observe the counting of the physical inventories as at 31 March 2020. We were unable to satisfy ourselves by alternative means concerning inventory quantities held at 31 March 2020. Since opening inventories enter into the determination of the financial performance, cash flows and are included in the opening asset position, we were unable to determine whether adjustment might have been necessary in respect of the income for the year reported, the net cash flows from operating activities in the statement of cash flows or the opening assets as reported on the statement of financial position. |
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 qualified 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. |
Other matter |
The accounts for the year ended 31 March 2020 were not audited, however we have made all the necessary attempts to ensure that the comparative figures show a true and fair view and are therefore free from material misstatement. |
Report of the Independent Auditors to the Members of |
Daisy's Nail Company Ltd |
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 Statement of Directors' Responsibilities set out on pages six and seven, 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. |
Report of the Independent Auditors to the Members of |
Daisy's Nail Company Ltd |
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 the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- | obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
- | inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
- | discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence where relevant authorities, and evaluating advice received from external tax advisors. |
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. |
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. |
Report of the Independent Auditors to the Members of |
Daisy's Nail Company Ltd |
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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Preston Park House |
South Road |
Brighton |
East Sussex |
BN1 6SB |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Statement of Comprehensive |
Income |
for the year ended 31 March 2021 |
2021 | 2020 |
(Unaudited) |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
5,957,246 | 4,878,770 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
6,200,183 | 4,936,535 |
Interest payable and similar expenses | 6 | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Balance Sheet |
31 March 2021 |
2021 | 2020 |
(Unaudited) |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Statement of Changes in Equity |
for the year ended 31 March 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2021 |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Cash Flow Statement |
for the year ended 31 March 2021 |
2021 | 2020 |
(Unaudited) |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 9,157,204 | - |
Amount withdrawn by directors | (95,764 | ) | (1,834,991 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,500,485 |
Cash and cash equivalents at end of year | 2 | 4,573,048 | 2,981,874 |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Cash Flow Statement |
for the year ended 31 March 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
(Unaudited) |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 2,479 | - |
Finance income | (18,185 | ) | (22,618 | ) |
6,227,191 | 4,950,638 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2021 |
31.3.21 | 1.4.20 |
£ | £ |
Cash and cash equivalents | 4,573,048 | 2,981,874 |
Year ended 31 March 2020 |
31.3.20 | 1.4.19 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 2,981,874 | 2,500,485 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.20 | Cash flow | At 31.3.21 |
£ | £ | £ |
Net cash |
Cash at bank | 2,981,874 | 1,591,174 | 4,573,048 |
2,981,874 | 4,573,048 |
Debt |
Finance leases | (180 | ) | 180 | - |
(180 | ) | 180 | - |
Total | 2,981,694 | 1,591,354 | 4,573,048 |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements |
for the year ended 31 March 2021 |
1. | STATUTORY INFORMATION |
Daisy's Nail Company Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in these financial statements are rounded to the nearest pound. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates and these 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. |
The items in the financial statements where these judgements and estimates have been made include the useful economic life of tangible fixed assets, the depreciation and amortisation of these assets, stock obsolescence, provisions, and the recoverability of debtors. |
Key sources of estimation uncertainty: |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are depreciated over the approved depreciation rates. The carrying amount of tangible fixed assets is £221,164 (2020: £206,434) as noted in note 10. |
No significant judgements have been made by management in preparing these financial statements. |
Employee benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans and the costs of short-term employee benefits are recognised as a liability and an expense. |
In accordance with FRS 102, the cost of any unused holiday entitlement should be recognised in the period in which the employee's services are received. The company has reviewed the potential provision and has considered the amount to be immaterial. |
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 pension plan to enable staff to save for a private retirement income. Both the company and staff contribute to the pension plan. Contributions are recognised as an expenses when they are due. Any amounts not paid arr shown as an accrual in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the fair value of consideration received or receivable net of VAT and trade discounts and represents the amount receivable for goods supplied and services rendered. |
Revenue from the sale of cosmetics is recognised when goods are invoiced and despatched to customers and is therefore recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 by management. |
Government grants |
Grants receivable under the government's Job Retention Scheme are recognised as other operating income in the profit and loss account when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grant will be received. Grant income relating to the Job Retention Scheme will be recognised systematically in the period to which the underlying furloughed staff costs relate to and when the payroll liability has been incurred by the entity. The income is taxable and amounts not received by the reporting date are included in other debtors. |
Stocks |
Stocks, which consist of cosmetic products, are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. At the end of each reporting period, stocks are assessed for impairment. If an item is impaired, the identified inventory is reduced to its expected selling price less costs to sell. |
Financial instruments |
The company's financial instruments comprise cash, debtors (trade, intercompany debtors and other debtors) and creditors (trade, other, intercompany creditors, accruals and deferred income). A financial asset or a financial liability is recognised when the company becomes party to the contractual provisions of the instrument. The de-recognition of a financial instrument takes place when the company no longer controls substantially all the risks and regards. |
At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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. |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Impairment |
At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Cash and cash equivalents |
Cash and cash equivalents 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. |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
3. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
(Unaudited) |
Directors | 2 | 35 |
Finance | 2 | - |
Sales | 38 | - |
Administration | 6 | - |
4. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
(Unaudited) |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 March 2021 is as follows: |
2021 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2021 | 2020 |
(Unaudited) |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
(Unaudited) |
£ | £ |
Statutory interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge 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 |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Deferred tax not provided 2020 | 39,222 | - |
Group relief | (8,902 | ) | - |
Deferred tax charged at 25% | 11,974 | - |
Total tax charge | 1,221,670 | 980,136 |
8. | DIVIDENDS |
2021 | 2020 |
(Unaudited) |
£ | £ |
Ordinary share of £1 |
Interim |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
9. | INTANGIBLE FIXED ASSETS |
Intellectual |
property |
£ |
COST |
At 1 April 2020 |
and 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
10. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2020 |
Additions |
At 31 March 2021 |
DEPRECIATION |
At 1 April 2020 |
Charge for year |
At 31 March 2021 |
NET BOOK VALUE |
At 31 March 2021 |
At 31 March 2020 |
11. | STOCKS |
2021 | 2020 |
(Unaudited) |
£ | £ |
Stock |
Stock recognised in cost of sales during the year as an expense was £3,137,910 (2020: £2,039,845). |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
(Unaudited) |
£ | £ |
Trade debtors |
Other debtors |
Deposits | 88,330 | 11,020 |
Directors' current accounts | - | 1,833,536 |
Tax |
Prepayments & accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
(Unaudited) |
£ | £ |
Hire purchase contracts (see note 14) |
Trade creditors |
Corporation tax |
PAYE/NIC |
VAT | 561,732 | 251,333 |
Other creditors |
Directors' current accounts | 7,227,903 | - |
Deferred income |
Accrued expenses |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2021 | 2020 |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Non-cancellable | operating leases |
2021 | 2020 |
(Unaudited) |
£ | £ |
Within one year |
Between one and five years |
The total lease payments recognised as an expense is £194,046 (2020: £222,776). |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
15. | FINANCIAL INSTRUMENTS |
2021 | 2020 |
Financial assets | £ | £ |
Financial assets that are debt instruments measured at amortised cost | 15,358,928 | 5,894,272 |
15,358,928 | 5,894,272 |
Financial liabilities |
Financial liabilities measured at amortised cost | (9,009,423 | ) | (381,101 | ) |
(9,009,423 | ) | (381,101 | ) |
16. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
(Unaudited) |
£ | £ |
Deferred tax | 43,489 | - |
Deferred |
tax |
£ |
Accelerated capital allowances | 49,892 |
Pension creditor | (6,403 | ) |
Balance at 31 March 2021 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
Ordinary shares rank pari passu and entitle the holder the right to vote and receive dividends. |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2020 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2021 |
DAISY'S NAIL COMPANY LTD (REGISTERED NUMBER: 08216906) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2021 |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2021 and 31 March 2020: |
2021 | 2020 |
(Unaudited) |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
This loan was repayable on demand and interest of £18,185 (2020: £22,618) was charged at a rate of 2/2.25%. |
20. | RELATED PARTY DISCLOSURES |
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. |
At the balance sheet date the company owed the director, D Kalnina, £7,227,903. |
There are no other related party transactions requiring disclosure. |
21. | ULTIMATE CONTROLLING PARTY |
During the year, the company became a wholly owned subsidiary of the parent company DK Universe Limited. The only group in which the results of the company are consolidated is that headed by D K Universe Limited as the ultimate parent company and controlling party. Copies of its consolidated financial statements can be obtained from the company's board of directors, Preston Park House, South Road, Brighton, East Sussex, BN1 6SB. |
22. | EQUITY RESERVES |
Share capital - This represents the nominal value of shares that have been issued. |
Retained earnings - Includes all current and prior period retained profits and losses. |