Caseware UK (AP4) 2022.0.179 2022.0.179 2022-02-282022-02-282022-02-28falsefalsetrue2021-03-01falseNo description of principal activity6762 05353978 2021-03-01 2022-02-28 05353978 2020-03-01 2021-02-28 05353978 2022-02-28 05353978 2021-02-28 05353978 2020-03-01 05353978 c:CompanySecretary1 2021-03-01 2022-02-28 05353978 c:Director1 2021-03-01 2022-02-28 05353978 c:RegisteredOffice 2021-03-01 2022-02-28 05353978 d:MotorVehicles 2021-03-01 2022-02-28 05353978 d:MotorVehicles 2022-02-28 05353978 d:MotorVehicles 2021-02-28 05353978 d:MotorVehicles d:OwnedOrFreeholdAssets 2021-03-01 2022-02-28 05353978 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2021-03-01 2022-02-28 05353978 d:FurnitureFittings 2021-03-01 2022-02-28 05353978 d:FurnitureFittings 2022-02-28 05353978 d:FurnitureFittings 2021-02-28 05353978 d:FurnitureFittings d:OwnedOrFreeholdAssets 2021-03-01 2022-02-28 05353978 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2021-03-01 2022-02-28 05353978 d:ComputerEquipment 2021-03-01 2022-02-28 05353978 d:ComputerEquipment 2022-02-28 05353978 d:ComputerEquipment 2021-02-28 05353978 d:ComputerEquipment d:OwnedOrFreeholdAssets 2021-03-01 2022-02-28 05353978 d:ComputerEquipment d:LeasedAssetsHeldAsLessee 2021-03-01 2022-02-28 05353978 d:OwnedOrFreeholdAssets 2021-03-01 2022-02-28 05353978 d:LeasedAssetsHeldAsLessee 2021-03-01 2022-02-28 05353978 d:ComputerSoftware 2022-02-28 05353978 d:ComputerSoftware 2021-02-28 05353978 d:OtherResidualIntangibleAssets 2021-03-01 2022-02-28 05353978 d:CurrentFinancialInstruments 2022-02-28 05353978 d:CurrentFinancialInstruments 2021-02-28 05353978 d:Non-currentFinancialInstruments 2022-02-28 05353978 d:Non-currentFinancialInstruments 2021-02-28 05353978 d:CurrentFinancialInstruments d:WithinOneYear 2022-02-28 05353978 d:CurrentFinancialInstruments d:WithinOneYear 2021-02-28 05353978 d:Non-currentFinancialInstruments d:AfterOneYear 2022-02-28 05353978 d:Non-currentFinancialInstruments d:AfterOneYear 2021-02-28 05353978 d:ShareCapital 2021-03-01 2022-02-28 05353978 d:ShareCapital 2022-02-28 05353978 d:ShareCapital 2020-03-01 2021-02-28 05353978 d:ShareCapital 2021-02-28 05353978 d:ShareCapital 2020-03-01 05353978 d:RetainedEarningsAccumulatedLosses 2021-03-01 2022-02-28 05353978 d:RetainedEarningsAccumulatedLosses 2022-02-28 05353978 d:RetainedEarningsAccumulatedLosses 2020-03-01 2021-02-28 05353978 d:RetainedEarningsAccumulatedLosses 2021-02-28 05353978 d:RetainedEarningsAccumulatedLosses 2020-03-01 05353978 c:OrdinaryShareClass1 2021-03-01 2022-02-28 05353978 c:OrdinaryShareClass1 2022-02-28 05353978 c:OrdinaryShareClass1 2021-02-28 05353978 c:FRS102 2021-03-01 2022-02-28 05353978 c:Audited 2021-03-01 2022-02-28 05353978 c:FullAccounts 2021-03-01 2022-02-28 05353978 c:PrivateLimitedCompanyLtd 2021-03-01 2022-02-28 05353978 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2021-03-01 2022-02-28 05353978 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-02-28 05353978 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2021-02-28 05353978 d:Subsidiary1 2021-03-01 2022-02-28 05353978 d:Subsidiary1 1 2021-03-01 2022-02-28 05353978 d:WithinOneYear 2022-02-28 05353978 d:WithinOneYear 2021-02-28 05353978 d:BetweenOneFiveYears 2022-02-28 05353978 d:BetweenOneFiveYears 2021-02-28 05353978 d:HirePurchaseContracts d:WithinOneYear 2022-02-28 05353978 d:HirePurchaseContracts d:WithinOneYear 2021-02-28 05353978 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-02-28 05353978 d:HirePurchaseContracts d:BetweenOneFiveYears 2021-02-28 05353978 c:Consolidated 2022-02-28 05353978 c:ConsolidatedGroupCompanyAccounts 2021-03-01 2022-02-28 05353978 d:ComputerSoftware d:ExternallyAcquiredIntangibleAssets 2021-03-01 2022-02-28 05353978 2 2021-03-01 2022-02-28 05353978 4 2021-03-01 2022-02-28 05353978 6 2021-03-01 2022-02-28 05353978 d:ComputerSoftware d:OwnedIntangibleAssets 2021-03-01 2022-02-28 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 05353978












FQM ENTERTAINMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

 

FQM ENTERTAINMENT LIMITED

CONTENTS



Page
Company information
 
1
Group strategic report
 
2 - 3
Director's report
 
4
Director's responsibilities statement
 
5
Independent auditor's report
 
6 - 9
Consolidated profit and loss account
 
10
Consolidated balance sheet
 
11
Company balance sheet
 
12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated statement of cash flows
 
15
Notes to the financial statements
 
16 - 36


 

FQM ENTERTAINMENT LIMITED
 
COMPANY INFORMATION


Director
J Morris 




Company secretary
R Morris



Registered number
05353978



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Trading Address
12 Oval Road

London

NW1 7DH






Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

FQM ENTERTAINMENT LIMITED
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022

Introduction
 
The director presents the strategic report for the year ended 28 February 2022.
The principal activity of the group and company during the year continued to be that of designers and manufacturers of fashion clothing.

Business review
 
Group turnover reduced from £30,956,904 to £26,778,890 and gross profit increased from £5,508,373 to £6,140,513 giving a gross profit margin of 23% (2021: 17.8%). Administrative costs increased from £3,307,874 to  £4,244,547 and profit before tax increased from £669,263 to £1,745,684. 

Principal risks and uncertainties
 
Competitive pressures in the UK continue to present a significant risk for the group and could result in it losing sales to its key competitors. The group manages this risk by providing added value services to its customers, having fast response times not only in supplying products but in handling all customer queries, and by maintaining strong relationships with customers.
The current trading arrangements between the UK and the rest of the European Union remain uncertain and may affect the business and its future trading results. The group has a branch in Turkey, and maintains a strong relationship with suppliers.
Whilst the Covid-19 pandemic continued to impact on certain parts of the global economy during 2021 & 2022, restrictions are now lifted in all major economies. There was no material Covid-19 related impact on the company during 2022 nor is any anticipated for 2023. However, another major customer entered into administration which resulted in the need for a bad debt provision resulting in the lower group net profit reported.
The ongoing conflict between Ukraine and Russia, which commenced in February 2022, together with the economic sanctions placed on Russia has had a material impact to many economies with elevated level of inflation leading to central banks swiftly increasing interest rates. Whilst this is expected to moderate in 2023, there is some uncertainty around this, due to the continued high levels of core inflation within western economies. The director continues to closely monitor the associated geo-political risks in relation to inflation, rising interest rates, volatile markets and any potential adverse impact on the company. However, as at the date of approval of these financial statements, based on its assessment of the current situation and information available, the director does not envisage that this will have a material impact on the company.
In the long-term the director is confident in the group's capacity to operate as a going concern.

Financial key performance indicators
 
The financial instruments used by the group arise wholly and directly from its activities. The financial instruments comprise debtors, cash at bank, bank overdraft facilities and trade creditors.
The group has put in place the following measures in order to manage the financial risks arising from these financial instruments:
 
The group regularly monitors the level of its debtors. Customers are typically high street brands that are
generally financially robust.
The group manages its cash position by regularly monitoring its cash flow.
The financial risk arising from the possible non advance of credit by the group's creditors, either by
exceeding the credit limit or not paying within the specified terms, is managed by regularly monitoring the
trade balance and credit limit terms for all suppliers.
Bank accounts are used to hold large cash sums for the purpose of paying creditors when their amounts fall
due.

Page 2

 

FQM ENTERTAINMENT LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

Other key performance indicators
 
Our key performance indicators are the satisfaction of our customers and levels of production and sales.
The director is committed to promoting the health, safety and welfare of staff and continues to ensure appropriate measures are undertaken in this regard. No reportable accidents arose during the year or the prior year.

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


J Morris
Director

Date: 21 November 2023

Page 3

 

FQM ENTERTAINMENT LIMITED

DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022

The director presents his report and the financial statements for the year ended 28 February 2022.

Results and dividends

The profit for the year, after taxation, amounted to £1,351,595 (2021 -£531,021).

No dividends were paid during the year (2021: £NIL).

Director

The director who served during the year was:

J Morris 

Future developments

The director is not aware, at the date of this report, of any likely major changes in the group's activities in the forthcoming year. The group strives to deliver a quality service to its clients by providing goods they require at a competitive price and of a high quality.

Matters covered in the group strategic report

As permitted by s414c(11) of the Companies Act 2006, the director has elected to disclose information, required to be in the director's report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

The director at the time when this director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

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





J Morris
Director

Date: 21 November 2023

Page 4

 

FQM ENTERTAINMENT LIMITED
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2022

The director is responsible for preparing the group strategic report, the director's report and the consolidated financial statements in accordance with applicable law and regulations.

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

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

Page 5

 

FQM ENTERTAINMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FQM ENTERTAINMENT LIMITED
 FOR THE YEAR ENDED 28 FEBRUARY 2022

Opinion


We have audited the financial statements of FQM Entertainment Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2022, which comprise the consolidated profit and loss account, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows, the consolidated statement of changes in equity, the company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the group's and of the parent company's affairs as at 28 February 2022 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's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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's or the parent 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 the director with respect to going concern are described in the relevant sections of this report.


Page 6

 

FQM ENTERTAINMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FQM ENTERTAINMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The the director is responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 group strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the group strategic report and the director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of the director's remuneration specified by law are not made; 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 director's responsibilities statement set out on page 5, the 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 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 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 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.


Page 7

 

FQM ENTERTAINMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FQM ENTERTAINMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

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 group 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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the fashion sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
Page 8

 

FQM ENTERTAINMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FQM ENTERTAINMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.

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 auditor's report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.





Simon Rothenberg (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
21 November 2023
Page 9

 

FQM ENTERTAINMENT LIMITED
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2022

2022
2021
Note
£
£

  

Turnover
 4 
26,778,890
30,956,904

Cost of sales
  
(20,638,377)
(25,448,531)

Gross profit
  
6,140,513
5,508,373

Administrative expenses
  
(4,244,547)
(3,307,847)

Exceptional administrative expenses
 13 
(141,470)
(1,659,167)

Other operating income
 5 
-
135,844

Operating profit
 6 
1,754,496
677,203

Interest receivable and similar income
 10 
15,207
-

Interest payable and similar expenses
 11 
(24,019)
(7,940)

Profit before taxation
  
1,745,684
669,263

Tax on profit
 12 
(394,089)
(138,242)

Profit for the financial year
  
1,351,595
531,021

Profit for the year attributable to:
  

Owners of the parent
  
1,351,595
531,021

There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.

Page 10


 
REGISTERED NUMBER:05353978
FQM ENTERTAINMENT LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 28 FEBRUARY 2022

2022
2021
(Restated*)
Note
£
£

Fixed assets
  

Intangible assets
 14 
52,855
50,721

Tangible assets
 15 
105,385
95,322

  
158,240
146,043

Current assets
  

Stocks
 17 
896,976
789,866

Debtors: amounts falling due within one year
 18 
5,009,016
7,518,940

Cash at bank and in hand
  
3,420,764
1,247,027

  
9,326,756
9,555,833

Creditors: amounts falling due within one year
 19 
(3,789,557)
(5,400,136)

Net current assets
  
 
 
5,537,199
 
 
4,155,697

Total assets less current liabilities
  
5,695,439
4,301,740

Creditors: amounts falling due after more than one year
 20 
(84,745)
(42,641)

Net assets
  
5,610,694
4,259,099


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
5,610,594
4,258,999

Equity attributable to owners of the parent company
  
5,610,694
4,259,099


*For restatement details please refer to Note 25 of these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Morris
Director

Date: 21 November 2023

The notes on pages 16 to 36 form part of these financial statements.

Page 11


 
REGISTERED NUMBER:05353978
FQM ENTERTAINMENT LIMITED

COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2022

2022
2021
(Restated*)
Note
£
£

Fixed assets
  

Intangible assets
 14 
41,635
28,281

Tangible assets
 15 
99,635
92,685

Investments
 16 
100
100

  
141,370
121,066

Current assets
  

Stocks
 17 
520,552
789,866

Debtors: amounts falling due within one year
 18 
4,702,450
6,330,354

Cash at bank and in hand
  
3,073,332
873,094

  
8,296,334
7,993,314

Creditors: amounts falling due within one year
 19 
(2,794,018)
(3,939,867)

Net current assets
  
 
 
5,502,316
 
 
4,053,447

Total assets less current liabilities
  
5,643,686
4,174,513

  

Creditors: amounts falling due after more than one year
 20 
(84,745)
(42,641)

  

Net assets
  
5,558,941
4,131,872


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account brought forward
  
4,131,772
4,433,496

Profit/(loss) for the year
  
1,427,069
(301,724)

Profit and loss account carried forward
  
5,558,841
4,131,772

  
5,558,941
4,131,872


*For restatement details please refer to Note 25 of these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



J Morris
Director

Date: 21 November 2023

The notes on pages 16 to 36 form part of these financial statements.

Page 12

 

FQM ENTERTAINMENT LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2020
100
3,727,978
3,728,078


Comprehensive income for the year

Profit for the year
-
531,021
531,021
Total comprehensive income for the year
-
531,021
531,021



At 1 March 2021
100
4,258,999
4,259,099


Comprehensive income for the year

Profit for the year
-
1,351,595
1,351,595
Total comprehensive income for the year
-
1,351,595
1,351,595


At 28 February 2022
100
5,610,594
5,610,694


Page 13

 

FQM ENTERTAINMENT LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2020
100
4,433,496
4,433,596


Comprehensive income for the year

Loss for the year
-
(301,724)
(301,724)
Total comprehensive income for the year
-
(301,724)
(301,724)



At 1 March 2021
100
4,131,772
4,131,872


Comprehensive income for the year

Profit for the year
-
1,427,069
1,427,069
Total comprehensive income for the year
-
1,427,069
1,427,069


At 28 February 2022
100
5,558,841
5,558,941


Page 14

 

FQM ENTERTAINMENT LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2022
2021
(Restated*)
£
£

Cash flows from operating activities

Profit for the financial year
1,351,595
531,021

Adjustments for:

Amortisation of intangible assets
18,161
11,220

Depreciation of tangible assets
97,891
16,410

Loss/(profit) on disposal of tangible assets
40
(155)

Interest paid
24,019
7,940

Interest received
(15,207)
-

Taxation charge
386,557
138,242

(Increase) in stocks
(107,110)
(789,866)

Decrease/(increase) in debtors
2,644,469
(2,166,872)

(Decrease)/increase in creditors
(1,583,813)
2,666,834

Net cash generated from operating activities

2,816,602
414,774


Cash flows from investing activities

Purchase of intangible fixed assets
(20,295)
(28,281)

Purchase of tangible fixed assets
(22,217)
(37,677)

Sale of tangible fixed assets
1,214
809

Interest received
15,207
-

HP interest paid
(7,249)
-

Net cash from investing activities

(33,340)
(65,149)

Cash flows from financing activities

Repayment of/new finance leases
(32,685)
(2,886)

Movement on related party loans
(560,070)
(170,329)

Interest paid
(16,770)
(7,940)

Net cash used in financing activities
(609,525)
(181,155)

Net increase in cash and cash equivalents
2,173,737
168,470

Cash and cash equivalents at beginning of year
1,247,027
1,078,557

Cash and cash equivalents at the end of year
3,420,764
1,247,027


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,420,764
1,247,027


*For restatement details please refer to Note 25 of these financial statements.
Page 15

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

1.


General information

FQM Entertainment Limited is a private limited Company domiciled and incorporated in England and Wales. The address of its registered office is 16 Great Queen Street, London, WC2B 5AH.
The company's principal place of business is 12 Oval Road, London, NW1 7DH.
The group consists of FQM Entertainment Limited and its subsidiary, FQM Brands Limited (Formerly known as New Girl Order Ltd).
The financial statements are presented in Sterling (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:
 
Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows); 
Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) (disclosures relating to financial instruments);
Section 26 Share based payments (disclosure of share based payments);
Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation). 

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiaries (i.e entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits) as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the subsidiary's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.3

Going concern

After making enquiries, the director has a reasonable expectation that the Company and Group have adequate resources to continue in operational existence and meet their liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, he continues to adopt the going concern basis in preparing the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the group has transferred the significant risks and rewards of ownership to the buyer;
the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 17

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.7

Government grants

The company was in receipt of Coronavirus Job Retention Scheme payments during the year. This grant is of a revenue nature and is recognised in the profit and loss account in other operating income in the same period as the related expenditure

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 18

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.11

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the group but are presented separately due to their size or incidence.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Website development
-
5
years

Page 19

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

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

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Motor vehicles
-
25%
straight-line
Fixtures and fittings
-
25%
straight-line
Computer equipment
-
25%
straight-line

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

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

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

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

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

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

  
2.18

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds.

Page 20

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

  
2.19

Financial instruments

The group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument. 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
The group’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any iimpairment. 
Financial liabilities
Basic financial liabilities, including trade and other creditors and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Page 21

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

  

Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

  
2.20

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 22

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

  
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of trade debtors
The Group reviews trade debtor balances for impairment and this is performed on a regular basis. Those balances which are considered to be recoverable remain in debtors and those which are not, are impaired and the impairment loss is recorded in the profit and loss. In making this judgement, the Company evaluates, among other factors, the duration and the financial health of and short-term business outlook for the trade debtors, including factors such as industry and sector performance. The accounting policy of trade debtors is described in note 2.19. At the year end the carrying amount of trade debtors is stated in note 18.
Key sources of estimation uncertainty
The director considers there are no material sources of estimation uncertainty.


4.


Turnover

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


2022
2021
£
£

Wholesale and on-line sales
26,778,890
30,956,904


The director has elected not to disclose the turnover by geographical market as the provision of such geographic information would be seriously prejudicial to the affairs of the Company.

Page 23

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

5.


Other operating income

2022
2021
£
£

Government grants receivable - JRS claims
-
135,844



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
1,811
176,402

Other operating lease rentals
216,167
183,698


7.


Auditor's remuneration

During the year, the group obtained the following services from the company's auditor:


2022
2021
£
£

Fees payable to the group's auditor and its associates for the audit of the group's annual financial statements

38,000
37,000

 
Fees payable to the group's auditor and its associates in respect of:

 
All other services
8,016
9,718

Page 24

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

8.


Employees

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


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
2,523,423
2,112,333
1,724,585
1,698,783

Social security costs
356,755
325,698
269,280
279,352

Contributions to defined contribution scheme
53,113
47,963
35,603
36,944

2,933,291
2,485,994
2,029,468
2,015,079


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



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Management
1
1
1
1



Sales, operations and administration
66
44
48
44



Manufacturing
18
17
18
17

85
62
67
62


9.


Director's remuneration

2022
2021
£
£

Director's emoluments
51,000
51,000

Group contributions to defined contribution pension schemes
1,530
1,556

52,530
52,556


During the year retirement benefits were accruing to one director (2021 -1) in respect of defined contribution pension schemes.


10.


Interest receivable

2022
2021
£
£


Other interest receivable
15,207
-

Page 25

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

11.


Interest payable and similar expenses

2022
2021
£
£


Finance leases and hire purchase contracts
7,249
924

Other interest payable
16,770
7,016

24,019
7,940


12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
395,598
138,242

Adjustments in respect of previous periods
(1,509)
-


Total current tax
394,089
138,242


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 -the same as) the standard rate of corporation tax in the UK of 19% (2021 -19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
1,745,684
669,263


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 -19%)
331,680
127,160

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,789
1,990

Capital allowances for year in excess of depreciation
10,573
848

Adjustments to tax charge in respect of prior periods
(1,509)
-

Short term timing difference leading to an increase in taxation
918
-

Deferred tax not recognised
14,909
-

Other differences leading to an increase in the tax charge
34,729
8,244

Total tax charge for the year
394,089
138,242

Page 26

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
 
12.Taxation (continued)


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% for companies with profits of over £250,000. A small profits rate will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. This new law was enacted on 10 June 2021. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in the financial statements. 


13.


Exceptional items

2022
2021
£
£


Bad debt provision for customer in liquidation
125,394
1,659,167

Written off other debtors
16,076
-

141,470
1,659,167

In November 2020 a major customer went into administration, a substantial sum  was still owed when a liquidator was appointed in July 2021. Consequently, a bad debt provision had been made for the total amount outstanding. 
During the year ended 28 February 2022 another customer went into administration; a substantial sum  was still owed when a liquidator was appointed. The expected amount recoverable is still unknown, therefore a bad debt provision was made for the total irrecoverable trade debt.

Page 27

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

14.


Intangible assets

Group





Website development

£



Cost


At 1 March 2021
84,381


Additions
20,295



At 28 February 2022

104,676



Amortisation


At 1 March 2021
33,660


Charge for the year on owned assets
18,161



At 28 February 2022

51,821



Net book value



At 28 February 2022
52,855



At 28 February 2021
50,721



Page 28

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
 
           14.Intangible assets (continued)

Company




Website development

£



Cost


At 1 March 2021
28,281


Additions
20,295



At 28 February 2022

48,576



Amortisation


Charge for the year
6,941



At 28 February 2022

6,941



Net book value



At 28 February 2022
41,635



At 28 February 2021
28,281

Page 29

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

15.


Tangible fixed assets

Group






Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 March 2021
88,301
40,891
36,430
165,622


Additions
86,991
7,364
14,853
109,208


Disposals
-
(9,221)
(34,281)
(43,502)



At 28 February 2022

175,292
39,034
17,002
231,328



Depreciation


At 1 March 2021
7,286
29,905
33,109
70,300


Charge for the year on owned assets
-
8,435
4,199
12,634


Charge for the year on financed assets
85,257
-
-
85,257


Disposals
-
(9,116)
(33,132)
(42,248)



At 28 February 2022

92,543
29,224
4,176
125,943



Net book value



At 28 February 2022
82,749
9,810
12,826
105,385



At 28 February 2021
81,015
10,986
3,321
95,322

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Motor vehicles
82,749
81,015

Page 30

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

           15.Tangible fixed assets (continued)


Company






Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£

Cost


At 1 March 2021
88,301
35,059
34,281
157,641


Additions
86,991
6,732
8,575
102,298


Disposals
-
(9,221)
(34,281)
(43,502)



At 28 February 2022

175,292
32,570
8,575
216,437



Depreciation


At 1 March 2021
7,286
25,532
32,138
64,956


Charge for the year on owned assets
-
6,867
1,970
8,837


Charge for the year on financed assets
85,257
-
-
85,257


Disposals
-
(9,116)
(33,132)
(42,248)



At 28 February 2022

92,543
23,283
976
116,802



Net book value



At 28 February 2022
82,749
9,287
7,599
99,635



At 28 February 2021
81,015
9,527
2,143
92,685






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Motor vehicles
82,749
81,015

Page 31

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 March 2021
100



At 28 February 2022
100







The following was a subsidiary undertaking of the company:

Name

Principal activity

Class of shares

Holding

FQM BRANDS LIMITED (FORMERLY KNOWN AS NEW GIRL ORDER LTD)
Manufacture of women's fashion clothing
Ordinary
100%


17.


Stocks

Group
Group
Company
Company
2022
2021
(Restated*)
2022
2021
(Restated*)
£
£
£
£

Stock in Transit
471,717
689,866
266,672
689,866

Fashion garments
425,259
100,000
253,880
100,000

896,976
789,866
520,552
789,866


The difference between purchase price or production cost of stocks and their replacement cost is not material.

*For restatement details please refer to Note 25 of these financial statements.

Page 32

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

18.


Debtors

Group
Group
Company
Company
2022
2021
(Restated*)
2022
2021
(Restated*)
£
£
£
£


Trade debtors
2,858,628
5,541,431
2,291,649
3,233,918

Amounts owed by group undertakings
-
-
360,529
1,306,824

Other debtors
1,920,719
1,793,533
1,910,583
1,778,808

Prepayments and accrued income
229,669
183,976
139,689
10,804

5,009,016
7,518,940
4,702,450
6,330,354


Amounts owed by group undertakings are interest free, have no fixed repayment date and are repayable on demand. 
*For restatement details please refer to Note 25 of these financial statements.


19.


Creditors: Amounts falling due within one year

Group

Group
Company

Company
2022
2021
2022
2021
£
£
£
£

Trade creditors
2,107,180
3,819,604
1,779,080
2,759,466

Corporation tax
935,133
512,803
764,371
381,669

Other taxation and social security
301,919
501,681
78,566
269,471

Obligations under finance lease and hire purchase contracts
17,976
5,774
17,976
5,774

Other creditors
140,554
467,176
67,442
467,177

Accruals and deferred income
286,795
93,098
86,583
56,310

3,789,557
5,400,136
2,794,018
3,939,867


Amounts owed to group undertakings are interest free, have no fixed repayment date and are repayable on demand.


20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Net obligations under finance leases and hire purchase contracts
84,745
42,641
84,745
42,641




Page 33

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Within one year
17,976
5,774
-
5,774

Between 1-5 years
84,745
42,641
-
42,641

102,721
48,415
-
48,415


22.


Share capital

2022
2021
£
£
Shares classified as equity
 
Allotted, called up and fully paid



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

There is a single class of ordinary shares. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



23.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

24.


Analysis of net debt





At 1 March 2021
Cash flows
New finance leases
At 28 February 2022
£

£

£

£

Cash at bank and in hand

1,247,027

2,173,737

-

3,420,764

Finance leases

(48,415)

-

(54,306)

(102,721)


1,198,612
2,173,737
(54,306)
3,318,043

Page 34

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

25.


Prior year restatement

A prior year reclassification has been made with regards to stock in transit as the classification method previously being used did not reflect the true nature of the asset. An adjustment has been made to reclassify Stock in transit from Debtors to Stock. The effect to the prior year consolidated financial statements is a decrease in prepayments and accrued income of £689,866 and an increase in Stock of  £689,866. The effect to the prior year company financial statements is a decrease in prepayments and accrued income of £266,672 and an increase in Stock of  £266,672. 


26.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group  in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £53,113 (2021 - £36,944). Contributions totalling £8,807 (2021 - £3,978) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 28 February 2022 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Not later than 1 year
300,972
136,000
163,200
136,000

Later than 1 year and not later than 5 years
49,979
136,000
27,200
136,000

350,951
272,000
190,400
272,000

28.
Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures"  from disclosing transactions with entities which are a wholly owned part of the group.

Transactions with (other) related parties are as follows:



Relationship

Transaction


Amount due (to)/from related parties





 
 
2022 
2021 





 
 
£ 
£ 



Director
Loan account


1,109,929
895,868


Family members
Loan


-
(450,213)


Amounts owed to related parties are unsecured, interest free and due for repayment within one year.
Total remuneration in respect of the key management personnel relates solely to the director's remuneration which is set out in note 9.

Page 35

 

FQM ENTERTAINMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

29.


Controlling party

The ultimate controlling party is the director by virtue of his 100% shareholding.

 
Page 36