Company registration number SC436962
EGO SALONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
EGO SALONS LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
EGO SALONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
20,938
21,514
Current assets
Stocks
15,259
6,000
Debtors
5
77,581
82,068
Cash at bank and in hand
16,356
53,006
109,196
141,074
Creditors: amounts falling due within one year
6
(69,019)
(76,348)
Net current assets
40,177
64,726
Total assets less current liabilities
61,115
86,240
Creditors: amounts falling due after more than one year
7
(52,635)
(62,306)
Provisions for liabilities
Deferred tax liability
9
269
222
(269)
(222)
Net assets
8,211
23,712
Capital and reserves
Allotted, called up and fully paid share capital
1
1
Profit and loss reserves
8,210
23,711
Total equity
8,211
23,712
EGO SALONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 1 March 2024
Ms C Sanderson
Director
Company Registration No. SC436962
EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information

Ego Salons Limited is a private company limited by shares incorporated in Scotland. The registered office is 48 Lily Bank, Inverness, IV2 6EB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents income generated from hairdressing and beauty treatment, excluding value added tax and is recognised at the point of sale.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Improvements to property
- 2% straight line
Plant and equipment
- 20% reducing balance
Computer equipment
- straight line over 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 4 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
14
15
3
Dividends
2023
2022
£
£
Interim paid
30,000
35,000
4
Tangible fixed assets
Improvements to property
Plant and equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 April 2022
24,057
6,905
3,003
33,965
Additions
-
0
174
-
0
174
At 31 March 2023
24,057
7,079
3,003
34,139
Depreciation and impairment
At 1 April 2022
3,712
5,736
3,003
12,451
Depreciation charged in the year
481
269
-
0
750
At 31 March 2023
4,193
6,005
3,003
13,201
Carrying amount
At 31 March 2023
19,864
1,074
-
0
20,938
At 31 March 2022
20,345
1,169
-
0
21,514
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
77,581
82,068
EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,800
10,800
Trade creditors
5,382
2,824
Taxation and social security
40,279
54,490
Other creditors
12,558
8,234
69,019
76,348

Hire purchase and finance lease obligations are secured on the assets to which they relate.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
52,635
62,306
8
Loans and overdrafts
2023
2022
£
£
Bank loans
63,435
73,106
Payable within one year
10,800
10,800
Payable after one year
52,635
62,306

The company received two Coronavirus Business Interrruption Loan Scheme loans of £50,000 and £30,000 at an interest rate of 2.5% repayable over 6 years with an initial repayment holiday.

9
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
269
222
EGO SALONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Deferred taxation (Continued)
- 8 -
2023
Movements in the year:
£
Liability at 1 April 2022
222
Charge to profit or loss
47
Liability at 31 March 2023
269
10
Related party transactions

At the balance sheet date Salon Jedi Limited owed Ego Salons Limited, a company owned and managed by the director Caroline Sanderson, £12,553 (2022 - £14,696).

 

This loan is unsecured, interest-free and has no fixed terms of repayment.

11
Directors' transactions

Interest free loans have been granted by the company to its directors as follows:

Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Ms C Sanderson - Loan
47,428
43,562
(44,305)
46,685
47,428
43,562
(44,305)
46,685

This loan is unsecured, interest free and has no fixed terms of repayment.

 

Dividends totalling £30,000 (2022 - £35,000) were paid in respect of shares held by the company's director.

 

2023-03-312022-04-01false01 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMs C SandersonfalseSC4369622022-04-012023-03-31SC4369622023-03-31SC4369622022-03-31SC436962core:LeaseholdImprovements2023-03-31SC436962core:PlantMachinery2023-03-31SC436962core:ComputerEquipment2023-03-31SC436962core:LeaseholdImprovements2022-03-31SC436962core:PlantMachinery2022-03-31SC436962core:ComputerEquipment2022-03-31SC436962core:CurrentFinancialInstruments2023-03-31SC436962core:CurrentFinancialInstruments2022-03-31SC436962core:Non-currentFinancialInstruments2023-03-31SC436962core:Non-currentFinancialInstruments2022-03-31SC436962core:ShareCapital2023-03-31SC436962core:ShareCapital2022-03-31SC436962core:RetainedEarningsAccumulatedLosses2023-03-31SC436962core:RetainedEarningsAccumulatedLosses2022-03-31SC436962bus:Director12022-04-012023-03-31SC436962core:LeaseholdImprovements2022-04-012023-03-31SC436962core:PlantMachinery2022-04-012023-03-31SC436962core:ComputerEquipment2022-04-012023-03-31SC4369622021-04-012022-03-31SC436962core:LeaseholdImprovements2022-03-31SC436962core:PlantMachinery2022-03-31SC436962core:ComputerEquipment2022-03-31SC4369622022-03-31SC436962core:WithinOneYear2023-03-31SC436962core:WithinOneYear2022-03-31SC436962bus:PrivateLimitedCompanyLtd2022-04-012023-03-31SC436962bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-31SC436962bus:FRS1022022-04-012023-03-31SC436962bus:AuditExemptWithAccountantsReport2022-04-012023-03-31SC436962bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP