Company Registration No. 08290656 (England and Wales)
AROMATIZE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
AROMATIZE LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
AROMATIZE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,911
4,412
Current assets
Stocks
1,288,736
2,413,962
Debtors
4
754,993
915,644
Cash at bank and in hand
58,796
297,400
2,102,525
3,627,006
Creditors: amounts falling due within one year
5
(699,145)
(2,015,850)
Net current assets
1,403,380
1,611,156
Net assets
1,409,291
1,615,568
Capital and reserves
Called up share capital
100
100
Hedging reserve
6
(12,315)
90,988
Profit and loss reserves
1,421,506
1,524,480
Total equity
1,409,291
1,615,568
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 April 2024 and are signed on its behalf by:
P Aspin
Director
Company registration number 08290656 (England and Wales)
AROMATIZE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100
57,455
1,889,933
1,947,488
Year ended 31 December 2022:
Profit for the year
-
-
324,547
324,547
Other comprehensive income:
Cash flow hedges gains reclassified to profit or loss
-
33,533
-
33,533
Total comprehensive income for the year
33,533
324,547
358,080
Dividends
-
-
(690,000)
(690,000)
Balance at 31 December 2022
100
90,988
1,524,480
1,615,568
Year ended 31 December 2023:
Profit for the year
-
-
172,026
172,026
Other comprehensive income:
Cash flow hedges gains reclassified to profit or loss
-
(103,303)
-
(103,303)
Total comprehensive income for the year
(103,303)
172,026
68,723
Dividends
-
-
(275,000)
(275,000)
Balance at 31 December 2023
100
(12,315)
1,421,506
1,409,291
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Aromatize Limited is a private company limited by shares incorporated in England and Wales. The registered office is East Wing Offices, Junction 7 Business Park, Clayton-le-Moors, Accrington, Lancashire, BB5 5JW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% - 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.10
The Company uses foreign currency forward contracts to hedge its exposure to variability in cashflow and fair values on stock purchases in foreign currencies. These purchases are either firm commitments or highly probable forecast transactions in the currency of the forward contract. These derivatives are measured at fair value at each balance sheet date.
Fair value gains or losses on the derivatives at the balance sheet date are recognised as an asset or liability with a corresponding gain or loss in other comprehensive income and are recorded in a specific cashflow hedging reserve. On completion of the hedged stock purchase transaction; the cumulative hedging gain is recognised in the initial cost of the stock.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
27
30
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
98,752
Additions
3,855
At 31 December 2023
102,607
Depreciation and impairment
At 1 January 2023
94,340
Depreciation charged in the year
2,356
At 31 December 2023
96,696
Carrying amount
At 31 December 2023
5,911
At 31 December 2022
4,412
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
555,899
699,947
Other debtors
112,347
100,926
Prepayments and accrued income
81,254
102,784
749,500
903,657
Deferred tax asset
5,493
11,987
754,993
915,644
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
281,150
278,783
Trade creditors
137,202
151,090
Corporation tax
46,914
79,280
Other taxation and social security
142,008
149,332
Other creditors
91,871
1,357,365
699,145
2,015,850
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Creditors: amounts falling due within one year
(Continued)
- 7 -
Bank liabilities included above are secured by way of a debenture comprising a fixed and floating charge over all the assets and undertakings of the company
An unlimited composite guarantee is in place with Aslo Holding Company Limited and Straits Trading Co Limited.
In March 2022, an import loan facility was arranged. The loan is subject to interest of 2.3% above base rate and is repayable within 2024.
6
Hedging reserve
Included within hedging reserve is a foreign currency adjustment amounting to a debit of £12,315 (2022 - credit £90,988). This amount relates to foreign currency derivative contract losses arising at the year end on the revaluation of the contracts at the forward contract rate. The contracts exist in order for the company to hedge the risk associated with future foreign currency purchases in connection with the acquisition of stock.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Daniel Bowles FCCA
Statutory Auditor:
PM+M Solutions for Business LLP
Date of audit report:
9 April 2024