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Company registration number: 09521325

Wax London Ltd

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 30 April 2023

 

Wax London Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

Wax London Ltd

(Registration number: 09521325)
Balance Sheet as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

61,087

56,955

Tangible assets

5

34,065

45,950

 

95,152

102,905

Current assets

 

Stocks

6

1,005,969

797,749

Debtors

7

622,493

550,013

Cash at bank and in hand

 

508,995

119,388

 

2,137,457

1,467,150

Creditors: Amounts falling due within one year

8

(4,366,130)

(3,547,618)

Net current liabilities

 

(2,228,673)

(2,080,468)

Net liabilities

 

(2,133,521)

(1,977,563)

Capital and reserves

 

Called up share capital

7

6

Share premium reserve

1,825,028

1,249,998

Profit and loss account

(3,958,556)

(3,227,567)

Total equity

 

(2,133,521)

(1,977,563)

 

Wax London Ltd

(Registration number: 09521325)
Balance Sheet as at 30 April 2023

For the financial year ending 30 April 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the Company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 19 September 2023 and signed on its behalf by:
 


T M E Holmes
Director

   
 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
First Floor
10-11 Greenland Place
London
NW1 0AP

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Going concern

The financial statements have been prepared on a going concern basis.

Accounting judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period. If the revision affects both current and future periods, then it is recognised in both the current and future periods.

A key judgement is going concern. The directors acknowledge there is material uncertainty relating to going concern due to net liabilities at the year end of £2,133,521 (2022: £1,977,563). The Company has remained loss making in the year to 30 April 2023, as it builds its customer base and expands sales to generate sufficient margin to meet the fixed cost base. The directors are confident that their growth strategy will deliver this margin and that in the interim there is sufficient financial support available for the Company to meet all liabilities as they fall due for the foreseeable future, being at least 12 months from the date of approving the financial statements. Therefore the directors consider the Company to be a going concern and so have prepared the financial statements on that basis.

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Intangible assets

Intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses.

The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Brand

Over the remaining license term

Website costs

25% straight line

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

33% straight line

Furniture, fittings and equipment

25% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Other debtors and loans receivable are initially recognised at fair value net of transaction costs and are subsequently measured at amortised cost using the effective interest method less any provision for impairment.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stock items. Net realisable value is based on selling price less anticipated selling costs.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

Defined contribution pension obligation

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 payments obligations.

The contributions are recognised as an expense in the profit and loss account 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.

3

Staff numbers

The average number of persons employed by the Company (including directors) during the year was 20 (2022 - 13).

4

Intangible assets

Brand
£

Website costs
£

Total
£

Cost or valuation

At 1 May 2022

54,231

28,180

82,411

Additions

18,827

-

18,827

At 30 April 2023

73,058

28,180

101,238

Amortisation

At 1 May 2022

19,997

5,459

25,456

Amortisation charge

7,656

7,039

14,695

At 30 April 2023

27,653

12,498

40,151

Carrying amount

At 30 April 2023

45,405

15,682

61,087

At 30 April 2022

34,234

22,721

56,955

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

5

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 May 2022

45,504

37,288

82,792

Additions

-

14,709

14,709

Disposals

-

(14,697)

(14,697)

At 30 April 2023

45,504

37,300

82,804

Depreciation

At 1 May 2022

17,696

19,144

36,840

Charge for the year

15,016

8,232

23,248

Eliminated on disposal

-

(11,349)

(11,349)

At 30 April 2023

32,712

16,027

48,739

Carrying amount

At 30 April 2023

12,792

21,273

34,065

At 30 April 2022

27,808

18,142

45,950

Included within the net book value of land and buildings above is £12,792 (2022 - £27,808) in respect of short leasehold land and buildings.
 

6

Stocks

2023
£

2022
£

Finished goods and raw materials

1,005,969

797,749

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

7

Debtors

Current

2023
£

2022
£

Trade debtors

519,098

380,894

Other debtors

103,395

169,119

 

622,493

550,013

8

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

1,045,214

807,700

Trade creditors

 

181,727

233,469

Taxation and social security

 

62,386

64,520

Other creditors

 

146,803

236,929

Directors' current accounts

 

2,930,000

2,205,000

 

4,366,130

3,547,618

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

450

Directors' loan accounts

1,045,214

807,250

1,045,214

807,700

10

Reserves reconciliation

Share premium
£

At 1 May 2022

1,249,998

Movement in year :

New share capital subscribed

575,030

At 30 April 2023

1,825,028

 

Wax London Ltd

Notes to the Unaudited Financial Statements
for the Year Ended 30 April 2023

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £21,780 (2022 - £21,780).

12

Related party transactions

Transactions with directors

2022

At 1 May 2021
£

Advances to director
£

Repayments by director
£

At 30 April 2022
£

S Neceva

Director loan account

8,717

2

(8,719)

-

         
       

T M E Holmes

Director loan account

17,426

448

(17,874)

-