Company Registration No. SC059293 (Scotland)
HOULDEN JEWELLERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
HOULDEN JEWELLERS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
HOULDEN JEWELLERS LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
413,169
17,796
Investments
5
2
2
413,171
17,798
Current assets
Stocks
27
27
Debtors
6
3,867,332
4,416,797
Cash at bank and in hand
1,596,505
1,942,780
5,463,864
6,359,604
Creditors: amounts falling due within one year
7
(5,328,315)
(5,888,608)
Net current assets
135,549
470,996
Total assets less current liabilities
548,720
488,794
Creditors: amounts falling due after more than one year
8
(548,504)
(488,578)
Net assets
216
216
Capital and reserves
Called up share capital
9
32
32
Capital redemption reserve
10
183
183
Profit and loss reserves
10
1
1
Total equity
216
216
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
H Haddow
Director
Company Registration No. SC059293
HOULDEN JEWELLERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2021
32
183
1
216
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
-
Balance at 28 February 2022
32
183
1
216
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
Balance at 28 February 2023
32
183
1
216
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
1
Accounting policies
Company information
Houlden Jewellers Limited is a private company limited by shares incorporated in Scotland. The registered office is 1/2 The Exchange, 142 St Vincent Street, Glasgow, United Kingdom, G2 5LA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.3
Going concern
In preparing the financial statements on a going concern basis the directors have concluded they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Directors have arrived at this conclusion having prepared detailed trading projections for 2024. The Directors acknowledge there is an inherent uncertainty in estimating future trading projections. However, ttruehe satisfactory trading results post year-end provide the Directors with a reasonable expectation that the Company can continue to meet its obligations as they fall due for a minimum period of 12 months. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
In respect of transactions where the Company acts as an agent, total transaction value represents the price at which the products have been sold, inclusive of any handling fees but excluding any value added tax, discount or other sales taxes.
Where the Company does not take ownership of the products being sold and acts as agent, receiving a handling fee from the member who sold the product, turnover represents the handling fee earned.
Where the Company operates as the principal supplier of the product and hence bears the risks and rewards of the sale transaction, turnover represents the gross value of the product sold excluding any value added tax, discounts or other sales taxes. The full cost of such products is included within cost of sales.
Turnover is recognised in the period in which the goods are provided to the member.
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2 - 8.33% Straight Line Basis
Long-term Leasehold improvements
20% Straight line basis
Office Equipment
20% Reducing Balance
Computer Equipment
25% Straight Line Basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Derivatives
Derivatives, including forward exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately in finance costs or income as appropriate where material. The Company does not currently apply hedge accounting for foreign exchange derivatives.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 6 -
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from those of the Company in independently administered funds.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 7 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants are recognised in accordance with the performance model. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Management fees receivable and other income represents sums receivable for the period, accounted for on an accruals basis.
1.18
Members provide loans to the Company in amounts, as stipulated by the terms governing their membership agreement. On resignation as a member, the loan will be paid to the member within twelve months of production of audited accounts of the Company for the first financial period ending on or after date of cessation and on delivery to the Company of a duly signed transfer of the Qualifying Share as instructed by the Board.
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Leases
Leases entered into by the Company either as a lessor or a lessee are classified as either operating leases or finance leases. The decision on how to classify a lease depends on an assessment of whether the risks and regards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Impairment of assets
Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Depreciation
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
17
16
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
4
Tangible fixed assets
Freehold land and buildings
Long-term Leasehold improvements
Office Equipment
Computer Equipment
Total
£
£
£
£
£
Cost
At 1 March 2022
27,844
23,561
76,791
128,197
Additions
392,679
5,170
9,491
407,340
Disposals
(27,844)
(21,491)
(22,508)
(71,843)
At 28 February 2023
392,679
7,240
63,775
463,694
Depreciation and impairment
At 1 March 2022
27,844
19,136
63,420
110,400
Depreciation charged in the year
542
7,129
7,671
Eliminated in respect of disposals
(27,844)
(17,194)
(22,508)
(67,546)
At 28 February 2023
2,484
48,041
50,525
Carrying amount
At 28 February 2023
392,679
4,756
15,734
413,169
At 28 February 2022
4,425
13,371
17,796
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
2
2
Jewellers of Excellence Limited is a 100% subsidiary of Houlden Jewellers Limited. The Company is incorporated in Scotland and is non-trading.
The net assets of the subsidiary at the balance sheet date were £2 (2022 - £2).
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,679,680
4,080,757
Other debtors
132,082
267,334
Prepayments and accrued income
55,570
68,706
3,867,332
4,416,797
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
770,752
1,146,880
Members Loans
316,320
165,458
Trade creditors
3,606,467
4,156,845
Corporation tax
15,892
3,199
Other taxation and social security
24,277
18,764
Deferred income
210,423
16,950
Other creditors
310,919
155,694
Accruals
73,265
224,818
5,328,315
5,888,608
8
Creditors: amounts falling due after more than one year
2023
2022
Members' loans
£
£
Balance at 1 March
654,036
415,519
Rebate due for year
376,427
231,264
Rebates paid in year
(144,581)
-
885,882
646,783
Repaid to members
(31,396)
-
Loans received from members
10,338
7,253
864,824
654,036
Due within one year
(316,320)
(165,458)
548,504
488,578
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
32 Ordinary shares of £1 each
32
32
HOULDEN JEWELLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
10
Reserves
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the Company.
Profit and loss reserves
This reserve contains all retained profits and losses for the current and prior periods .
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was James Hamilton.
The auditor was Johnston Carmichael LLP.
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