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Registered number: 05614133










COMFORT CLICK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

 
COMFORT CLICK LIMITED
 
 
COMPANY INFORMATION


Director
Mr M Pattni 




Registered number
05614133



Registered office
106 Lower Addiscombe Road
Croydon

Surrey

CR0 6AD




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG





 
COMFORT CLICK LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Director's Report
 
4
Director's Responsibilities Statement
 
5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 26


 
COMFORT CLICK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022

Introduction
 
The principal activity of the Company in the year under review was that of an online retailer specialising in health, beauty, cosmetics and personal care products.

Business review
 
Development and Performance
The fiscal year 2021-22 witnessed substantial growth in a multitude of areas including revenue, skilled manpower, inventory, and product offerings. This expansion was fueled by a concerted effort to capture a greater market share within the UK and European markets.
Strategic Initiatives
A considerable investment was allocated to marketing and brand development activities aimed at enhancing visibility. While these strategic moves effectively elevated revenue streams, it's important to note that the unavoidable increased expenditure and full impact of Brexit and leaving the EU exerted downward pressure on net profitability.
Lessons Learned
The increased demand for the company’s products has since resulted in further investment of time and working capital to support the business for the next stage of growth.

Principal risks and uncertainties
 
Brexit Impact
Established as a Pan-European company, the UK's exit from the EU single market had generated significant challenges across multiple facets of the business namely distribution of products and the availability of skilled labour in the UK.
Logistical Hurdles
Customs clearance inconsistencies between the UK and EU had created uncertainty in our supply chain. Each shipment crossing the border faced unpredictable clearance protocols, leading to operational inefficiency.
 
Fulfilment Complexity
Post-Brexit regulations prohibited direct shipments to EU customers from the UK, necessitating the utilisation of 3rd party providers (3PLs) for storage of stock and daily order fulfilment.
Supplier Challenges
The complexities of shipping from the UK to the EU had forced the company to secure local suppliers thereby affecting product availability at key times throughout the year.
Manpower
The company’s headquarters are located in the UK. Post Brexit regulations made it increasingly difficult to employ EU staff. This resulted in delayed deployment of staff and a reliance upon external contractors.
Regulatory Fluctuations
The nutraceutical industry is prone to frequent regulatory shifts. These types of changes are often poorly communicated and result in compliance challenges. While risks are actively monitored and discussed during board meetings to develop mitigating strategies, they nonetheless represent a constant battle.

Page 1

 
COMFORT CLICK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022

Financial key performance indicators
 
Revenue Expansion
2022 saw a substantial 57% increase in revenue compared to the previous fiscal year, marking a pivotal growth trajectory for the company.
Q4 Shift to Profit-Centric Strategy
The company had focused the final quarter of the financial year towards increasing profitability. This was achieved and provided a solid foundation for the start of the following year.

Other key performance indicators
 
Enhanced Product Portfolio
The company met its goal to increase the product portfolio. This resulted in increased basket values.
Year of Strategic Investment
Designating FY 2022 as a year for focused investment, the company significantly increased investments in marketing, labour, and infrastructural improvements, including the addition of a new warehouse facility in Sevenoaks, Kent with significant capacity for growth.
Gains in Market Share
The company enjoyed a significant increase in market share as a result of deploying additional marketing resources. 
Elevated Brand Recognition
Consumer behaviour reflected a heightened awareness and preference for own label branded products, testifying to the efficacy of our marketing and quality of the products.
Customer Acquisitions
The accumulation of increased positive reviews from the existing customer base played a critical role in attracting new customers, further amplifying market reach.
Improved Delivery Performance
Despite an increased impact on gross margins, the integration of third-party logistics (3PLs) in the EU allowed for delivery times being cut from five to two days for EU customers. This activity notably elevated customer satisfaction and increased repeat order ratios.

Summary
The company experienced notable growth in a wide number of areas during the financial year 2021-22. Despite facing micro organisational and macro challenges like Brexit, it achieved a 57% increase in gross revenue.
The ongoing risks of doing business are ever changing. However, the company is well positioned from a structural perspective to meet these challenges. Increased regulatory compliance requirements further create barriers to entry. The company is well positioned to take advantage of these dynamics in a more robust manner having invested significantly into adding to and creating internal departments with specialist knowledge and expertise.
While the company successfully navigated complex logistical and regulatory problems through the first three quarters, this resulted in increased net profitability for the final quarter. These actions generated positive momentum going into the first quarter of the new year.
The company continues to operate in a sector that is undeniably growing at great pace. Comfort Click uses its vast experience and specialist knowledge to create product offerings that are well researched and well received. It is able to access the market via a multitude of complementary channels and deliver products via an established network of logistical arrangements. The company heads into 2022-23 better equipped than ever before and on a trajectory to further increase market share and profitability.

Page 2

 
COMFORT CLICK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022


This report was approved by the board on 4 October 2023 and signed on its behalf.



Mr M Pattni
Director

Page 3

 
COMFORT CLICK LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2022

The director presents his report and the financial statements for the year ended 30 June 2022.

Results and dividends

The profit for the year, after taxation, amounted to £1,234,994 (2021 - £1,529,139).

Dividends of £750,000 were declared during the year (2021: £NIL) and paid to shareholders post year end. 

Director

The director who served during the year was:

Mr M Pattni 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsHaysmacintyre LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr M Pattni
Director

Date: 4 October 2023

Page 4

 
COMFORT CLICK LIMITED
 
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

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

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

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

make judgments 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 
COMFORT CLICK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMFORT CLICK LIMITED
 

Qualified opinion


We have audited the financial statements of Comfort Click Limited (the 'Company') for the year ended 30 June 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matters described in the basis for qualified opinion section of our report, the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 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 qualified opinion


We were not appointed as auditor of the company until after 30 June 2022 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 June 2022, which are included in the Company Balance Sheet at £3,016,202, by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended.


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 United Kingdom, including the Financial Reporting Council'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.


Emphasis of matter


We would like to draw attention to Note 21 to the financial statements which describes the prior period adjustment. Our opinion is not modified in respect of this matter. 


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Page 6

 
COMFORT CLICK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMFORT CLICK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The director is responsible for the other information contained within the Annual Report.  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. 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 course of 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.


As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £3,016,202 held at 30 June 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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 Director's Report.


Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 5, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


Page 7

 
COMFORT CLICK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMFORT CLICK LIMITED (CONTINUED)


In preparing the financial statements, the director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or 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 an Auditors' Report 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.


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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the Company and industry, we identified that the principal risks of noncompliance with laws and regulations related to trade regulations, overseas selling, employment law, UK and overseas tax laws and regulation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, UK tax laws and regulations including, sales tax and corporation tax.

We evaluated management's incentives and opportunities |or fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

reviewing correspondence and filings with tax authorities;
discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
evaluating management's controls designed to prevent and detect irregularities;
identifying and testing journals, in particular journal entries that shared key risk characteristics; and
challenging assumptions and judgements made by management in their critical accounting estimates, including their stock provision.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.



 
Page 8

 
COMFORT CLICK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COMFORT CLICK LIMITED (CONTINUED)


Other matters
In the previous accounting period, the directors of the company took advantage of the audit exemption under s477 of the Companies Act. Therefore, the prior period financial statements were not subject to audit.


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 2006Our 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 an Auditors' Report 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.





Christopher Cork (Senior Statutory Auditor)
for and on behalf of
Haysmacintyre LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

4 October 2023
Page 9

 
COMFORT CLICK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022

2022
Unaudited
 (Restated) 2021
£
£

  

Turnover
 4 
37,965,653
24,230,497

Cost of sales
  
(10,981,423)
(6,639,417)

Gross profit
  
26,984,230
17,591,080

Distribution costs
  
(2,802,984)
(1,437,345)

Administrative expenses
  
(22,628,398)
(14,236,550)

Operating profit
  
1,552,848
1,917,185

Interest payable and similar expenses
  
(18,273)
(5,612)

Profit before tax
  
1,534,575
1,911,573

Tax on profit
 8 
(299,581)
(382,434)

Profit for the financial year
  
1,234,994
1,529,139

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
COMFORT CLICK LIMITED
REGISTERED NUMBER: 05614133

BALANCE SHEET
AS AT 30 JUNE 2022

2022
Unaudited
 (Restated) 2021
Note
£
£

Fixed assets
  

Tangible assets
 10 
-
109,758

Investments
 11 
86
-

  
86
109,758

Current assets
  

Stocks
 12 
3,016,202
2,835,094

Debtors
 13 
2,553,641
2,323,170

Cash at bank and in hand
 14 
1,602,369
615,033

  
7,172,212
5,773,297

Creditors: amounts falling due within one year
 15 
(3,435,792)
(2,496,283)

Net current assets
  
 
 
3,736,420
 
 
3,277,014

Total assets less current liabilities
  
3,736,506
3,386,772

Creditors: amounts falling due after more than one year
 16 
(145,833)
(281,128)

  

Net assets
  
3,590,673
3,105,644


Capital and reserves
  

Called up share capital 
 19 
135
100

Profit and loss account
 20 
3,590,538
3,105,544

Shareholders' funds
  
3,590,673
3,105,644


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr M Pattni
Director

Date: 4 October 2023

The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
COMFORT CLICK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2020
100
1,576,405
1,576,505


Comprehensive income for the year

Profit for the year (restated)
-
1,529,139
1,529,139



At 1 July 2021 (as previously stated)
100
3,798,590
3,798,690

Prior year adjustment - correction of error (see note 21)
-
(693,046)
(693,046)


At 1 July 2021 (as restated)
100
3,105,544
3,105,644


Comprehensive income for the year

Profit for the year

-
1,234,994
1,234,994


Contributions by and distributions to owners

Dividends: Equity capital
-
(750,000)
(750,000)

Share capital adjustment
35
-
35


At 30 June 2022
135
3,590,538
3,590,673


The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

1.


General information

Comfort Click Limited is a private company limited by shares and incorporated in England. Its registered office is 106 Lower Addiscombe Road, Croydon, Surrey, CR0 6AD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Turnover

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 and from the rendering of services. 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 the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

 
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of CC Group Services Limited as at 30 June 2022 and these financial statements may be obtained from Rapeed House, 106 Lower Addiscombe Road, Croydon, Surrey, United Kingdom, CR0 6AD..

 
2.4

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 13

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

 
2.5

Going concern

During the year the Company made a profit of £1,234,994 and had a net asset position at year end of £3,590,673. The director has reviewed the cash flow forecasts for a period of 12 months from the date of the signing of these financial statements and expect the Company to have sufficient cash and working capital to meet its liabilities as and when they fall due. On this basis, the director therefore considers it appropriate to adopt the going concern basis of preparation for these financial statements. 

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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 revenue 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.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Motor vehicles
-
20%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 15

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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, like the payment of a trade debt 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 in the case of a small company, or a public benefit entity concessionary loan.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's 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 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 balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. The following are the critical judgements that the Directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. 
Stock Provision
At each reporting date, stock is assessed for impairment. Management have exercised and applied judgement when determining the level of provision required for stock at year end. This process involves management reviewing the expiration date of stock and assessing it for obsolescence. Where stock is impaired, the carrying amount is reduced to its selling price less costs to sell and the impairment loss is recognised immediately in the profit and loss account. Management have concluded that no provision was required at year end on the basis of the review performed.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Revenue from sale of goods
37,965,653
24,230,497


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
11,922,243
7,674,863

Europe
25,872,174
16,291,706

Rest of the world
171,236
263,928



5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
-
27,440

Exchange differences
34,111
52,736

Operating lease costs
51,664
-

Auditor's remuneration
60,000
-

Page 17

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

6.


Employees

Staff costs, including director's remuneration, were as follows:


2022
2021
£
£

Wages and salaries
150,867
108,890

Social security costs
6,519
1,928

Cost of defined contribution scheme
2,452
1,498

159,838
112,316


The average monthly number of employees, including the director, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
8
6


7.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
18,273
5,612

18,273
5,612

Page 18

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
299,581
545,000

Prior year adjustment
-
(162,566)


299,581
382,434


Total current tax
299,581
382,434

Deferred tax

Total deferred tax
-
-


Tax on profit
299,581
382,434

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2021 - the same as) the standard rate of corporation tax in the UK of 19% (2021 - 19%) as set out below:

2022
2021
£
£


Profit on ordinary activities before tax
1,534,575
1,911,573


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
295,084
525,765

Effects of:


Expenses not deductible for tax purposes
4,497
19,235

Adjustments to tax charge in respect of prior periods
-
(162,566)

Total tax charge for the year
299,581
382,434


Factors that may affect future tax charges

In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that
the rate will increase to 25% from April 2023. There is no deferred tax at the reporting date. Future deferred tax balances will be measured at 25%.

Page 19

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

9.


Dividends

2022
2021
£
£


Dividends to shareholders
750,000
-

750,000
-

On 30 June 2022 the directors proposed a dividend of £750,000.


10.


Tangible fixed assets





Motor vehicles

£





At 1 July 2021
137,198


Disposals
(137,198)



At 30 June 2022

-





At 1 July 2021
27,440


Disposals
(27,440)



At 30 June 2022

-



Net book value



At 30 June 2022
-



At 30 June 2021
109,758

Page 20

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

11.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


Additions
86



At 30 June 2022
86





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Comfort Click Ireland
No 7 Dr Croke Place, 
Clonmel, Tipperary, Ireland
Ordinary
100%


12.


Stocks

2022
2021
£
£

Goods for resale
3,016,202
2,835,094

3,016,202
2,835,094



13.


Debtors

2022
2021 (restated)
£
£


Trade debtors
1,065,495
751,314

Amounts owed by group undertakings
-
82,970

Other debtors
1,391,103
1,479,845

Prepayments and accrued income
97,043
9,041

2,553,641
2,323,170


Amounts due from group undertakings are unsecured, interest free and repayable on demand.

Page 21

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

14.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
1,602,369
615,033

1,602,369
615,033



15.


Creditors: Amounts falling due within one year

2022
2021 (restated)
£
£

Bank loans
50,000
50,000

Trade creditors
1,267,492
891,960

Amounts owed to group undertakings
399,634
-

Corporation tax
137,191
382,434

Taxation and social security
367,654
623,156

Obligations under finance lease and hire purchase contracts
-
19,142

Other creditors
776,310
455,271

Accruals and deferred income
437,511
74,320

3,435,792
2,496,283



16.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
145,833
195,833

Net obligations under finance leases and hire purchase contracts
-
85,295

145,833
281,128


Page 22

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

17.


Loans

2022
2021
£
£

Creditors include:


Secured bank loans
195,833
245,833

195,833
245,833

The Company took out a Cononavirus Business Interruption Loan of £250,000 during the previous year. The loan is repayable within 6 year from the date of drawdown, however repayments will commence one year after drawdown and the interest rate is 3.99% per annum over the Bank of England Base Rate.
There are fixed and floating charges over all the assets both present and future.


18.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
50,000
50,000


50,000
50,000

Amounts falling due 1-2 years

Bank loans
145,833
195,833


145,833
195,833



195,833
245,833



19.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



135 (2021 - 135) Ordinary shares of £1.00 each
135
100


Page 23

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

19.Share capital (continued)

Ordinary shares in issue totalled 135 in both years, however the share capital value was incorrectly recorded at £100 in 2021. There has been no prior year adjustment due to the monetary value being deemed immaterial.  


20.


Reserves

Profit and loss account

Includes all current and prior period retained profit and losses.


21.


Prior year adjustment

The Company has become aware of unrecognised revenue and fees associated with sales of goods which were not previously recognised. Consequently, the revenue and fees previously reported were understated and the trade debtors were overstated. The Company has recognised the tax impact of the restatement to revenue and fees, resulting in a decrease to the corporation tax charge and liability. 
The Company has reconciled and rectified the issues and the impact on the Company financial statements is detailed below.

ole664d.png
 
Page 24

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
ole64ec.png
 

22.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £2,452 (2021: £1,498). Contributions totalling £488 (2021: £271) were payable to the fund at the reporting date.

Page 25

 
COMFORT CLICK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022

23.


Commitments under operating leases

At 30 June 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
153,000
-

Later than 1 year and not later than 5 years
612,000
-

Later than 5 years
101,337
-

866,337
-


24.


Post balance sheet events

On 23 March 2023, the Company repaid its Coronavirus Business Interruption Loan in full. This repayment was in advance of the loan termination date. 


25.


Controlling party

The immediate parent company and ultimate parent company of Comfort Click Limited is CC Group Services Limited, a company registered in England & Wales.
The largest and smallest group in which the results of the Company are consolidated is that of which CC Group Services Limited is the parent company. The consolidated financial statements of CC Group Services Limited may be obtained from Rapeed House, 106 Lower Addiscombe Road, Croydon, Surrey, CR0 6AD.
The director does not consider there to be one ultimate controlling party.

Page 26