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Registered number: 07986850









Arighi Bianchi Holdings Limited









Annual Report and Consolidated Financial Statements

For the year ended 30 June 2023

 
Arighi Bianchi Holdings Limited
 
 
Company Information


Directors
R E Bianchi 
J Bianchi 
P N E Bianchi 
S Bianchi 




Company secretary
S Bianchi



Registered number
07986850



Registered office
The Silk Road

Macclesfield

Cheshire

SK10 1LH




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

SK1 1TD





 
Arighi Bianchi Holdings Limited
 

Contents



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 6
Independent auditors' report
 
7 - 10
Consolidated statement of comprehensive income
 
11
Consolidated balance sheet
 
12
Company balance sheet
 
13
Consolidated statement of changes in equity
 
14 - 15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17 - 18
Consolidated analysis of net debt
 
18
Notes to the financial statements
 
19 - 40


 
Arighi Bianchi Holdings Limited
 
 
Group Strategic Report
For the year ended 30 June 2023

Introduction
 
The Directors present their Group Strategic Report for the year ended 30 June 2023.

Business review
 
The principal activity of the Group continues to be that of retailing furniture, carpets, soft furnishing, home accessories and Caffe Bar through our main store and online.
The Directors report that demand in 2023 weakened year on year; turnover decreased by 4% (£0.7m), with online sales dipping again this year. 
The consolidated loss after tax for the year was £37k (2022: £353k consolidated profit after tax) and the actuarial gain (after deferred tax) totalled £135k (2022: £829k). Dividends totalled £264k and these movements resulted in the Group ending the year with consolidated net assets totalling £960k (2022: £1.1m).
The Defined Benefit Pension scheme has seen another actuarial gain which continues to improve the position of the Group. A further contribution has been made to the scheme since year end as per a profit share agreement with the Pension Trustee.
As we head into 2024 and beyond, we look forward to solidifying our brand and growth prospects, with the support of globally recognised business consultant Kate Hardcastle MBE. The strategic plan for the business will focus on capitalising on the business’ core strengths, which include 5* rated service and expertise, exciting product offerings and a unique store and hospitality experience, all underpinned by strong brand trust and heritage. Leveraging these to evolve our offer, reinforce the brand and enhance the customer experience, both on and offline, will enable growth with both existing and new customer segments. We are also intently focused on improving our margin by removing inefficiencies and to this end, our new ERP system will be implemented in 2024. 

Page 1

 
Arighi Bianchi Holdings Limited
 

Group Strategic Report (continued)
For the year ended 30 June 2023

Principal risks and uncertainties
 
The Group has considered the principal risks and uncertainties to which it is exposed and risk management remains a high priority for the Group. The day to day involvement of the Directors ensures that business risks are quickly identified and mitigated and policies and procedures put into place. 
Economic and market conditions have been challenging and are expected to remain so.  There continues to be uncertainty surrounding the global economy, and consumer confidence and discretionary spending continued to be impacted in the year due to the cost of living, which has risen due to the war in Ukraine, high energy prices and inflation.  Energy prices and the rate of inflation have both now started fallng, but the cost of living remains high for many. To mitigate any risks, the Group constantly reviews and monitors its trading activities and puts in place plans to ensure that it can react to changes in the external environment and maintain profitability.
Excessive inflation has benefited the Group's defined benefit liability in recent periods. There is a risk that falling rates of inflation may result in a higher net defined benefit pension liability being reported in future years.
Escalation of costs is a risk factor the Group manages by maintaining a policy of full ownership of its main trading locations and exercising budgetary controls on its cost base.
The Group operates in a highly competitive furniture market. New entrants typically adopt aggressive marketing strategies to acquire new customers.  Group management believe that Arighi Bianchi & Co.'s strong brand, exclusive high quality products, multichannel approach and disciplined focus on delivering exceptional customer service will continue to mitigate the impact of new market entrants.
We have reduced our transactions in foreign currencies within the Group to reduce our exposure to potentially adverse movements in exchange rates. 
The Group monitors forthcoming and current legislation changes to assess the impact on operational and other requirements.
Supply chain process   this involves the manufacture of high quality product and delivery by suppliers to our showroom and warehouses in the requisite timeframe, the delivery of the product to our customers in a professional manner and at pre arranged dates and the provision of an excellent after-sales service. We have developed very good working relationships with our core suppliers over many years and in house distribution capability is designed to enable us to manage this risk effectively.
The Group would like to thank all of its staff for their hard work and dedication over the past couple of very challenging years.
Environmental matters
Waste management
We aim to recycle nearly all of our cardboard and paper waste through a company wide initiative that includes the collection of office waste, the shredding of cardboard to be used as packaging and the use of boxes which are 100% recycled for all orders placed over the Internet.  We also recycle the majority of polythene waste and recently started recycling polystyrene.
Transport
Furniture is imported by sea instead of air to reduce its carbon footprint.  Where possible, containers arrive at the most convenient local ports to keep the distance they have to travel by road to a minimum.  Deliveries are carefully planned to reduce road miles and drivers are fully trained in fuel efficient driving.  
 
Page 2

 
Arighi Bianchi Holdings Limited
 

Group Strategic Report (continued)
For the year ended 30 June 2023

Energy efficiency
We have introduced low wattage lamps in our showroom, cutting the consumption of new bulbs significantly.  This initiative will be expanded to include offices and warehouses in the future.  We have implemented a policy of monitoring timers and thermostats with a view to maximizing energy efficiency and reducing heat loss.
Staff education
Ongoing education of all members of staff ensures that our extensive environmental policies are implemented at every level of our organisation. All employees are well aware of the role they can play in helping us achieve our environmental goals and are encouraged to find new ways of making our business even greener. Whenever possible, we make sure our furniture comes from suppliers who are aware of the impact their business has on the environment.  
Trusted suppliers
Whenever possible, we make sure our furniture comes from suppliers who are aware of the impact their business has on the environment.  
Customer satisfaction
Arighi Bianchi prides itself on customer service.  We look to build real relationships with our customers and understand that the service we provide is important.  We regularly monitor customer satisfaction in terms of sales using customer feedback forms.
Non-financial key performance indicators
The key non financial indicators monitored by the business include those which measure customer satisfaction, supplier performance, sales performance, staff matters and environmental matters across the business.  The directors review these KPI's on a regular basis with the objective of improving overall customer service and financial performance.

Financial key performance indicators
 
The Directors consider the key financial performance indictors to be as follows:

2023
2022
£
£


Turnover
16,504,845
17,218,128

Gross profit
6,482,298
6,881,812

Operating profit
174,272
444,875

Profit/(loss) before tax
57,044
350,688

Gross margins are 39.3% (2022: 40.0%).


This report was approved by the board and signed on its behalf.


J Bianchi
Director

Date: 12 March 2024

Page 3

 
Arighi Bianchi Holdings Limited
 
 
 
Directors' Report
For the year ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors' responsibilities statement

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £37,011 (2022 - profit £353,489).

The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

R E Bianchi 
J Bianchi 
P N E Bianchi 
S Bianchi 

Page 4

 
Arighi Bianchi Holdings Limited
 
 
 
Directors' Report (continued)
For the year ended 30 June 2023

Future developments

The Group will continue to develop its strategy as explained in the Strategic Report.
Engagement with employees
Employees are encouraged to discuss with management any matters of concern and factors affecting the Group. Employees are kept informed of company progress and developments through team briefings, intranet and emails. 
Suggestions from employees are encouraged and welcomed, and there is a direct email to the MD which encourages communication. 
Disabled employees
The Group gives full consideration to applications for employment from disabled persons where the candidate's skills are consistent with the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.
Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practical in the same, or an alternative, position.

Financial instruments

The Group's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and foreign exchange risk. The trading subsidiary, Arighi Bianchi & Co. Limited, has a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of cash and related finance costs. Arighi Bianchi has implemented policies that require appropriate credit checks before a sale is made or full payment before goods are delivered to customers. We have reduced our transactions in foreign currencies to reduce our exposure to potentially adverse movements in exchange rates. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 5

 
Arighi Bianchi Holdings Limited
 
 
 
Directors' Report (continued)
For the year ended 30 June 2023

Post balance sheet events

There have been no significant events affecting the Group since the year end.
Going concern
The consolidated financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
,
The Group has net assets of £959,768 (2022: £1,126,197) and net assets excluding the pension liability total £2,947,768 (2022: £3,675,197) at 30 June 2023.
The Group aims to meet its working capital requirements through its cash balances and bank funding. 
The Directors have prepared detailed, conservative forecasts for the trading subsidiary, Arighi Bianchi & Co. Limited, which cover the period through to June 2025. These indicate that the Group will be able to meet its liabilities as they fall due assuming that current facilities remain in place. The current facilities are available for the foreseeable future, subject to regular reviews.
In the event of current facilities not being available in the future, the Board has considered and identified further measures that could be put in place. The Group has property assets (excluding the Arighi Bianchi store) which are higher in value than the book value currently accounted for in these financial statements, and which could be utilised to realise cash. Alternative options also exist.
The Directors therefore believe it is appropriate to prepare the accounts to 30 June 2023 on a going concern basis.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


J Bianchi
Director

Date: 12 March 2024

Page 6

 
Arighi Bianchi Holdings Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi Holdings Limited
 

Opinion


We have audited the financial statements of Arighi Bianchi Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2023, which comprise the Group statement of comprehensive income, the Group and Company balance sheets, the Group statement of cash flows, the Group and Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 Group's and of the parent Company's affairs as at 30 June 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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 auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves.  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.


Page 7

 
Arighi Bianchi Holdings Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi Holdings Limited (continued)


Opinion 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 group 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 group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 set out on page 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
Arighi Bianchi Holdings Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi Holdings Limited (continued)


Auditors' 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 auditors' 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 Group 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for performance targets.
• The outcome of enquiries of management, including whether management was aware of any instances of non-   compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged   fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
 - Identifying, evaluating, and complying with laws and regulations
 - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, tax legislation, or which had a    fundamental effect on the operations of the Company.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws  and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. 
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
 
Page 9

 
Arighi Bianchi Holdings Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi Holdings Limited (continued)


There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


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 2006Our 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 auditors' 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.


John Glover (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Stockport
SK1 1TD

12 March 2024
Page 10

 
Arighi Bianchi Holdings Limited
 
 
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2023

2023
2022
Note
£
£

  

Turnover
 4 
16,504,845
17,218,128

Cost of sales
  
(10,022,547)
(10,336,306)

Gross profit
  
6,482,298
6,881,822

Administrative expenses
  
(6,441,262)
(6,495,122)

Other operating income
 5 
133,236
58,175

Operating profit
 6 
174,272
444,875

Interest receivable and similar income
 10 
188
238

Interest payable and similar expenses
 11 
(23,416)
(7,425)

Other finance income
 12 
(94,000)
(87,000)

Profit before taxation
  
57,044
350,688

Tax on profit
 13 
(94,055)
2,801

(Loss)/profit for the financial year
  
(37,011)
353,489

  

Actuarial gains on defined benefit pension scheme
  
275,000
949,000

Movement of deferred tax relating to pension deficit
  
(140,250)
(120,470)

Other comprehensive income for the year
  
134,750
828,530

  

Total comprehensive income for the year
  
97,739
1,182,019

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(37,011)
353,489

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
97,739
1,182,019

The notes on pages 19 to 40 form part of these financial statements.

Page 11

 
Arighi Bianchi Holdings Limited
Registered number: 07986850

Consolidated Balance Sheet
As at 30 June 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
207,061
279,818

Tangible assets
 16 
2,698,080
2,539,337

  
2,905,141
2,819,155

Current assets
  

Stocks
 18 
2,038,311
2,805,609

Debtors: amounts falling due within one year
 19 
1,489,696
1,992,437

Cash at bank and in hand
 20 
30,779
213,682

  
3,558,786
5,011,728

Creditors: amounts falling due within one year
 21 
(3,124,284)
(4,036,809)

Net current assets
  
 
 
434,502
 
 
974,919

Total assets less current liabilities
  
3,339,643
3,794,074

Creditors: amounts falling due after more than one year
 22 
(391,875)
(118,877)

Provisions for liabilities
  

Net assets excluding pension liability
  
2,947,768
3,675,197

Pension liability
 28 
(1,988,000)
(2,549,000)

Net assets
  
959,768
1,126,197


Capital and reserves
  

Called up share capital 
 25 
19
19

Other reserves
 26 
35,386
35,386

Profit and loss account
 26 
924,363
1,090,792

Equity attributable to owners of the parent Company
  
959,768
1,126,197


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

J Bianchi
Director

Date: 12 March 2024

The notes on pages 19 to 40 form part of these financial statements.

Page 12

 
Arighi Bianchi Holdings Limited
Registered number: 07986850

Company Balance Sheet
As at 30 June 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Investments
 17 
3,000,129
3,000,129

  
3,000,129
3,000,129

Current assets
  

Debtors: amounts falling due within one year
 19 
543,439
679,812

Cash at bank and in hand
 20 
7,493
7,523

  
550,932
687,335

Creditors: amounts falling due within one year
 21 
(190,155)
(62,365)

Net current assets
  
 
 
360,777
 
 
624,970

Total assets less current liabilities
  
3,360,906
3,625,099

Net assets
  
3,360,906
3,625,099


Capital and reserves
  

Called up share capital 
 25 
19
19

Profit and loss account brought forward
  
3,625,080
3,826,933

Loss for the year
  
(25)
(298)

Dividends paid

  

(264,168)
(201,555)

Profit and loss account carried forward
  
3,360,887
3,625,080

  
3,360,906
3,625,099


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

J Bianchi
Director

Date: 12 March 2024

The notes on pages 19 to 40 form part of these financial statements.

Page 13

 
Arighi Bianchi Holdings Limited
 

Consolidated Statement of Changes in Equity
For the year ended 30 June 2023


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 July 2022
19
35,386
1,090,792
1,126,197
1,126,197


Comprehensive income for the year

Loss for the year

-
-
(37,011)
(37,011)
(37,011)

Actuarial gains on pension scheme
-
-
134,750
134,750
134,750


Other comprehensive income for the year
-
-
134,750
134,750
134,750


Total comprehensive income for the year
-
-
97,739
97,739
97,739


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(264,168)
(264,168)
(264,168)


Total transactions with owners
-
-
(264,168)
(264,168)
(264,168)


At 30 June 2023
19
35,386
924,363
959,768
959,768


Page 14

 
Arighi Bianchi Holdings Limited
 

Consolidated Statement of Changes in Equity
For the year ended 30 June 2022


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 July 2021
19
35,386
110,328
145,733
145,733


Comprehensive income for the year

Profit for the year

-
-
353,489
353,489
353,489

Actuarial gains on pension scheme
-
-
828,530
828,530
828,530


Other comprehensive income for the year
-
-
828,530
828,530
828,530


Total comprehensive income for the year
-
-
1,182,019
1,182,019
1,182,019


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(201,555)
(201,555)
(201,555)


Total transactions with owners
-
-
(201,555)
(201,555)
(201,555)


At 30 June 2022
19
35,386
1,090,792
1,126,197
1,126,197


The notes on pages 19 to 40 form part of these financial statements.

Page 15

 
Arighi Bianchi Holdings Limited
 

Company Statement of Changes in Equity
For the year ended 30 June 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022 (as previously stated)
19
3,826,635
3,826,654

Prior year adjustment
-
(201,555)
(201,555)

At 1 July 2022 (as restated)
19
3,625,080
3,625,099


Comprehensive income for the year

Loss for the year
-
(25)
(25)
Total comprehensive income for the year
-
(25)
(25)


Contributions by and distributions to owners

Dividends: Equity capital
-
(264,168)
(264,168)


At 30 June 2023
19
3,360,887
3,360,906



Company Statement of Changes in Equity
For the year ended 30 June 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2021
19
3,826,933
3,826,952


Comprehensive income for the year

Loss for the year
-
(298)
(298)
Total comprehensive income for the year
-
(298)
(298)


Contributions by and distributions to owners

Dividends: Equity capital
-
(201,555)
(201,555)


At 30 June 2022
19
3,625,080
3,625,099


The notes on pages 19 to 40 form part of these financial statements.

Page 16

 
Arighi Bianchi Holdings Limited
 

Consolidated Statement of Cash Flows
For the year ended 30 June 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
(37,011)
353,489

Adjustments for:

Amortisation of intangible assets
114,199
137,891

Depreciation of tangible assets
287,022
284,817

Profit on disposal of tangible assets
(42,150)
(56,876)

Interest paid
23,416
7,425

Interest received
(188)
(238)

Taxation charge
94,055
(2,801)

Decrease/(increase) in stocks
767,298
(670,540)

Decrease in debtors
278,461
108,184

(Decrease)/increase in creditors
(893,785)
395,058

Decrease in net pension liabilities
(471,000)
(733,000)

Corporation tax paid
(31,512)
(22,746)

Net cash generated from/(used in) operating activities

88,805
(199,337)


Cash flows from investing activities

Purchase of intangible fixed assets
(41,442)
(86,383)

Purchase of tangible fixed assets
(43,333)
(69,493)

Sale of tangible fixed assets
52,900
93,183

Interest received
188
238

HP interest paid
(16,470)
(6,410)

Net cash used in investing activities

(48,157)
(68,865)

Cash flows from financing activities

Repayment of loans
-
(1,300,000)

Repayment of finance leases
(74,131)
(33,596)

Dividends paid
(264,168)
(201,555)

Interest paid
(6,946)
(1,015)

Net cash used in financing activities
(345,245)
(1,536,166)

Net (decrease) in cash and cash equivalents
(304,597)
(1,804,368)

Cash and cash equivalents at beginning of year
213,623
2,017,991

Cash and cash equivalents at the end of year
(90,974)
213,623
Page 17

 
Arighi Bianchi Holdings Limited
 

Consolidated Statement of Cash Flows (continued)
For the year ended 30 June 2023


2023
2022

£
£



Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
30,779
213,682

Bank overdrafts
(121,753)
(59)

(90,974)
213,623



Consolidated Analysis of Net Debt
For the year ended 30 June 2023





At 1 July 2022
Cash flows
New finance leases
At 30 June 2023
£

£

£

£

Cash at bank and in hand

213,682

(182,903)

-

30,779

Bank overdrafts

(59)

(121,694)

-

(121,753)

Finance leases

(171,930)

74,131

(413,182)

(510,981)


41,693
(230,466)
(413,182)
(601,955)

The notes on pages 19 to 40 form part of these financial statements.

Page 18

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

1.


General information

Arighi Bianchi Holdings Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is The Silk Road, Macclesfield, Cheshire, SK10 1LH. The company's registered number is 07986850.
The nature of the group's operations and its principal activity is the sale of furniture.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

Parent Company disclosure exemptions

In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
No statement of cash flows has been presented for the parent Company;

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.3

Going concern

The consolidated financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
,
The Group has net assets of £959,768 (2022: £1,126,197) and net assets excluding the pension liability total £2,947,768 (2022: £3,675,197) at 30 June 2023.
The Group aims to meet its working capital requirements through its cash balances and bank funding. 
The Directors have prepared detailed, conservative forecasts for the trading subsidiary, Arighi Bianchi & Co. Limited, which cover the period through to June 2025. These indicate that the Group will be able to meet its liabilities as they fall due assuming that current facilities remain in place. The current facilities are available for the foreseeable future, subject to regular reviews.
In the event of current facilities not being available in the future, the Board has considered and identified further measures that could be put in place. The Group has property assets (excluding the Arighi Bianchi store) which are higher in value than the book value currently accounted for in these financial statements, and which could be utilised to realise cash. Alternative options also exist.
The Directors therefore believe it is appropriate to prepare the accounts to 30 June 2023 on a going concern basis.

 
2.4

Foreign currency translation

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.

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 the consolidated profit or loss account.

Foreign exchange gains and losses are presented in the consolidated statement of comprehensive income within 'administrative expenses'. 

Page 20

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Group and the costs incurred, or to be incurred, in respect of the transaction can be measured reliably. These conditions are usually met upon despatch of goods.

 
2.6

Operating leases: the Group as lessee

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.

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. 
Grants of a revenue nature are recognised in the consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

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. 

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 21

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 22

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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 and the Group operate and generate 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.

 
2.14

Intangible assets

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.

Website development expenditure is capitalised as an intangible asset when the following conditions are met:
- The development costs meet the definition of an intangible asset;
- The expenditure is not on advertising and promotional activities; and
- The expenditure meets the recognition criteria in FRS 102:
 i)  It is probable that the expected future economic benefits that are attributable to the asset will flow to     the entity and the cost value of the asset can be measured reliably; and 
 ii)  The project is in the development phase and meets the criteria contained within FRS 102 paragraph     18.8H.
Costs relating to advertising and promotion are expensed in the statement of comprehensive income. 

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.

 The estimated useful lives range as follows:

Website development
-
5
years
Software
-
Asset not yet in use

Page 23

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

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.

The estimated useful lives range as follows:

Freehold property
-
2% Straight Line
Motor vehicles
-
20% Straight Line
Fixtures and fittings
-
10-20% Straight Line

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.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

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 first in, first out basis. 

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.

 
2.18

Debtors

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.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 24

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.20

Creditors

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.

 
2.21

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amount of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. The judgements, estimates and assumptions that have the most significant effect on the carrying value of the assets and liabilities of the Group and Company as at 30 June 2023 are as follows:
Key sources of estimation uncertainty
Defined benefit pension scheme
The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 27, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 6 April 2021 has been used by the actuary in valuing the pension liability at 30 June 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. 
The directors have chosen to apply a discount rate of 5.4% (2022: 4%) when valuing the pension scheme liability.


4.


Turnover

The whole of the turnover is attributable to the Group's principal activity.

All turnover arose within the United Kingdom.

Page 25

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

5.


Other operating income

2023
2022
£
£

Net rents receivable
133,236
25,917

Government grants receivable
-
32,258

133,236
58,175



6.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Depreciation
287,022
284,817

Amortisation
114,199
137,891

Exchange differences
578
522

Profit on disposal of tangible assets
(42,150)
(56,876)

Operating lease rentals - land and buildings
349,394
324,502


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
30,500
33,500




All other services
4,605
4,125

Page 26

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,466,910
3,588,971
-
-

Social security costs
304,018
324,479
-
-

Cost of defined benefit scheme
91,000
156,000
-
-

Cost of defined contribution scheme
63,655
74,247
-
-

3,925,583
4,143,697
-
-


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management and administration
32
32
4
4



Selling and distribution
113
116
-
-

145
148
4
4


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
136,233
178,734


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
188
238

Page 27

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
6,946
430

Finance leases and hire purchase contracts
16,470
6,410

Other interest payable
-
585

23,416
7,425


12.


Other finance costs

2023
2022
£
£

Interest income on pension scheme assets
344,000
242,000

Net interest on net defined benefit liability
(438,000)
(329,000)

(94,000)
(87,000)



13.


Taxation


2023
2022
£
£

Total current tax
 
-
 
-

Deferred tax


Origination and reversal of timing differences
94,055
(2,801)

Total deferred tax
94,055
(2,801)


Taxation on profit/(loss) on ordinary activities
94,055
(2,801)
Page 28

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
57,044
350,688


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
14,261
66,631

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,485
1,497

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(93,708)
(115,989)

Changes in provisions leading to an increase (decrease) in the tax charge
26,586
-

Unrelieved tax losses carried forward
109,801
32,667

Other differences leading to an increase (decrease) in the tax charge
32,630
12,393

Total tax charge for the year
94,055
(2,801)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


14.


Dividends

2023
2022
£
£

A Ordinary


Dividends paid
264,168
201,555

Page 29

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

15.


Intangible assets

Group 





Software
Website development
Total

£
£
£



Cost


At 1 July 2022
102,174
569,974
672,148


Additions
41,442
-
41,442



At 30 June 2023

143,616
569,974
713,590



Amortisation


At 1 July 2022
-
392,330
392,330


Charge for the year on owned assets
-
114,199
114,199



At 30 June 2023

-
506,529
506,529



Net book value



At 30 June 2023
143,616
63,445
207,061



At 30 June 2022
102,174
177,644
279,818

Amortisation of intangible assets is included in administrative expenses and no impairment losses have been recognised in the consolidated statement of comprehensive income during the period.



Page 30

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

16.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 July 2022
3,311,243
1,131,579
3,499,516
7,942,338


Additions
-
447,654
8,861
456,515


Disposals
-
(293,686)
(5,991)
(299,677)



At 30 June 2023

3,311,243
1,285,547
3,502,386
8,099,176



Depreciation


At 1 July 2022
1,497,757
932,281
2,972,963
5,403,001


Charge for the year
68,094
86,058
132,870
287,022


Disposals
-
(282,936)
(5,991)
(288,927)



At 30 June 2023

1,565,851
735,403
3,099,842
5,401,096



Net book value



At 30 June 2023
1,745,392
550,144
402,544
2,698,080



At 30 June 2022
1,813,486
199,298
526,553
2,539,337

A legal charge was registered in October 2021 in relation to certain land and buildings owned by the trading subsidiary, Arighi Bianchi & Co. Limited. The subsidiary, with full title guarantee, charged the property by way of legal mortgage as security for the payment of all sums due and owing the to third party from Arighi Bianchi & Co. Limited, from time to time.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
556,711
199,298

Page 31

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2022
3,000,129



At 30 June 2023
3,000,129





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Class of shares

Holding

Arighi Bianchi & Co. Limited
Ordinary
100%
Arighi Bianchi (1854) Limited
Ordinary
100%
Arighi Bianchi Property Company Limited
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Class of shares

Holding

Arighi Bianchi Pension Trustees Limited
Ordinary
100%
Arighi Bianchi General Partner Limited
Ordinary
100%

The registered office of Arighi Bianchi & Co. Limited, Arighi Bianchi (1854) Limited and Arighi Bianchi Property Company Limited is The Silk Road, Macclesfield, Cheshire, SK10 1LH.
The registered office of Arighi Bianchi Pension Trustees Limited is 20-20 Trustees Limited, 100 Wood Street, London, EC2V 7AN.
The registered office of Arighi Bianchi General Partner Limited is Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.

Page 32

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

18.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
2,038,311
2,805,609


The carrying value of stocks are stated net of impairment losses totalling £50,018 (2022 - £50,000). Impairment losses totalling  £18 (2022 - £Nil) were recognised in profit and loss.


19.


Debtors



Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£


Trade debtors
103,853
355,782
-
-

Amounts owed by group undertakings
-
-
-
136,378

Other debtors
602,240
664,066
414,872
414,867

Prepayments and accrued income
250,336
215,042
-
-

Tax recoverable
206,463
196,438
128,567
128,567

Deferred taxation
326,804
561,109
-
-

1,489,696
1,992,437
543,439
679,812


Trade debtors
An impairment loss of £76,173 (2022: Impairment gain of £4,825) was recognised in administrative expenses during the year against debtors.


20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
30,779
213,682
7,493
7,523

Less: bank overdrafts
(121,753)
(59)
-
-

(90,974)
213,623
7,493
7,523


Page 33

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

21.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
121,753
59
-
-

Trade creditors
2,351,685
3,574,562
-
-

Amounts owed to group undertakings
-
-
81,678
110

Corporation tax
9,884
31,371
-
-

Other taxation and social security
236,107
206,790
-
-

Obligations under finance lease and hire purchase contracts
119,106
53,053
-
-

Other creditors
131,355
80,713
108,477
62,255

Accruals and deferred income
154,394
90,261
-
-

3,124,284
4,036,809
190,155
62,365


The bank overdraft is secured by a fixed and floating charge over the Group's assets.
Obligations under finance leases and hire purchase contracts are secured over the assets to which they relate.


22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Net obligations under finance leases and hire purchase contracts
391,875
118,877
-
-


Obligations under finance leases and hire purchase contracts are secured over the assets to which they relate.


23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
119,106
53,053

Between 1-5 years
391,875
118,877

510,981
171,930

Page 34

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

24.


Deferred taxation


Group



2023
2022


£

£






Deferred tax asset at beginning of year
561,109
678,778


(Charged)/credited to profit or loss
(94,055)
2,801


Charged to other comprehensive income
(140,250)
(120,470)



At end of year
326,804
561,109

The deferred tax asset is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(173,497)
(78,238)

Defined benefit liability
497,000
637,250

Timing difference on pension
3,301
2,097

326,804
561,109


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,581 (2022 - 1,581) A Ordinary shares of £0.01 each
16
16
300 (2022 - 300) Ordinary shares of £0.01 each
3
3

19

19

Each class of share has attached to them full voting rights and a right to dividends should the Directors decide to declare dividends. The shares do not confer any rights of redemption and ordinary shares rank equally on a return of capital i.e. a winding up.


Page 35

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

26.


Reserves

Other reserves
Included are the revaluation reserves.
Profit and loss account
Included are all current and prior period profit and losses. These relate to distributable reserves.


27.


Prior year adjustment - Company only

In the prior year financial statements, dividends totalling £201,555 were accounted for as received by the Company from its subsidiary, Arighi Bianchi & Co. Limited. In the prior year, Arighi Bianchi & Co. Limited had negative reserves and the dividend shoud not have been accounted for as received by the Company. In these financial statements, the prior year figures have been restated such that the dividend income is not recognised, with the balance effectively being reclassified to the intercompany balance with Arighi Bianchi & Co. Limited. 
The Company accounted for dividends paid to shareholders totalling £201,555 in the year ended 30 June 2022, and this amount was paid by Arighi Bianchi & Co. Limited on behalf of the Company. As a result of this prior year adjustment, the net assets of the Company presented in these financial statements at 30 June 2022 are £201,555 lower than previously stated.

Page 36

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £76,124 (2022 - £81,114). Contributions totalling £13,205 (2022 - £nil) were payable to the fund at the balance sheet date.

The Group operates a defined benefit pension scheme.

Arighi Bianchi & Co Limited operates a final salary pension plan in the UK, the Arighi Bianchi & Co Limited Pension Scheme. A full actuarial valuation was carried out as at 6 April 2021, which has been updated to 30 June 2023 by a qualified independent actuary.



Reconciliation of present value of plan liabilities:


2023
2022
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
11,164,000
15,459,000

Interest expense
438,000
329,000

Actuarial gains
(2,408,000)
(4,215,000)

Benefits paid
(419,000)
(409,000)

At the end of the year
8,775,000
11,164,000



Reconciliation of present value of plan assets:


2023
2022
£
£


At the beginning of the year
8,615,000
11,471,000

Scheme administration expenses
(91,000)
(156,000)

Interest income
344,000
242,000

Return on scheme assets excluding interest income
(2,133,000)
(3,266,000)

Employer contributions
471,000
733,000

Benefits paid
(419,000)
(409,000)

At the end of the year
6,787,000
8,615,000

Page 37

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023
 
28.Pension commitments (continued)


Composition of plan assets:


2023
2022
£
£


Equities
3,035,000
3,315,000

Bonds
1,060,000
1,057,000

Property
93,000
81,000

Liability Driven Investment funds
1,213,000
1,715,000

Absolute Return Bond fund
689,000
926,000

Alternative
130,000
128,000

Cash
567,000
1,393,000

Total plan assets
6,787,000
8,615,000

2023
2022
£
£


Fair value of plan assets
6,787,000
8,615,000

Present value of plan liabilities
(8,775,000)
(11,164,000)

Net pension scheme liability
(1,988,000)
(2,549,000)


The amounts recognised in profit or loss are as follows:

2023
2022
£
£


Scheme administration costs
(91,000)
(156,000)

Interest on obligation
(438,000)
(329,000)

Interest income on plan assets
344,000
242,000

Total
(185,000)
(243,000)



The Group expects to contribute £470,000 to its defined benefit pension scheme in the year ending 30 June 2024.

2023
2022
£
£

Analysis of actuarial loss recognised in Other Comprehensive Income


Actual return less interest income included in net interest income
(2,133,000)
(3,266,000)

Changes in assumptions underlying the present value of the scheme liabilities
2,408,000
4,215,000

275,000
949,000

Page 38

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023
 
28.Pension commitments (continued)


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


5.40

4.00
 
Future salary increases


2.30

2.30
 
Future pension increases


2.95

2.95
 
Inflation assumption


3.00

3.00
 
Mortality rates



 
- for a male aged 65 now


21.0

21.5
 
- at 65 for a male aged 45 now


22.2

22.8
 
- for a female aged 65 now


23.5

24.0
 
- at 65 for a female member aged 45 now


24.9

25.5
 






29.


Commitments under operating leases

At 30 June 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
217,867
211,308

Later than 1 year and not later than 5 years
496,693
76,870

714,560
288,178
Page 39

 
Arighi Bianchi Holdings Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

30.

Transactions with directors

Transactions in relation to loans with directors during the year are outlined in the table below:

Opening
balance
Amounts
advanced
Amounts
repaid
Closing
 balance
        £
        £
        £
        £
Director 1

133,649

22,568

(12,442)
 
143,775
 
Director 2

142,977

12,156

(12,026)
 
143,107
 
Director 3

138,244

27,625

(15,486)
 
150,383
 
Director 4

137,792

13,883

(6,990)
 
144,685
 

552,662

76,232

(46,944)
 
581,950
 

All of the above balances are included within Other debtor and are interest free, with no set repayment terms.


31.


Related party transactions

In preparing these financial statements, the directors have taken advantage of the exemption available under section 33 paragraph 1A of the Financial Reporting Standard 102, and have not disclosed transactions entered into between wholly owned group undertakings.
Rent totalling £200,000 was charged by Arighi Bianchi Group SIPP during the year (2022: £200,000). Amounts totalling £nil were payable to Arighi Bianchi Group SIPP at 30 June 2023 (2022: £33,349).
Key management personnel remuneration totalled £148,702 (2022: £185,601).
Dividends totalling £264,168 (2022: £201,555) were paid to Directors and a close family member during the period.


32.


Controlling party

The directors consider that there is no one ultimate controlling party by virtue of there being no majority shareholder of Arighi Bianchi Holdings Limited.

Page 40