REGISTERED NUMBER: |
Beamfeature Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2022 |
REGISTERED NUMBER: |
Beamfeature Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2022 |
Beamfeature Limited (Registered number: 02029999) |
Contents of the Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company information | 1 |
Strategic report | 2 |
Report of the directors | 4 |
Report of the independent auditors | 7 |
Income statement | 11 |
Balance sheet | 12 |
Statement of changes in equity | 13 |
Cash flow statement | 14 |
Notes to the cash flow statement | 15 |
Notes to the financial statements | 16 |
Beamfeature Limited |
Company Information |
for the Year Ended 31 December 2022 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants |
& Statutory Auditors |
Mynshull House |
78 Churchgate |
Stockport |
SK1 1YJ |
Beamfeature Limited (Registered number: 02029999) |
Strategic Report |
for the Year Ended 31 December 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
During the year, despite the current economic uncertainty and the cost of living crisis, the company has seen continued customer demand for home furnishings with revenue amounting to £14,118,180 (2021 £15,086,014) and gross margins of 27.3% (2021 28.8%). |
Review of business |
We are pleased to say that despite the challenges faced the company has adapted well and put various measures in place to enable the company to continue trading, and has been able to withstand the various pressures from the economy and wider factors to continue to perform strongly. |
Along with many businesses the company has been affected by rising energy costs and with fluctuating freight costs margins have been impacted. We are constantly monitoring our costs and updating our selling prices to pass on the increase in costs to our customers and ease the impact on the company. Exchange rate fluctuations also impact the company but this is something we aim to cover by acting prudently with foreign exchange as soon as it comes up. |
The cost of living crisis is a serious concern for individuals and businesses across all sectors. There is currently no clear picture of where this is heading and for how long either. As a company we are constantly monitoring prices and updating our selling prices to be as accurate as possible, we are also cautious about forward commitments with multiple retailers to ensure we do not expose ourselves further. A further positive for the company is that some of the products sold will help to reduce the energy output of customers and we are focussing on the growth of this particular segment of our business. We are constantly looking for new innovations as the cost of living crisis looks to be an issue for the foreseeable future. |
We as a company have always maintained a high level of stock and innovative and practical products and as a result have successfully managed to fulfill the demands of our customers. |
We have renewed our banking facilities for an additional 12 months and the business has focussed on working capital, managing well in its own operations. The facility renewal is annual and is considered by the directors to be routine.We have performed stress testing scenarios on our forecasts which supports that we are not reliant on the facility and the business has sufficient resources to continue as a going concern. |
Our overall philosophy of innovation and strength of finance is a key driver behind our historical growth and profitability, this is something we believe will allow us to overcome our current hardships and return to normality as and when it will happen. |
Beamfeature Limited (Registered number: 02029999) |
Strategic Report |
for the Year Ended 31 December 2022 |
Principal risks and uncertainties |
In the opinion of the directors, the principal risks to the company are those surrounding liquidity and credit. The company works hard to maintain close relationships with both their customers and suppliers such that all parties can agree on credit terms enabling successful liquidity management. Where possible, the company ensures that their credit sales are covered by appropriate insurance to mitigate the risk of bad debts arising. |
Price risk |
The company is exposed to price and currency risk through its transactions in Sterling, US Dollars and Euros. The directors monitor these risks closely and where possible use these foreign currency receipts to pay for goods and services in the appropriate currency to mitigate exchange rate movements. |
Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made as well as give control of credit accounts for current customers. |
Liquidity risk |
The company maintains a significant cash balance to ensure sufficient funds are available for its operations. |
Interest rate cash flow risk |
The company is exposed to cash flow interest rate risk from borrowings. The directors monitor this closely and bank facilities are only utilised for short periods therefore minimising the risk. |
Other risks |
The risks facing the company in relation to health, safety and quality are assessed in an ongoing basis. The company is continuously taking steps to ensure it is up to date to keep these risks to a minimum. There are currently no concerns in regard to this that the directors are aware of. |
Financial key performance indicators |
2022 | 2021 | Variance |
£ | £ | £ |
Turnover | 14,118,180 | 15,086,014 | -967,834 |
Gross profit | 3,858,575 | 4,350,961 | -492,386 |
Operating profit | 27,665 | 168,005 | -140,340 |
Net assets | 6,770,245 | 6,767,137 | 3,108 |
These financial indicators are considered to be the key financial performance indicators of the company. The directors are satisfied with the results and believe the results give a platform to enable further expansion of the company in future years. |
On behalf of the board: |
Beamfeature Limited (Registered number: 02029999) |
Report of the Directors |
for the Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
Principal activity |
The principal activity of the company in the year under review was that of the import and sale of household textiles and homewares. |
Dividends |
No dividends will be distributed for the year ended 31 December 2022. |
Future developments |
The company is well positioned in its market place and will continue to foster excellent relationships with its key customers and suppliers alike. |
Events after the reporting period |
There were no significant events after the reporting period. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Matters covered in the strategic report |
In accordance with section 414C(11) of the Companies Act 2006 certain matters required to be detailed in he Directors Report are detailed in the Strategic Report where the directors consider them to be of strategic importance to the company. |
Beamfeature Limited (Registered number: 02029999) |
Report of the Directors |
for the Year Ended 31 December 2022 |
Going concern |
In preparing the financial statements the directors are required to prepare the financial statements on a going concern basis unless it is inappropriate to assume that the company will continue trading. In satisfaction of this responsibility, the directors have considered the company's ability to meet its liabilities as they fall due for the period of at least twelve months from the signing of the financial statements. |
Due to the current economic environment arising from the conflict in Ukraine and the wider cost of living crisis management have undertaken a business assessment of the likely impact on the company. The assessment has considered worst case scenarios including a downturn in sales and the mitigation that management could put in place to ensure the continuation of the business. Examples of worst case scenarios which have been considered include a long term decline in turnover and its impact on the business's cash flow and facility headroom, along with the impact of increased costs on the business's cash flow with the unlikely possibility that these increases could not be passed on to its customers. |
During this period of uncertainty the directors have taken the required steps to mitigate the effects of the economic environment by reshaping the business to ensure it can meet its longer-term objectives and obtaining additional debt facilities to ensure the business can meet any unexpected liabilities that may arise. |
At the current time, the company is trading well against forecasts prepared but the directors acknowledge that there may be a reduction or delay in revenue over the coming months due to prevailing economic conditions, all of which has been considered in stress testing. The business has observed increased costs and disruptions in the supply chain as a result of Brexit which it has been able to navigate and pass on the impact to customers. The company however is continuing to monitor and plan ahead to mitigate future issues. |
The company has also renewed its banking facilities for an additional 12 months and the business has focused on managing its working capital and its own operations. The facility renewal is annual as in recent years and is considered by the directors to be routine in nature. The work completed on worse case scenarios also confirms the business is not reliant on the facility and that the business has sufficient resources to continue as a going concern. |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. |
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. |
Beamfeature Limited (Registered number: 02029999) |
Report of the Directors |
for the Year Ended 31 December 2022 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, Warr & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Beamfeature Limited |
Opinion |
We have audited the financial statements of Beamfeature Limited (the 'company') for the year ended 31 December 2022 which comprise the Income statement, Other 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 31 December 2022 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the 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. |
Report of the Independent Auditors to the Members of |
Beamfeature Limited |
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 five, 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. |
Report of the Independent Auditors to the Members of |
Beamfeature Limited |
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, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below. |
We worked closely with the directors and senior management to identify the relevant laws and regulations and compliance therewith. Our procedures and sampling were designed to identify irregularities and remove the risk of material misstatements. |
As part of an audit in accordance with ISA's (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. |
- Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to te date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
- Obtain sufficient appropriate audit evidence regarding the financial information of the entries or business activities within the company to express an opinion on the financial statements. We are responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
Report of the Independent Auditors to the Members of |
Beamfeature Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Mynshull House |
78 Churchgate |
Stockport |
SK1 1YJ |
Beamfeature Limited (Registered number: 02029999) |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(12,011 | ) | 118,664 |
Other operating income | 5 |
Operating profit | 7 |
Interest receivable and similar income |
30,981 | 175,509 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 9 | ( |
) | ( |
) |
Profit for the financial year |
Beamfeature Limited (Registered number: 02029999) |
Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Current assets |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
Creditors |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 16 | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 17 |
Retained earnings | 18 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Beamfeature Limited (Registered number: 02029999) |
Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Beamfeature Limited (Registered number: 02029999) |
Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,391,359 |
Cash and cash equivalents at end of year | 2 | 1,667,651 | 1,054,601 |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | Reconciliation of profit before taxation to cash generated from operations |
31.12.22 | 31.12.21 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 21,604 | 12,750 |
Finance income | (3,316 | ) | (7,504 | ) |
41,956 | 187,061 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,667,651 | 1,054,601 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 1,054,601 | 1,391,359 |
3. | Analysis of changes in net funds |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 1,054,601 | 613,050 | 1,667,651 |
1,054,601 | 1,667,651 |
Total | 1,054,601 | 613,050 | 1,667,651 |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements |
for the Year Ended 31 December 2022 |
1. | Statutory information |
Beamfeature Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer; |
- the company retains neither continuing managerial involvement to the degree usually associated with ownership |
nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cst less accumulated amortisation and accumulated impairment losses. Goodwill has been amortised on a straight line basis to the statement of comprehensive income over its useful economic life of 5 years. |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance costs are charged to the statement of comprehensive income during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. |
Depreciation is provided at the following rates: |
Freehold property Freehold property is not depreciated |
Motor vehicles 25% reducing balance |
Office equipment, computer equipment |
and property improvements 25% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | Accounting policies - continued |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, such as the payment of a trade det deferred beyond normal business terms or in case of an out-right short term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of recoverable of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
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 an 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 Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 contributes to a defined contribution pension plan for its employees. The plan is a separate entity and the assets are held independently of the company. Contributions payable are charged to the profit and loss in the period to which they relate and once contributions have been paid the company has no further payment obligations. |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | Accounting policies - continued |
Going concern |
In preparing the financial statements the directors are required to prepare the financial statements on a going concern basis unless it is inappropriate to assume that the company will continue trading. In satisfaction of this responsibility, the directors have considered the company's ability to meet its liabilities as they fall due for the period of at least twelve months from the signing of the financial statements. |
Due to the current economic environment arising from the conflict in Ukraine and the wider cost of living crisis management have undertaken a business assessment of the likely impact on the company. The assessment has considered worst case scenarios including a downturn in sales and the mitigation that management could put in place to ensure the continuation of the business. Examples of worst case scenarios which have been considered include a long term decline in turnover and its impact on the business's cash flow and facility headroom, along with the impact of increased costs on the business's cash flow with the unlikely possibility that these increases could not be passed on to its customers. |
During this period of uncertainty the directors have taken the required steps to mitigate the effects of the economic environment by reshaping the business to ensure it can meet its longer-term objectives and obtaining additional debt facilities to ensure the business can meet any unexpected liabilities that may arise. |
At the current time, the company is trading well against forecasts prepared but the directors acknowledge that there may be a reduction or delay in revenue over the coming months due to prevailing economic conditions, all of which has been considered in stress testing. The business has observed increased costs and disruptions in the supply chain as a result of Brexit which it has been able to navigate and pass on the impact to customers. The company however is continuing to monitor and plan ahead to mitigate future issues. |
The company has also renewed its banking facilities for an additional 12 months and the business has focused on managing its working capital and its own operations. The facility renewal is annual as in recent years and is considered by the directors to be routine in nature. The work completed on worse case scenarios also confirms the business is not reliant on the facility and that the business has sufficient resources to continue as a going concern. |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The directors have determined whether there are any indicators of impairment of stock held by the company. Factors taken into consideration include the date of last sale of stock lines, the conditions of stock held and managements expectations for the recoverable value against the total stock cost recognised in the accounts. |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Management have used their expectation of the estimated useful lives of each category of assets in order to ensure the appropriate provision is made for depreciation. Details of the estimated useful lives are noted in the accounting policies and the depreciation provision is stated in note 9. |
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: |
31.12.22 | 31.12.21 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 103,890 | 93,667 |
5. | Other operating income |
31.12.22 | 31.12.21 |
£ | £ |
Other income | 39,676 | 49,341 |
6. | Employees and directors |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
6. | Employees and directors - continued |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Administrative | 33 | 35 |
Directors | 3 | 3 |
31.12.22 | 31.12.21 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Emoluments etc |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences | ( |
) |
Operating lease rental - land and buildings |
8. | Interest payable and similar expenses |
31.12.22 | 31.12.21 |
£ | £ |
Bank interest |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustments in respect of prior periods | 1,368 | 18,362 |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
Reconciliation of total tax 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: |
31.12.22 | 31.12.21 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods |
Deferred tax adjustments | (5,059 | ) | (10,373 | ) |
Total tax charge | 6,269 | 40,292 |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | Intangible fixed assets |
Goodwill |
£ |
Cost |
At 1 January 2022 |
and 31 December 2022 |
Amortisation |
At 1 January 2022 |
and 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
11. | Tangible fixed assets |
Office |
equipment, |
computers |
and |
Freehold | property | Motor |
property | improvements | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2022 |
and 31 December 2022 |
Depreciation |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
12. | Stocks |
31.12.22 | 31.12.21 |
£ | £ |
Stocks |
The value of stock held is stated net of a stock provision at the year end of £198,000 (2021 £198,000). |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
13. | Debtors: amounts falling due within one year |
31.12.22 | 31.12.21 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
14. | Creditors: amounts falling due within one year |
31.12.22 | 31.12.21 |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
Accrued expenses |
15. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.22 | 31.12.21 |
£ | £ |
Within one year |
Between one and five years |
16. | Provisions for liabilities |
31.12.22 |
£ |
Deferred tax | 1,390 |
Deferred |
tax |
£ |
Balance at 1 January 2022 | ( |
) |
Charge to Income statement during year |
Balance at 31 December 2022 |
Beamfeature Limited (Registered number: 02029999) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
17. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | £ | £ |
Ordinary | 1 | 40,000 | 40,000 |
18. | Reserves |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
At 31 December 2022 |
19. | Related party disclosures |
The company paid rental charges of £479,000 (2021 £479,000) to the Suresh Pension Fund, a fund of which a director is a beneficiary. |
Three family members of the directors are employed by the company. The total remuneration, including pension costs, paid in the year was £190,588 (2021 £106,310). |
20. | Post balance sheet events |
There were no significant events after the reporting period. |
21. | Ultimate controlling party |
The directors are the ultimate controlling parties. |