1 November 2022 v2024.12.1 limited_company_frs_102_section_1a_v1_1_1 companies_houseSoftwarefalsetruetruetrueNo description of principal activityfalsetruexbrli:purexbrli:sharesiso4217:GBP067145932022-11-012023-10-31067145932023-10-31067145932022-10-3106714593core:WithinOneYear2023-10-3106714593core:WithinOneYear2022-10-3106714593core:AfterOneYear2023-10-3106714593core:AfterOneYear2022-10-3106714593core:ShareCapital2023-10-3106714593core:ShareCapital2022-10-3106714593core:RetainedEarningsAccumulatedLosses2023-10-3106714593core:RetainedEarningsAccumulatedLosses2022-10-3106714593bus:Director12022-11-012023-10-3106714593bus:RegisteredOffice2022-11-012023-10-3106714593core:NetGoodwill2022-11-012023-10-3106714593core:LandBuildings2022-11-012023-10-3106714593core:PlantMachinery2022-11-012023-10-31067145932021-11-012022-10-3106714593core:NetGoodwill2023-10-3106714593core:LandBuildings2023-10-3106714593core:PlantMachinery2023-10-3106714593core:LandBuildings2022-11-0106714593core:PlantMachinery2022-11-01067145932022-11-0106714593core:LandBuildings2022-10-3106714593core:PlantMachinery2022-10-310671459312022-11-012023-10-3106714593countries:EnglandWales2022-11-012023-10-3106714593bus:AuditExemptWithAccountantsReport2022-11-012023-10-3106714593bus:PrivateLimitedCompanyLtd2022-11-012023-10-3106714593bus:SmallEntities2022-11-012023-10-3106714593bus:FullAccounts2022-11-012023-10-31
Company registration number:
06714593
The Cutting Lounge (Cheshire) Limited
Unaudited Filleted Financial Statements for the year ended
31 October 2023
The Cutting Lounge (Cheshire) Limited
Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements of The Cutting Lounge (Cheshire) Limited
Year ended
31 October 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the
financial statements
of
The Cutting Lounge (Cheshire) Limited
for the year ended
31 October 2023
which comprise the income statement, statement of income and retained earnings, statement of financial position and related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at icaew.com/​regulations.
This report is made solely to the Board of Directors of
The Cutting Lounge (Cheshire) Limited
, as a body. Our work has been undertaken solely to prepare for your approval the
financial statements
of
The Cutting Lounge (Cheshire) Limited
and state those matters that we have agreed to state to the Board of Directors of
The Cutting Lounge (Cheshire) Limited
, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
The Cutting Lounge (Cheshire) Limited
and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that
The Cutting Lounge (Cheshire) Limited
has kept adequate accounting records and to prepare statutory
financial statements
that give a true and fair view of the assets, liabilities, financial position and loss of
The Cutting Lounge (Cheshire) Limited
. You consider that
The Cutting Lounge (Cheshire) Limited
is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of The Cutting Lounge (Cheshire) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Proud Goulbourn Accountants Limited
Office 16, Hamilton Davies House
117c Liverpool Road
Cadishead
Manchester
M44 5BG
United Kingdom
Date:
6 February 2024
The Cutting Lounge (Cheshire) Limited
Statement of Financial Position
31 October 2023
20232022
Note££
Fixed assets    
Tangible assets 6
19,581
 
29,492
 
Current assets    
Stocks
100
 
100
 
Debtors 7
18,364
 
19,044
 
Cash at bank and in hand
2,464
 
1,658
 
20,928
 
20,802
 
Creditors: amounts falling due within one year 8
(14,860
)
(14,390
)
Net current assets
6,068
 
6,412
 
Total assets less current liabilities 25,649   35,904  
Creditors: amounts falling due after more than one year 9
(39,092
)
(42,238
)
Provisions for liabilities
(761
)
(648
)
Net liabilities
(14,204
)
(6,982
)
Capital and reserves    
Called up share capital
2
 
2
 
Profit and loss account
(14,206
)
(6,984
)
Shareholders deficit
(14,204
)
(6,982
)
For the year ending
31 October 2023
, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
  • The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
  • The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These
financial statements
have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime.
In accordance with Section 444 of the Companies Act 2006, the income statement has not been delivered.
These
financial statements
were approved by the board of directors and authorised for issue on
6 February 2024
, and are signed on behalf of the board by:
E Tompsett
Director
Company registration number:
06714593
The Cutting Lounge (Cheshire) Limited
Notes to the Financial Statements
Year ended
31 October 2023

1 General information

The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is
26 Victoria Road
,
Hale
,
Cheshire
,
WA15 9AD
, .

2 Statement of compliance

These
financial statements
have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable to the UK and Republic of Ireland'.

3 Accounting policies

Basis of preparation

The
financial statements
have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The
financial statements
are prepared in sterling, which is the functional currency of the company.

Turnover

Turnover represents rent and services provided by The Cutting Lounge salon.

Current tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
.

Goodwill

Purchased goodwill arises on business acquisitions and represents the difference between the cost of acquisition and the fair values of the identifiable assets and liabilities acquired.
Goodwill is initially recorded at cost, and is subsequently stated at cost less any accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over the useful economic life of the asset. Where a reliable estimate of the useful life of goodwill cannot be made, the life is presumed not to exceed five years.

Tangible assets

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and accumulated impairment losses .
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Land and buildings
20% straight line
Plant and machinery
10% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual assets, an estimate is made of the recoverable amount of the cash-generating unit to which the assets belongs. The cash-generating is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from the other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured on an undiscounted basis at the tax rates that would apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted at the statement of financial position date.

4 Average number of employees

The average number of persons employed by the company during the year was
2
(2022:
2.00
).

5 Intangible assets

Goodwill
£
Cost  
At
1 November 2022
and
31 October 2023
10,000
 
Amortisation  
At
1 November 2022
and
31 October 2023
10,000
 
Carrying amount  
At
31 October 2023
-  
At 31 October 2022 -  

6 Tangible assets

Land and buildingsPlant and machinery etc.Total
£££
Cost      
At
1 November 2022
and
31 October 2023
59,637
 
13,817
 
73,454
 
Depreciation      
At
1 November 2022
34,984
 
8,978
 
43,962
 
Charge
8,723
 
1,188
 
9,911
 
At
31 October 2023
43,707
 
10,166
 
53,873
 
Carrying amount      
At
31 October 2023
15,930
 
3,651
 
19,581
 
At 31 October 2022
24,653
 
4,839
 
29,492
 

7 Debtors

20232022
££
Other debtors
18,364
 
19,044
 
Included in debtors is £14,394 due from one director, which was paid within nine months

8 Creditors: amounts falling due within one year

20232022
££
Trade creditors
3,663
 
3,171
 
Taxation and social security
1,515
 
2,362
 
Other creditors
9,682
 
8,857
 
14,860
 
14,390
 

9 Creditors: amounts falling due after more than one year

20232022
££
Bank loans and overdrafts
39,092
 
42,238
 

10 Directors' advances, credit and guarantees

Included in debtors is a loan H Bland which was repaid in March 2021