Company registration number 12679030 (England and Wales)
ATR BRANDS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
ATR BRANDS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 12
ATR BRANDS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
4,820,581
5,457,293
Tangible assets
4
131,577
32,788
Investments
5
1
1
4,952,159
5,490,082
Current assets
Stocks
1,920,690
590,718
Debtors
6
5,932,799
2,373,077
Cash at bank and in hand
155,653
304,896
8,009,142
3,268,691
Creditors: amounts falling due within one year
7
(13,980,293)
(9,550,520)
Net current liabilities
(5,971,151)
(6,281,829)
Net liabilities
(1,018,992)
(791,747)
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
(1,018,993)
(791,748)
Total equity
(1,018,992)
(791,747)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 3 October 2023 and are signed on its behalf by:
Graham Clements
Director
Company Registration No. 12679030
ATR BRANDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2021
1
(824,399)
(824,398)
Year ended 28 February 2022:
Loss and total comprehensive income for the year
-
(871,022)
(871,022)
Other movements
-
903,673
903,673
Balance at 28 February 2022
1
(791,748)
(791,747)
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
(227,245)
(227,245)
Balance at 28 February 2023
1
(1,018,993)
(1,018,992)
ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information

ATR Brands Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 38/39 Hampstead High Street, London, NW3 1QE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

At the period-end, the company had net liabilities of £1,018,922 (2022: £791,747) and suffered a loss of £227,245 (2022: £871,022) for the period. true

 

The company receives working capital loans from fellow group companies and the directors of the group intend to continue to provide such working capital as is necessary for the company to be able to meet its liabilities as they fall due. For this reason, the directors consider it appropriate that the financial statements have been prepared on the going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Intellectual Property
10 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 6 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 8 -
1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.17
Foreign exchange

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

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
10
7
3
Intangible fixed assets
Goodwill
Intellectual Property
Total
£
£
£
Cost
At 1 March 2022 and 28 February 2023
1,867,105
4,500,007
6,367,112
Amortisation and impairment
At 1 March 2022
197,319
712,500
909,819
Amortisation charged for the year
186,711
450,001
636,712
At 28 February 2023
384,030
1,162,501
1,546,531
Carrying amount
At 28 February 2023
1,483,075
3,337,506
4,820,581
At 28 February 2022
1,669,786
3,787,507
5,457,293
ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2022
60,561
Additions
147,122
At 28 February 2023
207,683
Depreciation and impairment
At 1 March 2022
27,773
Depreciation charged in the year
48,333
At 28 February 2023
76,106
Carrying amount
At 28 February 2023
131,577
At 28 February 2022
32,788
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1
1

Investments in subsidiaries represent a 100% holding in Antler Limited, a dormant company registered in England and Wales with the same registered office as the company.

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,001,821
143,888
Amounts owed by group undertakings
3,864,766
1,360,779
Other debtors
413,674
305,824
5,280,261
1,810,491
ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
6
Debtors
(Continued)
- 10 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 8)
652,538
562,586
Total debtors
5,932,799
2,373,077
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
497,945
98,760
Amounts owed to group undertakings
12,482,229
9,097,290
Taxation and social security
420,784
132,834
Other creditors
579,335
221,636
13,980,293
9,550,520

As at the period-end, included within creditors are loans of £6,075,077 (2022: £5,965,932) owed to Strandbags Group Pty Limited. Interest is charged on these loans at a rate of 6% per annum. The loans are repayable on demand.

8
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated Capital Allowances
(18,848)
(10,488)
Tax losses
671,386
573,074
652,538
562,586
ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
8
Deferred taxation
(Continued)
- 11 -
2023
Movements in the year:
£
Asset at 1 March 2022
(562,586)
Credit to profit or loss
(89,952)
Asset at 28 February 2023
(652,538)
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
10
Related party transactions

During the prior year ATR Holdings Limited, the parent company waived £903,673 of the balance due to it. In accordance with FRS102, the credit was recognised in equity.

11
Parent company

The parent company of ATR Brands Limited is Strandbags Holdings Pty Ltd, a company incorporated in Australia. Its registered office is Level 2 83 Bowman Street Pyrmont, New South Wales, 2009 Australia.

12
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

ATR BRANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
12
Audit report information
(Continued)
- 12 -

Qualified opinion

We have audited the financial statements of ATR Brands Limited (the 'company') for the year ended 28 February 2023 which comprise , the balance sheet, the statement of changes in equity and notes to the financial statements, including 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 28 February 2022 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at the previous balance sheet date, which are included in the balance sheet at £590,718 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount as at 28 February 2022 was necessary and therefore, whether there was any effect on the cost of sales for the current reporting period.

 

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 Auditor's 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 qualified opinion.

Senior Statutory Auditor:
Matthew Granger
Statutory Auditor:
UHY Hacker Young
2023-02-282022-03-01false05 October 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedGraham ClementsMichael LewisPhilip PressAnthony BrittanKirsty GlenneFelicity Mcgahan126790302022-03-012023-02-28126790302023-02-28126790302022-02-2812679030core:NetGoodwill2023-02-2812679030core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-02-2812679030core:NetGoodwill2022-02-2812679030core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-02-2812679030core:OtherPropertyPlantEquipment2023-02-2812679030core:OtherPropertyPlantEquipment2022-02-2812679030core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2812679030core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2812679030core:CurrentFinancialInstruments2023-02-2812679030core:CurrentFinancialInstruments2022-02-2812679030core:ShareCapital2023-02-2812679030core:ShareCapital2022-02-2812679030core:RetainedEarningsAccumulatedLosses2023-02-2812679030core:RetainedEarningsAccumulatedLosses2022-02-2812679030core:ShareCapital2021-02-2812679030core:RetainedEarningsAccumulatedLosses2021-02-2812679030bus:Director12022-03-012023-02-2812679030core:RetainedEarningsAccumulatedLosses2021-03-012022-02-28126790302021-03-012022-02-2812679030core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2812679030core:Goodwill2022-03-012023-02-2812679030core:IntangibleAssetsOtherThanGoodwill2022-03-012023-02-2812679030core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-03-012023-02-2812679030core:ComputerEquipment2022-03-012023-02-2812679030core:NetGoodwill2022-02-2812679030core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-02-28126790302022-02-2812679030core:NetGoodwill2022-03-012023-02-2812679030core:OtherPropertyPlantEquipment2022-02-2812679030core:OtherPropertyPlantEquipment2022-03-012023-02-2812679030core:WithinOneYear2023-02-2812679030core:WithinOneYear2022-02-2812679030core:AfterOneYear2023-02-2812679030core:AfterOneYear2022-02-2812679030bus:PrivateLimitedCompanyLtd2022-03-012023-02-2812679030bus:SmallCompaniesRegimeForAccounts2022-03-012023-02-2812679030bus:FRS1022022-03-012023-02-2812679030bus:Audited2022-03-012023-02-2812679030bus:Director22022-03-012023-02-2812679030bus:Director32022-03-012023-02-2812679030bus:Director42022-03-012023-02-2812679030bus:Director52022-03-012023-02-2812679030bus:Director62022-03-012023-02-2812679030bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP