Smile Stylist (New Street) Limited - Period Ending 2023-03-31

Smile Stylist (New Street) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Smile Stylist (New Street) Limited

Company Information

Director

Dr S Kumar

Company secretary

Dr S Kumar

Registered office

First Floor Unit B Burlington Court New Street Birmingham B2 4JD

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Smile Stylist (New Street) Limited

(Registration number: 07360850)
Balance Sheet as at 31 March 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	4	213,678	244,203
Tangible assets	5	49,931	71,471
		263,609	315,674
Current assets
Stocks		6,513	6,087
Debtors	6	283,010	165,178
Cash at bank and in hand		230,972	207,385
		520,495	378,650
Creditors: Amounts falling due within one year	7	(409,255)	(367,961)
Net current assets		111,240	10,689
Total assets less current liabilities		374,849	326,363
Creditors: Amounts falling due after more than one year	7	(108,522)	(157,288)
Net assets		266,327	169,075
Capital and reserves
Called up share capital		1	1
Profit and loss account		266,326	169,074
Shareholders' funds		266,327	169,075

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

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

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 8 December 2023
 

Dr S Kumar
Company secretary and director

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

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

The address of its registered office is:
First Floor
Unit B
Burlington Court
New Street
Birmingham
B2 4JD

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	Straight line over 5 years
Plant and machinery	25% reducing balance

Goodwill

Purchased goodwill is capitalised and written off in equal instalments over fifteen years. The director believes this is a reasonable estimate due to the location of the practice and its patient list.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of stock comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

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

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Share capital

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

Defined contribution pension obligation

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

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

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was as follows:

	2023  No.	2022  No.
Average number of employees	7	7

4

Intangible assets

	Goodwill  £	Total £
Cost
At 1 April 2022	457,878	457,878
At 31 March 2023	457,878	457,878
Amortisation
At 1 April 2022	213,675	213,675
Amortisation charge	30,525	30,525
At 31 March 2023	244,200	244,200
Carrying amount
At 31 March 2023	213,678	213,678
At 31 March 2022	244,203	244,203

5

Tangible assets

	Leasehold improvements £	Plant and machinery  £	Total £
Cost
At 1 April 2022	50,711	171,556	222,267
Additions	-	2,780	2,780
At 31 March 2023	50,711	174,336	225,047
Depreciation
At 1 April 2022	30,884	119,912	150,796
Charge for the year	10,142	14,178	24,320
At 31 March 2023	41,026	134,090	175,116
Carrying amount
At 31 March 2023	9,685	40,246	49,931
At 31 March 2022	19,827	51,644	71,471

6

Debtors

	Note	2023  £	2022  £
Amounts owed by related parties	9	270,678	165,178
Prepayments		12,332	-
		283,010	165,178

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

7

Creditors

Due within one year	Note	2023  £	2022  £
Trade creditors		9,490	11,073
Amounts due to related parties	9	114,196	114,196
Other creditors		42,081	52,650
Accrued expenses		6,507	6,195
Loans and borrowings	8	236,981	183,847
		409,255	367,961

	Note	2023 £	2022 £
Due after one year
Loans and borrowings	8	28,522	77,288
Other non-current financial liabilities		80,000	80,000
		108,522	157,288

8

Loans and borrowings

	2023 £	2022 £
Current loans and borrowings
Bank borrowings	35,947	36,847
Other borrowings	201,034	147,000
	236,981	183,847

	2023 £	2022 £
Non-current loans and borrowings
Bank borrowings	28,522	77,288

Smile Stylist (New Street) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

9

Related party transactions

Transactions with the director

During the year the company received amounts of £54,034 (2022 - £48,566) from the director of the company. These amounts are interest free and repayable on demand.

At the balance sheet date the amount due to the director of the commpany was £201,034 (2022 - £147,000).

Summary of transactions with associates

During the year the company paid £105,500 (2022 - £108,500) to companies under the common control of S Kumar, director of the company. At the balance sheet date the amount due from companies under common control was £156,482 (2022 - £50,982). These amounts are interest free and repayable on demand.