REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
FOR |
ALEXANDER ROSE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
FOR |
ALEXANDER ROSE LIMITED |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
ALEXANDER ROSE LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
STRATEGIC REPORT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
The directors present their strategic report for the period 1 September 2021 to 28 February 2023. |
REVIEW OF BUSINESS |
The statement of comprehensive income is set out on page 8 and shows a loss before tax of £3,400,439 for the period. Turnover for the period amounted to £20,600,070. |
During the pandemic, the garden furniture industry saw a huge rise in demand. Globally, shipping and freight rates continued to rise to unprecedented levels. There was a global shortage of containers, increased transit times and a lack of drivers, contributing to rising transport costs. |
Large orders were placed with our factories in preparation with the increased consumer demand. Our suppliers' shipments were delayed, not only due to the shortage of drivers and containers, but also delays suffered in production times due to covid related labour shortages. |
The backlog of orders sailed far too late for the season, many of our customers cancelled their orders, meaning we had even more stock to sell late in the season. The issues experienced were a global issue and not unique to Alexander Rose. We had vast numbers of containers of stock arriving at port in the UK and urgently needed to source additional warehousing. |
Like many garden furniture businesses, Alexander Rose was massively overstocked, and the UK economy was suffering with high costs of living, rising interest rates and fuel costs all impacting consumer demand. In an effort to reduce ongoing costs and covert the stock into cash, many containers and products were sold at a much reduced margin. The financial impact of overstocking, increased costs in terms of demurrage and warehousing was devastating and negatively impacted our cashflow and increased our interest charges. |
Losses incurred for period were significant and for the first time created financial uncertainty for Alexander Rose. In order to be able to have time to complete a thorough internal review of operational and financial performance, the year end was extended by six months. New financing was agreed with the banks and further investment was received by the owners showing their continued support and faith in the future of the business. |
Key Performance Indicators |
The company manages the business by reference to key performance indicators. Competent management reporting tools are in place to provide essential current, timely reporting in a clear and precise manner. |
Principal indicators used by the company include, but are not limited to; |
(1) Revenue recognised as per the financial statements |
(2) Gross margin = gross profit/gross sales |
(3) Wages sales percentage = staff costs/gross sales |
(4) Level of backorders received, compared to historic data |
(5) Value and composition of sales by range |
(6) Margin by range of product |
Future Developments |
With a new management team in place, bank refinancing and investment from the owners, Alexander Rose is confident that the future is positive. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
STRATEGIC REPORT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and execution of the Company's strategy are subject to a number of risks. The principal risks and uncertainties affecting the Company are considered to relate to competition from both national and independent wholesalers and retailers, employee retention, product availability, shipping and freight rates and cost inflation. |
Employee retention is a key focus of the company and has been a challenge during the past year, as it has been for many companies across different industries. Discussion with employees on all levels occurs frequently. The company has a longer-term strategy of enhancing the benefits and working conditions of our employees, which is viewed as fundamental to the Company's future success. |
Cost inflation has been a major issue over the period with the ongoing cost of living crisis both in the UK and globally. The Company operates a largely margin-based approach to pricing strategies, so has been able to reflect these rising costs by increasing prices proportionally to its customers and ultimately for the end consumer. |
SECTION 172(1) STATEMENT |
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In this respect the Directors have had regard, amongst other matters, to the: |
- Likely consequences of any decisions in the long-term; |
- Interests of the Company's employees; |
- Need to foster the Company's business relationships with suppliers, customers and others; |
- Impact of the Company's operations on the community and environment; |
- Desirability of the Company maintaining a reputation for high standards of business conduct; |
and |
- Need to act fairly as between members of the Company. |
The Directors seek to ensure that their decision making process not only takes into account the Company's purpose, vision and values, together with its strategic priorities, but also reflects, as far as practical and possible, the interests of all stakeholders. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
STRATEGIC REPORT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and interest rate risk. The company has in place policies and procedures that seek to limit the potentially adverse effects on the financial performance of the company of such risks. These policies are set by the directors. |
The company does not use derivative financial instruments to manage interest rate risks. |
Price risk |
Due to the market the company operates in, the company is exposed to price risk from its suppliers and competitors. However, given the size of the company's operations and in addition to the actions identified above, the company is able to manage the potential exposure through supplier agreements. |
Credit risk |
The majority of the company's sales are made on credit. Appropriate credit checks on customers who apply for credit accounts are made prior to the sale. The amount of any individual customer is subject to a limit and the exposure of the company as a whole is mitigated by multiple credit control procedures and the diverse nature of the customer base. |
Liquidity risk |
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with its financial liabilities. The risk is mitigated as the company has sufficient cash resources available to it through either its own funds or access to further bank facilities. |
Foreign exchange risk |
The company purchases in dollars and therefore is exposed to foreign currency risk. The company uses derivative financial instruments in the form of forward exchange contracts to mitigate these risks and ensure predictable future cash flows. |
ON BEHALF OF THE BOARD: |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
The directors present their report with the financial statements of the company for the period 1 September 2021 to 28 February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of manufacturing and supplying garden furniture. |
DIVIDENDS |
No dividends will be distributed for the period ended 28 February 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies 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 company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
AUDITORS |
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER ROSE LIMITED |
Opinion |
We have audited the financial statements of Alexander Rose Limited (the 'company') for the period ended 28 February 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its loss for the period 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' 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 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER ROSE LIMITED |
Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER ROSE LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and indirect taxes, and we considered the extent to which non-compliance might have a material effect on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements(including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates. Audit procedures performed by the engagement team included, but were not limited to: |
- enquiries with management including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these; |
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws and indirect tax matters; |
- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities; |
- challenging assumptions and judgements made by management in their significant accounting estimates, inparticular, in relation to accrued income cut off |
- identifying and testing journal entries in particular and journal entries posted with unusual account combinations |
and postings by unusual users; |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER ROSE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(3,156,976 | ) | 811,376 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Income from shares in group undertakings |
Interest receivable and similar income |
(3,127,990 | ) | 832,446 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
OTHER COMPREHENSIVE LOSS |
Investment Impairment | ( |
) |
Income tax relating to other comprehensive loss |
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD |
( |
) |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
BALANCE SHEET |
28 FEBRUARY 2023 |
2023 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Fair value reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 September 2020 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 August 2021 |
Changes in equity |
Total comprehensive loss | - | ( |
) | - | ( |
) | ( |
) |
Balance at 28 February 2023 |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
CASH FLOW STATEMENT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year |
Amount introduced by directors | 694,500 | - |
Government Grants |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
(1,336,545 |
) |
363,770 |
Cash and cash equivalents at end of period |
2 |
( |
) |
( |
) |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 272,449 | 47,810 |
Finance income | (28,986 | ) | (220 | ) |
(3,109,771 | ) | 852,714 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 28 February 2023 |
28.2.23 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 152,871 | 290,972 |
Bank overdrafts | ( |
) | ( |
) |
(3,114,378 | ) | (1,336,545 | ) |
Year ended 31 August 2021 |
31.8.21 | 1.9.20 |
£ | £ |
Cash and cash equivalents | 290,972 | 983,662 |
Bank overdrafts | ( |
) | ( |
) |
(1,336,545 | ) | 363,770 |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.21 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 290,972 | (138,101 | ) | 152,871 |
Bank overdrafts | (1,627,517 | ) | (1,639,732 | ) | (3,267,249 | ) |
(1,336,545 | ) | ( |
) | (3,114,378 | ) |
Debt |
Finance leases | - | (38,305 | ) | (38,305 | ) |
Debts falling due within 1 year | (92,530 | ) | (18,581 | ) | (111,111 | ) |
Debts falling due after 1 year | (314,878 | ) | 185,249 | (129,629 | ) |
(407,408 | ) | 128,363 | (279,045 | ) |
Total | (1,743,953 | ) | (1,649,470 | ) | (3,393,423 | ) |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
Alexander Rose Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
No significant judgements have had to be made by management in preparing these financial statements. |
There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Long leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in associates |
Interests in associates are initially measured at cost and subsequently measured at fair value, with changes in fair value recognised in other comprehensive income. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties. |
Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. |
Financial assets that are 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 profit or loss. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet only 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. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Derivative financial instruments |
Derivative financial instruments are recognised at fair value, with any gains or losses being reported in profit or loss. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The ultimate controlling party has confirmed that they will provide support to enable the company to fulfil its financial obligations as and when they fall due. |
The directors have prepared cashflow forecasts and have assessed that the operating cashflows generated, together with the financial support outlined above is adequate to ensure that the company will meet its liabilities as and when they fall due for a period of at least twelve months from the date from which these accounts were approved. On this basis the directors are of the opinion that the financial statements should be drawn up on a going concern basis. |
3. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
United Kingdom |
Europe |
United States of America |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
General Management | 3 | 4 |
Finance & Admin | 6 | 4 |
Customer Services | 7 | 7 |
Sales and Marketing | 6 | 5 |
Warehouse | 10 | 11 |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Emoluments etc |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Other Interest |
Bank loan interest |
Interest payable |
Leasing |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the period was as follows: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Interest on Corporation Tax | 5,383 | - |
Total current tax | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.9.21 |
to | Year Ended |
28.2.23 | 31.8.21 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Bank interest | - | (42 | ) |
Non-trading loan relationships | - | (1,676 | ) |
Deferred Taxation | (657,089 | ) | (70 | ) |
Shares in group undertakings | (5,507 | ) | - |
Interest on Corporation Tax | 5,383 | - |
Losses c/fwd | 501,131 | - |
Total tax (credit)/charge | (805,167 | ) | 153,391 |
Tax effects relating to effects of other comprehensive income |
1.9.21 to 28.2.23 |
Gross | Tax | Net |
£ | £ | £ |
Investment Impairment | ( |
) | - | (88,121 | ) |
8. | EXCEPTIONAL ITEMS |
Exceptional items shown in profit or loss are fair value losses on derivative contracts held at the balance sheet date. |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2021 |
Additions |
At 28 February 2023 |
DEPRECIATION |
At 1 September 2021 |
Charge for period |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 31 August 2021 |
10. | FIXED ASSET INVESTMENTS |
Interest |
in |
associate |
£ |
COST OR VALUATION |
At 1 September 2021 | 602,936 |
Revaluations | ( |
) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 31 August 2021 |
Cost or valuation at 28 February 2023 is represented by: |
Interest |
in |
associate |
£ |
Valuation in 2018 | 432,262 |
Valuation in 2023 | (88,121 | ) |
Cost | 170,674 |
514,815 |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
If fixed asset investments had not been revalued they would have been included at the following historical cost: |
2023 | 2021 |
£ | £ |
Cost | 170,674 | 170,674 |
Fixed asset investments were valued on an open market basis on 31 August 2019 by the Directors . |
11. | STOCKS |
2023 | 2021 |
£ | £ |
Finished goods |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset | 641,441 | - |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Finance leases (see note 16) |
Trade creditors |
Tax | ( |
) |
Social security and other taxes |
Other creditors |
Directors' current accounts | 694,501 | - |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2021 |
£ | £ |
Bank loans (see note 15) |
Finance leases (see note 16) |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Finance leases |
2023 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2021 |
£ | £ |
Bank overdrafts |
Bank loans |
Debenture including fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery dated 15 November 2010. |
18. | PROVISIONS FOR LIABILITIES |
2021 |
£ |
Deferred tax | 15,649 |
Deferred |
tax |
£ |
Balance at 1 September 2021 |
Provided during period |
Prior year correction |
Losses c/fwd | (659,383 | ) |
Balance at 28 February 2023 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2021 |
value: | £ | £ |
Ordinary | 1 | 497,861 | 497,861 |
20. | RESERVES |
Fair |
Retained | Share | value |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2021 | 4,091,394 |
Deficit for the period | ( |
) | ( |
) |
Investment in Associate | - | - | (88,121 | ) | (88,121 | ) |
At 28 February 2023 | 1,408,001 |
ALEXANDER ROSE LIMITED (REGISTERED NUMBER: 02892358) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2021 TO 28 FEBRUARY 2023 |
21. | RELATED PARTY DISCLOSURES |
During the period, purchases of £996,848 (2021 - £797,886) were made from Woven Furniture Designs Inc, an associate of Alexander Rose Ltd. At the balance sheet date, £156,648 (2021 - £299,204) was owing from Woven Furniture Designs Inc. |
During the year, purchases of £1,717,278 (2021 - £1,241,229) were made from IMR S.A. £435,631 (2021 - £510,510) was owing from IMR S.A at the balance sheet date. IMR S.A and Alexander Rose Ltd share a common ultimate controlling party, the Roda family. |
At the balance sheet date £Nil (2021 - £Nil) was owed to Sustainable Forest Products SFP, SA, parent company to Alexander Rose Ltd and the most senior parent in which financial statements are prepared. |
22. | GOVERNMENT GRANTS |
Other income includes amounts received from the Government's Coronavirus Job Retention Scheme. The income is received in the form of grants. |