REGISTERED NUMBER: |
Customchain Limited |
Strategic Report, Directors' Report and |
Financial Statements |
for the Year Ended 28 February 2023 |
REGISTERED NUMBER: |
Customchain Limited |
Strategic Report, Directors' Report and |
Financial Statements |
for the Year Ended 28 February 2023 |
Customchain Limited (Registered number: 03252334) |
Contents of the Financial Statements |
for the year ended 28 February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
Customchain Limited |
Company Information |
for the year ended 28 February 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
Customchain Limited (Registered number: 03252334) |
Strategic Report |
for the year ended 28 February 2023 |
Principal activities |
The principal activities of the Company are, supplier of a wide range of award-winning diamond jewellery, handmade and with proprietary designs. |
The directors do not envisage any change to the nature of the business in the foreseeable future. |
Review of business |
The Company has made profit before tax for the financial year of £4,718k (2022: £5,717k). The directors are of the opinion that the current and forecasted level of business and the yearend financial position are satisfactory and will remain so in the foreseeable future. |
2023 | 2022 |
£'000 | £'000 |
Turnover | 18,758 | 19,809 |
Profit before tax | 4,718 | 5,717 |
Profit after tax | 3,859 | 4,628 |
Net Assets | 10,894 | 7,035 |
With the economic uncertainties due to rising interest and inflation rates the Company has performed well and maintains a strong market position. The Company will continue to invest in developing its staff, business, systems and supporting national charities with the aim of giving back. |
Principal risks and uncertainties |
The Company's operations expose it to a variety of risks which sometimes arrive uninvited, e.g., FX volatility. Nonetheless, the Company is very cautious in mitigating these risks and ensures that staff and customers interests are at the forefront. Risks such as interest, currency, credit, liquidity, and price are inherent but with careful planning and regular review the Company working towards ensuring the Company is not exposed to such risk wherever possible. |
Interest rate risk |
The Company does not have exposure to interest rate risk, as all trade creditors are non-interest bearing, nor does it maintain a secured loan facility. Overdraft facilities are short term and available at a low cost of borrowing. |
Currency risk |
The Company has exposure to foreign currency fluctuations, its business operates globally and therefore is subject to fluctuation in exchange rates between sterling, US dollars and Euros. The Company manages its currency risk by constantly monitoring FX rates and it holds foreign currency in its base currency until its financially beneficial to convert into sterling. |
Credit risk |
The Company's credit risk exposure is considered low and therefore it does not operate a credit risk facility, orders are only released once the customer are able to either pay for the goods online or able to obtain credit facility from approved external financial providers. |
Liquidity risk |
Cautious liquidity management entails the maintenance of sufficient reserves of cash and the availability of sufficient credit facilities, to ensure that there are available funds to carry on operations. Constant stress testing and forecasts are in place to manage this risk. The Company is not financed by external parties; therefore, this risk is considered low. |
Price risk |
The Company is exposed to commodity price risk due to the nature of its operations. Recently the company has experienced increase of commodity prices due to inflationary and economic pressures across the globe, the Company carefully considers product pricing before reflecting changes in the selling price of its products. |
Development and performance |
The directors see a positive future and solid returns on investments for the coming years and whilst strengthening its value proposition will continue to be at the forefront. |
Key performance Indicators (KPIs) |
The directors consider Profit before tax as a key measure of the business performance. Profit before tax amounted to £4,718k in the financial year compared to £5,717k (2022) in the previous year. The Company has seen an decrease in revenue of 5% year on year (2022: 207% increase). |
Customchain Limited (Registered number: 03252334) |
Strategic Report |
for the year ended 28 February 2023 |
Significant events |
Inflation across the globe is seeing the price of goods and services increase, this has also had an impact on the Company and the Company has considered its pricing policy to sustain inflationary increases. |
On behalf of the board: |
Customchain Limited (Registered number: 03252334) |
Directors' Report |
for the year ended 28 February 2023 |
The directors present their report with the financial statements of the Company for the year ended 28 February 2023. |
Principal activity |
The principal activity of the Company in the year under review was that of manufacture and sale of jewellery. |
Dividends |
The directors recommend that no final dividends be paid (2022: £87,000 on Ordinary A shares and £140,000 on Ordinary B shares). |
Directors |
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report. |
Political donations and expenditure |
The Company did not make any donations to political parties during the year (2022: Nil). |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' Report 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. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
Auditors |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Independent Auditors' Report to the Members of |
Customchain Limited |
Opinion |
We have audited the financial statements of Customchain Limited (the 'Company') for the year ended 28 February 2023 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 28 February 2023 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Customchain 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 Directors' Report. |
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, 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. |
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: |
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation. |
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. |
Independent Auditors' Report to the Members of |
Customchain 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 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
Customchain Limited (Registered number: 03252334) |
Income Statement |
for the year ended 28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
Operating profit |
Interest receivable and similar income | 6 |
4,724,898 | 5,720,645 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
Profit before taxation | 8 |
Tax on profit | 9 | ( |
) | ( |
) |
Profit for the financial year |
Customchain Limited (Registered number: 03252334) |
Other Comprehensive Income |
for the year ended 28 February 2023 |
2023 | 2022 |
Notes | £ | £ |
Profit for the year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Customchain Limited (Registered number: 03252334) |
Balance Sheet |
28 February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Current assets |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
Creditors |
Amounts falling due within one year | 16 |
Net current assets |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 20 |
Retained earnings | 21 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Customchain Limited (Registered number: 03252334) |
Statement of Changes in Equity |
for the year ended 28 February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2023 |
Customchain Limited (Registered number: 03252334) |
Cash Flow Statement |
for the year ended 28 February 2023 |
2023 | 2022 |
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 |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (2,140,517 | ) | (1,361,093 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,627,745 |
3,195,414 |
Cash and cash equivalents at end of year | 2 |
Customchain Limited (Registered number: 03252334) |
Notes to the Cash Flow Statement |
for the year ended 28 February 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Impairment of goodwill | 2 | - |
Finance costs | 6,461 | 3,387 |
Finance income | (51,172 | ) | (2,181 | ) |
4,737,423 | 5,734,539 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
(Decrease)/increase 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 28 February 2023 |
28/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 1,791,025 | 4,393,551 |
Bank overdrafts | ( |
) | ( |
) |
1,789,072 | 3,627,745 |
Year ended 28 February 2022 |
28/2/22 | 1/3/21 |
£ | £ |
Cash and cash equivalents | 4,393,551 | 3,265,162 |
Bank overdrafts | ( |
) | ( |
) |
3,627,745 | 3,195,414 |
3. | Analysis of changes in net funds |
At 1/3/22 | Cash flow | At 28/2/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,393,551 | (2,602,526 | ) | 1,791,025 |
Bank overdrafts | (765,806 | ) | 763,853 | (1,953 | ) |
3,627,745 | ( |
) | 1,789,072 |
Total | 3,627,745 | (1,838,673 | ) | 1,789,072 |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements |
for the year ended 28 February 2023 |
1. | Statutory information |
Customchain Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page. |
2. | Accounting policies |
Basis of preparing the financial statements |
The presentational and functional currency of the Company is the Pound Sterling (£). |
Amounts in these financial statements have been rounded to the nearest £. |
Preparation of consolidated financial statements |
The financial statements contain information about Customchain Limited as an individual company and do not contain consolidated financial information as the parent of a group. The Company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments. Management consider the key accounting estimates to be: |
Stock provision |
A full line by line review of the stock listing is carried out at the financial year end in order to identify any slow moving or obsolete stock. Whilst every attempt is made to ensure the finished goods stock provisions are as accurate as possible, there remains a risk that the provisions do not match the level of stock which ultimately proves to be unsaleable. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Goodwill |
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is recognised as an asset at cost less any accumulated impairment losses. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Impairment of assets |
At each reporting date the Company reviews the carrying value of its assets to determine whether there is any indication that these 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. |
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset, or cash generating unit. The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows. |
Where the recoverable amount of an asset is less than the carrying amount, an impairment loss is recognised immediately in the Income Statement. An impairment loss recognised for all assets is reversed in a subsequent period if, and only if, the reasons for the impairment loss have ceased to apply. Impairment losses are charged to the Income Statement in administrative expenses. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses. |
Stocks are measured on a first in first out (FIFO) basis. |
Financial instruments |
Financial assets and financial liabilities are recognised in the Balance Sheet when the Company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the Company's cash management. |
Financial liabilities and equity instruments issued by the Company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. |
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. |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
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 the Income Statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The Company operates a defined contribution pension scheme. Contributions payable to the Company's pension scheme are charged to teh Income Statement in the period to which they relate. Assets of the scheme are held in a separately administered fund from the Company. |
Provisions |
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that the obligation will be required to be settled, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting taking into account the risks and uncertainties surrounding the obligation. Provisions are discounted when the time value of money is material. |
Going concern |
These financial statements have been prepared on a going concern basis. |
The current economic conditions discussed in the Directors' Report, present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risks including an assessment on uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis. |
Based on assessment, the directors consider that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations and external debt liabilities. |
In addition, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis. |
3. | 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: |
2023 | 2022 |
£ | £ |
United Kingdom |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Order management | 1 | 1 |
Purchasing | 2 | 3 |
Stock management | 6 | 4 |
Production | 4 | 3 |
Marketing | 1 | 2 |
Finance | 3 | 2 |
Senior leadership | 1 | 1 |
5. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration |
6. | Interest receivable and similar income |
2023 | 2022 |
£ | £ |
Bank interest received |
Interest received |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank loan interest |
8. | Profit before taxation |
The profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases | 63,783 | 48,000 |
Depreciation - owned assets | 59,869 | 12,892 |
Loss on disposal of fixed assets | 3 | - |
Impairment of goodwill | 2 | - |
Computer software amortisation | 3,823 | 3,183 |
Auditors' remuneration | 22,250 | 10,000 |
Foreign exchange differences | 521,006 | (79,540 | ) |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
NTLR | - | 414 |
Charges paid | - | (15,851 | ) |
Total tax charge | 859,675 | 1,089,096 |
10. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each | - | 87,000 |
Ordinary B shares of £1 each | - | 140,000 |
- | 227,000 |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
11. | Intangible fixed assets |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
Cost |
At 1 March 2022 |
Additions |
Impairments | (2 | ) | - | (2 | ) |
At 28 February 2023 |
Amortisation |
At 1 March 2022 |
Amortisation for year |
At 28 February 2023 |
Net book value |
At 28 February 2023 |
At 28 February 2022 |
12. | Tangible fixed assets |
Fixtures |
Improvements | Plant and | and | Motor |
to property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 March 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 28 February 2023 |
Depreciation |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 28 February 2023 |
Net book value |
At 28 February 2023 |
At 28 February 2022 |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
13. | Fixed asset investments |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 March 2022 |
Disposals | ( |
) |
At 28 February 2023 |
Net book value |
At 28 February 2023 |
At 28 February 2022 |
The amount included in fixed asset investments relates to shares in a subsidiary of the Company and is shown at cost. |
14. | Stocks |
2023 | 2022 |
£ | £ |
Finished goods |
15. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 3,602,722 | 1,462,206 |
Tax |
Prepayments and accrued income |
16. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 442,280 | 188,375 |
Other creditors |
Pension liability | 1,938 | 1,870 |
Accruals and deferred income |
17. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
18. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
19. | Secured debts |
The bank holds a debenture and fixed and floating charges over the assets of the Company. |
One of the directors along with their family members who are also employees of the Company hold a debenture by way of floating charges over the assets of the Company. |
20. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | 1 | 240,000 | 240,000 |
Ordinary B | 1 | 10,000 | 10,000 |
250,000 | 250,000 |
21. | Reserves |
Retained |
earnings |
£ |
At 1 March 2022 |
Profit for the year |
At 28 February 2023 |
22. | Pension commitments |
Total pension costs in the year were £25,236 (2022: £14,275). |
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
23. | Related party disclosures |
Included in debtors at the year end is £3,602,722 (2022: £1,462,206) owed by directors and £552,932 (2022: £376,955) owed by related parties. Included in creditors at the year end is £nil (2022: £nil) owed to directors and £95,785 (2022: £59,322) owed to related parties. |
During the year, rent of £48,000 (2022: £48,000) was paid to a director and wages of £102,342 (2022: £190,543) were paid to related parties. |
During the year, donations of £395,000 (2022: Nil) was paid to the Kanzen family trust |
During the year, sales of £18,218,957 (2022: £19,808,524) were made to a related party. |
Customchain Limited (Registered number: 03252334) |
Notes to the Financial Statements - continued |
for the year ended 28 February 2023 |
24. | Ultimate controlling party |
The ultimate controlling party is |