Year Ended
Registration number:
Neon (Holdings) Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Neon (Holdings) Limited
Company Information
Director |
Mr R N Long |
Registered office |
|
Auditors |
|
Neon (Holdings) Limited
Strategic Report
Year Ended 30 April 2023
The director presents his strategic report for the year ended 30 April 2023.
Principal activity
The principal activity of the company is a holding company. The principal activity of the group is that of a furniture retailer.
Fair review of the business
The 2022/23 year has been another profitable year for the group, with similar levels of trade to the prior year. Sales have slighly decreased from £9,883k to £9,568k which is a 3.2% decrease. This decrease is largerly due to a reduction in sales from the online store, as store sales have recovered since the post pandemic due to customers now being able to come and view products in person before commiting to a purchase. Cost of sales have also decreased slightly from £5,765k to £5,688k which is a 1.3% decrease.
This has resulted in a slight drop in gross profit margin 41.66% to 40.56%. However profit increasesd from £391k to £393k due to a reduction in admin costs. Overall, this is a strong result for the group given the cost of living crisis and continued economic uncertainty.
Principal risks and uncertainties
In the opinion of the Directors the principal risks faced by the group in the forthcoming year come from the uncertainty in UK economy going into 2023. There is a risk that hardship will mean lower demand for products. However we continue to source quality products at competitive prices and understand that choice and availability can sway the customers decision. We recognise that business on the high street will continue to be challenging for the foreseeable future and we have invested further in our website where overhead costs are lower, and profit margins are higher. We need to listen to customer feedback and work to provide our customers with what they want in terms of both product and service.
Approved and authorised by the
......................................... |
Neon (Holdings) Limited
Director's Report
Year Ended 30 April 2023
The director presents his report and the for the year ended 30 April 2023.
Director of the group
The director who held office during the year was as follows:
Financial risk management objectives and policies
Trading activities expose the company to a number of financial risks. These risks include cash flow
risk and overall liquidity risk. The company seeks to manage and mitigate these risks by adopting a
policy of daily monitoring of the bank balance. Management also remain hands-on, reviewing cash
flows, pre-empting future cash movements and planning accordingly. The director maintains regular
contact with the company's bank and keeps them informed of business levels and results, in order to
safeguard the bank's continuing support.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved and authorised by the
......................................... |
Neon (Holdings) Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Neon (Holdings) Limited
Independent Auditor's Report to the Members of Neon (Holdings) Limited
Opinion
We have audited the financial statements of Neon (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 group's and the parent company's affairs as at 30 April 2023 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Neon (Holdings) Limited
Independent Auditor's Report to the Members of Neon (Holdings) Limited
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 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 Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's 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:
• | 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; or |
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 4, 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.
In preparing the financial statements, the director is responsible for assessing the group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Neon (Holdings) Limited
Independent Auditor's Report to the Members of Neon (Holdings) Limited
Auditor’s 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 auditor’s 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:
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.
We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.
Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations, review of board minutes and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to be come aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Neon (Holdings) Limited
Independent Auditor's Report to the Members of Neon (Holdings) 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 auditor’s 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.
......................................
Melville Building East
Unit 18, 23 Royal William Yard
Devon
PL1 3GW
Neon (Holdings) Limited
Consolidated Profit and Loss Account
Year Ended 30 April 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Neon (Holdings) Limited
Consolidated Statement of Comprehensive Income
Year Ended 30 April 2023
2023 |
2022 |
|
Profit for the year |
|
|
Revaluation of property |
- |
506,750 |
Deferred tax on revaluation of property |
14,882 |
(70,349) |
14,882 |
436,401 |
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Neon (Holdings) Limited
Consolidated Balance Sheet
30 April 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash and short-term deposits |
615,097 |
1,137,641 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
104 |
104 |
|
Share premium reserve |
|
|
|
Fair value reserve |
|
|
|
Other reserves |
( |
( |
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
......................................... |
Company Registration Number: 08578012
Neon (Holdings) Limited
Balance Sheet
30 April 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Capital redemption reserve |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
The company made a profit after tax for the financial year of £268,478 (2022 - profit of £237,858).
Approved and authorised by the
......................................... |
Company Registration Number: 08578012
Neon (Holdings) Limited
Consolidated Statement of Changes in Equity
Year Ended 30 April 2023
Share capital |
Share premium |
Fair value reserve |
Merger reserve |
Profit and loss account |
Total |
|
At 1 May 2022 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
|
- |
- |
|
Total comprehensive income |
- |
- |
|
- |
|
|
Dividends |
- |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(17,767) |
- |
17,767 |
- |
Merger reserve movement |
- |
- |
- |
( |
- |
( |
At 30 April 2023 |
104 |
|
|
( |
|
|
Neon (Holdings) Limited
Consolidated Statement of Changes in Equity
Year Ended 30 April 2023
Share capital |
Share premium |
Fair value reserve |
Merger reserve |
Profit and loss account |
Total |
|
At 1 May 2021 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
|
- |
- |
|
Total comprehensive income |
- |
- |
|
- |
|
|
Dividends |
- |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(60,560) |
- |
60,560 |
- |
Merger reserve movement |
- |
- |
- |
( |
- |
( |
At 30 April 2022 |
104 |
|
|
( |
|
|
Neon (Holdings) Limited
Consolidated Statement of Cash Flows
Year Ended 30 April 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash (used)/generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Redemption of shares classified as liabilities |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Interest on preference shares |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 May |
|
|
|
Cash and cash equivalents at 30 April |
603,335 |
1,137,641 |
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Unit 1 Cardrew Way
Cardrew Industrial Estate
Redruth
Cornwall
TR15 1SH
These financial statements were authorised for issue by the
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006.
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.
Summary of disclosure exemptions
FRS102 grants a qualifying entity exemptions from the full requirements of FRS102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity:
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its cash flows are included in the consolidated financial statements of the group. The company has also taken advantage of the exemption of the disclosures required by Section 11: Basic financial instruments and Section 12: Other financial instruments on the basis that the equivalent disclosures are included in the consolidated financial statements of the group in which the the company is consolidated. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other wholly owned members of the Neon (Holdings) Limited group.
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2023.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Subsidiary undertakings are included under the merger accounting method. Under this method no goodwill arises from the group reorganisation. The goodwill seen on the consolidated balance sheet relates to goodwill included on the balance sheet of a subsidiary company.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets, except freehold land and buildings are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Freehold land and buildings are stated in the balance sheet at valuation. An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Depreciation
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 |
Freehold Property |
2% straight line |
Leasehold Property |
10% straight line |
Fixtures and Fittings |
15% reducing balance |
Computer Equipment |
25% reducing balance |
Motor vehicles |
25% reducing balance |
Office equipment |
25% reducing balance |
Investment property
Goodwill
Goodwill was capitalised upon incorporation in 2007 and is being amortised over its useful life, which
has been estimated to be 20 years.
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 |
Goodwill |
5% straight line |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other revenue |
|
- |
|
|
The analysis of the group's turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
CJRS income |
- |
|
Other COVID grants |
- |
|
- |
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Auditor's remuneration |
2023 |
2022 |
|
Audit of these financial statements |
1,650 |
1,500 |
Audit of the financial statements of subsidiaries of the company |
12,650 |
11,500 |
|
|
Other interest receivable and similar income |
2023 |
2022 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on preference shares |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Tax increase from other short-term timing differences |
|
- |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Liability |
Origination and reversal of timing differences |
|
Deferred tax on revalued property |
|
|
2022 |
Liability |
Origination and reversal of timing differences |
|
Deferred tax on revalued property |
|
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Intangible assets |
Group
Goodwill |
|
Cost or valuation |
|
At 1 May 2022 |
|
At 30 April 2023 |
|
Amortisation |
|
At 1 May 2022 |
|
Amortisation charge |
|
At 30 April 2023 |
|
Carrying amount |
|
At 30 April 2023 |
|
At 30 April 2022 |
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Tangible assets |
Group
Freehold land and buildings |
Leasehold improvements |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 May 2022 |
|
|
|
|
|
Additions |
- |
- |
|
- |
|
At 30 April 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 May 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 30 April 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 30 April 2023 |
|
|
|
|
|
At 30 April 2022 |
|
|
|
|
|
Included within the net book value of land and buildings above is £4,359,750 (2022 - £4,419,279) in respect of freehold land and buildings and £61,997 (2022 - £88,454) in respect of short leasehold land and buildings.
Revaluation
The fair value of the Freehold land & buildings was revalued on various dates. These include Directors' valuations and valuations completed by an independent valuer. The basis used for the valuations was market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
45,656 |
66,334 |
Restriction on title and pledged as security
Investment properties |
Group
2023 |
|
At 1 May |
|
At 30 April |
|
The valuation is based on a director's valuation. There has been no valuation of investment property by an independent valuer in the year.
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 May 2022 |
|
Provision |
|
Carrying amount |
|
At 30 April 2023 |
|
At 30 April 2022 |
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
C/O Francis Clark LLP
United Kingdom |
|
|
|
|
Unit 1 Cardrew Way
United Kingdom |
|
|
|
|
C/O Francis Clark LLP
|
|
|
|
The principal activity of Neon Property Ltd is that of a property holding company.
The principal activity of Furniture World Ltd is that of a furniture retailer.
The principal activity of Oak City Ltd is that of a dormant company.
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Other inventories |
|
|
- |
- |
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Debtors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
|
Amounts due from group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Accrued income |
|
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
|
|
Cash at bank |
|
|
- |
- |
Short-term deposits |
|
- |
- |
- |
|
|
|
|
|
Bank overdrafts |
( |
- |
- |
- |
Cash and cash equivalents in statement of cash flows |
603,335 |
1,137,641 |
4 |
4 |
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts due to group undertakings |
- |
- |
|
|
|
Corporation tax |
146,583 |
153,479 |
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
HP and finance lease liabilities |
|
|
- |
- |
Redeemable preference shares |
- |
- |
|
|
Non-redeemable preference shares |
- |
- |
|
|
|
|
|
|
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Bank overdrafts |
|
- |
- |
- |
Hire purchase contracts |
|
|
- |
- |
Finance lease liabilities |
- |
- |
- |
- |
Redeemable preference shares |
- |
- |
|
|
|
|
|
|
Group
The Natwest loans are denominated in £ with nominal interest rates ranging from 2.75% - 3.21%. The final instalment is due on 31 January 2031. The carrying amount at year end is £226,977 (2022 - £250,098).
The Barclays loans are denominated in £ with nominal interest rates ranging from 2% - 2.76%. The final instalments are due on 1 April 2025 and 7 June 2026. The carrying amount at year end is £2,009,772 (2022 - £2,284,134).
The bank loans are secured by charges over the freehold properties owned by the group, directors guarantees and cross guarantees between group companies.
Other bank borrowings are secured by the directors' personal guarantee.
The finance lease liabilities are secured on the assets to which they relate.
The bank borrowings are due as below -
Amount due |
|
£ |
|
Within 1 year |
349,350 |
Within 1 - 5 years |
1,797,088 |
After 5 years |
90,311 |
2,236,749 |
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Analysis of changes in net debt |
1 May 2022 |
Cash flow |
Other non-cash changes |
30 April 2023 |
|
£ |
£ |
£ |
£ |
|
Cash at bank and in hand |
1,137,641 |
(522,544) |
- |
615,097 |
Overdraft |
- |
(11,762) |
- |
(11,762) |
1,137,641 |
(534,306) |
- |
603,335 |
|
DEBT: |
||||
Debts due within one year |
(339,280) |
297,484 |
(307,554) |
(349,350) |
Debts due after more than one year |
(2,194,953) |
- |
307,554 |
(1,887,399) |
Finance leases and hire purchase |
(67,481) |
25,370 |
- |
(42,111) |
NET DEBT |
(2,601,714) |
322,854 |
- |
(2,278,860) |
(1,464,073) |
(211,452) |
- |
(1,675,525) |
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Provisions for liabilities |
Group
Deferred tax |
|
At 1 May 2022 |
|
Increase (decrease) in existing provisions |
( |
At 30 April 2023 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
Ordinary A shares of £1 each |
4 |
4 |
4 |
4 |
Ordinary B shares of £1 each |
12 |
12 |
12 |
12 |
Ordinary C shares of £1 each |
88 |
88 |
88 |
88 |
Redeemable preference shares of £1 each |
1,138,660 |
1,138,660 |
1,203,660 |
1,203,660 |
Non-redeemable preference shares of £1 each |
600,939 |
600,939 |
600,939 |
600,939 |
1,739,703 |
1,739,703 |
1,804,703 |
1,804,703 |
Neon (Holdings) Limited
Notes to the Financial Statements
Year Ended 30 April 2023
Related party transactions |
Group
Transactions with the director |
2023 |
At 1 May 2022 |
Advances to director |
Repayments by director |
At 30 April 2023 |
Mr R N Long |
||||
Director's loan account |
( |
( |
|
( |
2022 |
At 1 May 2021 |
Advances to director |
Repayments by director |
At 30 April 2022 |
Mr R N Long |
||||
Director's loan account |
( |
( |
|
( |