Company registration number SC457639 (Scotland)
EMPORIUM VAPOUR LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
EMPORIUM VAPOUR LTD
Contents
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 9
EMPORIUM VAPOUR LTD
Report To The Directors On The Preparation Of The Unaudited Statutory Accounts Of Emporium Vapour Ltd
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Emporium Vapour Ltd for the year ended 30 June 2023 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts
This report is made solely to the Board of Directors of Emporium Vapour Ltd, as a body, in accordance with the terms of our engagement letter dated 28 May 2021. Our work has been undertaken solely to prepare for your approval the financial statements of Emporium Vapour Ltd and state those matters that we have agreed to state to the Board of Directors of Emporium Vapour Ltd, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Emporium Vapour Ltd and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Emporium Vapour Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Emporium Vapour Ltd. You consider that Emporium Vapour Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Emporium Vapour Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Condie & Co Limited
2 April 2024
Chartered Accountants
10 Abbey Park Place
Dunfermline
Fife
KY12 7NZ
EMPORIUM VAPOUR LTD
Statement Of Financial Position
As At 30 June 2023
30 June 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
27,830
37,019
Current assets
Stocks
35,688
26,492
Debtors
6
25,069
21,064
Cash at bank and in hand
4,619
16,654
65,376
64,210
Creditors: amounts falling due within one year
7
(141,417)
(157,440)
Net current liabilities
(76,041)
(93,230)
Total assets less current liabilities
(48,211)
(56,211)
Creditors: amounts falling due after more than one year
8
(21,072)
(31,667)
Net liabilities
(69,283)
(87,878)
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
(69,383)
(87,978)
Total equity
(69,283)
(87,878)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
EMPORIUM VAPOUR LTD
Statement Of Financial Position (Continued)
As At 30 June 2023
30 June 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 2 April 2024 and are signed on its behalf by:
Mr L Jones
Director
Company Registration No. SC457639
EMPORIUM VAPOUR LTD
Notes To The Financial Statements
For The Year Ended 30 June 2023
- 4 -
1
Accounting policies
Company information
Emporium Vapour Ltd is a private company limited by shares incorporated in Scotland. The registered office is 179-181 Great Junction Street, Edinburgh, EH6 5LQ.
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
Going concern
The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue in existence for the foreseeable future. The company is dependent on the continued support of its directors. The directors are confident about the continued support and accordingly consider it appropriate for the financial statements to be prepared on the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on despatch, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Tenants improvements
10% straight line p.a.
Plant and machinery
15% reducing balance p.a.
Fixtures, fittings & equipment
15% reducing balance p.a.
Computer equipment
25% straight line p.a.
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.
1.5
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.
EMPORIUM VAPOUR LTD
Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.6
Cash at bank and in hand
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.
1.7
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
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, 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.
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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
EMPORIUM VAPOUR LTD
Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2023
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
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 income statement, 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
7
11
EMPORIUM VAPOUR LTD
Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2023
- 7 -
4
Intangible fixed assets
Goodwill
Development Costs
Total
£
£
£
Cost
At 1 July 2022 and 30 June 2023
400,000
233,043
633,043
Amortisation and impairment
At 1 July 2022 and 30 June 2023
400,000
233,043
633,043
Carrying amount
At 30 June 2023
At 30 June 2022
5
Tangible fixed assets
Tenants improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 July 2022 and 30 June 2023
34,895
5,901
52,914
19,351
113,061
Depreciation and impairment
At 1 July 2022
17,074
3,448
37,295
18,225
76,042
Depreciation charged in the year
3,490
368
4,685
646
9,189
At 30 June 2023
20,564
3,816
41,980
18,871
85,231
Carrying amount
At 30 June 2023
14,331
2,085
10,934
480
27,830
At 30 June 2022
17,821
2,453
15,619
1,126
37,019
Tangible fixed assets with a net book value of £27,830 (2022: £37,019) have been pledged as security in favour of The Royal Bank of Scotland PLC.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,044
2,523
Prepayments and accrued income
24,025
18,541
25,069
21,064
EMPORIUM VAPOUR LTD
Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,648
10,000
Trade creditors
37,041
32,220
Taxation and social security
38,741
16,911
Other creditors
49,150
93,109
Accruals and deferred income
5,837
5,200
141,417
157,440
The Royal Bank of Scotland hold a floating charge and negative pledge dated 25 June 2015 over all assets of the company as security.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
21,072
31,667
The Royal Bank of Scotland hold a floating charge and negative pledge dated 25 June 2015 over all assets of the company as security.
9
Deferred taxation
At 30th June 2023, the company has trading losses amounting to £149,852 which are available to utilise against future trading profits. These tax losses have not been recognised as a deferred tax asset on the grounds that there is insufficient evidence that the losses will be fully recovered in the foreseeable future.
10
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
100
100
EMPORIUM VAPOUR LTD
Notes To The Financial Statements (Continued)
For The Year Ended 30 June 2023
- 9 -
11
Related party transactions
The company has taken advantage of Section 1 AC35 of FRS 102 whereby only material transactions which are not under normal market conditions need to be disclosed.
12
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
L Jones
2.00
103,233
1,841
(20,350)
84,724
J Russell
-
(16,789)
-
(27,200)
(43,989)
86,444
1,841
(47,550)
40,735
The balance due to the directors, which is included in other creditors, is repayable on demand.