Bathroomsbydesign Retail Ltd |
Notes to the Accounts |
for the year ended 31 December 2022 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The director has considered whether the going concern basis is an appropriate basis on which to prepare the financial statements. The director considers that there is not significant uncertainty as to whether the company will continue to trade, and accordingly the going concern basis of accounting is considered to be appropriate. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from contracts involving multiple deliveries is recognised by reference to the products supplied to customers. |
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Intangible fixed assets |
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The company has deferred certain development expenditures associated with the development of particular computer software applications. Costs deferred in this way are carried at the lower of cost and the benefits reasonably expected to flow to the company from their future use and/or licencing. |
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Intangible fixed assets are recognised in order for the accounts to present a true and fair view, when the director is satisfied that: |
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i) the project is technically and economically feasible to complete; |
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ii) there is the intention to complete the project; |
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iii) the resultant product is saleable and/or usable; |
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iv) it is clear how the project will result in probable future economic benefits; and |
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v) the company has sufficient technical, financial and other resources to complete the project. |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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The company amortises the costs of developing these applications on a straight line basis over a period of 5 years commencing from the date on which the applications become substantially available for use within the business in the manner in which usage was intended by management at the outset of the project. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Technological tangible assets |
over 4 years |
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Leasehold improvements |
over the lease term |
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Electric motor vehicle |
over 10 years |
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Other plant, machinery and equipment |
over 5 years |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Government grants |
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Grants are accounted for under the accruals method as permitted by FRS 102. |
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Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
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Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2022 |
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2021 |
Number |
Number |
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Average number of persons employed by the company |
38 |
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32 |
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3 |
Intangible fixed assets |
£ |
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Deferred software development costs |
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Cost |
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At 1 January 2022 |
1,519,636 |
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Additions |
184,790 |
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At 31 December 2022 |
1,704,426 |
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Amortisation |
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At 1 January 2022 |
911,216 |
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Provided during the year |
194,753 |
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At 31 December 2022 |
1,105,969 |
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Net book value |
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At 31 December 2022 |
598,457 |
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At 31 December 2021 |
608,420 |
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Deferred software development costs are amortised on the basis described in note 1. |
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4 |
Tangible fixed assets |
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Leasehold fixtures and displays |
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Office and warehouse equipment |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2022 |
370,929 |
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282,929 |
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139,859 |
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793,717 |
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Additions |
12,623 |
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10,847 |
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1,750 |
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25,220 |
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At 31 December 2022 |
383,552 |
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293,776 |
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141,609 |
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818,937 |
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Depreciation |
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At 1 January 2022 |
295,498 |
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217,259 |
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21,990 |
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534,747 |
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Charge for the year |
36,536 |
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18,229 |
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29,220 |
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83,985 |
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At 31 December 2022 |
332,034 |
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235,488 |
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51,210 |
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618,732 |
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Net book value |
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At 31 December 2022 |
51,518 |
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58,288 |
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90,399 |
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200,205 |
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At 31 December 2021 |
75,431 |
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65,670 |
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117,869 |
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258,970 |
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5 |
Debtors |
2022 |
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2021 |
£ |
£ |
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Trade debtors |
185,279 |
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379,968 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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210,424 |
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198,179 |
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Other debtors |
486,516 |
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395,662 |
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882,219 |
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973,809 |
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Amounts due after more than one year included above |
134,293 |
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134,293 |
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6 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
£ |
£ |
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Bank loans and overdrafts |
447,108 |
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276,529 |
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Trade creditors |
711,938 |
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462,120 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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76,480 |
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75,413 |
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Taxation and social security costs |
294,042 |
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243,374 |
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Other creditors |
2,333,740 |
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2,257,517 |
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3,863,308 |
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3,314,953 |
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7 |
Creditors: amounts falling due after one year |
2022 |
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2021 |
£ |
£ |
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Bank loans |
290,443 |
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466,806 |
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Other creditors |
- |
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11,401 |
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290,443 |
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478,207 |
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8 |
Loans |
2022 |
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2021 |
£ |
£ |
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Creditors include: |
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Secured bank loans |
350,050 |
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203,945 |
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The bank loans are secured by a fixed and floating charge over all assets of the company. The company has borrowed £387,500 (2021: £537,500) via a facility supported by a partial UK Government guarantee under the Coronavirus Business Interruption Loan Scheme. |
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9 |
Other financial commitments |
2022 |
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2021 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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450,617 |
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660,473 |
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10 |
Related party transactions |
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Total compensation paid to key management |
220,244 |
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210,505 |
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Related party transactions with entities having control over the entity |
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The company historically borrowed funds from its immediate parent entity. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed by the company are: |
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(74,790) |
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(75,148) |
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Related party transactions with key management personnel |
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The company historically borrowed funds from key management personnel. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed by the company are: |
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- |
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(11,401) |
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The company has advanced funds to key management personnel. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed to the company are: |
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17,725 |
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- |
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Related party transactions with other related parties |
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The company has advanced funds to persons exercising significant influence over the company. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed to the company are: |
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53,600 |
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38,500 |
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The company has advanced funds to companies under common control. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed to the company are: |
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212,500 |
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197,914 |
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The company has advanced funds from companies under common control. Such funds are unsecured, have no fixed date for repayment and do not bear interest. The balances owed to the company are: |
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(3,766) |
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- |
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The company received software development services from a company under common control. The total value of services received during the year was: |
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119,168 |
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114,168 |
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The company settled certain expenditures on behalf of a company under common control. The total value of expenditures settled was: |
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111,413 |
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118,188 |
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The balance owed to/(by) the company relating to the previous expenditures and services was: |
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(2,076) |
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5,679 |
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11 |
Correction of prior period errors |
2021 |
£ |
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The Company has identified that certain customer balances were overstated in the previous financial statements due to incorrect invoices being raised against such customers. |
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The following financial statement lines are impacted |
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Note 6: Taxation and social security costs |
Reduced by |
16,762 |
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Note 6: Other creditors |
Increased by |
100,066 |
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Profit and loss account |
Reduced by |
83,304 |
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12 |
Controlling party |
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The company's immediate parent, Bathroom Retail Group Limited, owns 100% of the issued share capital of the company and is the immediate controlling party of the company. |
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The ultimate controlling party of the company is the director Mr S Colwill, by virtue of direct and indirect shareholdings. |
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13 |
Other information |
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Bathroomsbydesign Retail Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Unit 1 Amalgamated Drive |
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Brentford |
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Middlesex |
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TW8 9EZ |