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COMPANY REGISTRATION NUMBER:
01190834
Candlelight Products Limited |
|
Candlelight Products Limited |
|
Year ended 31 May 2023
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
6 |
|
|
Statement of income and retained earnings |
10 |
|
|
Statement of financial position |
11 |
|
|
Notes to the financial statements |
12 |
|
|
Candlelight Products Limited |
|
Officers and Professional Advisers |
|
The board of directors |
M Crosthwaite |
|
M Freedman |
|
S Mayo |
|
S Metham |
|
B Winch |
|
M Winch |
|
|
Company secretary |
B Winch (appointed 29/09/2023) |
|
|
Registered office |
Ustun House |
|
Waddington Way |
|
Aldwarke |
|
Rotherham |
|
South Yorkshire |
|
S65 3SH |
|
|
Auditor |
Streets Audit LLP |
|
Chartered accountants & statutory auditor |
|
Enterprise House |
|
38 Tyndall Court |
|
Commerce Road |
|
Lynch Wood |
|
Peterborough |
|
Cambridgeshire |
|
PE2 6LR |
|
|
Bankers |
HSBC Bank Plc |
|
HSBC House |
|
1 Bond Court |
|
Leeds |
|
United Kingdom |
|
LS1 2JZ |
|
|
Candlelight Products Limited |
|
Year ended 31 May 2023
The directors present the strategic report for the year ended 31 May 2023.
Principal activities
The company is a market leading designer, importer and wholesale supplier of design-led giftware and home accessories.
Business review
The directors present their report on the trading performance of the company for the year ending 31 May 2023, which reflects a decrease in turnover to £12.9m (2022: £16.4m). The year has resulted in a reported loss before tax of £480k (2022: profit £50k). This was in line with the Board's expectations considering the significant macro-economic challenges experienced during the year. The overall balance sheet total remains strong at £5.3m (2022: £5.7m) and the business continues to operate with negligible third-party debt. The company's key performance indicators relate to turnover, gross profit margin, stock levels and working capital management. These indicators are monitored regularly and the Board is satisfied with the results for the trading period since the balance sheet date. Looking ahead, the Board is encouraged by the results for the trading period since the balance sheet date and consider the company to be well placed to make the most of the ongoing opportunities during 2023/24.
Principal risks and uncertainties
The principal risks faced by the business include financial risks such as exposure to foreign currency movements and the risk of bad debt, as explained more thoroughly under 'Financial risk management objectives and policies'. Whilst challenges in the macro environment will remain in 2023/24 the business is well placed to manage these pressures and to continue to successfully trade.
Financial risk management objectives and policies
The company holds or issues financial instruments in order to achieve three main objectives, being: (a) to finance its operations; (b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and (c) for trading purposes. In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations. Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below:
Interest rate risk
The company is exposed to interest rate risk on its bank accounts and bank borrowings.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts where necessary.
Liquidity risk
The company's principal foreign currency exposures arises from trading with and purchasing from overseas companies, primarily in US Dollars. The company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. The hedging activity involves the use of third party foreign exchange instruments.
Corporate and social responsibility
The company recognises its impact, responsibilities and obligations on and towards its environment. The company employs managers who are tasked with meeting all health, safety and environmental regulations.
This report was approved by the board of directors on 7 December 2023 and signed on behalf of the board by:
Registered office: |
Ustun House |
Waddington Way |
Aldwarke |
Rotherham |
South Yorkshire |
S65 3SH |
|
Candlelight Products Limited |
|
Year ended 31 May 2023
The directors present their report and the financial statements of the company for the year ended
31 May 2023
.
Directors
The directors who served the company during the year were as follows:
K Bond |
|
M Crosthwaite |
|
M Freedman |
|
S Mayo |
|
S Metham |
|
B Winch |
|
M Winch |
|
|
|
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
Director's opinion relating to the principal risks and uncertainties of the business along with future developments are contained within the strategic report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report 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). 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
7 December 2023
and signed on behalf of the board by:
Registered office: |
Ustun House |
Waddington Way |
Aldwarke |
Rotherham |
South Yorkshire |
S65 3SH |
|
Candlelight Products Limited |
|
Independent Auditor's Report to the Members of
Candlelight Products Limited |
|
Year ended 31 May 2023
Opinion
We have audited the financial statements of Candlelight Products Limited (the 'company') for the year ended 31 May 2023 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 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 31 May 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, 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 directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation. - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Day |
(Senior Statutory Auditor) |
|
For and on behalf of |
Streets Audit LLP |
Chartered accountants & statutory auditor |
Enterprise House |
38 Tyndall Court |
Commerce Road |
Lynch Wood |
Peterborough |
Cambridgeshire |
PE2 6LR |
|
7 December 2023
Candlelight Products Limited |
|
Statement of Income and Retained Earnings |
|
Year ended 31 May 2023
|
2023 |
2022 |
Note |
£000 |
£000 |
Turnover |
4 |
12,885 |
16,407 |
|
|
|
|
Change in stocks of finished goods and in work in progress |
(
1,446) |
1,525 |
Other operating income |
5 |
5 |
38 |
|
-------- |
-------- |
|
11,444 |
17,970 |
|
|
|
|
Raw material and consumables |
6,263 |
9,531 |
Staff costs |
8 |
2,232 |
2,643 |
Depreciation and other amounts written off tangible and intangible fixed assets |
43 |
18 |
Other operating expenses |
1,501 |
902 |
Other external charges |
|
|
|
|
-------- |
-------- |
Operating (loss)/profit |
6 |
(
481) |
50 |
|
|
|
|
Other interest receivable and similar income |
1 |
– |
|
-------- |
-------- |
(Loss)/profit before taxation |
(
480) |
50 |
|
|
|
Tax on (loss)/profit |
10 |
(
51) |
19 |
|
---- |
---- |
(Loss)/profit for the financial year and total comprehensive income |
(
429) |
31 |
|
---- |
---- |
|
|
|
|
Retained earnings at the start of the year |
5,010 |
4,979 |
|
------- |
------- |
Retained earnings at the end of the year |
4,581 |
5,010 |
|
------- |
------- |
|
|
|
All the activities of the company are from continuing operations.
Candlelight Products Limited |
|
Statement of Financial Position |
|
31 May 2023
|
2023 |
2022 |
Note |
£000 |
£000 |
£000 |
|
|
|
|
Fixed assets
Tangible assets |
11 |
|
2,138 |
2,187 |
Investments |
12 |
|
1 |
1 |
|
|
------- |
------- |
|
|
2,139 |
2,188 |
|
|
|
|
|
Current assets
Stocks |
13 |
4,224 |
|
5,700 |
Debtors |
14 |
2,386 |
|
1,538 |
Cash at bank and in hand |
1,312 |
|
1,544 |
|
------- |
|
------- |
|
7,922 |
|
8,782 |
|
|
|
|
|
Creditors: amounts falling due within one year |
15 |
4,260 |
|
4,740 |
|
------- |
|
------- |
Net current assets |
|
3,662 |
4,042 |
|
|
------- |
------- |
Total assets less current liabilities |
|
5,801 |
6,230 |
|
|
|
|
|
Creditors: amounts falling due after more than one year |
16 |
|
490 |
490 |
|
|
|
|
|
Provisions
Taxation including deferred tax |
17 |
|
39 |
39 |
|
|
------- |
------- |
Net assets |
|
5,272 |
5,701 |
|
|
------- |
------- |
|
|
|
|
|
Capital and reserves
Called up share capital |
21 |
|
129 |
129 |
Share premium account |
22 |
|
400 |
400 |
Capital redemption reserve |
22 |
|
162 |
162 |
Profit and loss account |
22 |
|
4,581 |
5,010 |
|
|
------- |
------- |
Shareholders funds |
|
5,272 |
5,701 |
|
|
------- |
------- |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
7 December 2023
, and are signed on behalf of the board by:
Company registration number:
01190834
Candlelight Products Limited |
|
Notes to the Financial Statements |
|
Year ended 31 May 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Ustun House, Waddington Way, Aldwarke, Rotherham, S65 3SH, South Yorkshire.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements: - Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares; - Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures; - Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; - Section 26 'Share based Payment' - Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements; - Section 33 'Related Party Disclosures' - Compensation for key management personnel. This information is included in the consolidated financial statements of the company's parent, One Flight Limited as at 31 May 2023, and these financial statements may be obtained from Companies House, Maindy Way, Cardiff, CF14 3UZ.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) are those that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Depreciation The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors, see Note 11. Stock provision The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet date, and have made appropriate provision for any items deemed to be slow moving or obsolete. Any charge or credit is recognised in the Statement of Income and Retained Earnings.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Sale of goods Turnover from the sale of goods is recognised when all of the following conditions are satisfied; - the company has transferred the significant risks and rewards of ownership to the buyer; - the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the company will receive the consideration due under the transaction: and - the costs incurred or to be incurred in respect of the transaction can be measured reliably. Where goods are sold under ex-works terms, the company is deemed to have transferred the risks and rewards of ownership to the buyer when goods are packaged, segregated and ready for collection by the buyer, with the buyer notified that the goods are ready for collection. Provision of services Warehouse and logistics income represents the provision of stock management services for third parties. Invoices are raised weekly in arrears for the period which the company manages this stock. Income is accrued for any services provided but not invoiced in the period. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Long leasehold property |
- |
10% straight line |
|
Plant, equipment and vehicles |
- |
|
|
|
|
|
Leasehold property compromise leasehold properties occupied by the company. The directors consider that the properties are maintained in such a state of repair that their residual value is at least equal to their carrying value. Accordingly no depreciation is charged on the grounds of immateriality. Annual impairment reviews are undertaken and provisions made at the end of each reporting period where necessary. Non-depreciation of the property is a departure from the Companies Act 2006, but in the director's opinion is necessary to give a true and fair view. 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.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£000 |
£000 |
Sale of goods |
11,698 |
15,252 |
Warehousing and logistics income |
1,187 |
1,155 |
|
-------- |
-------- |
|
12,885 |
16,407 |
|
-------- |
-------- |
|
|
|
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
|
2023 |
2022 |
|
£000 |
£000 |
United Kingdom |
12,646 |
16,191 |
Overseas |
239 |
216 |
|
-------- |
-------- |
|
12,885 |
16,407 |
|
-------- |
-------- |
|
|
|
5.
Other operating income
|
2023 |
2022 |
|
£000 |
£000 |
Government grant income |
5 |
30 |
Other operating income |
– |
8 |
|
---- |
---- |
|
5 |
38 |
|
---- |
---- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2023 |
2022 |
|
£000 |
£000 |
Loss/(gains) on disposal of tangible assets |
3 |
(
21) |
Impairment of trade debtors |
24 |
(8) |
Foreign exchange differences |
28 |
(
406) |
Government grants |
|
|
Operating lease charges |
|
|
Stock provision |
|
|
|
---- |
---- |
|
|
|
7.
Auditor's remuneration
|
2023 |
2022 |
|
£000 |
£000 |
Fees payable for the audit of the financial statements |
15 |
15 |
|
---- |
---- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Distribution staff |
27 |
33 |
Administrative staff |
41 |
51 |
|
---- |
---- |
|
68
|
84 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£000 |
£000 |
Wages and salaries |
1,990 |
2,405 |
Social security costs |
200 |
199 |
Other pension costs |
42 |
39 |
|
------- |
------- |
|
2,232 |
2,643 |
|
------- |
------- |
|
|
|
9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2023 |
2022 |
|
£000 |
£000 |
Remuneration |
408 |
505 |
Company contributions to defined contribution pension plans |
5 |
5 |
|
---- |
---- |
|
413 |
510 |
|
---- |
---- |
|
|
|
Remuneration of the highest paid director in respect of qualifying services:
|
2023 |
2022 |
|
£000 |
£000 |
Aggregate remuneration |
86 |
114 |
|
---- |
---- |
|
|
|
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022: 4).
10.
Tax on (loss)/profit
Major components of tax (income)/expense
Current tax:
UK current tax (income)/expense |
(
51) |
1 |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
– |
18 |
|
---- |
---- |
Tax on (loss)/profit |
(
51) |
19 |
|
---- |
---- |
|
|
|
Reconciliation of tax (income)/expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2022: higher than) the
standard rate of corporation tax in the UK
of
19
% (2022:
19
%).
|
2023 |
2022 |
|
£000 |
£000 |
(Loss)/profit on ordinary activities before taxation |
(
480) |
50 |
|
---- |
---- |
(Loss)/profit on ordinary activities by rate of tax |
(
83) |
10 |
Adjustment to tax charge in respect of prior periods |
32 |
– |
Effect of capital allowances and depreciation |
– |
9 |
|
---- |
---- |
Tax on (loss)/profit |
(
51) |
19 |
|
---- |
---- |
|
|
|
11.
Tangible assets
|
Freehold property |
Short leasehold property |
Plant, equipment and vehicles |
Total |
|
£000 |
£000 |
£000 |
£000 |
Cost |
|
|
|
|
At 1 June 2022 |
2,080 |
43 |
1,669 |
3,792 |
Additions |
– |
– |
7 |
7 |
Disposals |
– |
(
43) |
(
1,516) |
(
1,559) |
|
------- |
---- |
------- |
------- |
At 31 May 2023 |
2,080 |
– |
160 |
2,240 |
|
------- |
---- |
------- |
------- |
Depreciation |
|
|
|
|
At 1 June 2022 |
– |
43 |
1,562 |
1,605 |
Charge for the year |
– |
– |
40 |
40 |
Disposals |
– |
(
43) |
(
1,500) |
(
1,543) |
|
------- |
---- |
------- |
------- |
At 31 May 2023 |
– |
– |
102 |
102 |
|
------- |
---- |
------- |
------- |
Carrying amount |
|
|
|
|
At 31 May 2023 |
2,080 |
– |
58 |
2,138 |
|
------- |
---- |
------- |
------- |
At 31 May 2022 |
2,080 |
– |
107 |
2,187 |
|
------- |
---- |
------- |
------- |
|
|
|
|
|
12.
Investments
|
Shares in group undertakings |
|
£000 |
Cost |
|
At 1 June 2022 and 31 May 2023 |
1 |
|
---- |
Impairment |
|
At 1 June 2022 and 31 May 2023 |
– |
|
---- |
|
|
Carrying amount |
|
At 31 May 2023 |
1 |
|
---- |
At 31 May 2022 |
1 |
|
---- |
|
|
The company has 7 wholly owned dormant subsidiaries, registered in England and Wales. The authorised and issued share capital of each is 100 ordinary shares of £1, all of which have £nil reserves.
13.
Stocks
|
2023 |
2022 |
|
£000 |
£000 |
Finished goods and goods for resale |
4,224 |
5,700 |
|
------- |
------- |
|
|
|
14.
Debtors
|
2023 |
2022 |
|
£000 |
£000 |
Trade debtors |
1,540 |
886 |
Amounts owed by parent company |
200 |
161 |
Prepayments and accrued income |
402 |
376 |
Other debtors |
244 |
115 |
|
------- |
------- |
|
2,386 |
1,538 |
|
------- |
------- |
|
|
|
15.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£000 |
£000 |
Trade creditors |
1,557 |
1,883 |
Accruals and deferred income |
498 |
608 |
Social security and other taxes |
317 |
527 |
Other creditors |
1,888 |
1,722 |
|
------- |
------- |
|
4,260 |
4,740 |
|
------- |
------- |
|
|
|
The company has access to an import facility which is secured by a fixed and floating charge over all of the assets of the company and all of the assets of its parent undertaking, One Flight Limited, by way of a cross guarantee. CPL Global Sourcing Limited holds a fixed charge over the property known as Flat B, 16 Arlington Street, London, SW1A 1RD owned by the company.
16.
Creditors:
amounts falling due after more than one year
|
2023 |
2022 |
|
£000 |
£000 |
Other creditors |
|
|
|
---- |
---- |
|
|
|
17.
Provisions
|
Deferred tax (note 18) |
|
£000 |
At 1 June 2022 and 31 May 2023 |
39 |
|
---- |
|
|
18.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£000 |
£000 |
Included in provisions (note 17) |
39 |
39 |
|
---- |
---- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£000 |
£000 |
Accelerated capital allowances |
39 |
39 |
|
---- |
---- |
|
|
|
19.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
41,611
(2022: £
38,940
).
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £9,000 (2022: £9,000) were payable to the fund at the balance sheet date and are included in other creditors.
20.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants recognised directly in income |
5 |
30 |
|
---- |
---- |
|
|
|
21.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£000 |
No. |
£000 |
Ordinary shares of £ 1 each |
128,663 |
129 |
128,663 |
129 |
|
--------- |
---- |
--------- |
---- |
|
|
|
|
|
22.
Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
23.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£000 |
£000 |
Not later than 1 year |
474 |
509 |
Later than 1 year and not later than 5 years |
212 |
731 |
|
---- |
------- |
|
686 |
1,240 |
|
---- |
------- |
|
|
|
24.
Other financial commitments
At the balance sheet date, the company had outstanding forward foreign exchange contracts of $250,000 (2022: $750,000). The forward exchange contracts to purchase US$ were contracted for at various exchange rates and mature on 9th June 2023. The company is also party to a HM Revenue and Customs duty deferment bond of £250,000 (2022: £250,000).
25.
Contingencies
At the balance sheet date the company's bankers have provided letters of credit and other supplier guarantees, underwritten by the company, amounting to $700,000 (2022: $700,000). The company is party to an invoice discounting facility, whereby any funding advance is secured by a fixed and floating charge over all the assets of the company and a deed of priority over the book debts. The net advance at the balance sheet date is £nil (2022: £nil).
26.
Related party transactions
Group undertakings In preparing these financial statements, advantage has been taken of the provision under FRS 102 Section 33 which states that disclosure is not required of transactions which are part of the Group. At 31 May 2023 the company owed £1,848,000 to CPL Global Sourcing Limited (2022: £1,642,000) a company with common shareholders. During the year, the company provided supplier services totalling £nil (2022: £8,000) to CPL Global Sourcing Limited. The company also settled expenses on behalf of CPL Global sourcing Limited totalling £nil (2022: £20,000). During the year £231,000 (2022: £18,000) was advanced to CPL Global Sourcing Limited. CPL Global Sourcing Limited also settled expenses on behalf of
Candlelight Products Limited
totalling £51 (2022: £26,000). Included within contingent liabilities is a guarantee of $700,000 (2022: $700,000) in favour of HSBC on behalf of CPL Global Sourcing Limited.
27.
Controlling party
The company is a wholly owned subsidiary of One Flight Limited. Copies of the consolidated group financial statements can be obtained from Companies House. One Flight Limited is under the control of
M Winch
by virtue of his majority shareholding in the company.