eSalon.com, Ltd 10674803 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is the provision of representative and customer support services on behalf of eSalon.com LLC Digita Accounts Production Advanced 6.30.9574.0 true true true 10674803 2023-01-01 2023-12-31 10674803 2023-12-31 10674803 bus:OrdinaryShareClass1 2023-12-31 10674803 bus:Consolidated 2023-12-31 10674803 core:RetainedEarningsAccumulatedLosses 2023-12-31 10674803 core:ShareCapital 2023-12-31 10674803 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 10674803 core:FurnitureFittings 2023-12-31 10674803 core:LandBuildings core:ShortLeaseholdAssets 2023-12-31 10674803 core:PlantMachinery 2023-12-31 10674803 core:DeferredTaxation 2023-12-31 10674803 core:ParentEntities 2023-12-31 10674803 bus:FRS102 2023-01-01 2023-12-31 10674803 bus:Audited 2023-01-01 2023-12-31 10674803 bus:FullAccounts 2023-01-01 2023-12-31 10674803 bus:RegisteredOffice 2023-01-01 2023-12-31 10674803 bus:Director3 2023-01-01 2023-12-31 10674803 bus:Director5 2023-01-01 2023-12-31 10674803 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 10674803 bus:Consolidated 2023-01-01 2023-12-31 10674803 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 10674803 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 10674803 core:ShareCapital 2023-01-01 2023-12-31 10674803 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-01-01 2023-12-31 10674803 core:FurnitureFittings 2023-01-01 2023-12-31 10674803 core:LandBuildings core:ShortLeaseholdAssets 2023-01-01 2023-12-31 10674803 core:LeaseholdImprovements 2023-01-01 2023-12-31 10674803 core:PlantMachinery 2023-01-01 2023-12-31 10674803 core:DeferredTaxation 2023-01-01 2023-12-31 10674803 core:ParentEntities 2023-01-01 2023-12-31 10674803 core:ParentEntities core:RenderingOrReceivingServices 2023-01-01 2023-12-31 10674803 core:UKTax 2023-01-01 2023-12-31 10674803 1 2023-01-01 2023-12-31 10674803 1 2023-01-01 2023-12-31 10674803 countries:UnitedKingdom 2023-01-01 2023-12-31 10674803 2022-12-31 10674803 core:RetainedEarningsAccumulatedLosses 2022-12-31 10674803 core:ShareCapital 2022-12-31 10674803 core:FurnitureFittings 2022-12-31 10674803 core:LandBuildings core:ShortLeaseholdAssets 2022-12-31 10674803 core:PlantMachinery 2022-12-31 10674803 core:DeferredTaxation 2022-12-31 10674803 2022-01-01 2022-12-31 10674803 2022-12-31 10674803 bus:OrdinaryShareClass1 2022-12-31 10674803 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 10674803 core:FurnitureFittings 2022-12-31 10674803 core:LandBuildings core:ShortLeaseholdAssets 2022-12-31 10674803 core:PlantMachinery 2022-12-31 10674803 core:ParentEntities 2022-12-31 10674803 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 10674803 core:ShareCapital 2022-01-01 2022-12-31 10674803 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-01-01 2022-12-31 10674803 core:ParentEntities core:RenderingOrReceivingServices 2022-01-01 2022-12-31 10674803 core:UKTax 2022-01-01 2022-12-31 10674803 2021-12-31 10674803 core:RetainedEarningsAccumulatedLosses 2021-12-31 10674803 core:ShareCapital 2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 10674803

eSalon.com, Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

eSalon.com, Ltd

Contents

Company Information

1

Directors' Report

2 to 4

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 20

 

eSalon.com, Ltd

Company Information

Directors

Greta Rose

Tarakeshwar Raghavan

Registered Number:

10674803

Registered office

Unit 15 Victoria Industrial Estate
Victoria Road
London
W3 6UU

Independent auditors

PricewaterhouseCoopers LLP
40 Clarendon Road
Watford
Hertfordshire
WD17 1JJ

 

eSalon.com, Ltd

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors of the company who were in office during the year and up to the date of signing the financial statements were:

Greta Rose

Tarakeshwar Raghavan

Statement of Directors' Responsibilities

The statement of directors' responsibilities that the directors agree to is detailed on page 4.

Principal activities
The principal activities of the company are the provision of representative, customer support services and manufacturing on behalf of eSalon.com LLC.

Financial risks
eSalon.com, Ltd is exposed to minimum financial risk. The company provides contract manufacturing and representative and customer support services exclusively to its US based parent, eSalon.com LLC, in return for a cost plus based service fee. As such its profits are a direct function of its cost base and so relatively predictable. The company operates within a financial framework set by its parent with operational funding requirements managed via a short term inter-company account. The nature of the underlying arrangements is such that the company bears no external credit risk, inventory risk, currency risk or interest rate risk. No dividends are currently planned.

Future developments

The nature of the company’s activities are not expected to materially change in the foreseeable future.

Going concern

The directors have prepared these financial statements on a going concern basis as they have considered the funding requirements for at least 12 months and received a letter of support from Henkel of America, Inc., eSalon.com, Ltd's US based intermediate parent company and a member of the Henkel group of companies.

Important non-adjusting events after the financial year

eSalon.com, Ltd continues to carefully monitor and manage its operating costs in view of the current inflationary environment. Any increases in costs incurred will be fully recovered from its US based parent, eSalon.com LLC, as part of its cost plus based service fee.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

 

eSalon.com, Ltd

Directors' Report for the Year Ended 31 December 2023

Small companies provision statement

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006, in addition, the Company has taken advantage of the exemption available and has not presented a Strategic Report.

 

eSalon.com, Ltd

Directors' Report for the Year Ended 31 December 2023

Statement of Directors' Responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", and applicable law).

Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;

make judgements and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.
 

Directors' confirmations

In the case of each director in office at the date the directors’ report is approved:
• so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware;
and
• they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
 

Approved by the Board on 7 August 2024 and signed on its behalf by:

.........................................
Greta Rose
Director

   
     
 

eSalon.com, Ltd

Independent Auditor's Report to the Members of eSalon.com, Ltd

Report on the audit of the financial statements

Opinion

In our opinion, eSalon.com, Ltd's financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'', and applicable law); and

have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance Sheet as at 31 December 2023; the Profit and Loss Account and the Statement of Changes in Equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

eSalon.com, Ltd

Independent Auditor's Report to the Members of eSalon.com, Ltd

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors' Report for the year ended 31 December 2023 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Directors' Report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

eSalon.com, Ltd

Independent Auditor's Report to the Members of eSalon.com, Ltd

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK Corporation Tax and Companies Act 2006, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

Discussions with Management and Directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Challenging assumptions and judgements made by Management in their significant accounting estimates;

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations to revenue, cost of sales and administrative expenses as well as any journals posted by unexpected users;

Reviewing minutes of meetings with those charged with governance;

Reviewing financial statement disclosures made by management in their significant accounting estimates, in particular in relation to pensions;

An element of unpredictability was incorporated into our audit testing by performing additional procedures, such as testing tracing bank payments to approvals.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

eSalon.com, Ltd

Independent Auditor's Report to the Members of eSalon.com, Ltd

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

we have not obtained all the information and explanations we require for our audit; or

adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or

certain disclosures of directors’ remuneration specified by law are not made; or

the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Entitlement to exemptions

Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility.

......................................
Fotis Kyrmizoglou (Senior Statutory Auditor)

For and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditor


40 Clarendon Road
Watford
Hertfordshire
WD17 1JJ

7 August 2024

 

eSalon.com, Ltd

Profit and Loss Account for the Year Ended 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Turnover

3

1,786,698

1,685,829

Cost of sales

 

(962,906)

(878,298)

Gross profit

 

823,792

807,531

Administrative expenses

 

(736,160)

(725,496)

Operating profit

4

87,632

82,035

Interest receivable and similar income

5

2

10

Interest payable and similar expenses

(2,552)

(1,767)

   

(2,550)

(1,757)

Profit before tax

 

85,082

80,278

Tax on profit

8

(19,303)

(16,987)

Profit for the financial year

 

65,779

63,291

The above results were derived from continuing operations.

The company has no recognised gains or losses for this or previous year other than the results above.

 

eSalon.com, Ltd

(Registration number: 10674803)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

13,390

24,277

Current assets

 

Debtors

10

356,736

205,026

Cash at bank and in hand

11

189,574

241,702

 

546,310

446,728

Creditors: Amounts falling due within one year

12

(128,810)

(103,175)

Net current assets

 

417,500

343,553

Total assets less current liabilities

 

430,890

367,830

Provisions for liabilities

13

(3,347)

(6,066)

Net assets

 

427,543

361,764

Capital and reserves

 

Called up share capital

15

100

100

Profit and loss account

427,443

361,664

Total equity

 

427,543

361,764

The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 9 to 20 were approved by the Board on 7 August 2024 and signed on its behalf by:
 

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

Greta Rose
Director

 

eSalon.com, Ltd

Statement of Changes in Equity for the Year Ended 31 December 2023

Called up Share capital
£

Profit and loss account
£

Total Equity
£

At 1 January 2023

100

361,664

361,764

Profit for the year

-

65,779

65,779

At 31 December 2023

100

427,443

427,543

Called up
Share Capital
£

Profit and loss
account
£

Total Equity
£

At 1 January 2022

100

298,373

298,473

Profit for the year

-

63,291

63,291

At 31 December 2022

100

361,664

361,764

 

eSalon.com, Ltd

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 United Kingdom and registered in England and Wales.

The address of its registered office is:
Unit 15 Victoria Industrial Estate
Victoria Road
London
W3 6UU

These financial statements were authorised for issue by the Board on 7 August 2024.

The financial statements are presented in Pound sterling, the functional currency.

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention. These financial statements have been prepared under the small companies regime.

Summary of disclosure exemptions

eSalon.com, Ltd satisfies the criteria of being a qualifying entity as defined by FRS 102.

As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
a) No cash flow statement has been presented for the company.
b) Disclosures in respect of financial instruments have not been presented.
c) No disclosure has been given for the aggregate remuneration of key management personnel.

Going concern

The directors have prepared these financial statements on a going concern basis as they have considered the funding requirements for at least 12 months and received a letter of support from Henkel of America, Inc., eSalon.com, Ltd's US based intermediate parent company and a member of the Henkel group of companies.

Judgements

In preparing these financial statements, the directors have made the following judgements:
• Determine whether leases entered into by the company are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred on a lease by lease basis.

 

eSalon.com, Ltd

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

Key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/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.

The company recognises revenue when:

• The amount of revenue can be reliably measured;
• it is probable that the future economic benefits will flow to the entity;
• and specific criteria have been met for each of the company's activities.

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. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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 income tax charge is calculated on the basis of tax rates and laws that have been enacted.

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.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

eSalon.com, Ltd

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

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and Fittings

10 years straight line

Short Leasehold Land and Buildings

Over the life of the lease (42 months)

Plant and machinery

5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

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.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Rendering of services

1,786,698

1,685,829

All of the company's turnover relates to its principal activities and is generated outside the United Kingdom.

 

eSalon.com, Ltd

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

4

Operating profit

Arrived at after charging

2023
 £

2022
 £

Depreciation expense

11,929

20,148

Research and development cost

2,932

3,170

Operating lease expense

145,407

141,999

Loss on disposal of property, plant and equipment

3,777

-

5

Interest receivable and similar income

2023
 £

2022
 £

Other finance income

2

10

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

678,895

679,326

Social security costs

64,331

73,685

Other pension costs

12,731

12,596

755,957

765,607

The average monthly number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

8

8

Administration and support

9

10

17

18

The directors' remuneration for the year was £nil (2022: £nil). The directors who served during the year are remunerated by other Henkel Group companies and have determined that their qualifying services to the company do not occupy a significant amount of their time. There is therefore no recharge to the Company for their services.

7

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

15,000

12,000

 

eSalon.com, Ltd

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


 

No other services were provided by the company's auditors.

The Directors have agreed with the company's auditors that the auditor's liability to damages for breach of duty in relation to the audit of the company's financial statements for the year to 31 December 2023 will be limited to the greater of £5m or 5 times the auditor's fees for the statutory audits, and that, in any event, the auditor's liability for damages will be limited to that part of any loss suffered by the company as is just and equitable having regard to the extent to which the auidtor, the company and any third parties are responsble for the loss in question. The shareholders of the company waived the need for approval of this liability limitation agreement, as required by the Companies Act 2006, by resolution dated 8th December 2023.

8

Tax on profit

Tax charged in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

22,022

17,359

Deferred taxation

Arising from origination and reversal of timing differences

(2,719)

(372)

Tax expense in the profit and loss account

19,303

16,987

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

85,082

80,278

Corporation tax at standard rate

19,994

15,253

Deferred tax credit relating to changes in tax rates or laws

(161)

(89)

Tax (decrease)/increase from effect of capital allowances and depreciation

(548)

1,823

Tax increase from other short-term timing differences

18

-

Total tax charge

19,303

16,987

Deferred taxes at the balance sheet date have been measured using the substantively enacted tax rates of 25% (2022: 25%) due to come in to effect from April 2023 and reflected in these financial statements.

 

eSalon.com, Ltd

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

9

Tangible assets

Short leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost

At 1 January 2023

78,777

17,842

19,777

116,396

Additions

-

-

7,820

7,820

Disposals

-

-

(7,820)

(7,820)

At 31 December 2023

78,777

17,842

19,777

116,396

Accumulated depreciation

At 1 January 2023

73,629

6,388

12,102

92,119

Charge for the year

5,148

1,784

4,997

11,929

Eliminated on disposal

-

-

(1,042)

(1,042)

At 31 December 2023

78,777

8,172

16,057

103,006

Carrying amount

At 31 December 2023

-

9,670

3,720

13,390

At 31 December 2022

5,148

11,454

7,675

24,277

10

Debtors

Note

2023
 £

2022
 £

Amounts owed by group undertakings

17

202,338

58,664

Other debtors

 

55,833

55,833

VAT Control account

 

39,552

32,582

Prepayments and accrued income

 

59,013

57,947

   

356,736

205,026

Amounts owed by group undertakings do not bear interest, are repayable on demand and are unsecured.

11

Cash at bank and in hand

2023
 £

2022
 £

Cash at bank

189,574

241,702

 

eSalon.com, Ltd

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

12

Creditors: Amounts falling due within one year

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

3,930

5,884

Other creditors

 

55,340

46,746

Other taxation and social security

 

18,033

16,958

Corporation tax liability

8

22,020

17,359

Accruals and deferred income

 

29,487

16,228

 

128,810

103,175

13

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

6,066

6,066

Movement in the year

(2,719)

(2,719)

At 31 December 2023

3,347

3,347

The provision for deferred tax in the year ended 31 December 2023 consists solely of timing differences due to accelerated capital allowances of £3,347 (2022: £6,066).

There are no unused tax losses or unused tax credits.

14

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions paid by the company to the scheme and amounted to £12,731 (2022 - £12,596).

 

eSalon.com, Ltd

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

15

Called up share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

         

16

Commitments

Leasehold commitments

As at 31 December 2023, the company had commitment to future rental payments of £42,363 (2022: £169,452) (within one year) and £nil (2022: £42,363) (later than one year and not later than five years). These commitments are not included in liabilities in the balance sheet.

The existing lease agreement was extended for two years with effect from April 2024 at an annual rent of £205,063.

17

Related party transactions

Summary of transactions with parent

Throughout the year eSalon.com, Ltd provided services exclusively to eSalon.com LLC.
 

Income and receivables from related parties

2023

Parent
£

Receipt of services

1,786,698

Amounts receivable from related party

202,338

2022

Parent
£

Receipt of services

1,685,829

Amounts receivable from related party

58,664

18

Non-adjusting events after the financial year

eSalon.com, Ltd continues to carefully monitor and manage its operating costs in view of the current inflationary environment. Any increases in costs incurred will be fully recovered from its US based parent, eSalon.com LLC, as part of its cost plus based service fee.

 

eSalon.com, Ltd

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

19

Parent and ultimate parent undertaking

eSalon.com LLC is the parent company of eSalon.com, Ltd and is registered in the USA. The Henkel Group is the parent company of eSalon.com LLC.

Henkel AG & Co KGaA is the ultimate parent company and controlling party of eSalon.com, Ltd a company incorporated in Germany.

The largest and smallest group in which the results of the company are consolidated is that headed by Henkel AG & Co KGaA, Ltd. Henkel AG & Co KGaA is registered in Germany. The registered office of Henkel AG & Co. KGaA is at Henkelstrabe 67, 40589 Dusseldorf, Germany. The consolidated accounts of the Henkel Group are available to the public and are available to download at www.henkel.com/investor-relations.