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Registration number: 00547526

British Velvets Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

British Velvets Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 7

 

British Velvets Limited

(Registration number: 00547526)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

31,655

264,524

Current assets

 

Stocks

531,413

441,404

Debtors

6

740,377

823,641

Cash at bank and in hand

 

189,551

190,963

 

1,461,341

1,456,008

Creditors: Amounts falling due within one year

7

(669,660)

(334,460)

Net current assets

 

791,681

1,121,548

Total assets less current liabilities

 

823,336

1,386,072

Provisions for liabilities

-

(60,578)

Net assets

 

823,336

1,325,494

Capital and reserves

 

Called up share capital

8

50,500

50,500

Revaluation reserve

-

168,000

Retained earnings

772,836

1,106,994

Shareholders' funds

 

823,336

1,325,494

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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 18 April 2024 and signed on its behalf by:
 

.........................................
Mr K W Prytharch
Director

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

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

The address of its registered office is:
Unit 1 Farrington Place
Rossendale Road Industrial Estate
Burnley
Lancashire
BB11 5TY

These financial statements were authorised for issue by the Board on 18 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 modified to include certain items of plant and machinery at their fair values as deemed cost on first transition to FRS 102.

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 £.

Going concern

A concern to the company is the uncertainty of world markets. Prices and costs have increased for energy and raw materials used in production, plus constant bad press/news is having an effect on the sale of goods made from our product and forward commitment from major accounts. Constant communication and monitoring are in place to secure our customer base and work with them to maximise sales and maintain partnerships.

The company is part of a group as detailed in the ulitmate controlling party note, which has strong liquidity and is very strongly capitalised by its shareholders. Working capital is closely monitored, especially to protect timely collection of debtors. British Velvets Limited is a strategic part of the group's distribution and relies entirely on supplies from the group, which the directors believe will continue for the foreseeable future.

After considering the impact of the above, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 18 April 2024 was Mark Heaton FCCA, who signed for and on behalf of KM.

.........................................

Revenue recognition

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

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 tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

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.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property

10 years straight line basis

Plant and machinery

3 to 10 years straight line basis

Fixtures and fittings

10 years straight line basis

Equipment

3 to 10 years straight line basis

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

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.

Stocks

Stocks are stated at the lower of cost and net realiable value, after making due allowance for obsolete and slow moving items. Costs comprises of direct materials.

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 for the period. Reversals of impairment losses are also recognised in the profit or loss for the period.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

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.

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.

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

3

Judgements and key sources of estimation uncertainty

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made as to the estimated useful life of the assets; these are regularly reviewed to reflect the changing environment.

Stock provision

The provision is based on a review of old/slow moving stock lines and the estimated realisation of that stock. The estimated realisation is based on past experience and subsequent recovery after the year end. These judgements are regularly reviewed to reflect the changing environment.

Bad debt provision

The bad debt provision is based on a review of old/slow paying customer balances and the estimated recoverability of those balances. Estimated recoverability is based on past experience and susequent recovery after the year end. These judgements are regularly reviewed to reflect the changing environment.

4

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 14 (2022 - 14).

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Tangible assets

Leasehold property
£

Fixtures, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost

At 1 January 2023

52,711

165,508

538,519

756,738

Additions

1,390

3,771

882

6,043

Disposals

-

-

(293,505)

(293,505)

At 31 December 2023

54,101

169,279

245,896

469,276

Depreciation

At 1 January 2023

52,711

145,774

293,729

492,214

Charge for the year

8

6,831

10,240

17,079

Eliminated on disposal

-

-

(71,672)

(71,672)

At 31 December 2023

52,719

152,605

232,297

437,621

Carrying amount

At 31 December 2023

1,382

16,674

13,599

31,655

At 31 December 2022

-

19,734

244,790

264,524

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

560,839

724,964

Amounts owed by group undertakings

10

29,393

6,780

Prepayments

 

104,496

91,897

Corporation tax recoverable

45,649

-

 

740,377

823,641

7

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

49,365

55,306

Amounts owed to group undertakings

10

495,456

24,179

Taxation and social security

 

105,524

211,384

Accruals and deferred income

 

14,753

34,642

Other creditors

 

4,562

8,949

 

669,660

334,460

 

British Velvets Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

50,500

50,500

50,500

50,500

       

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

119,054

92,741

Later than one year and not later than five years

197,359

306,506

316,413

399,247

The amount of non-cancellable operating lease payments recognised as an expense during the year was £124,389 (2022 - £101,877).

10

Related party transactions

The company has taken advantage of the exemption permitted under Section 1AC.35 from disclosing transactions with the parent and fellow subsidiary companies.

11

Parent and ultimate parent undertaking

The company's immediate parent is Hoko Holdings Limited, incorporated in England.

 The ultimate holding company of British Velvets Limited is Lantal Superco AG (Holding), a company registered in Switzerland, which acts as a personal holding company of the ultimate beneficial owner.

 As a consequence the company which prepares consolidated group accounts including the results of this company is Lantal Textiles AG, a company registered in Switzerland.