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Registration number: 4956303

Velvet Stores Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 February 2023 to 29 February 2024

 

Velvet Stores Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 9

 

Velvet Stores Limited

Company Information

Director

Ms Emma Draper

Registered office

66-68 Church Road
Hove
BN3 2FP

Accountants

Melrose Accountants
62 Florence Road
Brighton
East Sussex
BN1 6DJ

 

Velvet Stores Limited

(Registration number: 4956303)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

50,830

12,751

Current assets

 

Stocks

5

149,768

148,416

Debtors

6

718,049

916,854

Investments

7

204,146

-

Cash at bank and in hand

 

267,393

145,658

 

1,339,356

1,210,928

Creditors: Amounts falling due within one year

8

(235,651)

(237,355)

Net current assets

 

1,103,705

973,573

Total assets less current liabilities

 

1,154,535

986,324

Creditors: Amounts falling due after more than one year

8

(22,228)

-

Provisions for liabilities

(10,622)

-

Net assets

 

1,121,685

986,324

Capital and reserves

 

Called up share capital

9

102

102

Retained earnings

1,121,583

986,222

Shareholders' funds

 

1,121,685

986,324

For the financial period ending 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 16 April 2024
 

 

Velvet Stores Limited

(Registration number: 4956303)
Balance Sheet as at 29 February 2024

.........................................
Ms Emma Draper
Director

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
66-68 Church Road
Hove
BN3 2FP
England

These financial statements were authorised for issue by the director on 16 April 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Disclosure of long or short period

The Company has changed its reporting period end to 29 February. As a result, the 2024 results include the results for a 13 month period and are therefore not entirely comparable to the 2023 reporting period.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and Buildings

over the term of the lease

Furniture, Fittings and Equipment

15-25% straight line basis

Motor Vehicles

15-20% straight line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the period, was 15 (2023 - 14).

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 February 2023

25,837

56,518

-

82,355

Additions

-

3,175

42,390

45,565

At 29 February 2024

25,837

59,693

42,390

127,920

Depreciation

At 1 February 2023

25,837

45,884

-

71,721

Charge for the period

-

5,369

-

5,369

At 29 February 2024

25,837

51,253

-

77,090

Carrying amount

At 29 February 2024

-

8,440

42,390

50,830

At 31 January 2023

2,117

10,634

-

12,751

Included within the net book value of land and buildings above is £Nil (2023 - £2,117) in respect of short leasehold land and buildings.
 

5

Stocks

2024
£

2023
£

Other inventories

149,768

148,416

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

6

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

2,635

5,033

Amounts owed by related parties

683,023

899,023

Prepayments

 

3,625

3,625

Other debtors

 

28,766

9,173

   

718,049

916,854

7

Current asset investments

2024
£

2023
£

Other investments

204,146

-

Listed investments

Investments having a net book value of £204,146 (31 January 2023 - £Nil) are listed on a recognised stock exchange and had a market value of £204,146 at the end of the period (31 January 2023 - £Nil).

8

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Bank loans and overdrafts

9,662

-

trade creditors

 

48,974

45,600

Taxation and social security

 

74,569

65,971

Accruals and deferred income

 

22,700

25,700

Other creditors

 

940

5,455

Income tax liability

 

78,806

94,629

 

235,651

237,355

 

Velvet Stores Limited

Notes to the Unaudited Financial Statements for the Period from 1 February 2023 to 29 February 2024

9

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

ordinary of £0.01 each

10,000

100

10,000

100

ordinary B of £0.01 each

150

2

150

2

ordinary C of £0.01 each

50

1

50

1

 

10,200

102

10,200

102

10

Dividends

Interim dividends paid

   

2024
£

 

2023
£

Interim dividend of £10.50 (2023 - £4.60) per each ordinary

 

105,000

 

46,000

Interim dividend of £86.67 (2023 - £80.00) per each ordinary B

 

13,000

 

12,000

Interim dividend of £682.12 (2023 - £166.78) per each ordinary C

 

34,106

 

8,339

   

152,106

 

66,339