Company Registration No. 03868176 (England and Wales)
Christopher Farr Cloth Limited
Unaudited accounts
for the year ended 31 December 2022
Christopher Farr Cloth Limited
Unaudited accounts
Contents
Christopher Farr Cloth Limited
Company Information
for the year ended 31 December 2022
Directors
Michal Silver
Matthew John Sheridan Bourne
Company Number
03868176 (England and Wales)
Registered Office
7 Albert Buildings
49 Queen Victoria Street London
EC4N 4SA
Christopher Farr Cloth Limited
Statement of financial position
as at 31 December 2022
Tangible assets
14,487
4,225
Inventories
677,246
672,123
Debtors
1,849,044
1,164,381
Cash at bank and in hand
5,360,974
4,566,361
Creditors: amounts falling due within one year
(1,190,638)
(1,627,372)
Net current assets
6,696,626
4,775,493
Net assets
6,711,114
4,779,719
Called up share capital
700
700
Capital redemption reserve
300
300
Profit and loss account
6,710,114
4,778,719
Shareholders' funds
6,711,114
4,779,719
For the year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2023 and were signed on its behalf by
Michal Silver
Director
Company Registration No. 03868176
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
Christopher Farr Cloth Limited is a private company, limited by shares, registered in England and Wales, registration number 03868176. The registered office is 7 Albert Buildings, 49 Queen Victoria Street London, EC4N 4SA.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in £ sterling.
Monetary 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 rates of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Inventories have been valued at the lower of cost and estimated selling price less costs to complete and sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacturing/completion.
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Motor vehicles
3 years straight line
Fixtures & fittings
3 years straight line
Computer equipment
3 years straight line
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 August 2016 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the profit and loss account when due.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
The Company has chosen to adopt FRS 102, Section 11 Basic Financial Instruments and 12 Other Financial Instruments Issues of FRS 102 in respect of financial instruments.
All financial assets and liabilities are initially measured at transaction price, including transaction costs, except for those financial assets classified at fair value through profit or loss, which are initially measured at fair value (at transaction price excluding transaction costs) unless the arrangement constitutes a financing transaction.
Financial assets and financial liabilities are only offset in the Company balance sheet when, and only when, there is a legally enforceable right to set off the recognised amounts and the Company intends to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments (other than those repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently amortised using the effective interest method.
Creditors
Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method.
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash is represented by cash on hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments which mature in no more than three months from the date of acquisition and which are readily convertible into known amounts of cash with insignificant risk of change in value.
Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated financial instrument.
Impairment
Financial assets measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Derecognition
Financial assets are derecognised when and only when:
• the contractual rights to the cash flows from the financial asset expire or are settled; or
• the Company transfers substantially all of the risks and rewards of ownership of the financial asset
to another party; or
• the Company, despite having retained some, but not all, significant risks and rewards of ownership,
has transferred control of the asset to another party.
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
The financial statements have been prepared on the going concern basis, in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. In considering the going concern assumption, the directors have considered the cash flow requirements of the Company. The directors are confident that the Company has adequate resources to continue in operation existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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Tangible fixed assets
Motor vehicles
Fixtures & fittings
Computer equipment
Total
Cost or valuation
At cost
At cost
At cost
At 1 January 2022
-
258
6,065
6,323
Additions
8,522
4,503
958
13,983
At 31 December 2022
8,522
4,761
7,023
20,306
At 1 January 2022
-
142
1,956
2,098
Charge for the year
474
560
2,687
3,721
At 31 December 2022
474
702
4,643
5,819
At 31 December 2022
8,048
4,059
2,380
14,487
At 31 December 2021
-
116
4,109
4,225
5
Investments
Subsidiary undertakings
Valuation at 1 January 2022
1
Valuation at 31 December 2022
1
At the end of the year the Company held 100% of shares of Artweave Limited, a company registered in England with registration number 10522485. Artweave Limited holds 55% of the share capital of Texlogistics Limited, a company registered in England with registered number 10524364.
Finished goods
677,246
672,123
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
Amounts falling due within one year
Trade debtors
242,847
235,333
Amounts due from group undertakings etc.
75,099
863,434
Accrued income and prepayments
23,016
65,614
8
Creditors: amounts falling due within one year
2022
2021
Trade creditors
270,258
506,816
Amounts owed to group undertakings and other participating interests
80,455
33,943
Taxes and social security
68,892
371,131
Other creditors
1,277
5,869
Loans from directors
213,354
150,954
Deferred income
129,921
227,370
Allotted, called up and fully paid:
700 Ordinary shares of £1 each
700
700
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £7,546 (2021 - £7,980)
11
Operating lease commitments
2022
2021
At 31 December 2022 the company had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:
Not later than one year
11,707
-
Christopher Farr Cloth Limited
Notes to the Accounts
for the year ended 31 December 2022
12
Transactions with related parties
At 31 December 2022, the Company had a receivable from Cloth Property Ltd, a company registered in England with registered number 12184334, of £1,250,107 (2021: £787,893). The Company was a 100% subsidiary until 21 December 2021 and following a restructuring, it is now held 50% by Ms Michal SIlver and 50% by Mr Matthew Bourne, both of whom are directors and shareholders of Christopher Farr Cloth Limited. During the year ended 31 December 2022, Cloth Property Ltd charged rent of £59,400 (2021: £42,000) to the Company.
At 31 December 2022, the Company had a receivable from Artweave Limited, a company registered in England with registered number 10522485, of £75,099 (2021: £75,099). Artweave Limited is a 100% subsidiary of Christopher Farr Cloth Limited.
At 31 December 2022, the Company had a receivable from Cloth Holdings Ltd, a company registered in England with registered number 12163630, of £257,974 (2021: payable of £33,943). Cloth Holdings Ltd is owned 100% by Ms Michal Silver who is a director and shareholder of Christopher Farr Cloth Limited.
At the end of the year, the Company had a receivable from Texlogistics Ltd, a company registered in England with registered number 10524364, of £442 (2021: £442). Artweave Limited (which the Company holds 100% of its shares) owns 55% of Texlogistics Ltd.
By the end of the year, the Company owed £80,897 to Texlogistics for services rendered in December (2021: £143,090).
During the year ended 31 December 2022, the Company contracted services to Texlogistics Limited. for a total net amount of £830,046 (2021: £739,707).
During the year ended 31 December 2022, dividends of £264,000 (2021: £180,000) were distributed to the shareholders.
At 31 December 2022, the Company had payables to its directors as follows:
Mr Mathew Bourne - £63,360 (2021: £43,200)
Ms MIchal Silver - £149,994 (2021: 107,754)
13
Average number of employees
During the year the average number of employees was 9 (2021: 10).
