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REGISTERED NUMBER: 05599148 (England and Wales)












THE NAISSANCE TRADING & INNOVATION
COMPANY LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JULY 2023






THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


THE NAISSANCE TRADING & INNOVATION
COMPANY LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: Mrs J Skelding
J R Skelding





SECRETARY: J R Skelding





REGISTERED OFFICE: Unit 9 Milland Road Industrial Estate
Neath
West Glamorgan
SA11 1NJ





REGISTERED NUMBER: 05599148 (England and Wales)





AUDITORS: Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Principal Activities
Naissance Trading & Innovation is a company founded on ethical principles, trading in ethically sourced Natural Ingredients from the worldwide farming community. The company operates internationally, supplying these ingredients to consumers and businesses for a wide variety of uses including food, wellbeing and personal care.

Review of business
FY 22/23 FY 21/22

Turnover £13.0m £16.5m
Gross Profit Margin 13.5% 15.2%

The reduction in turnover in the year reflects the continued impact of the exceptional market circumstances created by Covid-19, material supply challenges caused by external factors and an overall reduction in consumer spending. Further, gross profit margins have been adversely impacted by exceptional and rapidly increasing raw material prices due to the conflict in the Ukraine. This has had a lasting impact on the material cost of goods which has seen gross profit margins fall from 15.2% to 13.5%.

The challenging trading landscape has continued post year end with many of the raw material costs remaining high and the cost-of-living crisis impacting on consumer spending. Consequently, in January 2023 the directors have implemented a rigorous programme to reduce both operating costs and improve gross profit margins to reverse the trend of losses. The target of this was to return the company to profitability by the end of FY22/23. The directors are pleased to report that although a yearly loss will be reported, this target has been achieved and are back to profitability in the final quarter of FY22/23 and therefore the directors are confident that the work undertaken in FY22/23 will give the company the platform for long-term sustainable profitable growth going forward.

The challenging trading landscape has continued post year end with many of the raw material costs remaining high and the cost-of-living crisis impacting on consumer spending. Consequently, in January 2023 the directors implemented a rigorous programme to reduce both operating costs and improve gross profit margins to reverse the trend of losses. The target of this was to return the company to profitability by the end of FY22/23. This resulted in a return to profitability in the final quarter of FY22/23. Whilst the post year-end trading environment remains challenging, with continued pressure of the cost-of-living crisis on consumer spend, the Directors continue to work on reducing both the material cost of goods and overall company overheads in order to ensure the long-term viability of the Company.

The Directors are conscious that the complexity and costs of trading in Europe are increasing and are taking action to ensure that the company continues to be well able to service it's European customer base. The company already has a European distribution location and will continue to leverage this to provide a stable and consistent supply of product to our European customers.

Naissance is a principle-led business and considers attaining quality and ethical certifications and accreditations a crucial foundation in driving and evidencing its commitment to its principles. During the year the company held key certifications and accreditations as follows:

- Cruelty Free International Leaping Bunny
- Soil Association, Ecocert, COSMOS and US FDA Organic Certifications for both Food and Personal Care
- Food Standards Agency 5 Star Food Rating
- Vegan Society
- ISO 9001
- Ethical Trade Initiative
- Fairtrade Foundation

The company also continues its commitment to staff and supplier welfare. Naissance staff at all levels of the business receive a range of benefits including pay above living wage regardless of age, extra days annual leave, sick pay, death in service insurance and a healthcare programme. Hybrid working remains a key staff working practice as the company continues to protect its staff from from Covid-19.

Going Concern & Future Outlook
The company continues to invest in systems, people and new product development in order to maintain its position within the natural products marketplace and enable it to be best placed to expand its customer basis, both within existing and new markets.

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.


THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Financial Risk
The company uses various financial instruments which include cash and other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The main risk arising from the company's financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Liquidity Risk
The company's inventory policy drives a balance of having the right stock levels appropriate to suppliers leads times and customer demand ensuring the burden of working capital requirements is limited. The majority of the company's sales which helps the company's liquidity position..

Interest Rate Risk
Interest cover ratios are monitored monthly to control the modest debt levels the company has. The company trades at a level that is adequate for the level of debt it has.

Trading Risks
Naissance customer base is large and therefore risk is spread across many different customers and across many different selling channels including websites and online and specialist marketplaces in numerous countries. Naissance's trading performance was profitable for the financial year.

Despite the impact of raw material costs and the cost of living crisis impacting on consumer spending the Directors are confident that margins will improve and whilst demand for the company's products has returned, although not yet to pre Covid-19 levels, the company has been able to adequately balance the revised consumer demand with appropriate inventory levels. The war in Ukraine has posed challenging market conditions and pricing for a number of the company's key products but this has and continues to be mitigated by our relationships with our suppliers and sound planning. This has meant and continues to ensure the company has the products and service level our customers have come to expect.

The company continues to adapt to the many changes and challenges presented by Brexit. The strength of our business model, our systems and the investment in staff have allowed us to continue trading and distributing our products during a challenging time for UK companies trading in Europe. Many of the costs associated with trading in Europe are being reduced as we continue to develop our systems and processes.

Government Legislation
The company is well place to mitigate the risk of Brexit by using its different distribution channels and its well established distribution & logistics partners. Naissance Trading and Innovation has a sister company based in Germany which has proven useful in helping to maintain a consistency of supply to our European customers.

Information Technology
Information technology plays an important role in the day to day functioning of the company. The company has continued to invest in its technology infrastructure and always looks to gain improvements from technology advances. The company has made significant progress in its ability to gather, analyse and report key performance data.

Health & Safety, Quality and Environment
The Health & Safety of the company's stakeholders is of paramount importance and Naissance Trading and Innovation has a robust Health & Safety policy which it adheres to. The company also has ISO9001 accreditation.

KEY PERFORMANCE INDICATORS
The company's main Key performance indicators are Sales and Profit. Management is pleased with the level of sales based on the trading environment and although the decline in profitability is disappointing, understands that this has been largely driven by exceptional macro-economic factors. The actions undertaken in FY22/23 as set out in the Review of business on page 2 have sought to address these challenges.

ON BEHALF OF THE BOARD:





J R Skelding - Director


29 August 2024

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 July 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

Mrs J Skelding
J R Skelding

DONATIONS
During the year the company made donations of £250 to various activities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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 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. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
In accordance with Section 383(2) of the Companies Act 2014, the auditors, Bevan Buckland LLP, will continue in office.

ON BEHALF OF THE BOARD:





J R Skelding - Director


29 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE NAISSANCE TRADING & INNOVATION
COMPANY LTD

Disclaimer of Opinion
We have audited the financial statements of The Naissance Trading & Innovation Company Ltd (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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).

We do not express an opinion on the accompanying financial statements of the company.

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer opinion
The Naissance Trading & Innovation Company Ltd introduced a new ERP system in August 2023. Following the introduction of the ERP system the management has been unable to access the previous system. Management have continued to work to rectify this matter but at the data of this report have yet to find a solution.

As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of stock, debtors and creditors, and these elements making up the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows and have been unable to satisfy ourselves by alternative means.

Conclusions relating to going concern
Because of the matter described in the basis for disclaimer of opinion section of our report we're unable to conclude on the financial statements as a whole.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion 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 such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 in this regard.

Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal
requirements.

Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Strategic Report or the Report of the Director.

Arising from the limitation of our work referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our
audit; and
- we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made.



REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE NAISSANCE TRADING & INNOVATION
COMPANY LTD


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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.

Auditors' responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the company's financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.

However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

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.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Alison Vickers (Senior Statutory Auditor)
for and on behalf of Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

29 August 2024

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £    £   

TURNOVER 4 13,042,117 16,484,093

Cost of sales 11,279,265 13,972,626
GROSS PROFIT 1,762,852 2,511,467

Administrative expenses 2,683,006 3,405,012
(920,154 ) (893,545 )

Other operating income 18,730 18,730
OPERATING LOSS 6 (901,424 ) (874,815 )


Interest payable and similar expenses 7 82,763 1,553
LOSS BEFORE TAXATION (984,187 ) (876,368 )

Tax on loss 8 (139,548 ) (174,688 )
LOSS FOR THE FINANCIAL YEAR (844,639 ) (701,680 )

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (844,639 ) (701,680 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(844,639

)

(701,680

)

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

BALANCE SHEET
31 JULY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 163,079 140,926
Tangible assets 11 95,043 166,962
258,122 307,888

CURRENT ASSETS
Stocks 12 1,314,171 2,371,914
Debtors 13 2,387,663 1,803,634
Cash at bank 85,685 61,863
3,787,519 4,237,411
CREDITORS
Amounts falling due within one year 14 2,636,684 2,153,365
NET CURRENT ASSETS 1,150,835 2,084,046
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,408,957

2,391,934

CREDITORS
Amounts falling due after more than one
year

15

(223,312

)

(375,602

)

PROVISIONS FOR LIABILITIES 19 (29,876 ) (15,924 )
NET ASSETS 1,155,769 2,000,408

CAPITAL AND RESERVES
Called up share capital 20 90 90
Retained earnings 21 1,155,679 2,000,318
SHAREHOLDERS' FUNDS 1,155,769 2,000,408

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2024 and were signed on its behalf by:





J R Skelding - Director


THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2021 90 2,816,998 2,817,088

Changes in equity
Dividends - (115,000 ) (115,000 )
Total comprehensive income - (701,680 ) (701,680 )
Balance at 31 July 2022 90 2,000,318 2,000,408

Changes in equity
Total comprehensive income - (844,639 ) (844,639 )
Balance at 31 July 2023 90 1,155,679 1,155,769

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (204,680 ) (606,483 )
Interest paid (82,763 ) (1,553 )
Tax paid 247,869 (52,069 )
Net cash from operating activities (39,574 ) (660,105 )

Cash flows from investing activities
Purchase of intangible fixed assets (86,813 ) (2,391 )
Purchase of tangible fixed assets - (6,633 )
Sale of intangible fixed assets 8,326 -
Net cash from investing activities (78,487 ) (9,024 )

Cash flows from financing activities
Loan repayments in year - (109,038 )
Net cash from financing activities - (109,038 )

Decrease in cash and cash equivalents (118,061 ) (778,167 )
Cash and cash equivalents at beginning
of year

2

(10,712

)

767,455

Cash and cash equivalents at end of year 2 (128,773 ) (10,712 )

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (984,187 ) (876,368 )
Depreciation charges 128,253 209,920
Loss on disposal of fixed assets - 6,554
Government grants (18,730 ) (18,730 )
Finance costs 82,763 1,553
(791,901 ) (677,071 )
Decrease in stocks 1,057,743 235,422
Increase in trade and other debtors (678,398 ) (74,880 )
Increase/(decrease) in trade and other creditors 207,876 (89,954 )
Cash generated from operations (204,680 ) (606,483 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 85,685 61,863
Bank overdrafts (214,458 ) (72,575 )
(128,773 ) (10,712 )
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 61,863 767,455
Bank overdrafts (72,575 ) -
(10,712 ) 767,455


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank 61,863 23,822 85,685
Bank overdrafts (72,575 ) (141,883 ) (214,458 )
(10,712 ) (118,061 ) (128,773 )
Total (10,712 ) (118,061 ) (128,773 )

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1. STATUTORY INFORMATION

The Naissance Trading & Innovation Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been 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. The financial statements have been prepared under the historical cost convention.

Going Concern
The challenging trading landscape has continued post year end with many of the raw material costs remaining high and the cost-of-living crisis impacting on consumer spending. Consequently, in January 2023 the directors implemented a rigorous programme to reduce both operating costs and improve gross profit margins to reverse the trend of losses. The target of this was to return the company to profitability by the end of FY22/23. This resulted in a return to profitability in the final quarter of FY22/23. Whilst the post year-end trading environment remains challenging, with continued pressure of the cost-of-living crisis on consumer spend, the Directors continue to work on reducing both the material cost of goods and overall company overheads in order to ensure the long-term viability of the Company.

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised at point of order by the customer. VAT is deducted in accordance with EU VAT compliance rules and accounted for in the relevant country.

Management charges represent the use of assets and resources by a company under company control and is recognised over the period of use.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over their estimated useful lives. Varying useful lives have been estimated between 3 - 5 years.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Straight line over 10 years
Plant and Machinery - 20% & 33% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. 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 the income statement.

Impairment of fixed assets
The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Net realisable value is based on estimated normal selling price, less further costs expected to be incurred in bringing the products to completion and disposal.

Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured at fair value, net of transaction costs are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown in net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method.

Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Government grants
Grants that relate to specific capital expenditure are treated as deferred income which is credited to the profit and loss account over the related asset's useful life. Other grants are credited to the profit and loss account when received.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

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 trade and other 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 trade and other creditors, bank loans, loans from fellow group companies, 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 receipts discounted at a market rate of interest.

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

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.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

Short term benefits, including holiday pay and similar non-monetary benefits are recognised as an expense in the period in which the service is received.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results in the future may differ from these estimates.

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 and in any future periods affected.

Significant management judgements
The following are management judgements in applying the accounting policies of the company that have the most significant effect on the amounts recognised in the financial statements.

Useful lives of assets
Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives based on various factors. The actual lives of the assets are re-assessed on a periodic basis and may vary depending on the standard of the asset.

Stock Provision
Management reviews stock on a line by line basis and using knowledge of their products and order book to estimate a stock provision.

Valuation of debtors
Management review balances on a customer by customer basis and use knowledge of their customers to determine the recoverability of its debts.

Provisions and accruals
Management bases its judgements on the circumstances relating to each specific event and upon currently available information. However, given the inherent difficulties in the estimation of liabilities in these areas, it cannot be guaranteed that additional costs will not be incurred beyond the amounts accrued.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

The company supplies various markets other than just in the UK, the disclosure of which would be seriously prejudicial to the interests of the company and therefore will not be disclosed.

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,759,662 2,554,795
Social security costs 169,190 212,275
Other pension costs 35,021 41,959
1,963,873 2,809,029

The average number of employees during the year was as follows:
2023 2022

Direct 18 25
Indirect 41 56
59 81

At the year end pension contributions of £5,939 (2022: £7,578) were outstanding.

2023 2022
£    £   
Directors' remuneration 9,100 8,929

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

6. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 13,224 21,308
Other operating leases 192,017 304,242
Depreciation - owned assets 71,919 102,249
Depreciation - assets on hire purchase contracts or finance leases - 45,248
Loss on disposal of fixed assets - 6,554
Computer software amortisation 56,334 62,423
Auditors' remuneration 10,150 15,700
Auditor remuneration non audit 12,124 16,967
Foreign exchange differences 8,507 (15,041 )
Deferred capital grants (18,730 ) (18,730 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest - 1,553
Other interest 82,763 -
82,763 1,553

8. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
Under/(over) CT provisions (153,500 ) (149,549 )

Deferred tax 13,952 (25,139 )
Tax on loss (139,548 ) (174,688 )

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Loss before tax (984,187 ) (876,368 )
Loss multiplied by the standard rate of corporation tax in the UK of
21.005% (2022 - 19%)

(206,728

)

(166,510

)

Effects of:
Expenses not deductible for tax purposes (344 ) (319 )
Income not taxable for tax purposes (3,934 ) (3,559 )
Depreciation in excess of capital allowances 3,042 33,218
Utilisation of tax losses 207,964 43,810
Adjustments to tax charge in respect of previous periods (153,500 ) (11,212 )
Deferred tax 13,952 (25,139 )
enhanced deduction
Impact of prior year adjustment - (44,977 )
Total tax credit (139,548 ) (174,688 )

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

8. TAXATION - continued

The deferred tax assets/liabilities at 31 July 2023 have been calculated at the rate of 25% (2022: 19%).

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim - 115,000

10. INTANGIBLE FIXED ASSETS
Patents
and Computer
licences software Totals
£    £    £   
COST
At 1 August 2022 8,326 644,506 652,832
Additions - 86,813 86,813
Disposals (8,326 ) - (8,326 )
At 31 July 2023 - 731,319 731,319
AMORTISATION
At 1 August 2022 - 511,906 511,906
Amortisation for year - 56,334 56,334
At 31 July 2023 - 568,240 568,240
NET BOOK VALUE
At 31 July 2023 - 163,079 163,079
At 31 July 2022 8,326 132,600 140,926

11. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property Machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 August 2022
and 31 July 2023 27,998 1,058,492 84,363 101,080 1,271,933
DEPRECIATION
At 1 August 2022 27,998 935,118 40,775 101,080 1,104,971
Charge for year - 63,482 8,437 - 71,919
At 31 July 2023 27,998 998,600 49,212 101,080 1,176,890
NET BOOK VALUE
At 31 July 2023 - 59,892 35,151 - 95,043
At 31 July 2022 - 123,374 43,588 - 166,962

12. STOCKS
2023 2022
£    £   
Raw materials 582,098 744,399
Finished goods 732,073 1,627,515
1,314,171 2,371,914

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 473,368 187,930
Amounts owed by related undertakings 68,861 34,521
Amounts owed by group undertakings 1,503,148 1,213,245
Other debtors 80,048 -
Tax 142,087 236,456
Prepayments 120,151 131,482
2,387,663 1,803,634

Group balances are repayable on demand, however the directors believe that the amount will be repaid over more than one year.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 214,458 72,575
Trade creditors 1,563,168 1,163,257
Amounts owed to related undertakings 377,861 292,767
Social security and other taxes 33,719 50,340
VAT 112,018 365,731
Other creditors 5,939 7,934
Accruals and deferred income 310,791 182,030
Deferred government grants 18,730 18,731
2,636,684 2,153,365

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
VAT 215,508 349,070
Deferred government grants 7,804 26,532
223,312 375,602

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 214,458 72,575

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 92,500 122,922
Between one and five years 185,000 277,500
277,500 400,422

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 214,458 72,575

HSBC Bank plc holding a fixed and floating charge over all assets.

DBW Investments (14) Limited hold a fixed and floating charge over the fixed assets of the company.

DBW Investments (8) Limited hold a fixed and floating charge over the fixed assets of the company.

Lear Investments Limited have a charge on a rent deposit deed for any monies that become due under the terms of the lease.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 29,876 15,924

Deferred
tax
£   
Balance at 1 August 2022 15,924
Charge to Income Statement during year 13,952
Balance at 31 July 2023 29,876

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following analysis is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

20232022
Net liabilityNet liability
Balances:£   £   

ACAs31,35017,818
Other timing differences(1,474)(1,894)
29,87615,924

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
30 Ordinary £1 30 30
20 B Ordinary £1 20 20
20 C Ordinary £1 20 20
20 D Ordinary £1 20 20
90 90

Each share is entitled to:
- One vote in any circumstances;
- Pari passu to dividend or any other distribution; and
- full participation in capital distributions.

THE NAISSANCE TRADING & INNOVATION
COMPANY LTD (REGISTERED NUMBER: 05599148)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

21. RESERVES
Retained
earnings
£   

At 1 August 2022 2,000,318
Deficit for the year (844,639 )
At 31 July 2023 1,155,679

Called up share capital - represents the nominal value of shares that have been issued.

Retained earnings - included all current and prior year period retained profit and losses.

22. ULTIMATE PARENT COMPANY

Scylding Group Limited is regarded by the directors as being the company's ultimate parent company.

23. RELATED PARTY DISCLOSURES

Included within other debtors are amounts due from companies in which the shareholders have a common interest of £68,861 (2022: £34,521).

Included within other creditors are amounts due to companies in which the shareholders have a common interest of £377,861 (2022: £292,767).

24. ULTIMATE CONTROLLING PARTY

The directors are considered to be the ultimate controlling party by virtue of each owning 50% of the parent company's share capital.