Company Registration No. 10840499 (England and Wales)
INFINITY CHRISTMAS TREES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
INFINITY CHRISTMAS TREES LTD
COMPANY INFORMATION
Directors
Mr T A H Chaytor-Norris (Chairman)
Mrs R A Wallis (Deputy-Chairman)
Mr B B Blandford
Mr D F Brown
Mr C Pudge
Mr J R Sclater CVO
Mr W J Standeven
Mr S P H Wombwell
Secretary
Mr D F Brown
Company number
10840499
Registered office
Unit 90
The Hop Pocket
Bishops Frome
Worcestershire
WR6 5BT
Accountants
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
INFINITY CHRISTMAS TREES LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
INFINITY CHRISTMAS TREES LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
7,733
19,590
Current assets
Stocks
7,160
12,600
Debtors
5
239,569
355,313
Cash at bank and in hand
58,194
76,884
304,923
444,797
Creditors: amounts falling due within one year
6
(182,412)
(324,971)
Net current assets
122,511
119,826
Total assets less current liabilities
130,244
139,416
Creditors: amounts falling due after more than one year
7
(116,748)
(135,569)
Net assets
13,496
3,847
Capital and reserves
Called up share capital
130
130
Share premium account
130,000
130,000
Profit and loss reserves
(116,634)
(126,283)
Total equity
13,496
3,847
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
INFINITY CHRISTMAS TREES LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 November 2023 and are signed on its behalf by:
D F Brown
Director
Company Registration No. 10840499
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
--
- 3 -
1
Accounting policies
Company information
Infinity Christmas Trees Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 90, The Hop Pocket, Bishops Frome, Worcestershire, WR6 5BT.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Support of the shareholders and directors who have advanced monies to the company has been obtained through agreement to defer repayment of the loans from 1 July 2023 to 1 July 2024.Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenue from the sale of goods is recognised net of VAT when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), when the amount of revenue can be measured reliably, when it is probable that the economic benefits associated with the transaction will flow to the entity and when the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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:
Plant and equipment
25% reducing balance
Fixtures and fittings
5 years straight line
Computer equipment
3 years straight line
Motor vehicles
25% net book value
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.
1.5
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).
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
--
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
1.8
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. 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.
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost.
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.
1.9
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.
1.10
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. 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.14
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.
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
3
Employees
The average monthly number of persons employed by the company was:
2023
2022
Number
Number
Total
2
4
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
6,642
2,295
7,458
26,773
43,168
Additions
2,830
499
3,329
Disposals
(500)
(26,773)
(27,273)
At 31 March 2023
9,472
1,795
7,957
19,224
Depreciation and impairment
At 1 April 2022
1,660
1,561
5,799
14,558
23,578
Depreciation charged in the year
1,541
409
1,021
1,785
4,756
Eliminated in respect of disposals
(500)
(16,343)
(16,843)
At 31 March 2023
3,201
1,470
6,820
11,491
Carrying amount
At 31 March 2023
6,271
325
1,137
7,733
At 31 March 2022
4,982
734
1,659
12,215
19,590
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
200,969
254,040
Other debtors
63,113
Prepayments and accrued income
5,862
7,398
206,831
324,551
Deferred tax asset
28,530
23,443
235,361
347,994
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
2,880
Deferred tax asset (note 9)
4,208
4,439
4,208
7,319
Total debtors
239,569
355,313
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
5,808
5,556
Obligations under finance leases
8
4,184
Trade creditors
153,113
294,974
Taxation and social security
3,523
5,136
Other creditors
4,018
4,314
Accruals and deferred income
15,950
10,807
182,412
324,971
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
34,248
39,815
Obligations under finance leases
8
13,254
Other creditors
82,500
82,500
116,748
135,569
Other creditors are as described at note 13.
A bounce back loan was taken out in 2021, the loan is government backed and is repayable over 10 years..
8
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
4,184
In two to five years
13,254
17,438
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(958)
1,047
Tax losses
33,696
26,835
32,738
27,882
2023
Movements in the year:
£
Asset at 1 April 2022
(27,882)
Credit to profit or loss
(4,856)
Asset at 31 March 2023
(32,738)
The deferred tax asset set out above is expected to reverse within 24 months and relates to the utilisation of tax losses against future expected profits of the same period.
10
Related party transactions
Transactions with related parties
During the year Infinity Christmas Trees Ltd purchased goods and services amounting to £264,181 from Festive Forestry Limited, a company in which Mr D F Brown is also a director and shareholder. Sales totalling £102,092 were also made to Festive Forestry Limited. As at the balance sheet date the net amount due to Festive Forestry Ltd from the company amounted to £78,421.
Additionally, Infinity Christmas Trees Ltd purchased goods and services amounting to £382,821 from Newburgh Christmas Trees, a business owned by Mr S P H Wombwell and Mr W J Standeven. During the year sales totalling £133,307 were also made to Newburgh Christmas Trees. As at the balance sheet date the amount outstanding due to the company was £33,750.
All the above transactions were on a commercial basis.
INFINITY CHRISTMAS TREES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
11
Directors' transactions
The following loans have been advanced to the company. The loans are interest free with repayment scheduled for 1 July 2024 (previously 1 July 2023).
Description
% Rate
Opening balance
Closing balance
£
£
Sclater Estates Ltd
-
15,000
15,000
D. F. Brown
-
15,000
15,000
G. Blandford and Son
-
15,000
15,000
Croft Farms Estates
-
15,000
15,000
J.P and W.R. Pudge
-
7,500
7,500
W. Standeven
-
7,500
7,500
S. Wombwell
-
7,500
7,500
82,500
82,500
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