Company registration number 07709428 (England and Wales)
EYE DEFINITION LIMITED
Unaudited financial statements
For the year ended 31 July 2023
Pages for filing with registrar
EYE DEFINITION LIMITED
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
EYE DEFINITION LIMITED
Balance sheet
As at 31 July 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
52,446
17,835
Current assets
Stocks
21,600
19,286
Debtors
5
37,703
23,699
Cash at bank and in hand
102,749
108,471
162,052
151,456
Creditors: amounts falling due within one year
6
(143,717)
(89,053)
Net current assets
18,335
62,403
Total assets less current liabilities
70,781
80,238
Creditors: amounts falling due after more than one year
7
(22,362)
(31,360)
Provisions for liabilities
(9,965)
(3,389)
Net assets
38,454
45,489
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
38,354
45,389
Total equity
38,454
45,489

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

EYE DEFINITION LIMITED
Balance sheet (continued)
As at 31 July 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 19 October 2023
Ms H Khan
Director
Company Registration No. 07709428
EYE DEFINITION LIMITED
Notes to the financial statements
For the year ended 31 July 2023
- 3 -
1
Accounting policies
Company information

Eye Definition Limited is a private company limited by shares incorporated in England and Wales. The registered office is 15 Nolton Street, Bridgend, CF31 1BX.

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 spectacles, contact lenses and other related products 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.

Revenue from the provision of optometry services is recognised when the service is provided.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Franchise agreements
10 years straight line
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

EYE DEFINITION LIMITED
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies
(Continued)
- 4 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Professional equipment
20% Straight Line
Store refit
10% Straight Line
Computers
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.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
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.

 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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.

EYE DEFINITION LIMITED
Notes to the financial statements (continued)
For the year ended 31 July 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
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
8
7
EYE DEFINITION LIMITED
Notes to the financial statements (continued)
For the year ended 31 July 2023
- 6 -
3
Intangible fixed assets
Franchise agreements
£
Cost
At 1 August 2022 and 31 July 2023
64,383
Amortisation and impairment
At 1 August 2022 and 31 July 2023
64,383
Carrying amount
At 31 July 2023
-
0
At 31 July 2022
-
0
4
Tangible fixed assets
Professional equipment
Store refit
Computers
Total
£
£
£
£
Cost
At 1 August 2022
23,153
53,780
15,080
92,013
Additions
16,999
30,700
2,103
49,802
At 31 July 2023
40,152
84,480
17,183
141,815
Depreciation and impairment
At 1 August 2022
12,560
48,323
13,295
74,178
Depreciation charged in the year
6,004
8,447
740
15,191
At 31 July 2023
18,564
56,770
14,035
89,369
Carrying amount
At 31 July 2023
21,588
27,710
3,148
52,446
At 31 July 2022
10,593
5,457
1,785
17,835
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
12,188
11,409
Other debtors
25,515
12,290
37,703
23,699
EYE DEFINITION LIMITED
Notes to the financial statements (continued)
For the year ended 31 July 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,952
10,648
Trade creditors
41,044
28,277
Corporation tax
19,212
14,716
Other taxation and social security
2,298
2,949
Other creditors
71,211
32,463
143,717
89,053
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
22,362
31,360
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