Clive Christian Perfume Limited - Limited company accounts 23.2

REGISTERED NUMBER: 03538453

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 30 June 2023

for

CLIVE CHRISTIAN PERFUME LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTOR:

C Pace

REGISTERED OFFICE:

32 Brook Street

London

W1K 5DH

REGISTERED NUMBER:

03538453

AUDITORS:

Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

Introduction

The directors present their strategic report on the company for the period ended 30 June 2023.

BUSINESS REVIEW

Clive Christian Perfume Limited is a purveyor of luxury perfumes, which it sells globally through wholesale, retail and

distribution channels.

The management has chosen to support the growth of the brand awareness with balanced investments in marketing consistent with the sales volume. The company achieved a turnover of £10.9 m and a profit of £1.86 m.

During this year Clive Christian has expanded in the following new territories:

Europe

Malta

Asia

Maldives

Bangladesh

Africa

Kenya

Congo

Middle East:

Bahrain

Americas

Jamaica

Argentina

On the Financial Statement Position, the year closed with a positive cash balance of £589,037 without any other cash injections required from its ultimate parent company, Nichebox SRL.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company continues to operate within specific policies, agreed by the board, to control and monitor risks within the group.

The management has implemented the necessary operational flexibility to ensure the company will navigate through any potential downsides.

Currency

The company involves certain sales in foreign currencies and is therefore exposed to the risk of an adverse change in exchange rates. The situation is constantly being monitored to limit the exposure to a minimum.

Raw material price inflation

The company relies on certainty of supply and pricing of its raw materials. As such it endeavours to maintain more than one supplier of critical materials to minimise the risk of an unexpected price increase or the inability of a supplier to provide material of a sufficient quality when required.

Intellectual property infringement

The board is very aware of the need to protect the brand for which the company is famous. In order to do this, it actively pursues a policy of trademark registration and monitoring service to rigorously defends any threat whenever arise.

War in Ukraine

The ongoing war in Ukraine is impacting on the world economy as costs are rising due to higher energy and oil costs,leading inflation to be the biggest issue facing most economies. The company and group are closely monitoring their costs and are constantly looking at efficiency savings to mitigate any cost rises caused through inflation as a result of the ongoing conflict.

Cashflow and liquidity

As with most companies, cashflow is a major focus for the company and the directors. Management of cashflow, working capital and profitability are monitored closely by the board through monthly board meetings. Since 2020 Clive Christian has being able to self-finance through accurate cash flow monitoring and control and has closed the Fiscal Year with positive cash balances of £589,037.

Environment

The company takes its environmental obligations seriously and wherever possible action is taken to minimise any

deleterious effect that its activities may cause. The raw materials are sourced from sustainable managed supplies and waste from the manufacturing process and office consumables are reused and recycles as much as practicable.

Employment

The company is aware of its obligations as an employer with regards to equal opportunities and health and safety. It is also aware that staff development benefits both the group and the employee and actively encourages training where necessary.

Financial key performance indicators

KPIs of the company are:

Number of 'retail outlets':

2023: 475

2022: 407

Gross profit margin

2023: 64.37%

2022:63.8%

The Perfume Division sells largely to retail partners across the world, ranging from small independents to large department store chains, as well as specialist distributors in certain key markets who manage the relationship with local retailers. In total the fragrances were sold in 475 outlets in 2023 (407 outlets in 2022). Next year the company will focus on reinforcing its partnerships, the performance of the existing partners, investment in new digital platforms, and expansion into new territories and seeking new opportunities.

Gross profit margin is defined by the company as sales less cost of the goods sold and all other costs directly related to the sale of those goods, including logistics, retail staff, and direct marketing. Going forward into 2023-2024 management expect to see a further increase in brand awareness as the newly entered markets drive sales growth whilst, despite the current geopolitical issues, the company aims to improve efficiencies and cost savings.

The revenue in each geographic region is monitored and disclosed in note 4.

ON BEHALF OF THE BOARD:

C Pace - Director

28 March 2024

The director presents his report with the financial statements of the company for the year ended 30 June 2023.

DIVIDENDS

The profit for the year, after taxation, amounted to £ 1,866,362 (2022 - £1,286,208).

The directors do not recommend the payment of a dividend (2022: £Nil).

DIRECTOR

The Director who served during the year was:

Consolato Pace

DIRECTOR'S RESPONSIBILITIES STATEMENT

The Director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in

accordance with applicable law and regulations.

Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Director is required to:

• select suitable accounting policies for the Company's financial statements and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company

will continue in business.

The Director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Future developments

The focus for 2023-2024 is to improve the profitability of the group company, strengthening partnerships and its

performance with current distributors and retail partners focusing on key Regions (US and Middle East); expanding into white space territories in Asia, Africa, Latin America and Canada; reviewing and changing partners and business models where needed in mature markets (UK & Germany); building a new digital platform (website and ecommerce); improvements in gross margin through savings in components, production costs and warehousing and logistics; continue building a cohesive brand presence and communications, evolving with the actual times.

DISCLOSURE OF INFORMATION TO AUDITORS

The Director at the time when this Director's Report is approved has confirmed that:

• so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

• he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit

information and to establish that the Company's auditors are aware of that information.

AUDITORS

Belluzzo Audit Limited were appointed auditors during the year. Belluzzo Audit Limited, will be proposed for reappointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Pace - Director

28 March 2024

Opinion

We have audited the financial statements of Clive Christian Perfume Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting correspondence with local tax authorities.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. In respect of management override, audit procedures performed included but were not limited to testing journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. In respect of revenue recognition, audit procedures performed included but were not limited to tests of control and tests of detail over revenue, and reviewing transactions around the year end to ensure they were recognised in the correct accounting period.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tony Castagnetti (Senior Statutory Auditor)

for and on behalf of Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

28 March 2024

TURNOVER

4

10,828,604

7,822,926

Cost of sales

3,858,019

2,829,445

GROSS PROFIT

6,970,585

4,993,481

Administrative expenses

4,688,235

3,929,146

2,282,350

1,064,335

Other operating income

50,695

186,083

OPERATING PROFIT and

PROFIT BEFORE TAXATION

2,333,045

1,250,418

Tax on profit

8

466,683

(35,790

)

PROFIT FOR THE FINANCIAL YEAR

1,866,362

1,286,208

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,866,362

1,286,208

FIXED ASSETS

Intangible assets

9

91,021

51,281

Tangible assets

10

581,592

546,763

Investments

11

1

1

672,614

598,045

CURRENT ASSETS

Stocks

12

2,744,111

3,185,606

Debtors: amounts falling due within one year

13

7,824,904

6,269,609

Debtors: amounts falling due after more than one year

13

59,598

-

Cash at bank

589,037

1,132,304

11,217,650

10,587,519

CREDITORS

Amounts falling due within one year

14

5,287,109

6,194,404

NET CURRENT ASSETS

5,930,541

4,393,115

TOTAL ASSETS LESS CURRENT LIABILITIES

6,603,155

4,991,160

CREDITORS

Amounts falling due after more than one year

15

(135,417

)

(250,000

)

PROVISIONS FOR LIABILITIES

18

(149,125

)

(288,909

)

NET ASSETS

6,318,613

4,452,251

CAPITAL AND RESERVES

Called up share capital

19

7,547,358

7,547,358

Retained earnings

20

(1,228,745

)

(3,095,107

)

SHAREHOLDERS' FUNDS

6,318,613

4,452,251

The financial statements were approved by the director and authorised for issue on 28 March 2024 and were signed by:

C Pace - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2021

7,547,358

(4,381,315

)

3,166,043

Changes in equity

Total comprehensive income

-

1,286,208

1,286,208

Balance at 30 June 2022

7,547,358

(3,095,107

)

4,452,251

Changes in equity

Total comprehensive income

-

1,866,362

1,866,362

Balance at 30 June 2023

7,547,358

(1,228,745

)

6,318,613

1.	GENERAL INFORMATION

Clive Christian Perfume Limited is a private company, limited by shares, incorporated in England & Wales under the Companies Act 2006. The registered office is stated on the company information page. The nature of the company's operations and its principal activities is that of a wholesaler, retailer and distributor of luxury perfumes.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical

accounting estimates. It also requires management to exercise judgement in applying the Company's

accounting policies (see note 3).

The following principal accounting policies have been applied:

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

• the requirements of Section 7 Statement of Cash Flows;

• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Nichebox S.R.L as at 30 June 2023 and the address of their registered office is Via Turati Filippo, 29, 20121, Italy.

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.

Revenue

Revenue represents the value, net of value added tax and discounts, of goods provided to customers. Revenue is recognised at the point where risks and rewards transfer to the customer, which is at the point of sale for retail stores, for website sales and some wholesale sales revenue is recognised when the goods are received by the customer

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

The estimated useful lives range as follows:

Computer software & trademark - 10 years

Management have deemed that 10 years is a reliable estimate of the useful ife as this is the period that they

expect to receive benefits from the trademark and website.

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property - 20% per annum straight line

Plant and machinery - 10% - 20% per annum straight line

Fixtures and fittings - 20% per annum straight line

Heritage assets - 1% per annum straight line

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 profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to

complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and

finished goods include labour and attributable overheads.

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 complete and sell. The impairment loss is recognised immediately in

profit or loss.

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.

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.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position

when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the 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 currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Hire purchase and leasing commitments

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line

basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's

benefit from the use of the leased asset.

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the Company pays fixed contributions into a separate entity. Once the contributions have

been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are

shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held

separately from the Company in independently administered funds.

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 reporting 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.

Group accounts

The financial statements contain information about Clive Christian Perfume Limited as an individual company

and do not contain consolidated financial information as the parent of a group. The company has taken

advantage of the exemption conferred by section 401 of the Companies Act 2006 not to produce consolidated financial statements as it is included in group accounts of a larger group headed by Nichebox S.R.L., a company incorporated in Italy. Copies of the consolidated financial statements of Nichebox S.R.L are available from Via Turati Filippo, 29, 20121, Italy.

Going concern

The directors have at the time of approving the financial statements a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The directors have undertaken the actions forecasted in the strategic business plans aimed at reducing

structural costs and increasing profitability. At the same time, the company has continued to invest in the

growth of the brand opening new markets and partnerships with new distributors. The actions put in place and the positive performance of the business already allow the company not to depend on the financial support of the ultimate parent company.

The directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

3.	JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION

In preparing these financial statements, the Directors have had to make the following judgements:

Impairment of tangible and intangible fixed assets (see note 9 and 10)

Determine whether there are indicators of impairment of the Company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty

Stock provisioning (see note 12)

Stock is carried in the statement of financial position at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock. The director has used his knowledge and experience of the industry to determine the level of provisioning required based on the ageing profile of stock.

Recoverability of amounts due from group undertakings (see note 13)

Provision for impairment of the carrying value of amounts due from group undertakings is made based on

management's estimate of the prospect of recovering the amounts due, which includes considering the solvency of the counterparty and its future outlook, based on budgets and forecasts prepared by management.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

995,633

624,373

Europe

1,873,134

2,205,766

Rest of the world

7,959,837

4,992,787

10,828,604

7,822,926

All revenue is attributable to fragrance production and wholesale.

5.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

33,877

126,561

Social security costs

3,901

12,771

Other pension costs

1,693

3,051

39,471

142,383

The average number of employees during the year was as follows:

2023

2022

Administrative

1

1

2023

2022

£

£

Director's remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Hire of plant and machinery

7,057

5,032

Other operating leases

203,400

212,210

Depreciation - owned assets

118,087

154,703

Loss on disposal of fixed assets

34,340

-

Computer software amortisation

11,968

15,894

Auditors' remuneration

21,650

20,950

Foreign exchange differences

212,932

101,210

7.	EXCEPTIONAL ITEMS

2023

2022

£

£

Legal fee

-

131,113

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2023

2022

£

£

Current tax:

Corporation tax

433,060

51,445

Prior year adjustment

33,623

-

Total current tax

466,683

51,445

Deferred tax

-

(87,235

)

Tax on profit

466,683

(35,790

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Profit before tax

2,333,045

1,250,418

Profit multiplied by the standard rate of corporation tax in the UK of 20.500% (2022 - 19%)

478,274

237,579

Effects of:

Capital allowances in excess of depreciation

-

(60,501

)

Utilisation of tax losses

-

(125,633

)

Adjustments to tax charge in respect of previous periods

33,624

(87,235

)

Other differences leading to an increase (decrease) in the tax charge

(45,215

)

-

Total tax charge/(credit)

466,683

(35,790

)

9.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 July 2022

640,366

Additions

61,882

Disposals

(598,236

)

Exchange differences

(595

)

At 30 June 2023

103,417

AMORTISATION

At 1 July 2022

589,085

Amortisation for year

11,968

Eliminated on disposal

(588,657

)

At 30 June 2023

12,396

NET BOOK VALUE

At 30 June 2023

91,021

At 30 June 2022

51,281

10.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST

At 1 July 2022

-

1,292,060

242,630

1,534,690

Additions

68,360

118,463

20,133

206,956

Disposals

-

(586,164

)

(230,142

)

(816,306

)

Exchange differences

-

(35,348

)

(6

)

(35,354

)

At 30 June 2023

68,360

789,011

32,615

889,986

DEPRECIATION

At 1 July 2022

-

753,246

234,681

987,927

Charge for year

-

115,348

2,739

118,087

Eliminated on disposal

-

(563,999

)

(227,547

)

(791,546

)

Exchange differences

-

(6,074

)

-

(6,074

)

At 30 June 2023

-

298,521

9,873

308,394

NET BOOK VALUE

At 30 June 2023

68,360

490,490

22,742

581,592

At 30 June 2022

-

538,814

7,949

546,763