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Registration number: 03586900

Soldzone Limited

Annual Report and

Unaudited Financial Statements


for the Year Ended 31 July 2023

 

Soldzone Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 9

 

Soldzone Limited

Company Information

Directors

Mr R A Bates

Ms C L Evans

Company secretary

Mrs CL Evans

Registered office

The Clarks Shop
60/60a Frogmore Street
Abergavenny
Monmouthshire
NP7 5AR

 

Accountants

WJ James & Co
Bishop House
10 Wheat Street
Brecon
Powys
LD3 7DG

 

Soldzone Limited

(Registration number: 03586900)

Balance Sheet
as at 31 July 2023

Note

2023
£

2022
£

           

Fixed assets

   

 

Intangible assets

4

 

15,696

 

20,696

Tangible assets

5

 

293,203

 

238,125

   

308,899

 

258,821

Current assets

   

 

Stocks

969,282

 

954,292

 

Debtors

6

70,225

 

49,187

 

Cash at bank and in hand

 

35,402

 

69,762

 

 

1,074,909

 

1,073,241

 

Creditors: Amounts falling due within one year

7

(992,711)

 

(909,146)

 

Net current assets

   

82,198

 

164,095

Total assets less current liabilities

   

391,097

 

422,916

Creditors: Amounts falling due after more than one year

7

 

(90,218)

 

(109,695)

Provisions for liabilities

 

(33,539)

 

(27,853)

Net assets

   

267,340

 

285,368

Capital and reserves

   

 

Called up share capital

100

 

100

 

Profit and loss account

267,240

 

285,268

 

Total equity

   

267,340

 

285,368

For the financial year ending 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The profit and loss account and directors' report have not been delivered to the Registrar of Companies in accordance with the special provisions applicable to companies subject to the small companies regime.

 

Soldzone Limited

(Registration number: 03586900)

Balance Sheet
as at 31 July 2023

Approved and authorised by the Board on 23 November 2023 and signed on its behalf by:
 

.........................................

Mr R A Bates

Director

.........................................

Ms C L Evans

Director

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales within the United Kingdom.

The address of its registered office is:
The Clarks Shop
60/60a Frogmore Street
Abergavenny
Monmouthshire
NP7 5AR
United Kingdom

These financial statements were authorised for issue by the Board on 23 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Sterling, which is the the functional currency of the company, and are rounded to the nearest £1.

Revenue recognition

Turnover represents retail cash sales, net of value added tax where applicable. The company has no credit sales.

Revenue is recognised when a customer pays for their shoes.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Improvements to leasehold properties

Over the period of the lease

Fixtures and fittings

15% on reducing balance

Goodwill

Goodwill, being the amounts paid in conection with the acquisition of busineses in 1998, 2002, 2006, 2009 and 2015 are being written off over their expected useful lives of 5 years.

Intangible assets

The franchise fees for Malmesbury, Neath, Caerphilly, Chippenham and Cirencester shops are being written off over the periods of the franchise agreements, which are all five years.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 73 (2022 - 59).

4

Intangible assets

Goodwill
 £

Franchise fee
£

Total
£

Cost or valuation

At 1 August 2022

145,996

82,000

227,996

At 31 July 2023

145,996

82,000

227,996

Amortisation

At 1 August 2022

145,996

61,304

207,300

Amortisation charge

-

5,000

5,000

At 31 July 2023

145,996

66,304

212,300

Carrying amount

At 31 July 2023

-

15,696

15,696

At 31 July 2022

-

20,696

20,696

5

Tangible assets

Improvements to leasehold properties
£

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 August 2022

336,620

520,170

856,790

Additions

32,767

72,403

105,170

Disposals

(9,615)

(15,112)

(24,727)

At 31 July 2023

359,772

577,461

937,233

Depreciation

At 1 August 2022

196,111

422,554

618,665

Charge for the year

25,248

21,677

46,925

Eliminated on disposal

(9,272)

(12,288)

(21,560)

At 31 July 2023

212,087

431,943

644,030

Carrying amount

At 31 July 2023

147,685

145,518

293,203

At 31 July 2022

140,509

97,616

238,125

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

6

Debtors

2023
£

2022
£

Trade debtors

8,989

9,083

Prepayments

60,750

37,642

Other debtors

486

2,462

70,225

49,187

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

9

92,653

30,148

Trade creditors

 

554,700

498,675

Taxation and social security

 

65,447

30,883

Accruals and deferred income

 

236,626

263,533

Other creditors

 

43,285

85,907

 

992,711

909,146

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

90,218

109,695

 

Soldzone Limited

Notes to the Financial Statements
for the Year Ended 31 July 2023

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

69,611

106,904

Other borrowings

20,607

2,791

90,218

109,695

2023
£

2022
£

Current loans and borrowings

Bank borrowings

29,556

27,263

Bank overdrafts

56,868

-

Other borrowings

6,229

2,885

92,653

30,148

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £1,730,733 (2022 - £1,987,237). These commitments are under operating leases over the period from 1 August 2023 to 31 July 2031. The majority of the commitments are for leases of the shops operated by the company.