Company registration number 06364785 (England and Wales)
OPTICS WAREHOUSE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
OPTICS WAREHOUSE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
OPTICS WAREHOUSE LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,050,072
615,590
Current assets
Stocks
1,632,247
1,783,067
Debtors
5
775,511
374,166
Cash at bank and in hand
386,153
349,881
2,793,911
2,507,114
Creditors: amounts falling due within one year
6
(1,163,656)
(886,165)
Net current assets
1,630,255
1,620,949
Total assets less current liabilities
2,680,327
2,236,539
Creditors: amounts falling due after more than one year
7
(439,634)
(340,243)
Provisions for liabilities
8
(87,136)
(28,146)
Net assets
2,153,557
1,868,150
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
2,153,457
1,868,050
Total equity
2,153,557
1,868,150

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

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

The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
Mr S Ellis
Director
Company registration number 06364785 (England and Wales)
OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information

Optics Warehouse Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wessex House, Teign Road, Newton Abbot, Devon, TQ12 4AA. The principal place of business is Riviera House, Nicholson Road, Torquay, Devon, TQ2 7TD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.3
Tangible fixed assets

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

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

Freehold property improvements
No depreciation charged
Freehold property
No depreciation charged
Plant and machinery
15% per annum on a reducing balance basis
Fixtures, fittings & equipment
15% per annum on a reducing balance basis
Computer equipment
20% per annum on a straight-line basis
Motor vehicles
25% per annum on a reducing balance basis
Other assets
10% per annum on a reducing balance basis

No depreciation is charged on freehold land and buildings as, in the opinion of the directors, the useful economic life and residual value are such that any depreciation charge would be immaterial.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
Stocks

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

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

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.8
Employee benefits

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

 

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

 

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

1.9
Retirement benefits

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

OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.11
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2023
2022
Number
Number
Total
27
27
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
60,000
Amortisation and impairment
At 1 November 2022 and 31 October 2023
60,000
Carrying amount
At 31 October 2023
-
0
At 31 October 2022
-
0
OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Other assets
Total
£
£
£
£
Cost
At 1 November 2022
431,143
344,847
3,667
779,657
Additions
292,504
198,094
3,250
493,848
Disposals
-
0
(32,600)
-
0
(32,600)
At 31 October 2023
723,647
510,341
6,917
1,240,905
Depreciation and impairment
At 1 November 2022
-
0
163,639
428
164,067
Depreciation charged in the year
-
0
49,048
433
49,481
Eliminated in respect of disposals
-
0
(22,715)
-
0
(22,715)
At 31 October 2023
-
0
189,972
861
190,833
Carrying amount
At 31 October 2023
723,647
320,369
6,056
1,050,072
At 31 October 2022
431,143
181,208
3,239
615,590

Freehold land and buildings with a carrying amount of £723,647 (2022 - £431,143) have been pledged to secure borrowings of the company. The Freehold property is secured by a fixed charge, a further fixed charge covering all the fixed assets of the company.

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
60,746
32,590
Corporation tax recoverable
14,853
-
0
Amounts owed by group undertakings
638,011
293,756
Other debtors
53,152
46,555
Prepayments and accrued income
8,749
1,265
775,511
374,166

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,999
10,516
Obligations under finance leases
11,801
693
Trade creditors
521,343
414,482
Amounts owed to group undertakings
301,572
95,058
Corporation tax
-
0
152,874
Other taxation and social security
160,302
166,624
Other creditors
132,097
40,376
Accruals and deferred income
25,542
5,542
1,163,656
886,165

Bank loans and overdrafts are secured by a fixed and floating charge over all the assets of the company.

 

Obligations under finance leases and hire purchase contracts are secured upon the assets acquired.

 

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

At 31 October 2022 the portion of a long-term bank loan falling due after more than one year amounting to £99,448 was included in Creditors falling due within one year in error. This amount has been moved to Creditors falling due after more than one year and the comparatives have been restated accordingly (see note 7 to the financial statements).

7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
92,073
99,448
Obligations under finance leases
35,526
-
0
Other borrowings
312,035
240,795
439,634
340,243

Bank loans and overdrafts are secured by a fixed and floating charge over all the assets of the company.

 

Obligations under finance leases and hire purchase contracts are secured upon the assets acquired.

Included in Other creditors falling due in more than one year are directors' loan accounts of £252,035 (2022: £180,795) which are interest free, unsecured and repayable after more than one year.

Amounts included above which fall due after five years are as follows:
Payable by instalments
57,073
64,448
OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
8
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
87,136
28,146
2023
Movements in the year:
£
Liability at 1 November 2022
28,146
Charge to profit or loss
58,990
Liability at 31 October 2023
87,136

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within the foreseeable future.

9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Sean Murphy
Statutory Auditor:
Darnells Audit Limited
Date of audit report:
29 July 2024
11
Financial commitments, guarantees and contingent liabilities

There is a cross-guarantee in favour of National Westminster Bank Plc. between the company, its parent company (Ellis Holdings Limited) and fellow subsidiaries (Elite Optical Distribution Limited, NICKWAKE Limited and 4Wildlife Limited) covering all the bank borrowings of the group.

12
Related party transactions
OPTICS WAREHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
12
Related party transactions
(Continued)
- 9 -

The company is a wholly-owned subsidiary of Ellis Holdings Limited, a company registered in England & Wales that prepares publicly available consolidated financial statements, and is therefore exempt under FRS 102 from disclosing intra-group related party transactions.

13
Parent company

The company's ultimate and immediate parent company is Ellis Holdings Limited, a company registered in England & Wales which heads the group to consolidate these financial statements. Copies of the consolidated group accounts can be obtained from its registered office at Wessex House, Teign Road, Newton Abbot, Devon TQ12 4AA.

 

The ultimate controlling party is Mr J P Ellis, the majority shareholder.

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