Company Registration No. 09100045 (England and Wales)
J&D Beauty Limited
Financial statements
for the year ended 31 December 2022
Pages for filing with the registrar
J&D Beauty Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
J&D Beauty Limited
Statement of financial position
As at 31 December 2022
31 December 2022
1
2022
2021
as restated
Notes
£
£
£
£
Current assets
Stocks
2,839,932
1,704,928
Debtors
4
1,232,182
1,148,706
Cash at bank and in hand
118,390
248,036
4,190,504
3,101,670
Creditors: amounts falling due within one year
5
(3,694,896)
(2,966,414)
Net current assets
495,608
135,256
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
495,508
135,156
Total equity
495,608
135,256
The director of the company has elected not to include a copy of the income statement 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 2 August 2024 and are signed on its behalf by:
James MacPherson
Director
Company Registration No. 09100045
J&D Beauty Limited
Notes to the financial statements
For the year ended 31 December 2022
2
1
Accounting policies
Company information
J&D Beauty Limited is a private company limited by shares incorporated in England and Wales. The registered office is Westpoint, Peterborough Business Park, Lynch Wood, Peterborough, PE2 6FZ.
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
Going concern
The financial statements have been prepared on a going concern basis. The company meets its day to day workings capital requirements through cash generated from operations and shareholder borrowings. The company's forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.true
1.3
Turnover
Turnover comprises the fair value of consideration 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.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
1.5
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.
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
3
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 statement of financial position 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, 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.
1.7
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.
1.8
Taxation
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense is recognised as other comprehensive income is also directly recognised in other comprehensive income.
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
4
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.9
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
Critical accounting 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
5
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
911,613
865,150
Corporation tax recoverable
1,179
Other debtors
320,569
279,062
1,232,182
1,145,391
Deferred tax asset
3,315
1,232,182
1,148,706
5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
273,697
231,918
Amounts owed to group undertakings
3,223,362
2,639,818
Corporation tax
112,167
Other creditors
85,670
94,678
3,694,896
2,966,414
Amounts owed to group undertakings are unsecured, repayable on demand and interest free.
6
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
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 qualified and the auditor reported as follows:
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
7
Audit report information (continued)
6
We have audited the financial statements of J&D Beauty Limited (the 'company') for the year ended 31 December 2022 which comprise the income statement, statement of financial position and notes to the financial statements, including significant accounting policies. The 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, except for the possible effects of the matter described in the basis for qualified section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit 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 qualified opinion
Included within the financial statement is a VAT debtor of £261,785 as at 31 December 2022 and £226,022 as at 31 December 2021. The company is significantly behind on its VAT filing position and is taking steps to resolve this, but as at the date of this audit report, we have been unable to obtain sufficient appropriate audit evidence regarding the valuation and recoverability of this balance. Consequently, we were unable to determine whether any adjustments to these amounts were necessary.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 qualified opinion.
Senior Statutory Auditor:
Ross Lomas
Statutory Auditors:
Saffery LLP
8
Parent company
The parent company of J&D Beauty Limited is GP Parent LLC; a company registered in the United States. The registered office of GP Parent LLC is 55 Mall Drive, Suite A, Commack, NY 11725, USA.
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
7
9
Prior period adjustment
In the course of preparing the financial statements, the company identified several errors impacting the prior year financial statements. The details of these adjustments and impact on the prior year financial statements are set out in this note.
Misstatements impacting the balance sheet only
An intercompany debtor balance was identified within trade debtors. This balance had a corresponding intercompany payable balance. Management's intention is to settle intercompany balances net where applicable. As such this balance was reallocated to 'Amounts due to group undertakings' to more accurately reflect the nature of the transaction and provide consistency with the current year figures.
Misstatements impacting the balance sheet and profit or loss
The company identified management charges which had been incorrectly recorded in the company's records. As such these charges have been removed.
Additionally, the company is significantly behind on its VAT filing position and is taking steps to resolve this. As such, the VAT debtor has been impaired to most prudent estimate available at the time of filing the financial statements.
As detailed below, the net impact to profit before tax of these prior period adjustments is £129,156.
Changes to the statement of financial position
As previously reported
Adjustment
As restated at 31 Dec 2021
£
£
£
Current assets
Debtors due within one year
1,678,594
(529,888)
1,148,706
Creditors due within one year
Other creditors
(3,625,458)
659,044
(2,966,414)
Net assets
6,100
129,156
135,256
Capital and reserves
Profit and loss reserves
6,000
129,156
135,156
Changes to the income statement
As previously reported
Adjustment
As restated
Period ended 31 December 2021
£
£
£
Administrative expenses
(1,796,781)
129,156
(1,667,625)
Profit for the financial period
83,255
129,156
212,411
J&D Beauty Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
9
Prior period adjustment (continued)
8
Reconciliation of changes in equity
1 January
31 December
2021
2021
£
£
Adjustments to prior year
Other debtors
-
(302,070)
Administrative expenses
-
431,226
Total adjustments
-
129,156
Equity as previously reported
(77,155)
6,100
Equity as adjusted
(77,155)
135,256
Analysis of the effect upon equity
Profit and loss reserves
-
129,156
Reconciliation of changes in profit for the previous financial period
2021
£
Adjustments to prior year
Other debtors
(302,070)
Administrative expenses
431,226
Total adjustments
129,156
Profit as previously reported
83,255
Profit as adjusted
212,411