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Registered number: 00066706









Arighi Bianchi & Co. Limited









Annual Report and Financial Statements

For the year ended 30 June 2023

 
Arighi Bianchi & Co. Limited
 
 
Company Information


Directors
J Bianchi 
R E Bianchi 
S Bianchi 




Company secretary
S Bianchi



Registered number
00066706



Registered office
The Silk Road

Macclesfield

Cheshire

SK10 1LH




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

Cheshire

SK1 1TD





 
Arighi Bianchi & Co. Limited
 

Contents



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 6
Independent auditors' report
 
7 - 10
Profit and loss account
 
11
Statement of comprehensive income
 
12
Balance sheet
 
13
Statement of changes in equity
 
14
Notes to the financial statements
 
15 - 36


 
Arighi Bianchi & Co. Limited
 
 
Strategic Report
For the year ended 30 June 2023

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

Business review
The principal activity of the Company continues to be that of retailing furniture, carpets, soft furnishings, gifts and accessories and café 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 loss after tax for the year was £0.1m (2022: profit after tax of £0.3m) and the actuarial gain (after deferred tax) totalled £0.1m (2022: £0.8m). These movements resulted in the Company ending the year with net assets totalling £1.5m (2022: £1.4m).
The Defined Benefit Pension scheme has seen another actuarial gain which continues to improve the position of the Company. 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 & Co. Limited
 

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

Principal risks and uncertainties
 
The Company has considered the principal risks and uncertainties to which it is exposed and risk management remains a high priority for the Company. 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 Company 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 Company to reduce our exposure to potentially adverse movements in exchange rates. 
The Company 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 Company 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 & Co. Limited
 

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.  
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 indicators to be as follows:

2023
2022
£
£


Turnover
16,504,845
17,218,128

Gross profit
6,482,298
6,881,822

Operating profit/(loss)
(16,703)
253,942

Profit/(loss) before tax
14,293
321,394

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 & Co. 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 strategic report, the directors' report and the 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 of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company'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 Company 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 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 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 £79,762 (2022 - profit £324,195).

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

Directors

The directors who served during the year were:

J Bianchi 
R E Bianchi 
S Bianchi 

Future developments

The Company will continue to develop its strategy as explained in the Strategic Report.

Financial instruments

The Company'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 Company 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. The Company 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. 

Page 4

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

Engagement with employees

Employees are encouraged to discuss with management any matters of concern and factors affecting the Company.  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 Company 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 alternative position.
Post balance sheet events
There have been no significant events affecting the Company since the year end.

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'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's auditors are aware of that information.

Going concern

The 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 Company has net assets totalling £1,473,874 (2022 restated: £1,418,886) at 30 June 2023, taking into account the Defined benefit pension scheme liability of £1,988,000 (2022: £2,549,000). 
The Company and its parent, Arighi Bianchi Holdings Limited, aims to meet its working capital requirements through its cash balances and bank funding. 
The Directors have prepared detailed, conservative forecasts which cover the period through to June 2025, which indicate that the Company will be able to meet its liabilities as they fall due assuming that current bank 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 Company 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.

Page 5

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

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 & Co. Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi & Co. Limited
 

Opinion


We have audited the financial statements of Arighi Bianchi & Co. Limited (the 'Company') for the year ended 30 June 2023, which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the 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 Company's affairs as at 30 June 2023 and of its 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 Company 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 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 & Co. Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi & Co. 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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
Arighi Bianchi & Co. Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi & Co. 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 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 and testing 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.

 
Page 9

 
Arighi Bianchi & Co. Limited
 
 
 
Independent Auditors' Report to the Members of Arighi Bianchi & Co. Limited (continued)


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.
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
Cheshire
SK1 1TD

12 March 2024
Page 10

 
Arighi Bianchi & Co. Limited
 
 
Profit and Loss Account
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
  
(6,632,237)
(6,686,055)

Other operating income
 5 
133,236
58,175

Operating (loss)/profit
 6 
(16,703)
253,942

Interest receivable and similar income
 10 
141,466
161,646

Interest payable and similar expenses
 11 
(16,470)
(7,194)

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

Profit before tax
  
14,293
321,394

Tax on profit
 13 
(94,055)
2,801

(Loss)/profit for the financial year
  
(79,762)
324,195

The notes on pages 15 to 36 form part of these financial statements.

Page 11

 
Arighi Bianchi & Co. Limited
 

Statement of Comprehensive Income
For the year ended 30 June 2023

2023
2022
Note
£
£


Loss/(Profit) for the financial year

  

(79,762)
324,195

Other comprehensive income
  


Actuarial gain on defined benefit schemes
 27 
275,000
949,000

Movement on deferred tax relating to pension losses
 23 
(140,250)
(120,470)

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

Total comprehensive income for the year
  
54,988
1,152,725

The notes on pages 15 to 36 form part of these financial statements.

Page 12

 
Arighi Bianchi & Co. Limited
Registered number: 00066706

Balance Sheet
As at 30 June 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
207,061
279,818

Tangible assets
 15 
1,023,558
804,815

Investments
 16 
20
20

  
1,230,639
1,084,653

Current assets
  

Stocks
 17 
2,038,311
2,805,609

Debtors: amounts falling due within one year
 18 
3,576,776
4,100,730

Cash at bank and in hand
 19 
23,286
206,159

  
5,638,373
7,112,498

Creditors: amounts falling due within one year
 20 
(3,015,263)
(4,110,388)

Net current assets
  
 
 
2,623,110
 
 
3,002,110

Total assets less current liabilities
  
3,853,749
4,086,763

Creditors: amounts falling due after more than one year
 21 
(391,875)
(118,877)

  

Net assets excluding pension liability
  
3,461,874
3,967,886

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

Net assets
  
1,473,874
1,418,886


Capital and reserves
  

Called up share capital 
 24 
3,018,810
3,018,810

Other reserves
 25 
16,595
16,595

Profit and loss account
 25 
(1,561,531)
(1,616,519)

  
1,473,874
1,418,886


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 15 to 36 form part of these financial statements.

Page 13

 
Arighi Bianchi & Co. Limited
 

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


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
3,018,810
16,595
(2,769,244)
266,161


Comprehensive income for the year

Profit for the year

-
-
324,195
324,195

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


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


Total comprehensive income for the year
-
-
1,152,725
1,152,725



At 1 July 2022 (as previously stated)
3,018,810
16,595
(1,818,074)
1,217,331

Prior year adjustment (note 26)
-
-
201,555
201,555


At 1 July 2022 (as restated)
3,018,810
16,595
(1,616,519)
1,418,886


Comprehensive income for the year

Loss for the year
-
-
(79,762)
(79,762)

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


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


Total comprehensive income for the year
-
-
54,988
54,988


At 30 June 2023
3,018,810
16,595
(1,561,531)
1,473,874


The notes on pages 15 to 36 form part of these financial statements.

Page 14

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

1.


General information

Arighi Bianchi & Co. 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 00066706.  
The nature of the company'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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Arighi Bianchi Holdings Limited as at 30 June 2023 and these financial statements may be obtained from Companies House.

Page 15

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.3

Going concern

The 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 Company has net assets totalling £1,473,874 (2022 restated: £1,418,886) at 30 June 2023, taking into account the Defined benefit pension scheme liability of £1,988,000 (2022: £2,549,000). 
The Company and its parent, Arighi Bianchi Holdings Limited, aims to meet its working capital requirements through its cash balances and bank funding. 
The Directors have prepared detailed, conservative forecasts which cover the period through to June 2025, which indicate that the Company will be able to meet its liabilities as they fall due assuming that current bank 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 Company 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 profit or loss.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 probably that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually upon despatch of goods.

Page 16

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Company 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 Company 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 profit and loss account 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 17

 
Arighi Bianchi & Co. 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 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.

Defined benefit pension plan

The Company 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 Company'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 18

 
Arighi Bianchi & Co. 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 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.

 
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.

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

 
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.

Page 19

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets 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:

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. 

 
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.

Page 20

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

 
2.22

Financial instruments

The Company 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.


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 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 Company's principal activity.

All turnover arose within the United Kingdom.

Page 21

 
Arighi Bianchi & Co. 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 (loss)/profit

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

2023
2022
£
£

Depreciation
227,022
224,817

Amortisation
114,199
137,891

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

Exchange differences
578
522

Operating lease rentals - land and buildings
600,394
633,279


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
27,040
29,700

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 22

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
3,457,861
3,589,430

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

3,916,534
4,144,156


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


        2023
        2022
            No.
            No.







Management and administration
32
32



Selling and distribution
113
116

145
148


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
107,045
140,293


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


10.


Interest receivable

2023
2022
£
£


Finance income - unwinding of the discounting of the pension prepayment (Note 18)
141,278
161,408

Other interest receivable
188
238

141,466
161,646

Page 23

 
Arighi Bianchi & Co. 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
-
430

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

Other interest payable
-
354

16,470
7,194


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 24

 
Arighi Bianchi & Co. 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 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
14,293
321,394


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
2,716
61,065

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,485
1,468

Defined benefit pension scheme timing differences
(94,250)
(145,629)

Short term timing difference leading to an increase (decrease) in taxation
29,092
-

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

Unrelieved tax losses carried forward
109,801
77,040

Other differences leading to an increase (decrease) in the tax charge
(1,865)
3,255

Group relief
17,490
-

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.

Page 25

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

14.


Intangible assets




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 statement of comprehensive income during the period.


Page 26

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

15.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 July 2022
384,563
1,131,579
2,619,734
4,135,876


Additions
-
447,654
8,861
456,515


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



At 30 June 2023

384,563
1,285,547
2,622,604
4,292,714



Depreciation


At 1 July 2022
182,193
932,281
2,216,587
3,331,061


Charge for the year
8,094
86,058
132,870
227,022


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



At 30 June 2023

190,287
735,403
2,343,466
3,269,156



Net book value



At 30 June 2023
194,276
550,144
279,138
1,023,558



At 30 June 2022
202,370
199,298
403,147
804,815

A legal charge was registered in October 2021 in relation to certain land and buildings owned by the Company. The Company, with full title guarantee, charged the property by way of legal mortgage as security for the payment of all sums due and owing to the third party from the Company, 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 27

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

16.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2022
20



At 30 June 2023
20





Subsidiary undertakings


The following were 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 Pension Trustees Limited is Align Pensions Limited, Mtm 3rd Floor, 82 King Street, Manchester, United Kingdom, M2 4WQ. 
The registered office of Arighi Bianchi General Partner Limited is Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.


17.


Stocks

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.





 

Page 28

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

18.


Debtors

2023
2022
£
£


Trade debtors
103,853
355,782

Amounts owed by group undertakings
81,568
-

Other debtors
187,368
249,199

Prepayments and accrued income
2,799,287
2,866,769

Tax recoverable
77,896
67,871

Deferred taxation
326,804
561,109

3,576,776
4,100,730


Trade debtors
An impairment loss of £76,173 (2022: £785) was recognised in administrative expenses during the year against debtors. 
Prepayments and accrued income
An asset-backed funding solution has been implemented by the Company to fund the Arighi Bianchi & Co. Pension Scheme.  The Company has committed to paying a special contribution of £2,990,000 to the pension plan. A prepayment balance totalling £2,980,000 was accounted for at 30 June 2018 and the balance is unwinding as cash payments are made annually to the pension plan.  The prepayment balance totalled £2,566,185 at 30 June 2023 (2022: £2,651,073), of which £2,424,907 is due to unwind in greater than one year.


19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
23,286
206,159

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

(98,467)
206,100


Page 29

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

20.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Bank overdrafts
121,753
59

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

Amounts owed to group undertakings
1,920
137,898

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
22,478
18,458

Accruals and deferred income
152,330
88,197

3,015,263
4,110,388


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


21.


Creditors: Amounts falling due after more than one year

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.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
119,106
53,053

Between 1-5 years
391,875
118,877

510,981
171,930

Page 30

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

23.


Deferred taxation




2023
2022


£

£






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


Credited to profit or loss
(94,055)
2,801


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



Deferred tax asset at end of year
326,804
561,109

The deferred tax asset is made up as follows:

2023
2022
£
£


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

Defined benefit tax liability
497,000
637,250

Timing difference on provision
3,301
2,097

326,804
561,109

Page 31

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



301,581 A Ordinary shares of £10.00 each
3,015,810
3,015,810
300 B Ordinary shares of £10.00 each
3,000
3,000

3,018,810

3,018,810


The ordinary 'A' and 'B' shares of £10 have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not cover any rights of redemption. 



25.


Reserves

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


26.


Prior year adjustment

In the prior year financial statements, dividends totalling £201,555 were accounted for within the Profit and loss account within reserves. In the prior year, the Company had negative reserves and the dividend shoud not have been accounted for. In these financial statements, the prior year figures have been restated such that the dividend is not recognised, with the balance effectively being reclassified to the intercompany balance with Arighi Bianchi Holdings Limited. Arighi Bianchi Holdings Limited accounted for dividends paid to shareholders totalling £201,555 in the year ended 30 June 2022, and this amount was paid by the Company on behalf of its parent. 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 higher than previously stated.

Page 32

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

27.


Pension commitments

The Company operates a defined contributions 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 £76,124 (2022 - £81,114). Contributions totalling £13,205 (2022 - £11,038) were payable to the fund at the balance sheet date. 

The Company 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 33

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023
 
27.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 expenses
(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 Company 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 34

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


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

2023
2022
%
%
Discount rate


5.4

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
 






28.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
468,867
462,308

Later than 1 year and not later than 5 years
1,500,693
1,080,870

Later than 5 years
2,510,000
2,761,000

4,479,560
4,304,178

Page 35

 
Arighi Bianchi & Co. Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 June 2023

29.


Related party transactions

The Company has taken advantage of the exemption available under FRS 102 not to disclose details of any transactions between itself and its fellow group undertakings on the basis that it is a subsidiary undertaking where 100% of the voting rights are controlled within the Group whose consolidated financial statements are publicly available.
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).
Transactions in relation to loans with Company/Group directors and key management personnel during the year are outlined in the table below:


Opening Balance
Amounts advanced
Amounts repaid by/owed to director/key management
Closing balance
£
£
£
£

Director/key management 1
36,510
22,568
(12,442)
46,637
Director/key management 2
(7,192)
-
-
(7,192)
Director/key management 3
37,592
27,625
(15,486)
49,731
Director/key management 4
42,324
12,156
(12,026)
42,454
Director/key management 5
40,654
13,883
(6,990)
47,547
149,888
76,232
(46,944)
179,177

All of the above balances are interest free, with no set repayment terms, and are included in Other debtors or Other creditors as appropriate.


30.


Controlling party

The ultimate parent undertaking was Arighi Bianchi Holdings Limited due to their 100% interest in the equity share capital of the Company. Consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ. 
The directors consider that there is no one ultimate controlling party by virtue of there being no majority shareholder within the ultimate parent entity. 

 
Page 36