London Clock Holding Company Limited - Limited company accounts 23.2
London Clock Holding Company Limited - Limited company accounts 23.2
| REGISTERED NUMBER: 01718809 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
| FOR |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 31 March 2023 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 17 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| COMPANY INFORMATION |
| for the year ended 31 March 2023 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Registered Auditors |
| Linden House |
| Linden Close |
| Tunbridge Wells |
| Kent |
| TN4 8HH |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| GROUP STRATEGIC REPORT |
| for the year ended 31 March 2023 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
| REVIEW OF BUSINESS |
| The Group's principal activity is the distribution of giftware and housewares and it continues working closely with premier UK retail groups across its core product competencies. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In common with other designers and vendors to the premier UK retail groups, the Group operates in an environment which is extremely price sensitive. Accordingly, the Group constantly invests in producing original products at prices to deliver the desired margin requirements of their customers. |
| PERFORMANCE OF THE BUSINESS |
| Product innovation is an important part of the Group's operation. A high level of investment is maintained in originating and marketing new products and the brands. The Group's staff work closely with major retailers to satisfy consumer demand for innovative products that meet the highest standards of quality and value. |
| The directors are satisfied with the performance of the Group given the competitive trading environment. Turnover has decreased by 30.0% to £10.79m (2022: £15.42m) with gross profits decreasing to £4.93m (2022: £6.12m). The gross profit margin has increased to 45.7% in the current year compared to 39.7% in 2022. |
| POSITION OF THE BUSINESS |
| The Group remains in a healthy financial position with strong liquidity. At the year-end the Group has a cash position of £5.0m (2022: £5.6m) and net current assets of £4.3m (2022: £4.3m). The directors anticipate the challenging retail trading environment will continue for the foreseeable future and therefore consider it prudent to retain cash within the business. Cash may also be required to develop our warehouse to make it online efficient. |
| The trade debtor day ratio has increased in the current year to 13 days (2022: 8 days). The directors are satisfied with the position of the business. |
| LIKELY FUTURE DEVELOPMENTS IN THE BUSINESS OF THE COMPANY |
| The company has seen a slowdown in consumer spending due to the cost of living crisis which has also affected the major retailers. As a result, the turnover is expected to temporarily decrease over the next year as the retail market goes through a period of reconciliation until consumer confidence returns. During this period the company will continue to put a high level of investment into its ecommerce presence both domestically and internationally. |
| KEY PERFORMANCE INDICATORS |
| The directors consider the Key Performance Indicators of the business to be revenue and gross profit. Details of these are given in the performance of the business discussion above. |
| ON BEHALF OF THE BOARD: |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| REPORT OF THE DIRECTORS |
| for the year ended 31 March 2023 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
| DIVIDENDS |
| The directors proposed no dividends for the year ended 31 March 2023 (2022: £2,000,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
| Other changes in directors holding office are as follows: |
| GOING CONCERN |
| Although the company has experienced a slowdown in consumer spending, mainly due to the cost of living crisis, it continues to have a strong online presence picking up new retailers worldwide. It also has a strong position financially, owning the premises for which it operates, and no concerns regarding cashflow. The directors therefore conclude that it is appropriate to continue to apply the going concern basis for preparation. |
| FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
| The main financial risks arising from the Group's activities are price, credit, liquidity and exchange risks. The Group's policy in respect of price risk is set out in the strategic report on page 2 of this annual report. |
| The Group's policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made, and to take out credit insurance. |
| The Group's policy in respect of the liquidity risk is to maintain a readily accessible bank deposit account to ensure that the Group has sufficient funds for operation. The cash deposits are held in a mixture of short-term deposits and current accounts which earn interest at a floating rate. |
| The Group's policy in respect of exchange risk, which primarily exists as a result of foreign currency purchases, is to maintain sufficient cash reserves in the appropriate foreign currencies which can be used to meet foreign currency liabilities. Also the Group is actively generating sales in the currency in which purchases are made to reduce the currency risk and thus act as a natural hedge. |
| RESEARCH AND DEVELOPMENT ACTIVITIES |
| The group continues to invest in research and development of the Stackers website. In the current year, development charged as an expense which totalled £157,897 (2022: £194,034). |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| REPORT OF THE DIRECTORS |
| for the year ended 31 March 2023 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
| AUDITORS |
| The auditors, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| Opinion |
| We have audited the financial statements of London Clock Holding Company Limited (The) (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| 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: |
| We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant are: |
| - | The form and content of the financial statements, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006, |
| - | UK Employment Law and data protection, and |
| - | UK Corporate tax laws. |
| We gathered an understanding of how the entity is complying with the above frameworks by enquiring and observing management and those charged with governance, ensuring there is a culture of honesty with an emphasis on fraud prevention which may reduce opportunities for fraud to occur as well as acting as a deterrent. |
| We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment. |
| We designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error. |
| We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. |
| There are inherent limitations in the audit procedures described above, 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. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) |
| 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 |
| Registered Auditors |
| Linden House |
| Linden Close |
| Tunbridge Wells |
| Kent |
| TN4 8HH |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONSOLIDATED |
| INCOME STATEMENT |
| for the year ended 31 March 2023 |
| 31.3.23 | 31.3.22 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 3 | 10,786,243 | 15,417,130 |
| Cost of sales | 5,853,225 | 9,299,246 |
| GROSS PROFIT | 4,933,018 | 6,117,884 |
| Distribution costs | 313,410 | 346,425 |
| Administrative expenses | 4,642,686 | 5,741,004 |
| 4,956,096 | 6,087,429 |
| OPERATING (LOSS)/PROFIT | 6 | (23,078 | ) | 30,455 |
| Interest receivable and similar income | 27,441 | 267 |
| PROFIT BEFORE TAXATION | 4,363 | 30,722 |
| Tax on profit | 7 | 7,823 | (17,141 | ) |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
| (Loss)/profit attributable to: |
| Owners of the parent | (3,460 | ) | 47,863 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONSOLIDATED |
| OTHER COMPREHENSIVE INCOME |
| for the year ended 31 March 2023 |
| 31.3.23 | 31.3.22 |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE YEAR | (3,460 | ) | 47,863 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(3,460 |
) |
47,863 |
| Total comprehensive income attributable to: |
| Owners of the parent | (3,460 | ) | 47,863 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONSOLIDATED BALANCE SHEET |
| 31 March 2023 |
| 31.3.23 | 31.3.22 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 | 1,187,046 | 1,235,703 |
| Investments | 11 | - | - |
| 1,187,046 | 1,235,703 |
| CURRENT ASSETS |
| Stocks | 12 | 1,165,509 | 2,023,275 |
| Debtors | 13 | 414,576 | 380,980 |
| Cash at bank and in hand | 5,015,815 | 5,554,310 |
| 6,595,900 | 7,958,565 |
| CREDITORS |
| Amounts falling due within one year | 14 | 2,250,936 | 3,658,798 |
| NET CURRENT ASSETS | 4,344,964 | 4,299,767 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
5,532,010 |
5,535,470 |
| CAPITAL AND RESERVES |
| Called up share capital | 16 | 100,000 | 100,000 |
| Share premium | 17 | 200,000 | 200,000 |
| Capital redemption reserve | 17 | 693,900 | 693,900 |
| Retained earnings | 17 | 4,538,110 | 4,541,570 |
| SHAREHOLDERS' FUNDS | 5,532,010 | 5,535,470 |
| The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by: |
| A G Pestell - Director |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| COMPANY BALANCE SHEET |
| 31 March 2023 |
| 31.3.23 | 31.3.22 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Debtors | 13 |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Share premium | 17 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | - | 2,000,000 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the year ended 31 March 2023 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 April 2021 | 100,000 | 6,493,707 | 200,000 | 693,900 | 7,487,607 |
| Changes in equity |
| Total comprehensive income | - | 47,863 | - | - | 47,863 |
| Dividends | - | (2,000,000 | ) | - | - | (2,000,000 | ) |
| Balance at 31 March 2022 | 100,000 | 4,541,570 | 200,000 | 693,900 | 5,535,470 |
| Changes in equity |
| Total comprehensive income | - | (3,460 | ) | - | - | (3,460 | ) |
| Balance at 31 March 2023 | 100,000 | 4,538,110 | 200,000 | 693,900 | 5,532,010 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the year ended 31 March 2023 |
| Called up |
| share | Retained | Share | Total |
| capital | earnings | premium | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2021 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 March 2022 |
| Changes in equity |
| Balance at 31 March 2023 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 31 March 2023 |
| 31.3.23 | 31.3.22 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | (544,131 | ) | (506,266 | ) |
| Tax paid | (19,556 | ) | (12,025 | ) |
| Net cash from operating activities | (563,687 | ) | (518,291 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (2,249 | ) | (50,343 | ) |
| Sale of tangible fixed assets | - | 11,000 |
| Interest received | 27,441 | 267 |
| Net cash from investing activities | 25,192 | (39,076 | ) |
| Cash flows from financing activities |
| Equity dividends paid | - | (2,000,000 | ) |
| Net cash from financing activities | - | (2,000,000 | ) |
| Decrease in cash and cash equivalents | (538,495 | ) | (2,557,367 | ) |
| Cash and cash equivalents at beginning of year |
2 |
5,554,310 |
8,111,677 |
| Cash and cash equivalents at end of year | 2 | 5,015,815 | 5,554,310 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 31 March 2023 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Profit before taxation | 4,363 | 30,722 |
| Depreciation charges | 50,907 | 57,584 |
| Profit on disposal of fixed assets | - | (6,195 | ) |
| Finance income | (27,441 | ) | (267 | ) |
| 27,829 | 81,844 |
| Decrease/(increase) in stocks | 857,766 | (519,016 | ) |
| Increase in trade and other debtors | (39,831 | ) | (126,204 | ) |
| (Decrease)/increase in trade and other creditors | (1,389,895 | ) | 57,110 |
| Cash generated from operations | (544,131 | ) | (506,266 | ) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 March 2023 |
| 31.3.23 | 1.4.22 |
| £ | £ |
| Cash and cash equivalents | 5,015,815 | 5,554,310 |
| Year ended 31 March 2022 |
| 31.3.22 | 1.4.21 |
| £ | £ |
| Cash and cash equivalents | 5,554,310 | 8,111,677 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.4.22 | Cash flow | At 31.3.23 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 5,554,310 | (538,495 | ) | 5,015,815 |
| 5,554,310 | (538,495 | ) | 5,015,815 |
| Total | 5,554,310 | (538,495 | ) | 5,015,815 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 31 March 2023 |
| 1. | STATUTORY INFORMATION |
| London Clock Holding Company Limited (The) is a |
| The presentation and functional currency of the financial statements is the Pound Sterling (£). Amounts are rounded to the nearest Pound. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The consolidated financial statements incorporate the results of London Clock Holding Company Limited and all of its subsidiary undertakings ("the Group") as at 31 March 2023 using the acquisition method of accounting as if they formed a single entity. The results of subsidiary undertakings are included from the date of acquisition. |
| Associates |
| An entity is treated as an associate undertaking where the group has a participating interest and exercises significant influence over its operating and financial policy decisions. |
| In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the consolidated balance sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
| Sale of goods |
| Turnover from the sale of giftware and housewares is recognised when all of the following conditions are satisfied: |
| - | the company has transferred the significant risks and rewards of ownership to the buyer; |
| - | the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - | the amount of turnover can be measured reliably; |
| - | it is probable that the company will receive the consideration due under the transaction; and |
| - | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| Tangible fixed assets |
| Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. |
| Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases: |
| Freehold property | - | 2% on cost |
| Motor vehicles | - | 25% on reducing balance |
| Equipment, fixtures & fittings | - | 15% on reducing balance |
| The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit or loss. |
| Investments in subsidiaries |
| Investments in subsidiaries are measured at cost less accumulated impairment. |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a first in, first out basis. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the profit or loss. |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
| Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
| Financial assets that are measured at cost and 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 the statement of comprehensive income. |
| 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 of the recoverable amount, 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. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Going concern |
| Although the company has experienced a slowdown in consumer spending, mainly due to the cost of living crisis, it continues to have a strong online presence picking up new retailers worldwide. It also has a strong position financially, owning the premises for which it operates, and no concerns regarding cashflow. The directors therefore conclude that it is appropriate to continue to apply the going concern basis for preparation. |
| Interest income |
| Interest income is recognised in the profit and loss using the effective interest method. |
| Provisions for liabilities |
| Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the statement of financial position. |
| Judgements in applying accounting policies and key sources of estimation |
| In preparing these financial statements, the directors have made the following judgements: |
| - | Determine the recoverability of trade receivables via regular review in the light of available economic information specific to each receivable with specific provisions recognised for balances considered to be irrecoverable. |
| - | Stock is valued at lower of cost and net realisable value. Management apply judgement in estimating the net realisable value for each product line, which includes assessing the lifecycle of the product, sell through date and price achieved. Estimates are revised as latest information is available. |
| - | Provisions are liabilities of uncertain timing or amount and therefore in making a reliable estimate of the quantum and timing liabilities, judgement is applied and re-evaluated at each reporting date to ensure that the assumptions applied remain appropriate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 31.3.23 | 31.3.22 |
| £ | £ |
| United Kingdom | 6,823,156 | 6,732,012 |
| Europe | 837,630 | 1,451,213 |
| Rest of world | 3,125,457 | 7,233,905 |
| 10,786,243 | 15,417,130 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 3. | TURNOVER - continued |
| Turnover is wholly attributable to the principle activity of the group. |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Wages and salaries | 3,135,026 | 4,158,304 |
| Social security costs | 352,017 | 529,474 |
| Other pension costs | 93,328 | 100,454 |
| 3,580,371 | 4,788,232 |
| The average number of employees during the year was as follows: |
| 31.3.23 | 31.3.22 |
| Office and management | 30 | 30 |
| Manufacturing and distribution | 12 | 13 |
| The company has no employees other than the directors (2022: 0). The directors received no remuneration via the company (2022: £nil) |
| 5. | DIRECTORS' REMUNERATION |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Directors' remuneration | 1,474,408 | 2,637,796 |
| Directors' pension contributions to money purchase schemes | 4,658 | 4,500 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 1 | 1 |
| The highest paid director received remuneration of £758,070 (2022: £1,507,800). |
| 6. | OPERATING (LOSS)/PROFIT |
| The operating loss (2022 - operating profit) is stated after charging/(crediting): |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Depreciation - owned assets | 50,906 | 57,584 |
| Profit on disposal of fixed assets | - | (6,195 | ) |
| Foreign exchange differences | (17,178 | ) | (46,904 | ) |
| Website development costs | 157,897 | 194,034 |
| Auditors' remuneration | 18,600 | 14,325 |
| Defined contribution pension cost | 93,328 | 100,454 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 7. | TAXATION |
| Analysis of the tax charge/(credit) |
| The tax charge/(credit) on the profit for the year was as follows: |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Current tax: |
| UK corporation tax | 1,589 | 19,556 |
| Deferred tax | 6,234 | (36,697 | ) |
| Tax on profit | 7,823 | (17,141 | ) |
| UK corporation tax has been charged at 19 % (2022 - 19 %). |
| Reconciliation of total tax charge/(credit) included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Profit before tax | 4,363 | 30,722 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
829 |
5,837 |
| Effects of: |
| Expenses not deductible for tax purposes | 5,409 | 5,035 |
| Adjustments to tax charge in respect of previous periods | 1,713 | (27,751 | ) |
| Enhanced capital allowances | (128 | ) | (262 | ) |
| Total tax charge/(credit) | 7,823 | (17,141 | ) |
| Factors that may affect future tax charges |
| An increase in the UK Corporation tax rate from 19% to 25% (effective from 1 April 2023) has been substantively enacted. This will impact the company's future tax charge accordingly. |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 9. | DIVIDENDS |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim | - | 2,000,000 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Equipment, |
| Freehold | fixtures | Motor |
| property | & fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2022 | 1,651,077 | 550,833 | 140,264 | 2,342,174 |
| Additions | - | 2,249 | - | 2,249 |
| At 31 March 2023 | 1,651,077 | 553,082 | 140,264 | 2,344,423 |
| DEPRECIATION |
| At 1 April 2022 | 550,436 | 476,258 | 79,777 | 1,106,471 |
| Charge for year | 24,262 | 11,523 | 15,121 | 50,906 |
| At 31 March 2023 | 574,698 | 487,781 | 94,898 | 1,157,377 |
| NET BOOK VALUE |
| At 31 March 2023 | 1,076,379 | 65,301 | 45,366 | 1,187,046 |
| At 31 March 2022 | 1,100,641 | 74,575 | 60,487 | 1,235,703 |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 April 2022 |
| and 31 March 2023 |
| PROVISIONS |
| At 1 April 2022 |
| and 31 March 2023 | 806 |
| NET BOOK VALUE |
| At 31 March 2023 |
| At 31 March 2022 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 11. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| LC Designs Co. Limited |
| Registered office: London House, Sheldon Way, Larkfield, Aylesford, Kent, ME20 6SE |
| Nature of business: Import and wholesale |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Ordinary 'A' | 100.00 |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Aggregate capital and reserves | 4,784,927 | 4,788,387 |
| (Loss)/profit for the year | (3,460 | ) | 47,863 |
| London Watch Company Limited |
| Registered office: London House, Sheldon Way, Larkfield, Aylesford, Kent, ME20 6SE |
| Nature of business: Dormant |
| % |
| Class of shares: | holding |
| Ordinary | 99.00 |
| Ordinary 'A' | 100.00 |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Aggregate capital and reserves | 6,000 | 6,000 |
| London Clock Company Limited |
| Registered office: London House, Sheldon Way, Larkfield, Aylesford, Kent, ME20 6SE |
| Nature of business: Dormant |
| % |
| Class of shares: | holding |
| Ordinary | 99.00 |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Aggregate capital and reserves | 100 | 100 |
| 12. | STOCKS |
| Group |
| 31.3.23 | 31.3.22 |
| £ | £ |
| Stocks | 1,165,509 | 2,023,275 |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
| £ | £ | £ | £ |
| Trade debtors | 394,995 | 355,916 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 8,000 | 8,000 |
| Deferred tax asset | 4,925 | 11,159 | - | - |
| Prepayments and accrued income | 6,656 | 5,905 |
| 414,576 | 380,980 |
| Deferred tax asset |
| Group | Company |
| 31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
| £ | £ | £ | £ |
| Deferred tax | 4,925 | 11,159 | - | - |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
| £ | £ | £ | £ |
| Trade creditors | 47,416 | 98,189 |
| Amounts owed to group undertakings | - | - |
| Corporation tax | 1,589 | 19,556 |
| Social security and other taxes | 278,015 | 426,230 |
| VAT | 34,252 | 49,732 | - | - |
| Accruals and deferred income | 1,889,664 | 3,065,091 |
| 2,250,936 | 3,658,798 |
| Included within accruals and deferred income are provisions for guarantees of £149,389 (2022: £182,924). |
| 15. | DEFERRED TAX |
| Group |
| £ |
| Balance at 1 April 2022 | (11,159 | ) |
| Provided during year | 6,234 |
| Balance at 31 March 2023 | (4,925 | ) |
| Deferred tax has been calculated using the applicable rate when the liability/(asset) is expected to be realised. The applicable tax rate applied at the balance sheet date is 19% (2022: 19%). |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
| value: | £ | £ |
| Ordinary | £1 | 100,000 | 100,000 |
| Both types of share have attached to them full voting, dividend and capital distribution rights. They do not |
| confer any rights of redemption. |
| 17. | RESERVES |
| Group |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 April 2022 | 4,541,570 | 200,000 | 693,900 | 5,435,470 |
| Deficit for the year | (3,460 | ) | (3,460 | ) |
| At 31 March 2023 | 4,538,110 | 200,000 | 693,900 | 5,432,010 |
| Company |
| Retained | Share |
| earnings | premium | Totals |
| £ | £ | £ |
| At 1 April 2022 | 1,085,112 |
| Profit for the year |
| At 31 March 2023 | 1,085,112 |
| 18. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme though its subsidiary, LC Designs Co Limited. The assets of the schemes are held separately from those of the group in an independently administered fund. The pension charge amounted to £93,328 (2022: £100,454). There were no outstanding or prepaid contributions at either the beginning or end of the financial year. |
| 19. | ULTIMATE CONTROLLING PARTY |
| In the opinion of the directors there is no ultimate controlling party. |
| LONDON CLOCK HOLDING COMPANY LIMITED |
| (THE) (REGISTERED NUMBER: 01718809) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2023 |
| 20. | GUARANTEES AND OTHER FINANCIAL COMMITMENTS |
| At 31 March 2023, the Group had a deferred duty guarantee of £100,000 (2022: £100,000). |
| The Group's bankers hold a fixed and floating charge to secure the Group's facilities under deferred duty |
| guarantees. |
| The company has entered into a multilateral guarantee between itself and the other members of the Group to |
| set-off their debts. |