Revital Limited - Limited company accounts 20.1
Revital Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
REVITAL LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
REVITAL LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
INDEPENDENT AUDITORS: |
Chartered Accountants & Statutory Auditor |
2nd Floor, One Hobbs House, |
Harrovian Business Village |
Bessborough Road |
Harrow |
Middlesex |
HA1 3EX |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
The directors present their strategic report for Revital Limited ("the company") for the year ended 25 April 2021. |
PRINCIPAL ACTIVITY |
The company remains one of largest independent retailer for health and wellness in the UK. The principal activity of the company during the year was the retailing of health supplements, health foods and other related products through stores, internet and mail order channels. |
REVIEW OF BUSINESS |
The COVID pandemic has impacted all UK business and continues to create a very uncertain high street environment. Coupled with the supply chain disruptions caused by Brexit, this has been a particularly challenging year for all of our team members. We are proud of all of the hard work our teams have put in and continue to work towards our long-term growth strategy. |
Overall, the principal business results for the year and the financial position at the year-end showed a performance that was better than expected in a very difficult market and continued to maintain a consistently healthy cash balance of £0.7 million (2020: £1.2 million). |
STRATEGY |
The long-term strategy of the business remains to continue to invest in and grow the e-commerce infrastructure. At the same time, the company has made strategic decisions in closing a number of unprofitable retail outlets. Where good opportunities exist, more retail stores will be opened in the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have reviewed the risks and uncertainties and have appropriate processes in place to monitor and mitigate them. The company will continue to manage the following specific business risks more closely: |
- | Working capital supervision is essential to deliver on the long-term plan and in the short term to improve financial stability and liquidity. The company has already introduced, in the period, a rigorous cash flow forecasting and budgeting processes to ensure cash inflow from revenues provide adequate liquidity to support timely payments to all suppliers. |
- | The exposure to stock risk is from obsolescence, over-stocking and holding stock in locations where there is no such demand. To ensure the company has robust processes to support its growth plans it regularly undertakes a detailed review of its entire stock system and processes. Furthermore, the company has introduced strict stock control systems to ensure that the most efficient level and type of stocks are held in the correct locations. This has had an immediate positive impact on cash flow, liquidity and stockholding costs. |
- | The company raises funds to finance operations using financial instruments comprising bank balances, bank and other loans and leasing agreements. The company does not pursue transactions in which hedge accounting is used. Bank loans and other loans in the company are assessed as part of the management of credit and cash flow risks. |
- | Exposure to bad debts in the current climate. Revenues through store outlets, online and mail order are collected at the point-of-sale. This minimises the cash flow and business risk. |
- | Retail continues to be affected by government imposed restrictions. The company agilely manages its store operations based on the changing circumstances. |
Further actions have been taken to mitigate these risks and uncertainties: |
(a) | Directors have weekly reviews to discuss COVID planning and take immediate action when necessary. |
(b) | Continued focus on our ecommerce business |
(c) | Where possible taken advantage of government support - Rates relief, Local Grants and Coronavirus Job Retention Scheme Grant. |
CREDITORS PAYMENT POLICY |
The company continues to grow its supplier base. The company's current policy concerning the payment of trade |
creditors are to: |
- | Settle the terms of payment with suppliers when agreeing the terms of each transaction. |
- | Ensure suppliers are made aware of the terms of payment. |
- | Pay in accordance with the company's contractual and other legal obligations. |
- | Continuously liaise with creditors to ensure that any deviations from contractual and legal obligations are fully understood and agreed by all. |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
SECTION 172(1) STATEMENT |
The board of directors of Revital Limited consider, both individually or together, that they have acted in a way that they consider, in good faith, and in a way that would be most likely to promote the success of the company for the benefit of the members as a whole in the decisions taken during the period ended 25 April 2021. In particular, in reference to the management of external factors beyond their control. |
Substantial and difficult decisions were made during the year and since the year end date in order to ensure that the company continues to attract for the foreseeable future, and remains a going concern. The Directors have operated in a manner that ensures tight budgetary controls are maintained in line with current legislation. |
The company employees are fundamental to the business. The Directors aim to be responsible employers in their approach to the pay and benefits to all employees. The health, safety and well-being of employees is one of the primary considerations in the way that the business is conducted. |
As a board of Directors, the board have conducted their affairs responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of the business conduct and good governance that are expected of a business of this size and structure. |
FINANCIAL STABILITY & KEY PERFORMANCE INDICATORS |
Financial Stability |
The company produces detailed weekly cashflow forecasts based on historic sales and cost performance to ensure the company has long term financial stability during this challenging environment. The directors remain positive that the company has adequate headroom to continue to trade on a going concern basis for the foreseeable future. This predominantly is as a result of the strong cash balance at the year-end date with the stringent cash flow management show that this balance, together with any net positive trading aspects, are likely to ensure that the company will continue to trade for the foreseeable future. |
Financial Performance & Key Indicators |
The financial performance for the year shows that the company achieved revenues of £7.8 million a decline of 42.1%. Despite the decline in revenues and margins the company has successfully focused on improving the mix of the markets in which it operates and, as a result reducing administrative expenses and setting the foundation from which the turnover can be increased without significant increases in overheads. The company continues its long-term strategy of driving profitable online sales growth and supporting the existing store base. |
2021 | 2020 |
£ Million | £ Million |
Revenue | 7.8 | 13.5 |
Gross Profit | 3.2 | 5.9 |
Gross Profit % | 41.03% | 43.7% |
Exceptional Items | 0.2 | - |
EBITDA before Exceptional Items | (1.1) | 0.1 |
EBITDA | (1.3) | 0.1 |
Profit/(Loss) before Exceptional Items | (1.5) | (0.4) |
Profit/(Loss) Before Tax | (1.7) | (0.4) |
Average Number of Outlets | 18 | 18 |
Monthly Average No. of Trading Outlets | 12 | 18 |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
FUTURE DEVELOPMENTS |
Prior to COVID19 the business was making good progress in executing its long-term strategy. The COVID19 pandemic has been unprecedented and the speed of change to consumer shopping habits and the impact of the national lockdown on consumer confidence has severely impacted the business. As a result, the directors are working towards updating the short-term strategy that will better address and target the changing consumer landscape. |
To mitigate the impact of COVID19 the directors have prioritised certain actions to improve liquidity, and ensure that the company can continue to trade in the foreseeable future these comprise of, but are not limited to, the following: |
- | Control over all discretionary spend, including a significant curtailment of capital expenditure. |
- | A detailed review of all staffing requirements and appropriate action to improve efficiency wherever possible. |
- | A meticulous review of the pay rates and salaries across the board with reductions being implemented. |
- | Use of business rate holidays, tax deferrals and other government support measures. |
- | Continuous close monitoring and stress testing of cash flow forecasts. |
Having taken appropriate action, the directors remain confident that the company is well positioned to weather this |
unparalleled business environment and deliver on its overall long-term strategy. |
ON BEHALF OF THE BOARD: |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
The directors present their report with the financial statements of the company for the period 27 April 2020 to 25 April 2021. |
DIVIDENDS |
No dividends will be distributed for the period ended 25 April 2021. |
EVENTS SINCE THE END OF THE PERIOD |
Information relating to events since the end of the period is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 27 April 2020 to the date of this report. |
STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s. 414((11) to set out in the company's strategic report information required by Large and Medium-sized Companies (Accounts and Reports) Regulation s 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of post balance sheet events and likely developments in the business of the company. |
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). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
REVITAL LIMITED |
Opinion |
We have audited the financial statements of Revital Limited (the 'company') for the period ended 25 April 2021 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 25 April 2021 and of its loss for the period 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. |
Material uncertainty 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. |
We draw attention to Note 18 in the financial statements, which indicates that the company incurred a net loss of £1,661,204 during the year ended 25 April 2021 and, as of that date, the company’s current liabilities exceeded its total assets by £711,002. As stated in Note 2, Going Concern, these events or conditions, along with other matters indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
REVITAL LIMITED |
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 page five, 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 |
REVITAL LIMITED |
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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
- | We identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience of the sector in which the company operates; |
- | We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions in which the company operates. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to health and safety, employee matters and bribery and corruption practices; |
- | We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence where available; and |
- | Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
- | We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
- | To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
- | In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
REVITAL LIMITED |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditor |
2nd Floor, One Hobbs House, |
Harrovian Business Village |
Bessborough Road |
Harrow |
Middlesex |
HA1 3EX |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Period | Period |
27/4/20 to 25/4/21 | 1/5/19 to 26/4/20 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
5,103,411 | 6,449,884 |
(1,893,052 | ) | (508,634 | ) |
Other operating income |
OPERATING LOSS | 4 | ( |
) | ( |
) |
Redundancy Pay | 5 | ( |
) |
Loss on tangible assets |
scrapped | 5 | ( |
) |
(1,561,191 | ) | (265,067 | ) |
Interest receivable and similar income |
(1,561,182 | ) | (264,972 | ) |
Interest payable and similar expenses | 6 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 7 | ( |
) |
LOSS FOR THE FINANCIAL PERIOD | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD |
( |
) |
( |
) |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STATEMENT OF FINANCIAL POSITION |
25 APRIL 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET LIABILITIES | ( |
) | ( |
) |
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 |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2019 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 26 April 2020 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 25 April 2021 | ( |
) | ( |
) |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
STATEMENT OF CASH FLOWS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
( |
) |
Tax paid |
Taxation refund |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Capital repayments in year | ( |
) | ( |
) |
Government Grants |
Net cash from financing activities |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
1,352,482 |
Cash and cash equivalents at end of period |
2 |
737,310 |
1,184,198 |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Government grants | ( |
) | ( |
) |
Finance costs | 148,635 | 140,789 |
Finance income | (9 | ) | (95 | ) |
(1,944,643 | ) | (137,718 | ) |
Decrease in stocks |
Decrease/(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 Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Period ended 25 April 2021 |
25/4/21 | 27/4/20 |
£ | £ |
Cash and cash equivalents | 737,310 | 1,184,198 |
Period ended 26 April 2020 |
26/4/20 | 1/5/19 |
£ | £ |
Cash and cash equivalents | 1,184,198 | 1,352,482 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 27/4/20 | Cash flow | At 25/4/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,184,198 | (446,888 | ) | 737,310 |
1,184,198 | ( |
) | 737,310 |
Debt |
Finance leases | (90,670 | ) | 88,992 | (1,678 | ) |
Debts falling due within 1 year | - | (783 | ) | (783 | ) |
Debts falling due after 1 year | - | (49,217 | ) | (49,217 | ) |
(90,670 | ) | 38,992 | (51,678 | ) |
Total | 1,093,528 | (407,896 | ) | 685,632 |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
1. | STATUTORY INFORMATION |
Revital Limited is a |
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. |
Related party transactions |
For the purposes of these financial statements, a related party is considered to be related to the company if: |
- | The party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company. |
- | The company and the party are subject to common control. |
- | The party is an associate of the company or a joint venture in which the company is a venturer. |
- | The parties are a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals. |
- | The party, or any member of a group of which it is a party, provides key management personnel services to the company or its parent. |
Close family members of an individual are those members who are expected to influence, or be influenced by, that individual in their dealings with the entity. |
Turnover |
Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable, excluding value added tax and other sales taxes. |
Specifically in relation to retail sales, turnover is recognised at the point of sale or dispatch of the goods. |
Goodwill |
Goodwill, being the amount paid in connection therewith the acquisition of businesses over a number of years, is being amortised evenly over its estimated useful life. |
Having being fully amortised in previous years, no further amortisation would be applied to the carrying values of goodwill. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Having being fully amortised in previous years, no further amortisation would be applied to the carrying values of patents and licences. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Short leasehold | - in accordance with the lease. |
Fixtures and fittings | - 25% on cost |
Motor Vehicles | - 25% on cost |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
The company received government grants in the year, making use of the schemes the UK government brought into place for businesses during the Covid-19 pandemic. |
Government grants received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
Government grants received from the Coronavirus Bounce Back Loan Scheme that cover interest and fees payable to the lender, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and received. |
Government grants received under the Coronavirus Business Rates Relief are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
For each of these schemes, the income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. |
When stocks are sold, the carrying amount of these stocks are recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised in the period in which the reversal occurs. |
Taxation |
Taxation for the period 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 period 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. |
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. |
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. |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
2. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the and discounted amount expected to be received, net of impairment. |
Trade and other debtors that are receivable after more than one year or that constitute financing transactions are recorded initially at the fair value less transaction costs and subsequently at amortised cost, net of impairment. |
Trade and other creditors |
Trade and other creditors are initially recognised and fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting is immaterial, in which case they are stated at cost. |
Going concern |
As set out in the strategic report and the directors have taken action the change the mix of sales and, as a result, although sales reduced substantially in the year, the directors believe that the company is well placed to manage its business risk successfully, with greater emphasis on e-commerce sales. Accordingly, they have a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
The Company incurred a net loss of £1,661,204 for the year ended 25 April 2021 and, as of that date, the |
Company's net liabilities amounted to £3,515,288. The Financial Statements have been prepared on a going |
concern basis, as the directors have: |
- | Prepared cash flow forecasts confirming that the company's liquidity will be maintained to meet its day-to-day commitments for a period of at least 24 months from the year end date. |
- | Taken positive steps to ensure that major costs are curtailed and the company is able to manage its cash flow. |
- | Deferred or cancelled certain capital expenditure or non-essential spend, whilst continuing to invest in ecommerce capex. |
- | Agreed payment terms and extended credit with suppliers. |
- | Agreed deferment and a revised payment plan for the loan provided to the Holding Company by BGF. |
- | Secured debt finance under the Recovery Loan Scheme introduced by the Government, to be repaid over 5 years. |
- | Renegotiated payment of rent over a longer period, and in certain instances, a reduction of rent with all landlords. |
- | Significantly reduced central administrative costs. |
In addition to the improvements to cash flow management and savings achieved as highlighted above, strategically, the directors have: |
- | Successfully launched a monthly e-commerce subscription service. This has resulted in a regular income stream from repeat customers. |
- | Relaunched the Amazon store. |
- | Overcome Brexit supply chain issues by sourcing of products predominantly from the UK only. |
- | Carried out extensive research and commenced manufacturing process of own brand goods. |
As a result of the actions listed above, the directors are of the opinion that the going concern basis is therefore appropriate to the preparation of these Financial Statements. |
3. | EMPLOYEES AND DIRECTORS |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the period was as follows: |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
Sales | 81 | 113 |
Administration | 17 | 22 |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Directors' remuneration |
4. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Other non- audit services |
5. | EXCEPTIONAL ITEMS |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Redundancy Pay | ( |
) |
Loss on tangible assets |
scrapped | ( |
) |
(233,576 | ) | - |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Bank interest |
Bank loan interest |
Other interest payable |
Other loan interest payable |
Hire purchase |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the period was as follows: |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax on loss | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
27/4/20 | 1/5/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2020 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Research & Development enhanced deduction | (111,130 | ) | - |
Tax on losses brought forward | (128,095 | ) | (116,389 | ) |
Tax on losses carried forward | 463,558 | 128,095 |
Total tax credit | (48,613 | ) | - |
The company has trading losses carried forward amounting to £2,439,779 (2020: £674,183), available for offset against future trading profits, subject to current legislation. |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
8. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 27 April 2020 |
and 25 April 2021 |
AMORTISATION |
At 27 April 2020 |
and 25 April 2021 |
NET BOOK VALUE |
At 25 April 2021 |
At 26 April 2020 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 27 April 2020 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 25 April 2021 |
DEPRECIATION |
At 27 April 2020 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 25 April 2021 |
NET BOOK VALUE |
At 25 April 2021 |
At 26 April 2020 |
10. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Deferred tax asset |
Accelerated capital allowances |
Prepayments |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Finance leases (see note 15) |
Trade creditors |
Pensions | 4,969 | 4,979 |
Social security and other taxes |
VAT | 84,196 | 180,581 |
Other creditors |
Net Wages | 106,463 | 159,149 |
Accruals and deferred income |
Accrued expenses |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 14) |
Amounts owed to group undertakings |
VAT Account | 75,438 | - |
Social security and other taxes |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
15. | LEASING AGREEMENTS |
Minimum lease payments under finance leases fall due as follows: |
Finance leases |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Leasing agreements | 1,678 | 90,670 |
17. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary Shares | £1 | 50,000 | 50,000 |
18. | RESERVES |
Retained |
earnings |
£ |
At 27 April 2020 | ( |
) |
Deficit for the period | ( |
) |
At 25 April 2021 | ( |
) |
19. | ULTIMATE PARENT COMPANY |
Revital Holdings Limited (a company incorporated in England) is regarded by the directors as the company's ultimate parent company. The parent undertaking's accounts are available from it's registered office address, 71-75 Shelton Street, London, WC2H 9JQ. |
20. | OTHER FINANCIAL COMMITMENTS |
At the year-end state, the company had the following commitments registered as charges or rent deposit deeds: |
- Three rent deposit deeds amounting to £87,244. |
- One rent deposit deed of an unspecified amount. |
- Although there was no indebtedness to the bank, At the year-end date a guarantee and debenture, dated 15 October 2019 in favour of HSBC UK Bank plc, secured by way of a fixed and floating charge over the assets of the company existed. |
21. | RELATED PARTY DISCLOSURES |
2021 | 2020 |
£ | £ |
Included in amounts falling due after more than one year, due to group undertaking |
REVITAL LIMITED (REGISTERED NUMBER: 02570370) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Due Date | 2021 | 2020 |
£ | £ |
31 December 2022 | 625,000 | 625,000 |
30 June 2023 | 625,000 | 625,000 |
31 December 2023 | 625,000 | 625,000 |
30 June 2024 | 625,000 | 625,000 |
Total | 2,500,000 | 2,500,000 |
2021 | 2020 |
£ | £ |
Included within Trade Creditors, Amount due to related parties |
22. | POST BALANCE SHEET EVENTS |
The Company's business and operations could be adversely affected by health epidemics, including the recent Covid-19 pandemic, impacting the market in which it operates. Covid-19 has impacted, and may continue to impact many aspects of the Company's business and operations. |
The Company took many steps to alter operations as required by government or local authorities, or which the company determined as it its best interests during the year. The steps taken not only contributed towards the survival of the business but provided a platform for a positive return to the expected level of business that the Company was accustomed to. |
Events since the year end date have indicated that business activities have increased beyond expectations and the outlook appears to be that this trend will continue into the foreseeable future. |
Specific actions taken by the directors are: |
Cash Flow Negotiations |
- | Fixed Rate Recovery Loan Scheme Loan received in November 2021 to replace the Bounceback Loan obtained in the year. |
- | PAYE/NIC arrangements to pay agreement reached with HM Revenue & Customs in January 2022. |
- | Deferred or cancelled certain capital expenditure or non-essential spend, whilst continuing to invest in ecommerce capex. |
- | Agreed payment terms and extended credit with suppliers. |
- | Agreed deferment and a revised payment plan for the loan provided to the Holding Company by BGF. |
- | Renegotiated payment of rent over a longer period, and in certain instances, a reduction of rent with all landlords. |
- | Significantly reduced central administrative costs. |
Strategic and Business Developments |
- | Decisions to close certain stores were taken during the year, for which costs have been provided for. Three stores closed and leases surrendered since the year end date. |
- | Increase in e-commerce sales, improving the mix of sales without a substantial increase in overheads. |
- | Relaunch of the Amazon store. |
- | Improved stock control systems were introduced during the year. This has resulted in a further reduction in stockholding levels and the vacation and surrender of the lease of redundant warehouse space. |
- | Overcome Brexit supply chain issues by sourcing of products predominantly from the UK only. |
- | Carried out extensive research and commenced manufacturing process of own brand goods. |
The Financial Statements have been prepared on the basis of the conditions existing at 25 April 2021 and considering those events occurring subsequent to that date that provide evidence of conditions existed at the year-end date. |