Candelia Retailing UK Ltd - Period Ending 2023-12-31

Candelia Retailing UK Ltd

(Registration number: 10418707)
Balance Sheet as at 31 December 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	8	20,560	18,996
Current assets
Stock	9	89,515	83,260
Debtors	10	111,844	111,571
Cash at bank and in hand		93,517	28,950
		294,876	223,781
Creditors: Amounts falling due within one year	11	(564,197)	(522,645)
Net current liabilities		(269,321)	(298,864)
Net liabilities		(248,761)	(279,868)
Capital and reserves
Called up share capital		1,000	1,000
Retained earnings		(249,761)	(280,868)
Shareholders' deficit		(248,761)	(279,868)

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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 18 March 2024 and signed on its behalf by:
 

.........................................

@Gemba Srl
Director

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 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:
114 St Martin's Lane
Covent Garden
London
WC2N 4BE

Principal activity

The principal activity of the Company is that of retail sale of household goods.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

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

Going concern

The company is dependent on the support of its parent company to continue as a going concern. Confirmation of this support has been provided and the director considers it appropriate to prepare the accounts on a going concern basis.

Should the support not continue, adjustments would have to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities that may arise and to reclassify long term liabilities as current liabilities.

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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.

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position 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.

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Long leasehold property	10% straight line
Fixtures & Fittings	10% straight line, 20% straight line and 33% straight line
Office equipment	25% straight line and 33% straight line

Stock

Stock is 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.

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 non-puttable 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 profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Creditors

Basic financial liabilities, including trade and other creditors, loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 subsequently measured at amortised cost using the effective interest method.

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.

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.

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

3	Significant judgements and estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Directors' opinion there are no significant judgements or key sources of estimation uncertainty.

4	Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 18 March 2024 was David Wheeler, who signed for and on behalf of Bourner Bullock.

5	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2022 - 5).

6	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2023 £	2022 £
Management charges receivable	111,600	111,600

7

Taxation

Tax charged/(credited) in the profit and loss account

	2023 £	2022 £
Deferred taxation
Arising from origination and reversal of timing differences	8,364	(53,514)

Deferred tax

Deferred tax assets and liabilities

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

2023	Asset £	Liability £
Accelerated capital allowances	-	(3,906)
Pension	47	-
Tax losses carry-forwards	49,009	-
	49,056	(3,906)

2022	Asset £	Liability £
Accelerated capital allowances	-	(2,745)
Pension	45	-
Tax losses carry-forwards	56,214	-
	56,259	(2,745)

8	Tangible assets

	Leasehold Improvements £	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2023	14,651	60,012	74,663
Additions	-	6,521	6,521
At 31 December 2023	14,651	66,533	81,184
Depreciation
At 1 January 2023	4,678	50,989	55,667
Charge for the year	1,465	3,492	4,957
At 31 December 2023	6,143	54,481	60,624
Carrying amount
At 31 December 2023	8,508	12,052	20,560
At 31 December 2022	9,973	9,023	18,996

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Stock

	2023 £	2022 £
Stock	89,515	83,260

10

Debtors

	2023 £	2022 £
Prepayments	19,817	20,931
Other debtors	92,027	90,640
	111,844	111,571

11

Creditors

Creditors: amounts falling due within one year

	Note	2023 £	2022 £
Due within one year
Trade creditors		2,480	6,194
Amounts owed to group undertakings	14	514,643	474,515
Taxation and social security		16,634	17,271
Other creditors		30,440	24,665
		564,197	522,645

12

Dividends

There were no dividends paid or proposed in either the current year or the previous year.

Candelia Retailing UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

13	Operating leases

The total of future minimum lease payments is as follows:

	2023  £	2022  £
Not later than one year	75,000	73,750
Later than one year and not later than five years	-	75,000
	75,000	148,750

14	Parent and ultimate parent undertaking

The company's immediate parent is Baobab Collection SA, incorporated in Belgium. The company's ultimate parent is Decoscent SA.

The parent of the smallest and largest group in which these financial statements are consolidated is Baobab Collection SA. These financial statements are available upon request from 5 Avenue Eiffel, Warve 1300, Belgium.