Revital Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02570370

REVITAL LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

R S Vora

Mrs N Vora

R R Vora

SECRETARY:

Mrs N Vora

REGISTERED OFFICE:

71-75 Shelton Street

London

WC2H 9JQ

REGISTERED NUMBER:

02570370

AUDITORS:

Albury Associates Limited

Chartered Accountants

Statutory Auditors

79 College Road

Harrow

HA1 1BD

The directors present their strategic report for the year ended 30 April 2018.

PRINCIPAL ACTIVITY

The principal activity of the company during the year was the retailing of health foods, food supplements and other

related products through stores, mail-order and Internet trading.

REVIEW OF BUSINESS

Overall the results for the year and the financial position at the year-end were considered satisfactory by the directors

and they anticipate the business to grow in the forthcoming year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk and uncertainties facing the business relate to the general uncertainty as to the level of economic

activity going forward, competition, slowdown of wage growth and the immense risk on customer confidence from Brexit

meaning that there is no easing of pressure on consumers.

However, the retail value of the health and wellness market in the UK annually has grown from 22.6 billion euro in 2013

to over 26 billion euro in 2018 (source: The Statistics Portal). The directors remain confident and will continue to

proactively look to expand both the online and store channels either from organic and inorganic growth. The directors

continue to monitor the existing store base to ensure that they achieve the desired level of sales and profitability, and if

this is not the case then they ensure that remedial action is taken.

The company raises funds to finance operations using financial instruments comprising bank balances, bank, short term

loans, leasing agreements and trade creditors.

The financial risks to the company are managed using the financial instruments above, on which, due to their nature,

there is no exposure to price risk. The company does not pursue transactions in which hedge accounting is used.

The company makes use of a bank overdraft facility to assist in the growth of the business and the directors continually

review the liquidity risk in respect of the bank balances. Bank loans and other loans in the company are assessed as

part of the management of credit and cash flow risks.

Sales through both store outlets and online are collected at the point of sale and this minimises the cash flow and

business risk.

CREDITOR PAYMENT POLICY

The company's current policy concerning the payment of trade creditors is to:

- Settle the terms of payment with suppliers when agreeing the terms of each transaction;

- Ensure that the suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts;

- Pay in accordance with the company's contractual and other legal obligations.

DEVELOPMENT AND PERFORMANCE

The financial performance for the year show that the company achieved a turnover of £13,354,861 (2017: £12,015,496),

and a loss before taxation of £1,138,913 (2017: Profit £392,769). During the year, the company reported extraordinary

and exceptional costs in relation to the change in the group structure amounting to £351,880. Excluding these costs,

loss before taxation would have been £787,033 (2017: Profit £392,769).

On 27 December 2017, the directors, who were the only shareholders of the company, Reorganised the group structure,

that led to the creation of a holding company Revital Holdings Limited, following which additional directors and investors

were introduced to the group. This move will assist in the expansion of the company's business.

During the period four new stores were opened and a number of stores were been refurbished and this was financed

mainly through finance and operating leases. In this respect, the cash flows of capital and interest repayments are

managed through the forecasted sales growth resulting from the store expansions.

In addition to these exceptional costs, the business opened four new stores substantially increased the fixed costs base

for the business.

FINANCIAL KEY INDICATORS

The financial key indicators for the year ended 30 April 2018 are as follows:

2018

2017

£

£

Turnover

13,354,861

12,015,496

Gross Profit

5,451,078

5,184,770

Average Number of Store Outlets

18

15

Gross Profit has increased year-on-year by 5.1% to £5,451,078. Gross Profit margins have decreased to 40.8%, driven

largely by increased mix of our online business sales.

The company also monitors other key indicators such as site visits, orders, average order value and average selling

price on a regular basis.

FUTURE DEVELOPMENTS

The directors believe that there is considerable scope for the development of the existing activities of the company. The

directors will continue to look for potential new stores, as well as maximising and finding ways to improve returns from

existing outlets.

ON BEHALF OF THE BOARD:

R S Vora - Director

31 January 2019

The directors present their report with the financial statements of the company for the year ended 30 April 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the retailing of health foods, food supplements

and other related products through stores, mail-order and Internet trading.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2018.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2017 to the date of this report.

R S Vora

Mrs N Vora

R R Vora

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

AUDITORS

The auditors, Albury Associates Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

R S Vora - Director

31 January 2019

Opinion

We have audited the financial statements of Revital Limited (the 'company') for the year ended 30 April 2018 which

comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow

Statement and Notes to the 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 company's affairs as at 30 April 2018 and of its 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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, 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.

Opinion 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 Directors 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 Directors 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 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the 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 company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

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.

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.

Kiran Patel BA FCA (Senior Statutory Auditor)

For and on behalf of Albury Associates Limited

Chartered Accountants

Statutory Auditors

79 College Road

Harrow

HA1 1BD

31 January 2019

TURNOVER

13,354,861

12,015,496

Cost of sales

7,903,783

6,830,726

GROSS PROFIT

5,451,078

5,184,770

Administrative expenses

6,183,586

4,772,694

(732,508

)

412,076

Other operating income

33,120

40,973

OPERATING (LOSS)/PROFIT

4

(699,388

)

453,049

Cost of fundamental reorg

5

351,880

-

(1,051,268

)

453,049

Interest payable and similar expenses

6

87,645

60,280

(LOSS)/PROFIT BEFORE TAXATION

(1,138,913

)

392,769

Tax on (loss)/profit

7

(137,525

)

144,423

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,001,388

)

248,346

OTHER COMPREHENSIVE LOSS

Merger Reserve Adjustment

(1,625,196

)

-

Income tax relating to other comprehensive loss

-

-

OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX

(1,625,196

)

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(2,626,584

)

248,346

FIXED ASSETS

Intangible assets

8

1,079

43,648

Tangible assets

9

737,020

2,207,731

Investments

10

-

100

738,099

2,251,479

CURRENT ASSETS

Stocks

11

1,804,274

1,894,286

Debtors

12

808,641

429,760

Investments

13

-

1,011,092

Cash at bank and in hand

1,736,910

149,307

4,349,825

3,484,445

CREDITORS

Amounts falling due within one year

14

2,804,294

2,428,221

NET CURRENT ASSETS

1,545,531

1,056,224

TOTAL ASSETS LESS CURRENT LIABILITIES

2,283,630

3,307,703

CREDITORS

Amounts falling due after more than one year

15

2,737,663

1,135,152

NET (LIABILITIES)/ASSETS

(454,033

)

2,172,551

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,000

Retained earnings

19

(504,033

)

2,122,551

SHAREHOLDERS' FUNDS

(454,033

)

2,172,551

The financial statements were approved by the Board of Directors on 31 January 2019 and were signed on its behalf by:

R S Vora - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2016

50,000

1,874,205

1,924,205

Changes in equity

Total comprehensive income

-

248,346

248,346

Balance at 30 April 2017

50,000

2,122,551

2,172,551

Changes in equity

Total comprehensive loss

-

(2,626,584

)

(2,626,584

)

Balance at 30 April 2018

50,000

(504,033

)

(454,033

)

Cash flows from operating activities

Cash generated from operations

1

(213,391

)

853,367

Interest element of hire purchase payments paid

(27,810

)

(21,760

)

Tax paid

(75,709

)

-

Net cash from operating activities

(316,910

)

831,607

Cash flows from investing activities

Purchase of intangible fixed assets

(75,000

)

-

Purchase of tangible fixed assets

(643,113

)

(482,091

)

Sale of tangible fixed assets

197,387

-

Sale of fixed asset investments

1,011,192

-

Net cash from investing activities

490,466

(482,091

)

Cash flows from financing activities

New loans in year

2,500,000

194,045

Loan repayments in year

(1,271,135

)

(143,568

)

Interest paid

(59,835

)

(38,520

)

Capital repayments in year

200,437

(114,231

)

Amount withdrawn by directors

(18,104

)

(75,597

)

Net cash from financing activities

1,351,363

(177,871

)

Increase in cash and cash equivalents

1,524,919

171,645

Cash and cash equivalents at beginning of year

2

138,316

(33,329

)

Cash and cash equivalents at end of year

2

1,663,235

138,316

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

(Loss)/profit before taxation

(1,138,913

)

392,769

Depreciation charges

408,811

319,594

Finance costs

87,645

60,280

(642,457

)

772,643

Decrease/(increase) in stocks

90,012

(293,700

)

(Increase)/decrease in trade and other debtors

(315,243

)

877,162

Increase/(decrease) in trade and other creditors

654,297

(502,738

)

Cash generated from operations

(213,391

)

853,367

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 30 April 2018

30/4/18

1/5/17

£

£

Cash and cash equivalents

1,736,910

149,307

Bank overdrafts

(73,675

)

(10,991

)

1,663,235

138,316

Year ended 30 April 2017

30/4/17

1/5/16

£

£

Cash and cash equivalents

149,307

18,865

Bank overdrafts

(10,991

)

(52,194

)

138,316

(33,329

)

1.	STATUTORY INFORMATION

Revital Limited is a private company, limited by shares , registered in Not specified/Other. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Revenue is recognised at the point of sale at each outlet,

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017 has been written off

fully in the year of acquisition.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

in accordance with the property

Short leasehold

-

in accordance with the property

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks valued at the lower of cost or net realisable value, after making due allowance for obsolete and

slow-moving items.

Net realisable value is assessed on the basis of the manufacturers recommended retail price adjusted for any

shelflife of variations.

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 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

2,669,696

2,093,049

Social security costs

209,598

163,369

Other pension costs

17,202

28,353

2,896,496

2,284,771

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

2018

2017

SAles

124

109

Administration

11

9

135

118

2018

2017

£

£

Directors' remuneration

188,332

-

4.	OPERATING (LOSS)/PROFIT

The operating loss (2017 - operating profit) is stated after charging:

2018

2017

£

£

Other operating leases

1,166,812

809,502

Depreciation - owned assets

291,242

274,920

Goodwill amortisation

114,445

41,550

Patents and licences amortisation

3,124

3,124

Auditors' remuneration

8,000

8,000

Other non- audit services

17,000

25,215

5.	EXCEPTIONAL ITEMS

2018

2017

£

£

Cost of fundamental reorg

(351,880

)

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank interest

2,776

5,317

Loan

11,981

33,203

Other loan interest payable

45,078

-

Hire purchase

27,810

21,760

87,645

60,280

7.

TAXATION

Analysis of the tax (credit)/charge

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

2018

2017

£

£

Current tax:

UK corporation tax

(122,037

)

122,037

Deferred tax movement

(15,488

)

22,386

Tax on (loss)/profit

(137,525

)

144,423

UK corporation tax was charged at 20%) in 2017.

Reconciliation of total tax (credit)/charge 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:

2018

2017

£

£

(Loss)/profit before tax

(1,138,913

)

392,769

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 20% (2017 - 20%)

(227,783

)

78,554

Effects of:

Expenses not deductible for tax purposes

81,825

1,973

Income not taxable for tax purposes

(6,624

)

(8,195

)

Depreciation in excess of capital allowances

19,394

42,013

Adjustments to tax charge in respect of previous periods

(4,337

)

29,574

Adjustments to charge in respect of rate changes

-

504

Total tax (credit)/charge

(137,525

)

144,423

Tax effects relating to effects of other comprehensive income

2018

Gross

Tax

Net

£

£

£

Merger Reserve Adjustment

(1,625,196

)

-

(1,625,196

)