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Registered number: 06370631








ANNOUSHKA LIMITED

CONSOLIDATED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

 
ANNOUSHKA LIMITED
 
 
COMPANY INFORMATION


Directors
J. A. C. Ayton 
A. M. P. Ducas 
T. G. Hort 
Z. N. Zareem-Slade (appointed 5 February 2024)




Company secretary
J. A. C. Ayton



Registered number
06370631



Registered office
Annoushka Limited
41 Cadogan Gardens

London

SW3 2TB




Independent auditors
Calders (1883) LLP
Statutory Auditor and Chartered Accountants

30 Orange Street

London

WC2H 7HF





 
ANNOUSHKA LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 8
Consolidated statement of comprehensive income
 
9
Consolidated statement of financial position
 
10
Company statement of financial position
 
11 - 12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14
Notes to the financial statements
 
15 - 35


 
ANNOUSHKA LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Introduction
 
The directors present their strategic report for the year ended 31st July 2023.

Business review

The principal activity of the group is the design and sale of Annoushka jewellery through our own shops, department stores, concessions, and website.
The Group’s turnover dipped slightly to £9,380,971 producing an improved EBITDA loss of £29,682 encouraging in the context of the Company’s recovery from the Covid crisis. In October 2022 we closed our shop in IFC and Hong Kong’s performance improved. Our business in Hong Kong has improved and returned to profit for the year to date.
In February 2024 we appointed Zia Zareem-Slade as our new CEO. Zia’s extensive experience in ecommerce (she was previously Head of Online at Selfridges), brand and multi-channel sales (previously Customer Experience Officer at Fortnum & Mason) give us confidence as we focus on sales growth.
 
Finally, in the current year (to 31st July 2024) we have initiated significant investments in key areas of our operations including:
          • The replatforming and redesign of our website;
          • A brand review and upgrading;
          • A new EPOS system;
          • Implementing advanced accounting software.
These strategic initiatives are aimed at optimizing efficiency, enhancing customer experience, and ultimately driving sustainable profitability.

Principal risks and uncertainties
 
The principal risks and uncertainties facing the group emanate from the luxury goods market within which it operates. It is difficult to predict with any degree of accuracy what the demand for its products will be in the future.

Financial key performance indicators
 
The Directors consider the key performance indicators for the business to be income levels and profitability:
                                            2023          2022
                                            £'000         £'000  
Turnover                               9,381         9,422
Gross profit                           5,359         5,341
Gross margin                         57.1%        56.7%
EBITDA                                  (30)           (229)
 
This report was approved by the board on 17 April 2024 and signed on its behalf.



T. G. Hort
Director

Page 1

 
ANNOUSHKA LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report and the financial statements for the year ended 31 July 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £433,305 (2022 - loss £713,654).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

J. A. C. Ayton 
A. M. P. Ducas 
T. G. Hort 

Future developments

Details of future developments are contained in the Strategic report on page 1 of the accounts.

Financial instruments

Details of financial instruments are contained in the Strategic report on page 1 of the accounts.

Page 2

 
ANNOUSHKA LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Auditors

The auditorsCalders (1883) LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 17 April 2024 and signed on its behalf.
 





T. G. Hort
Director

Page 3

 
ANNOUSHKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANNOUSHKA LIMITED
 

Opinion


We have audited the financial statements of Annoushka Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 July 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
ANNOUSHKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANNOUSHKA LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
ANNOUSHKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANNOUSHKA LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered and undertook the following audit procedures in response:
      •    We obtained an understanding of the legal and regulatory frameworks that are applicable to the group
           and determined that the most significant are those that relate to the reporting frameworks (United 
           Kingdom accounting standards and Companies Act 2006);
      •    We obtained an understanding of the nature of the industry and sector, control environment and business
           performance; 
      •    The outcome of discussions with management and those charged with governance and any matters we
           identified having obtained and reviewed the group’s documentation of their policies and procedures
           related to:   
                 -    Identifying, evaluating and complying with laws and regulations and whether they were aware of 
                      any instances of non-compliance or any actual or potential litigation or claims;
                 -    Detecting and responding to the risks of fraud and whether they have knowledge of any actual, 
                      suspected or alleged fraud;
                 -    The internal controls established to mitigate risks of fraud or non-compliance with laws and
                      regulations;   
      •    The matters discussed during the audit engagement team briefing regarding how and where fraud might 
           occur in the financial statements and any potential indicators of fraud. All engagement team members 
           were advised to remain alert to any indications of fraud or non-compliance with laws and regulations
           throughout the audit;  
      •    Reviewing the financial statement disclosures and testing to supporting documentation to assess
           compliance with provisions of relevant laws and regulations described as having a direct effect on the 
           financial statements;
      •    Performing analytical procedures to identify any unusual or unexpected relationships that may indicate
           risks of material misstatement due to fraud; 
      •    Reviewing minutes of meetings of those charged with governance and reviewing correspondence with
           HMRC and inspection of relevant legal correspondence;
      •    In addressing the risk of fraud through management override of controls, testing the appropriateness of
           journal entries and other adjustments by testing manual journal entries, in particular journal entries
           relating to management estimates and entries determined to be large or relating to unusual transactions;
      •    Assessing whether the judgements made in making accounting estimates are indicative of a potential
           bias; and evaluating the business rationale of any significant transactions that are unusual or outside the
           normal course of business;
 
Page 6

 
ANNOUSHKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANNOUSHKA LIMITED (CONTINUED)





      •    Assessment of the appropriateness of the collective competence and capabilities of the engagement
           team included consideration of the engagement team’s: 
                 -    understanding of, and practical experience with audit engagements of a similar nature and
                      complexity through appropriate training and participation;
                 -    knowledge of the industry in which the client operates; 
                 -    understanding of the legal and regulatory requirements specific to the group including:
                                   •    the provisions of the applicable legislation
                                   •    the applicable statutory provisions.
As a result of these procedures, we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement. We are also required to perform specific procedures to respond to the risk of management override.   
We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of the material amounts and disclosures in the financial statements. 
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate and avoid a material penalty. These included data protection, employment and health and safety regulations and competition and anti-bribery laws. 
With regards to laws and regulations relating to the operating aspects of the group, these were discussed with management and were not considered fundamental to the operating of the business therefore should not have a material impact on the financial statements.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the group’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.


Page 7

 
ANNOUSHKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ANNOUSHKA LIMITED (CONTINUED)


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.





Philip Ewen (Senior statutory auditor)
  
for and on behalf of
Calders (1883) LLP
 
Statutory Auditor and Chartered Accountants
  
30 Orange Street
London
WC2H 7HF

17 April 2024
Page 8

 
ANNOUSHKA LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
INCLUDING PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,380,971
9,422,123

Cost of sales
  
(4,021,703)
(4,080,636)

Gross profit
  
5,359,268
5,341,487

Administrative expenses
  
(5,880,956)
(5,990,552)

Other operating income
 5 
-
4,848

Operating loss
  
(521,688)
(644,217)

Interest payable and similar expenses
 9 
(116,457)
(77,366)

Loss before taxation
  
(638,145)
(721,583)

Tax on loss
 10 
204,840
7,929

Loss for the financial year
  
(433,305)
(713,654)

  

Total comprehensive income for the year
  
(433,305)
(713,654)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(433,305)
(713,654)

  
(433,305)
(713,654)

The notes on pages 15 to 35 form part of these financial statements.


For information purposes EBITDA is calculated as:

2023
2022
        £
        £
PROFIT/(LOSS) FOR THE FINANCIAL YEAR

(433,305)

(713,654)
 
Add: Depreciation and amortisation

353,145

414,792
 
         Loss on disposal of tangible assets

138,861

-
 
         Interest payable and similar charges

116,457

77,366
 
         Tax on profit on ordinary activities

(204,840)

(7,929)
 
EBITDA

(29,682)

(229,425)
 

Page 9

 
ANNOUSHKA LIMITED
REGISTERED NUMBER: 06370631

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
355,079
482,050

Tangible assets
 12 
271,557
589,637

  
626,636
1,071,687

Current assets
  

Stocks
 14 
2,746,079
3,148,389

Debtors
 15 
1,697,515
1,619,909

Cash at bank and in hand
 16 
264,715
194,974

  
4,708,309
4,963,272

Creditors: amounts falling due within one year
 17 
(2,672,002)
(3,004,256)

Net current assets
  
 
 
2,036,307
 
 
1,959,016

Total assets less current liabilities
  
2,662,943
3,030,703

Creditors: amounts falling due after more than one year
 18 
(3,012,020)
(2,946,475)

Net (liabilities)/assets
  
(349,077)
84,228


Capital and reserves
  

Called up share capital 
 22 
3,097,107
3,097,107

Share premium account
 23 
926,667
926,667

Profit and loss account
 23 
(4,372,851)
(3,939,546)

  
(349,077)
84,228


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 April 2024.


T. G. Hort
Director

The notes on pages 15 to 35 form part of these financial statements.

Page 10

 
ANNOUSHKA LIMITED
REGISTERED NUMBER: 06370631

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
355,079
482,050

Tangible assets
 12 
206,753
308,873

Investments
 13 
28,740
129,933

  
590,572
920,856

Current assets
  

Stocks
 14 
2,379,947
2,757,668

Debtors
 15 
4,239,720
4,150,086

Cash at bank and in hand
 16 
190,387
147,015

  
6,810,054
7,054,769

Creditors: amounts falling due within one year
 17 
(2,374,283)
(2,651,127)

Net current assets
  
 
 
4,435,771
 
 
4,403,642

Total assets less current liabilities
  
5,026,343
5,324,498

  

Creditors: amounts falling due after more than one year
 18 
(3,012,020)
(2,946,475)

  

Net assets
  
2,014,323
2,378,023


Capital and reserves
  

Called up share capital 
 22 
3,097,107
3,097,107

Share premium account
 23 
926,667
926,667

Profit and loss account
 23 
(2,009,451)
(1,645,751)

  
2,014,323
2,378,023


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £363,700 (2022 - £9,562). 




 
Page 11

 
ANNOUSHKA LIMITED
REGISTERED NUMBER: 06370631
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 April 2024.




T. G. Hort
Director

The notes on pages 15 to 35 form part of these financial statements.

Page 12

 
ANNOUSHKA LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


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

£
£
£
£
£


At 1 August 2021
3,097,107
926,667
(3,225,892)
797,882
797,882


Comprehensive income for the year

Loss for the year
-
-
(713,654)
(713,654)
(713,654)



At 1 August 2022
3,097,107
926,667
(3,939,546)
84,228
84,228


Comprehensive income for the year

Loss for the year
-
-
(433,305)
(433,305)
(433,305)


At 31 July 2023
3,097,107
926,667
(4,372,851)
(349,077)
(349,077)


The notes on pages 15 to 35 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 August 2021
3,097,107
926,667
(1,636,189)
2,387,585


Comprehensive income for the year

Loss for the year
-
-
(9,562)
(9,562)



At 1 August 2022
3,097,107
926,667
(1,645,751)
2,378,023


Comprehensive income for the year

Loss for the year
-
-
(363,700)
(363,700)


At 31 July 2023
3,097,107
926,667
(2,009,451)
2,014,323


The notes on pages 15 to 35 form part of these financial statements.

Page 13

 
ANNOUSHKA LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(433,305)
(713,654)

Adjustments for:

Amortisation of intangible assets
164,328
156,809

Depreciation of tangible assets
188,817
257,983

Loss on disposal of tangible assets
138,861
-

Interest paid
116,457
77,366

Taxation charge
(204,840)
(7,929)

Decrease in stocks
402,310
78,358

Decrease in debtors
123,655
1,806

(Decrease)/increase in creditors
(378,968)
308,952

Corporation tax received
3,579
18,651

Net cash generated from operating activities

120,894
178,342


Cash flows from investing activities

Purchase of intangible fixed assets
(37,357)
(35,100)

Purchase of tangible fixed assets
(20,633)
(114,803)

Sale of tangible fixed assets
11,035
-

Net cash from investing activities

(46,955)
(149,903)

Cash flows from financing activities

Repayment of loans
(533,904)
(448,079)

Other new loans/(repayment of other loans)
432,586
(105,221)

Interest paid
(116,457)
(77,366)

Net cash used in financing activities
(217,775)
(630,666)

Net (decrease) in cash and cash equivalents
(143,836)
(602,227)

Cash and cash equivalents at beginning of year
111,811
714,038

Cash and cash equivalents at the end of year
(32,025)
111,811


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
264,715
194,974

Bank overdrafts
(296,740)
(83,163)

(32,025)
111,811


Page 14

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

Annoushka Limited is a private company limited by share capital, incorporated in England and Wales, registration number 06370631. The address of the registered office is 41 Cadogan Gardens, London, SW3 2TB. The principal operations of the group is the design and sale of Annoushka jewellery through our own shops, department stores, concessions and website.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention 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.
Under Section 454 Companies Act 2006 the directors of the company may revise these financial statements if they subsequently prove to be defective.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

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

 
2.3

Going concern

The Directors have considered the impact of Covid and difficult trading conditions arising therefrom and are satisfied that the savings achieved as well as the additional bank loan received, and the continued support of the shareholders are sufficient to enable the company to continue as a going concern. 

Page 15

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
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 and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated statement of comprehensive income including profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income including profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Consolidated statement of comprehensive income including profit and loss account within 'other operating income'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 16

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income including profit and loss account 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

Finance costs

Finance costs are charged to the Consolidated statement of comprehensive income including profit and loss account 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in the Consolidated statement of comprehensive income including profit and loss account in the year in which they are incurred.

Page 17

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.9

Pensions

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated statement of comprehensive income including profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated statement of comprehensive income including profit and loss account 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position 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;
   Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
   Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
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 reporting date.

Page 18

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets represents the acquisition of the presence in leading department stores and is the difference between amounts paid on the actual cost and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, this value is measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised on a straight line basis to the Consolidated statement of comprehensive income including profit and loss account over its useful economic life which is considered to be 20 years from date of original acquisition.
Intangible assets also include the costs of developing the new website which is capitalised on the grounds that the asset will generate future economic benefits. The capitalised website costs are subsequently amortised on a straight line basis over its useful economic life which is considered to be 3 years from the date of the website going live.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their
estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over 2 to 5 years straight line depending on life of lease
Lease assignment premium
-
Over 3 years to the end of the current lease
Furniture, fittings and equipment
-
Over 3 to 5 years straight line
Computer equipment
-
Over 3 years 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 the Consolidated statement of comprehensive income including profit and loss account.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 19

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.14

Stocks

Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting 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 the Consolidated statement of comprehensive income including profit and loss account. 

 
2.15

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income including profit and loss account.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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. 

 
2.16

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.

 
2.17

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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

Page 20

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.18

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily ascertainable from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual outcomes may differ from these estimates.
The estimates and underlying assumptions are reviewed on an continuing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised.
There were no key judgements or estimation uncertainties in the application of the company's accounting policies during the year.


4.


Turnover

The whole of the turnover is attributable to jewellery retail.
Apart from £1,365,319 (2022 - £996,452) sales in Hong Kong and £847,798 (2022 - £954,712) sales in United States, all other turnover arose within the United Kingdom.      


5.


Other operating income

2023
2022
£
£

Furlough recoveries
-
4,848

-
4,848



6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Group's auditor for the audit of the Group's annual accounts
23,500
22,500

Page 21

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

7.


Employees


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


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


Wages and salaries
2,437,149
2,321,541
2,097,711
1,996,159

Social security costs
209,357
210,051
209,357
210,051

Cost of defined contribution scheme
64,766
63,408
54,109
50,585

2,711,272
2,595,000
2,361,177
2,256,795


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



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









Directors
3
4
3
4



Head office
17
17
17
17



Department stores
41
38
35
33

61
59
55
54


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
177,713
260,108

Company contributions to defined contribution pension schemes
14,400
18,088

192,113
278,196


During the year retirement benefits were accruing to 1 director (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £161,250 (2022 - £156,250).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,400 (2022 - £14,400).

Key management personnel compensation is considered to be the same as the directors' remuneration as shown above.

Page 22

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
103,957
64,866

5% Preference share dividends payable
12,500
12,500

116,457
77,366


10.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
(20,379)


Total current tax
-
(20,379)

Deferred tax


Accelerated / (Decelerated) capital allowances
(4,080)
1,598

Tax losses carried forward
(200,760)
10,852

Total deferred tax
(204,840)
12,450


Taxation on loss on ordinary activities
(204,840)
(7,929)

Factors affecting tax charge for the year

There is no tax charge for the year due to taxable trading losses which will be used to offset future taxable profits. 


Factors that may affect future tax charges

At the balance sheet date the company has £2,401,689 (2022 - £2,103,483) of taxable trading losses to offset against future taxable profits.
 

Deferred tax
There is a recognised deferred tax asset of £604,990 (2022 - £400,150) in relation to trading losses carried forward and decelerated capital allowances.

Page 23

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

11.


Intangible assets

Group and Company





Website
Concessions
Total

£
£
£



Cost


At 1 August 2022
420,799
1,396,890
1,817,689


Additions - internal
37,357
-
37,357



At 31 July 2023

458,156
1,396,890
1,855,046



Amortisation


At 1 August 2022
352,059
983,580
1,335,639


Charge for the year on owned assets
94,488
69,840
164,328



At 31 July 2023

446,547
1,053,420
1,499,967



Net book value



At 31 July 2023
11,609
343,470
355,079



At 31 July 2022
68,740
413,310
482,050



Page 24

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

12.


Tangible fixed assets

Group






Leasehold improvements
Lease Premium
Fixtures, Fittings and Equipment
Computer Equipment
Total

£
£
£
£
£



Cost 


At 1 August 2022
1,705,600
200,000
1,628,222
999,942
4,533,764


Additions
-
-
8,989
11,644
20,633


Disposals
(616,860)
-
-
(5,859)
(622,719)



At 31 July 2023

1,088,740
200,000
1,637,211
1,005,727
3,931,678



Depreciation


At 1 August 2022
1,390,256
-
1,610,948
942,923
3,944,127


Charge for the year on owned assets
78,001
66,667
10,840
33,309
188,817


Disposals
(467,236)
-
-
(5,587)
(472,823)



At 31 July 2023

1,001,021
66,667
1,621,788
970,645
3,660,121



Net book value



At 31 July 2023
87,719
133,333
15,423
35,082
271,557



At 31 July 2022
315,344
200,000
17,274
57,019
589,637

Page 25

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

           12.Tangible fixed assets (continued)


Company






Leasehold improvements
Lease Premium
Fixtures, Fittings and Equipment
Computer Equipment
Total

£
£
£
£
£

Cost 


At 1 August 2022
903,959
200,000
1,616,179
991,102
3,711,240


Additions
-
-
8,120
11,644
19,764



At 31 July 2023

903,959
200,000
1,624,299
1,002,746
3,731,004



Depreciation


At 1 August 2022
862,031
-
1,605,621
934,715
3,402,367


Charge for the year on owned assets
15,585
66,667
6,683
32,949
121,884



At 31 July 2023

877,616
66,667
1,612,304
967,664
3,524,251



Net book value



At 31 July 2023
26,343
133,333
11,995
35,082
206,753



At 31 July 2022
41,928
200,000
10,558
56,387
308,873






Page 26

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2022
129,933


Amounts written off
(101,193)



At 31 July 2023

28,740






Net book value



At 31 July 2023
28,740



At 31 July 2022
129,933

Annoushka Far East Limited ceased trading during the year and hence the investment in this subsidiary has been written down to £Nil. 


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Pascal Jewellery Limited
c/o Calder & Co, 30 Orange Street, London, WC2H 7HF
Dormant
Ordinary
100%
Annoushka Inc
c/o Boylan Code LLP, 145 Culver Road, Suite 100, Rochester, NY 14620
Dormant
Common stock
100%
Annoushka Far East Limited
Room 303, 3rd Floor, St George's Building, 2 Ice House Street, Hong Kong
Sale of jewellery
(ceased 31 December 2022)
Ordinary
100%
Annoushka Hong Kong Retail Limited
Room 303, 3rd Floor, St George's Building, 2 Ice House Street, Hong Kong
Sale of jewellery
Ordinary
100%

Page 27

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

14.


Stocks

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

Finished goods and goods for resale
2,746,079
3,148,389
2,379,947
2,757,668

2,746,079
3,148,389
2,379,947
2,757,668


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Stock recognised in cost of sales during the year as an expense was £2,348,121 (2022 - £2,367,522).


15.


Debtors

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

Due after more than one year

Deferred tax asset
604,990
319,100
604,990
319,100

Due within one year

Trade debtors
325,041
318,555
325,041
318,555

Amounts owed by group undertakings
-
-
2,798,294
2,864,125

Other debtors
222,247
233,483
-
350

Prepayments and accrued income
545,237
667,721
511,395
566,906

Deferred tax asset
-
81,050
-
81,050

1,697,515
1,619,909
4,239,720
4,150,086



16.


Cash and cash equivalents

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

Cash at bank and in hand
264,715
194,974
190,387
147,015

Less: bank overdrafts
(296,740)
(83,163)
(296,740)
(83,163)

(32,025)
111,811
(106,353)
63,852


Page 28

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

17.


Creditors: Amounts falling due within one year

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

Bank overdrafts
296,740
83,163
296,740
83,163

Bank loans
429,823
603,727
429,823
603,727

Other loans
195,640
188,599
195,640
188,599

Trade creditors
1,137,316
1,550,152
872,501
1,211,500

Other taxation and social security
237,270
240,954
237,270
240,954

Other creditors
8,191
6,641
8,191
6,641

Accruals and deferred income
367,022
331,020
334,118
316,543

2,672,002
3,004,256
2,374,283
2,651,127




Bank loans and overdrafts includes overdrafts of £296,740 with HSBC (2022 - £83,163) which are repayable on demand. The facility is secured by way of a fixed charge over the company's fixed assets including intangibles. Also included in bank loans and overdrafts are HSBC bank loans of £429,823  (2022 - £603,727). The original bank loans carry interest at the rate of 2.5% above bank base rate. A  coronavirus loan of £1.5 million was taken out in the year ended 31st July 2020 which was interest free for the first 12 months followed by interest at the rate of 3.99% over bank base rate from 4 June 2021. A further coronavirus loan of £300,000 was taken out in the year ended 31st July 2021 which was interest free for the first 12 months followed by interest at the rate of 3.99% over bank base rate from 13 July 2022. These are secured by way of a fixed charge over the company's fixed assets including intangibles. The amount repayable after 12 months is shown within creditors falling due after more than one year.
Other loans includes £50,000 (2022: £42,959) payable to Directors and £145,640 (2022: £145,640) payable to other shareholders.

Page 29

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

18.


Creditors: Amounts falling due after more than one year

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

Bank loans
755,000
1,115,000
755,000
1,115,000

Other loans
2,007,020
1,581,475
2,007,020
1,581,475

Share capital treated as debt
250,000
250,000
250,000
250,000

3,012,020
2,946,475
3,012,020
2,946,475


Disclosure of the terms and conditions attached to the non-equity shares is made in note 22.


The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Other loans
-
861,564
-
861,564

-
861,564
-
861,564

Other loans includes £1,487,108 (2022: £1,061,563) payable to Directors and £519,912 (2022: £519,912) payable to other shareholders. No interest is payable on these loans. The maximum amounts repayable within 12 months are shown within creditors falling due within one year, with the balance of £2,007,020 (2022: £1,581,475) included above. 
The bank loans are secured by way of a fixed charge over the company's fixed assets including intangibles and carry interest at the rates disclosed in note 17. 

Page 30

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

19.


Loans


Analysis of the maturity of loans is given below:


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

Amounts falling due within one year

Bank loans
429,823
603,727
429,823
603,727

Other loans
195,640
188,599
195,640
188,599


625,463
792,326
625,463
792,326


Amounts falling due 2-5 years

Bank loans
755,000
1,115,000
755,000
1,115,000

Other loans
2,007,020
719,912
2,007,020
719,912


2,762,020
1,834,912
2,762,020
1,834,912

Amounts falling due after more than 5 years

Other loans
-
861,564
-
861,564

-
861,564
-
861,564

3,387,483
3,488,802
3,387,483
3,488,802


Page 31

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

20.


Financial instruments

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

Financial assets

Financial assets that are debt instruments measured at amortised cost
547,288
552,038
3,123,335
3,183,030


Financial liabilities

Financial liabilities measured at amortised cost
(5,438,561)
(5,703,136)
(5,140,842)
(5,350,007)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise bank overdrafts, bank loans, other loans, trade creditors, share capital treated as debt and accruals and deferred income.

Page 32

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

21.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
400,150
412,600


Charged to profit or loss
204,840
(12,450)



At end of year
604,990
400,150

Company


2023
2022


£

£






At beginning of year
400,150
412,600


Charged to profit or loss
204,840
(12,450)



At end of year
604,990
400,150

The deferred tax asset is made up as follows:

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

(Accelerated) / Decelerated capital allowances
4,560
480
4,560
480

Tax losses carried forward
600,430
399,670
600,430
399,670

604,990
400,150
604,990
400,150

Page 33

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

22.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



3,097,105 (2022 - 3,097,105) Ordinary shares of £1.000 each
3,097,105
3,097,105
2,000 (2022 - 2,000) Executive shares of £0.001 each
2
2

3,097,107

3,097,107



2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



250,000 (2022 - 250,000) 5% Cumulative Preference shares of £1.000 each
250,000
250,000


The redemption of the 5% Cumulative Preference shares by the shareholders shall follow the procedures laid out in the Articles of Association. The earliest date of redemption was 30 June 2009 and the latest date is 30 June 2026. The Company has no right to redeem the shares early. 


23.


Reserves

Share premium account

The share premium account represents the premium paid of £1 per share on the 926,667 ordinary shares which were issued on 23 July 2019.

Profit and loss account

The profit and loss reserve is fully distributable and includes all current and prior period retained profits and losses.


24.


Pension commitments

The group was committed to contribute to the personal pension plan of the one full-time working director during the year and to all employees through the company's auto enrolment scheme except for those who have chosen to opt out.
The annual charge for the year was £64,766 (2022 - £63,408). At the balance sheet date the outstanding contributions payable were £6,824 (2022 - £6,641).

Page 34

 
ANNOUSHKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

25.


Commitments under operating leases

At 31 July 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


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

Not later than 1 year
689,779
766,328
397,660
471,120

Later than 1 year and not later than 5 years
1,185,206
1,217,557
934,248
1,057,898

Later than 5 years
171,037
326,170
171,037
326,170

2,046,022
2,310,055
1,502,945
1,855,188


26.


Related party transactions

Country and Town House Limited is considered to be a related party of the group by virtue of common directors.
During the year Country and Town House Limited invoiced the group £4,000 for advertising fees       (2022 - £11,400). As at 31 July 2023 an amount of £Nil was due to Country and Town House Limited (2022 - £1,500).
The Directors and controlling party have made a loan to the group amounting to £1,537,108              (2022 - £1,104,522) as disclosed in notes 17 and 18.


27.


Controlling party

J. Ayton and A. Ducas are deemed to be the joint controlling party of the company by virtue of their 62% interest in the ordinary share capital of the company.

 
Page 35