123 Retail Limited Company accounts

123 Retail Limited Company accounts

123 RETAIL LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 10535440
123 RETAIL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 January 2023
123 RETAIL LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 29 JANUARY 2023
CONTENTS
PAGES
Officers and professional advisers
1
Strategic report
2 to 5
Directors' report
6 to 7
Independent auditor's report to the members
8 to 11
Statement of income and retained earnings
12
Statement of financial position
13
Statement of cash flows
14
Notes to the financial statements
15 to 23
123 RETAIL LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
THE BOARD OF DIRECTORS
S A Buck
S J Pickering
REGISTERED OFFICE
34 Roundhay Road
Leeds
England
LS7 1AB
AUDITOR
Wine & Co
Chartered accountants & statutory auditor
20-22 Bridge End
Leeds
LS1 4DJ
123 RETAIL LIMITED
STRATEGIC REPORT
YEAR ENDED 29 JANUARY 2023
The Directors present the Company's Strategic Report for the 52 week period ended 29th January 2022 (the period).
PRINCIPAL ACTIVITIES
The Moda In Pelle group is a women's footwear brand. The principal activity of the company is the selling of it's own brands of footwear and accessories. The Moda In Pelle group ethos - "A premium, contemporary footwear and accessories brand that is designed with purpose and crafted without compromise" Our aim is to deliver a high quality, premium women's footwear proposition that encapsulates sustainability, quality, and design. We design and develop 3 brands within the group: Moda in Pelle M By Moda Shoon All our products are designed exclusively in-house and unique to ourselves. Sustainability is at the core of our brands; we are working hard to develop our individual brand commitments to sustainability, recently launching our sustainability strategy, as outlined below: Vision 'At Moda we are moving towards a better future, putting sustainability at our core. We believe in creating premium footwear whilst reducing our environmental impact'. Our pillars: People, Product and Planet
BUSINESS REVIEW
FY23 has been a transformational year for the Moda In Pelle group. Over the last 47 years we have established a brand with true heritage and deep-rooted ties in footwear; the business has grown from a family-founded Leeds based retailer to fast becoming a recognised premium footwear and accessories brand. Moda In Pelle is a distinctive brand with a differentiated point of view, we aim to deliver unique high quality leather products that excite our customers. FY23 has demonstrated our brand's resilience and attractiveness to shoppers. We have delivered a record year of revenue, reflected in the 28% growth in sales, translating into an 136% growth in adjusted EBITDA for the Moda In Pelle brand. Whilst we are pleased with the success against our financial KPI targets, we have been focused on the implementation and delivery of our new five-year plan through FY23. This investment will give the brand a strong foundation for future growth. We have made considerable investment in several key areas: people, store openings, creative and brand, 3rd party channels. FY23 has been our largest year of investment, and we are incredibly excited about these opportunities present to our brand. We have opened 7 new stores in FY23, developing a new concept to create a new 'look and feel' that reflects our brand values. We have launched with both John Lewis and Next online throughout FY23, we see both retailers as an important revenue channel and brand partner for the future. As part of building our long-term plans, we have invested in our head office and retails team. Finally, we have a complete management team recruited and working together towards the delivery of our financial goals and brand targets. These results are only possible with the dedicated and talented team we have working with us at Moda In Pelle, I would like to take a moment to celebrate their success and achievements throughout the year. At Moda In Pelle, we aim to become a leading premium footwear brand, we have set our aspirations to open in international markets in FY25; our immediate focus however is to further develop our brand in the UK market, continuing to focus on exciting and innovative product ranges. Our collections are designed to be timeless, modern and contemporary, not fashion forward; with this in mind, the quality of our products is paramount to the DNA of the Moda In Pelle brand. Financial performance Despite the challenging macroeconomic climate impacting the wider retail sector in the UK we have delivered a robust financial performance for the year, which included several key milestones, delivering a full year revenue increase of 27.5% to £20m. As we continue to build momentum from last year, we are delighted to report adjusted EBITDA of £772K, growing 136% from the previous year. We have seen strong growth in DTC channels, resulting in an improved full price mix for the year. Outlook Whilst we have made strong progress throughout the year, we remain cautious about the wider economic challenges facing our customers; we aim to continue to deliver high quality designed products that represent good value for our loyal customers. We are extremely excited about the next stage of our strategy as we look to further grow and shape Moda In Pelle to build its true potential for the future. Financial Review KPI Summary Year ended 31 Jan Year ended 31 Jan Change 2023 2022 £'000 £'000 Revenue £20,021 £15,681 +27% Gross Profit £ 9,000 £ 6,262 +44% Admin Expenses £ 8,656 £ 6,259 +38% Profit/(Loss) before tax £ 471 £ 98 +380% EBITDA £ 772 £ 327 +136% People Our employees are at the heart of the brand, we are fully committed to developing our talent, and acting in a responsible and supportive manner. Brand Our brand values and mission statement as outlined below, provide our guiding focus as a business; we work together to ensure we are focussed on the delivery of these values and goals. Brand Vision 'To be known as the women's premium footwear brand of choice'. Brand Values Be passionate about every customer. Trust each other in what we do. Working together as equals. Design without compromise. Be ambitious and entrepreneurial. Mission Statement 'We design shoes without compromise, creating and inspiring a unique feeling. Always loved our customers'.
PRINCIPAL RISKS AND UNCERTAINTIES
Consumer confidence As a retail business, our success to a very large extent is subject to consumer confidence and customers disposition to spend on fashion and discretionary spend products. As a premium fashion brand, we mitigate this risk by remaining focussed on providing high quality products at a market appropriate price; we are determined in our approach towards achieving high customer service standards. Competitive risk Moda In Pelle is an established and growing brand in the UK market. The brand has a growing customer base and store count, the management is focussed on building brand awareness through a multi-route to market strategy. Fashion risk Our business success is dependent on our ability to identify and produce and sell our collections of product, with effectively managed stock control. It is however, impossible to predict with certainty customers reactions to each seasons' collections. We do however proactively manage the risk through a flexible and dynamic supply chain. IT risk The group relies on the uninterrupted operation of both our systems and website. There are many unplanned or unforeseen events that could take place, this is therefore imperative that we rely on strong contingency planning and monitoring; which is rigorously planned into our ways of working and corporate governance. Customers Our customers are extremely important focus of our business. We aim to offer a full range of products available on our own website and an edited collection in our concessions and Moda stores. We aim to offer consistent and everlasting high quality products, that will in-turn create strong product and brand loyalty with our existing and growing customer database. We are working hard, with internal reviews to invest, build and improve our customer service proposition.
This report was approved by the board of directors on 27 October 2023 and signed on behalf of the board by:
S A Buck
Director
Registered office:
34 Roundhay Road
Leeds
England
LS7 1AB
123 RETAIL LIMITED
DIRECTORS' REPORT
YEAR ENDED 29 JANUARY 2023
The directors present their report and the financial statements of the company for the year ended 29 January 2023 .
DIRECTORS
The directors who served the company during the year were as follows:
S A Buck
S J Pickering
DIVIDENDS
The directors do not recommend the payment of a dividend.
FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, bank trade facilities, trade creditors, trade debtors, and loans to the company. The main purpose of these instruments is to raise funds for the company's operation and to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the accounting instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank trade facilities at floating rates of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, directors' report 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 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 judgments 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. AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 27 October 2023 and signed on behalf of the board by:
S A Buck
Director
Registered office:
34 Roundhay Road
Leeds
England
LS7 1AB
123 RETAIL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF 123 RETAIL LIMITED
YEAR ENDED 29 JANUARY 2023
OPINION
We have audited the financial statements of 123 Retail Limited (the 'company') for the year ended 29 January 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 29 January 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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.
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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report 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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.
AUDITOR'S 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 an auditor’s report 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. 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error. We consider that our audit procedures are designed and carried out to give a reasonable expectation that material misstatements resulting from fraud would be discovered. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 an auditor's report 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.
JEFFREY WINE
(Senior Statutory Auditor)
For and on behalf of
Wine & Co
Chartered accountants & statutory auditor
20-22 Bridge End
Leeds
LS1 4DJ
27 October 2023
123 RETAIL LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 29 JANUARY 2023
2023
2022
Note
£
£
TURNOVER
4
20,020,997
15,681,605
Cost of sales
( 11,020,733)
( 9,419,240)
-------------
-------------
GROSS PROFIT
9,000,264
6,262,365
Distribution costs
( 1,600,894)
( 728,120)
Administrative expenses
( 8,655,711)
( 6,259,301)
Other operating income
5
1,765,376
860,818
------------
------------
OPERATING PROFIT
6
509,035
135,762
Interest payable and similar expenses
10
( 37,588)
( 37,471)
------------
------------
PROFIT BEFORE TAXATION
471,447
98,291
Tax on profit
11
( 58,496)
37,173
---------
---------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
412,951
135,464
---------
---------
RETAINED EARNINGS AT THE START OF THE YEAR
907,627
772,163
------------
---------
RETAINED EARNINGS AT THE END OF THE YEAR
1,320,578
907,627
------------
---------
All the activities of the company are from continuing operations.
123 RETAIL LIMITED
STATEMENT OF FINANCIAL POSITION
29 January 2023
2023
2022
Note
£
£
£
£
FIXED ASSETS
Intangible assets
12
40,000
50,000
Tangible assets
13
794,861
378,511
---------
---------
834,861
428,511
CURRENT ASSETS
Stocks
14
2,439,888
2,569,580
Debtors
15
3,332,979
2,226,351
Cash at bank and in hand
220,532
563,748
------------
------------
5,993,399
5,359,679
CREDITORS: amounts falling due within one year
16
( 5,354,019)
( 4,798,673)
------------
------------
NET CURRENT ASSETS
639,380
561,006
------------
---------
TOTAL ASSETS LESS CURRENT LIABILITIES
1,474,241
989,517
CREDITORS: amounts falling due after more than one year
17
( 14,119)
( 18,390)
PROVISIONS
19
( 139,444)
( 63,400)
------------
---------
NET ASSETS
1,320,678
907,727
------------
---------
CAPITAL AND RESERVES
Called up share capital
23
100
100
Profit and loss account
1,320,578
907,627
------------
---------
SHAREHOLDERS FUNDS
1,320,678
907,727
------------
---------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 27 October 2023 , and are signed on behalf of the board by:
S A Buck
Director
Company registration number: 10535440
123 RETAIL LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 29 JANUARY 2023
2023
2022
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year
412,951
135,464
Adjustments for:
Depreciation of tangible assets
252,955
181,332
Amortisation of intangible assets
10,000
10,000
Government grant income
–
( 349,784)
Interest payable and similar expenses
37,588
37,471
Tax on profit
58,496
(37,173)
Accrued expenses
40,684
114,157
Changes in:
Stocks
129,692
( 242,405)
Trade and other debtors
( 1,106,628)
121,921
Trade and other creditors
( 87,365)
( 833,345)
------------
---------
Cash generated from operations
( 251,627)
( 862,362)
Interest paid
( 37,588)
( 37,471)
Tax received/(paid)
17,548
( 32,184)
---------
---------
Net cash used in operating activities
( 271,667)
( 932,017)
---------
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 669,305)
( 163,529)
---------
---------
Net cash used in investing activities
( 669,305)
( 163,529)
---------
---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
( 257,364)
36,461
Proceeds from loans from group undertakings
859,391
760,554
Government grant income
–
349,784
Payments of finance lease liabilities
( 4,271)
( 4,271)
---------
------------
Net cash from financing activities
597,756
1,142,528
---------
------------
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
( 343,216)
46,982
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
563,748
516,766
---------
---------
CASH AND CASH EQUIVALENTS AT END OF YEAR
220,532
563,748
---------
---------
123 RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 29 JANUARY 2023
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 34 Roundhay Road, Leeds, LS7 1AB, England.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover comprises revenue recognised by the company in respect of goods supplied, exclusive of Value Added Tax.
Income tax
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property Improvements
-
25% straight line
Website
-
33% straight line
Fixtures and fittings
-
25% straight line
Motor vehicles
-
33% straight line
Office Equipment
-
25% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. TURNOVER
Turnover arises from:
2023
2022
£
£
Sale of goods
20,020,997
15,681,605
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. OTHER OPERATING INCOME
2023
2022
£
£
Government grant income
–
349,784
Insurance claims receivable
–
7,772
Other operating income
1,765,376
503,262
------------
---------
1,765,376
860,818
------------
---------
6. OPERATING PROFIT
Operating profit or loss is stated after charging:
2023
2022
£
£
Amortisation of intangible assets
10,000
10,000
Depreciation of tangible assets
252,955
181,332
---------
---------
7. AUDITOR'S REMUNERATION
2023
2022
£
£
Fees payable for the audit of the financial statements
9,350
8,500
-------
-------
8. STAFF COSTS
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
105
59
Distribution staff
22
20
Administrative staff
58
46
----
----
185
125
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
3,817,716
2,744,075
Social security costs
332,212
227,317
Other pension costs
63,841
46,886
------------
------------
4,213,769
3,018,278
------------
------------
9. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
115,635
36,814
---------
--------
10. INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
1,882
1,882
Other interest payable
35,706
35,589
--------
--------
37,588
37,471
--------
--------
11. TAX ON PROFIT
Major components of tax expense/(income)
2023
2022
£
£
Current tax:
UK current tax expense
–
17,439
Adjustments in respect of prior periods
( 109)
–
Corporation tax refund
( 17,439)
( 62,512)
--------
--------
Total current tax
( 17,548)
( 45,073)
--------
--------
Deferred tax:
Origination and reversal of timing differences
76,044
7,900
--------
--------
Tax on profit
58,496
(37,173)
--------
--------
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
471,447
98,291
---------
--------
Profit on ordinary activities by rate of tax
89,575
18,675
Adjustment to tax charge in respect of prior periods
(17,548)
( 62,512)
Effect of expenses not deductible for tax purposes
2,186
2,835
Effect of capital allowances and depreciation
( 95,155)
( 4,071)
Effect of revenue exempt from tax
( 4,750)
–
Group loss relief
8,144
–
---------
--------
Tax on profit
(17,548)
(45,073)
---------
--------
12. INTANGIBLE ASSETS
Goodwill
£
Cost
At 30 January 2022 and 29 January 2023
100,000
---------
Amortisation
At 30 January 2022
50,000
Charge for the year
10,000
---------
At 29 January 2023
60,000
---------
Carrying amount
At 29 January 2023
40,000
---------
At 29 January 2022
50,000
---------
13. TANGIBLE ASSETS
Leasehold Property Improve -ments
Website
Fixtures and fittings
Motor vehicles
Office Equipment
Total
£
£
£
£
£
£
Cost
At 30 Jan 2022
40,563
7,995
791,708
38,837
128,107
1,007,210
Additions
1,500
–
617,295
–
50,510
669,305
--------
-------
------------
--------
---------
------------
At 29 Jan 2023
42,063
7,995
1,409,003
38,837
178,617
1,676,515
--------
-------
------------
--------
---------
------------
Depreciation
At 30 Jan 2022
21,043
7,995
494,930
20,468
84,263
628,699
Charge for the year
10,186
–
202,666
11,847
28,256
252,955
--------
-------
------------
--------
---------
------------
At 29 Jan 2023
31,229
7,995
697,596
32,315
112,519
881,654
--------
-------
------------
--------
---------
------------
Carrying amount
At 29 Jan 2023
10,834
–
711,407
6,522
66,098
794,861
--------
-------
------------
--------
---------
------------
At 29 Jan 2022
19,520
–
296,778
18,369
43,844
378,511
--------
-------
------------
--------
---------
------------
14. STOCKS
2023
2022
£
£
Finished goods and goods for resale
2,439,888
2,569,580
------------
------------
15. DEBTORS
2023
2022
£
£
Trade debtors
38,650
215,178
Amounts owed by group undertakings
1,828,602
1,124,125
Prepayments and accrued income
352,463
415,673
Corporation tax repayable
–
47,410
Amounts due from related companies
434,698
–
Other debtors
678,566
423,965
------------
------------
3,332,979
2,226,351
------------
------------
16. CREDITORS: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
215,565
472,929
Trade creditors
854,990
815,843
Amounts owed to group undertakings
2,161,992
1,302,601
Accruals and deferred income
266,809
226,125
Social security and other taxes
1,301,918
1,507,862
Obligations under finance leases and hire purchase contracts
4,271
4,271
Amounts due to related companies
353
27,874
Other creditors
548,121
441,168
------------
------------
5,354,019
4,798,673
------------
------------
The bank loans and overdrafts totalling £215,565 (2022: £472,929) falling due within one year are secured by the company.
17. CREDITORS: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
14,119
18,390
--------
--------
18. FINANCE LEASES AND HIRE PURCHASE CONTRACTS
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
4,271
4,271
Later than 1 year and not later than 5 years
14,119
18,390
--------
--------
18,390
22,661
--------
--------
19. PROVISIONS
Deferred tax (note 20)
£
At 30 January 2022
63,400
Additions
76,044
---------
At 29 January 2023
139,444
---------
20. DEFERRED TAX
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 19)
139,444
63,400
---------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
139,444
63,400
---------
--------
21. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 63,841 (2022: £ 46,886 ).
22. GOVERNMENT GRANTS
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
–
349,784
----
---------
23. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
24. ANALYSIS OF CHANGES IN NET DEBT
At 30 Jan 2022
Cash flows
At 29 Jan 2023
£
£
£
Cash at bank and in hand
563,748
(343,216)
220,532
Debt due within one year
(1,779,801)
(602,027)
(2,381,828)
Debt due after one year
(18,390)
4,271
(14,119)
------------
---------
------------
( 1,234,443)
( 940,972)
( 2,175,415)
------------
---------
------------