Registered number: 11067913
AS Colour UK Limited
Financial statements
Information for filing with the registrar
For the year ended 31 March 2023
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AS Colour UK Limited
Registered number: 11067913
Balance sheet
As at 31 March 2023
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Creditors: amounts falling due within one year
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 March 2024.
The notes on pages 2 to 11 form part of these financial statements.
Page 1
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
AS Colour UK Limited (‘the company’) is a private company, limited by shares, domiciled and incorporated in England and Wales. The company’s registered office is Unit 14, Ascent Logistics Park, Leighton Buzzard, LU7 3RH. The company's principal place of business is 48-50 Redchurch Street, London, E2 7DP. The principal activity of the company is the sale of clothing and accessories.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis despite the company reporting net current liabilities of £2,094,809 (2022: £300,591), net liabilities of £921,466 (2022: £112,308) and a loss of £809,158 (2022: £94,160 profit). Included within Creditors: Amounts due within one year is an amount of £10,332,068 (2022: £4,846,973) due to AS Colour Limited, a fellow group company. AS Colour Limited has confirmed that they will not call for repayment of the above sums until the company has sufficient cash reserves to do so, without prejudice to the company's other creditors and for a period of at least twelve months from the date of approval of the financial statements.
In addition, confirmation has been received from AS Colour Holdings Limited, the immediate parent company, confirming that it intends to support the company for a period of at least twelve months from the date of signing of these financial statements.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Retail income is recognised once a transaction has been completed.
Wholesale income is recognised when the risks and rewards are transferred to the customer which is
when goods are dispatched from the warehouse.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Page 2
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Page 3
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 4
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision is made for the present value of the obligations under the lease.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, be likely to differ from the related actual results.
Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors, including expectations of future that are believed to be reasonable under the circumstances.
Key accounting estimates recognised are:
Useful economic lives of tangible asset (Note 7)
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 7 for the carrying amount of tangible fixed assets and Note 2.9 for the useful economic lives for each class of assets.
Page 5
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
3.Judgments in applying accounting policies (continued)
Accruals (Note 10)
Management make judgements based on experience of the level of provision required to account for unbilled invoices. At the balance sheet date, the Company has recognised £239,481 (2022: £75,841) in respect of unbilled invoices which has been included in Accruals in Creditors: Amounts falling due within one year in Note 10.
Intercompany management fee
Timesheet records are not kept for all employees so management estimate how much time is spent by employees in group companies on work for the Company. The management charge is calculated to be the value of time spent by these employees with a 5% mark-up applied and equates to £194,234 (2022: £113,300) of employees' wages from group companies. This has been included within Administrative expenses in the Statement of income and retained earnings. The intercompany management fee is considered to be accurate, however it includes an element of estimation technique.
Determination of lease classification
The Company is significant leases in place. The classification of these leases between operating lease and finance lease requires a number of judgements to be made by management including: whether the ownership of the asset is transferred to the lessess by the end of the lease term, whether the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable and for it to be reasonably certain at the inception of the lease that the option will be exercised, whether the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset at the inception of the lease and whether the leased assets are of such a specialised nature that only the lessee can use them without major modifications.
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The average monthly number of employees, including directors, during the year was 12 (2022 - 12).
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Page 6
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
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Website development costs
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Charge for the year on owned assets
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Page 7
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Notes to the financial statements
For the year ended 31 March 2023
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Transfers between classes
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Charge for the year on owned assets
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Transfers between classes
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Page 8
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
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Due after more than one year
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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Page 9
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
10.Deferred taxation (continued)
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Tax losses carried forward
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Charged to profit or loss
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Allotted, called up and fully paid
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100 (2022: 100) Ordinary shares of $1.00 NZD each
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The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £8,133 (2022: £5,936). Contributions totalling £1,844 (2022: £202) were payable to the fund at the reporting date and are included in creditors.
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Related party transactions
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The company has taken advantage of the exemption conferred by Section 33.1A of FRS 102 not to disclose transactions between other members of the group.
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Page 10
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AS Colour UK Limited
Notes to the financial statements
For the year ended 31 March 2023
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Commitments under operating leases
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At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The company regards AS Colour Holdings Limited, a company registered in New Zealand, as its immediate parent company and the ultimate controlling entity is the Mosaic Trust.
The company considers its ultimate control relationship to be the trustees of the Mosaic Trust as the controlling party of AS Colour Holdings Limited.
The auditors' report on the financial statements for the year ended 31 March 2023 was unqualified.
The audit report was signed on 31 March 2024 by Stephen Moss BSc (Hons) ACA (Senior statutory auditor) on behalf of Kreston Reeves LLP.
Page 11
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