Company registration number 08972551 (England and Wales)
KACOO RETAIL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
KACOO RETAIL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
KACOO RETAIL LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
525,993
105,842
Cash at bank and in hand
13,038
15,089
539,031
120,931
Creditors: amounts falling due within one year
5
(422,395)
(231,006)
Net current assets/(liabilities)
116,636
(110,075)
Creditors: amounts falling due after more than one year
6
(2,606,108)
(2,476,875)
Net liabilities
(2,489,472)
(2,586,950)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(2,489,572)
(2,587,050)
Total equity
(2,489,472)
(2,586,950)
The director of the company has 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 and in accordance with section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements were approved and signed by the director and authorised for issue on 31 July 2024
Mrs H H Jin
Director
Company registration number 08972551 (England and Wales)
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
1
Accounting policies
Company information
Kacoo Retail Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 7, 157 Great Ancoats Street, Manchester, M4 6DH.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Kacoo Holdings Limited. These consolidated financial statements are available from its registered office: 157 Great Ancoats Street, Manchester, Lancashire, United Kingdom, M4 7DB.
1.2
Going concern
As with most businesses, the company truewas affected by the impact of COVID-19 and the downturn of High Street trade, as well as inflation between 2020 and 2023. The Director therefore made the decision to withdraw from physical sales and focus on growing web and online sales both of own brand and through third party channels. In the year this has resulted in an increase in revenue and both gross and net profit after significant cost savings. The outlook for the next 12 months and beyond is promising, as the company works with new and existing partners to create more ecommerce opportunities in the UK, the EU, and ROW territories.
Detailed financial forecasts have been prepared which have been approved by the director, and these have been prepared on what the director and management believe are a conservative basis. As such the director, is comfortable that going concern is appropriate, and that the company will continue to trade for the foreseeable future of at least 12 months following approval of the financial statements, based on the resources available now and those anticipated going forwards. The company has the continued support from its group, with the intercompany loan balance formalised on a commercial basis, with repayments commencing under a legal agreement in the next fiscal year. Hence, with this in mind, the accounts have been prepared on a going concern basis.
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover
Turnover represents the total invoice value, excluding VAT and including any discounts applied, of sales made during the year and derives from the provision of goods falling within the Company's ordinary activities.
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.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
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.
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.
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
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 directly in equity, respectively.
Current tax
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.
Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
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.
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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 current and future periods.
Critical judgements
Provision for irrecoverable trade debtors
At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against. This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.
Provision for credit notes
At the balance sheet date a significant number of items sold up to 100 days prior to the year end were expected to be returned. The director has duly provided for these returns in the form of a specific credit note provision which has encompassed the initial value of the sale along with any associated delivery costs and commission charges.
3
Employees
The average monthly number of persons employed by the company (excluding Directors) during the year was:
2023
2022
Number
Number
Total
The company has no employees. The Director is not formally employed under a service agreement and has not received any remuneration or other expenses from the company in the period.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
499,093
75,956
Other debtors
26,900
29,886
525,993
105,842
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
126,742
76,406
Amounts owed to group undertakings
114,837
Corporation tax
26,725
1,397
Other creditors
144,091
143,203
422,395
231,006
Bank loans due within one year are government guarenteed unsecured bounce back loans with a remaining term of 31 months.
Amounts owed to group undertakings are unsecured, with further details included in note 6 of the financial statements.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15,746
25,802
Other creditors
2,590,362
2,451,073
2,606,108
2,476,875
Bank loans due after one year are government guaranteed unsecured bounce back loans with a remaining term of 31 months.
Other creditors relate to a loan due to a fellow subsidiary under common control. This loan was formalised under a commercial loan agreement with a market rate of interest at 4% per annum fixed. Loan repayments commenced on 31 October 2023 and £100,000 (2022: £nil) is included in creditors due within one year.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
-
788,504
7
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.
KACOO RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
7
Audit report information
(Continued)
- 7 -
Senior Statutory Auditor:
Andrew Matthews BFP ACA FCCA
Statutory Auditor:
MHA
8
Related party transactions
The company has taken advantage of the exemption within FRS102 paragraph 33.1A regarding disclosing transactions with wholly owned group companies.
9
Parent company
At the year end the immediate UK parent company of Kacoo Retail Limited was Kacoo Group Limited, an intermediate holding company registered in England & Wales.
The ultimate UK holding company of Kacoo Group Limited is Kacoo Holdings Limited, a company registered in England & Wales and the smallest and largest group that prepares consolidated financial statements in which the company is included. These financial statements can be obtained from Unit 7, 157 Great Ancoats Street, Manchester, M4 6DH.
The ultimate controlling party is the director Huan Huan Jin, who owns the entire share capital of Kacoo Holdings Limited.