REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements for the Period 1 April 2022 to 30 September 2023 |
for |
Eskimo Products Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements for the Period 1 April 2022 to 30 September 2023 |
for |
Eskimo Products Limited |
Eskimo Products Limited (Registered number: 07682184) |
Contents of the Financial Statements |
for the Period 1 April 2022 to 30 September 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Balance Sheet | 4 |
Notes to the Financial Statements | 7 |
Eskimo Products Limited |
Company Information |
for the Period 1 April 2022 to 30 September 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Pippins |
Cherry Drive |
Forty Green |
Beaconsfield |
Buckinghamshire |
HP9 1XP |
Eskimo Products Limited (Registered number: 07682184) |
Report of the Directors |
for the Period 1 April 2022 to 30 September 2023 |
The directors present their report with the financial statements of the company for the period 1 April 2022 to 30 September 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of the design and manufacture of radiators and towel rails. |
REVIEW OF BUSINESS |
The 2022-23 financial year saw a substantial shift in the business' direction as Eskimo began to prepare for the transition from low volume high end heating design and manufacturer into a medium/high volume Green Tech heating products manufacturer. |
The drivers for this transition will be the research partnership we began with the University of Birmingham in August 2022 and the move away from a reliance on our global independent retail network as our primary sales channel. |
As a consequence of these changes these accounts contain a series of exceptional one-off items that have negatively affected short term profitability. |
Cost of Sales & Stock: the Directors took an aggressive approach to valuing the stock of existing material and WIP. Cost of Sales therefore includes a one-off stock write down of -£332,187. |
The gross margin including the one-off stock write down is 28.7% |
The underlying gross margin without the stock write down is 46% which reflects the ongoing gross margin of the business. |
Capital raise: Through a combination of debt-to-equity swaps and new equity, our holding company, Eskimo Umbrella, conducted a capital raise of £476,141. As the debt was within Eskimo Products Ltd, there was a drop in other creditors as a result. |
Revaluation Reserve: A revaluation of plant and machinery was undertaken to correct the understated depreciated value and reflect the true market value. |
Eskimo Products Limited (Registered number: 07682184) |
Report of the Directors |
for the Period 1 April 2022 to 30 September 2023 |
Administrative Expenses: 2022-23 saw a >300% increase in R&D expenditure and a >650% increase in advertising spend associated with the transitioning business model mentioned above. These are long term investments and will provide the platform for growth in future years. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Eskimo Products Limited (Registered number: 07682184) |
Balance Sheet |
30 September 2023 |
30.9.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
CREDITORS |
Amounts falling due within one year |
7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
NET ASSETS |
Eskimo Products Limited (Registered number: 07682184) |
Balance Sheet - continued |
30 September 2023 |
30.9.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Revaluation reserve | 10 |
Retained earnings | ( |
) | ( |
) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Eskimo Products Limited (Registered number: 07682184) |
Balance Sheet - continued |
30 September 2023 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements |
for the Period 1 April 2022 to 30 September 2023 |
1. | STATUTORY INFORMATION |
Eskimo Products Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of the net assets acquired. It is initially recognized as an asset at cost and is subsequently measured at cost less accumulated amortization and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortized on a systematic basis over its expected life, which is 10 years. |
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently if there is an indication that the unit maybe impaired, If the recoverable amount of the cash-generating unit i less than the carrying value amount if the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Land and buildings | - |
Plant and machinery etc | - |
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Recognized impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
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. |
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. |
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 recognized as an impairment loss in profit or loss. Reversals of impairment losses are also recognized in profit or loss. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
4. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 30 September 2023 |
AMORTISATION |
At 1 April 2022 |
Charge for period |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 31 March 2022 |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Revaluations |
At 30 September 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for period |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 31 March 2022 |
Cost or valuation at 30 September 2023 is represented by: |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
Valuation in 2023 | - | 48,910 | 48,910 |
Cost | 57,118 | 386,710 | 443,828 |
57,118 | 435,620 | 492,738 |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 31.3.22 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 31.3.22 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security | ( |
) |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.9.23 | 31.3.22 |
£ | £ |
Bank loans |
Other creditors |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
9. | 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 recognized in the company's statement of financial position 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 recognized 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 amortized 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 amortized. |
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 |
Eskimo Products Limited (Registered number: 07682184) |
Notes to the Financial Statements - continued |
for the Period 1 April 2022 to 30 September 2023 |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognized 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 amortized. Debt instruments are subsequently carried at amortized 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 recognized initially at transaction price and subsequently measured at amortized cost using the effective interest method. |
10. | RESERVES |
Revalua |
reserve |
£ |
At 1 April 2022 |
Revaluations | 48,910 |
At 30 September 2023 |