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REGISTERED NUMBER: 10343378 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2023

for

Flawless UK Vape Distribution Ltd

Flawless UK Vape Distribution Ltd (Registered number: 10343378)






Contents of the Financial Statements
for the Year Ended 30 November 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of 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


Flawless UK Vape Distribution Ltd

Company Information
for the Year Ended 30 November 2023







DIRECTORS: T S Maini
M S Kohli
I S Maini
S S Kohli
P K Maini





REGISTERED OFFICE: 7 Sheene Road
Leicester
Leicestershire
LE4 1BF





REGISTERED NUMBER: 10343378 (England and Wales)





AUDITORS: Torr Waterfield Limited
Statutory Auditor
Park House
37 Clarence Street
Leicester
Leicestershire
LE1 3RW

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Strategic Report
for the Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

REVIEW OF BUSINESS
Turnover have increased from £56.5m to £94.0m in the year. The directors are pleased with these results and much credit is due to the management and staff throughout the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's operations expose it to a variety of financial risks, outlined in detail below. The company has several risk management strategies in place that aim to reduce the adverse effects on the financial performance of the company by monitoring levels of a number of financial costs.

Currency risk
Foreign exchange risk has continues to be closely monitored. The increases in price due to the weakening pound has stabilised but does still remain a risk. The exchange rate is closely monitored to ensure that currencies are bought a the right time.

Supplier risk
The company manages supplier risk via its relationship with its suppliers. Communication and liaison takes place on a regular basis to ensure that these relationships remain strong.

KEY PERFORMANCE INDICATORS
The key performance indicators that the directors monitor the business by are the levels of turnover achieved, margins achieved and the net current assets position.

FUTURE DEVELOPMENTS
The directors consider that the company's market place will remain competitive in the near future. However, the directors believe that the company is well placed to take advantage of every opportunity in the coming year.

ON BEHALF OF THE BOARD:





T S Maini - Director


29 August 2024

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Report of the Directors
for the Year Ended 30 November 2023

The directors present their report with the financial statements of the company for the year ended 30 November 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the distribution of vape products.

DIVIDENDS
The total distribution of dividends for the year ended 30 November 2023 was £1,497,470 (2022 - £788,001).

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

T S Maini
M S Kohli
I S Maini
S S Kohli
P K Maini

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.

ON BEHALF OF THE BOARD:





T S Maini - Director


29 August 2024

Report of the Independent Auditors to the Members of
Flawless UK Vape Distribution Ltd

Opinion
We have audited the financial statements of Flawless UK Vape Distribution Ltd (the 'company') for the year ended 30 November 2023 which comprise the Statement of 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 November 2023 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 opinion
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 Auditors' 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 opinion.

Conclusions relating to going concern
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.

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.

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

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
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Flawless UK Vape Distribution Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or 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; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

Report of the Independent Auditors to the Members of
Flawless UK Vape Distribution 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

The capability to detect irregularities is based on the auditor identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and then designing and performing audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

a) Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, the following approach was taken:

- Understanding the nature of the industry and sector, control environment and business performance;
- Consideration of the results of our enquiries of management and those charged with governance
about their own identification and assessment of the risks of irregularities;
- Understanding the company's policies and procedures on compliance with laws and regulations and
management of fraud risk, including documentation of instances of non-compliance of laws and
regulations and instances of actual, suspected or alleged fraud;
- Consideration of matters discussed among the audit engagement team regarding how and where
fraud might occur in the financial statements and any potential indicators of fraud;
- Understanding the legal and regulatory frameworks that the company operates in through enquiry of
management and those charged with governance and understanding the company's industry and
sector. The key laws and regulations that were considered to have an effect on material amounts and
disclosures in the financial statements included the Companies Act and tax legislation.

b) Audit response to risks identified

Based on this understanding, the following audit procedures were designed and performed to respond to the risks identified:

- Reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations described as having a direct effect on the financial
statement;
- Enquiring of management, those charged with governance and, where applicable, the company's
solicitors concerning actual and potential litigation and claims;
- Performing analytical procedures to identify any unusual or unexpected relationships that may
indicate risks of material misstatement due to fraud;
- Reviewing minutes of meetings of those charged with governance and, where applicable,
correspondence with regulators;
- Performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness and evaluating the business rationale of significant
transactions outside the normal course of business;
- Communication of potential fraud risks to all engagement team members and remaining alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Report of the Independent Auditors to the Members of
Flawless UK Vape Distribution Ltd


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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.




Mark Torr FCCA (Senior Statutory Auditor)
for and on behalf of Torr Waterfield Limited
Statutory Auditor
Park House
37 Clarence Street
Leicester
Leicestershire
LE1 3RW

30 August 2024

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Statement of Comprehensive
Income
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   

TURNOVER 3 93,965,890 56,453,975

Cost of sales (78,969,859 ) (47,104,172 )
GROSS PROFIT 14,996,031 9,349,803

Administrative expenses (4,837,449 ) (3,330,077 )
10,158,582 6,019,726

Other operating income 146,868 140,559
OPERATING PROFIT 5 10,305,450 6,160,285

Interest receivable and similar income 25,449 2,080
10,330,899 6,162,365

Interest payable and similar expenses 6 (23,402 ) (22,234 )
PROFIT BEFORE TAXATION 10,307,497 6,140,131

Tax on profit 7 (2,396,459 ) (1,190,072 )
PROFIT FOR THE FINANCIAL YEAR 7,911,038 4,950,059

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

7,911,038

4,950,059

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £   
FIXED ASSETS
Tangible assets 9 760,597 557,925

CURRENT ASSETS
Stocks 10 7,909,360 6,500,729
Debtors 11 10,078,909 5,584,657
Cash at bank and in hand 3,815,832 3,020,497
21,804,101 15,105,883
CREDITORS
Amounts falling due within one year 12 (7,399,803 ) (6,952,554 )
NET CURRENT ASSETS 14,404,298 8,153,329
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,164,895

8,711,254

CREDITORS
Amounts falling due after more than one
year

13

(119,312

)

(106,836

)

PROVISIONS FOR LIABILITIES 16 (152,927 ) (125,330 )
NET ASSETS 14,892,656 8,479,088

CAPITAL AND RESERVES
Called up share capital 17 66 66
Capital redemption reserve 18 33 33
Retained earnings 18 14,892,557 8,478,989
SHAREHOLDERS' FUNDS 14,892,656 8,479,088

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:





T S Maini - Director


Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 December 2021 66 4,316,931 33 4,317,030

Changes in equity
Dividends - (788,001 ) - (788,001 )
Total comprehensive income - 4,950,059 - 4,950,059
Balance at 30 November 2022 66 8,478,989 33 8,479,088

Changes in equity
Dividends - (1,497,470 ) - (1,497,470 )
Total comprehensive income - 7,911,038 - 7,911,038
Balance at 30 November 2023 66 14,892,557 33 14,892,656

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Cash Flow Statement
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,900,932 1,208,512
Interest element of hire purchase
payments paid

(23,402

)

(22,234

)
Government grants - 15,428
Tax paid (2,187,065 ) (575,765 )
Net cash from operating activities 2,690,465 625,941

Cash flows from investing activities
Purchase of tangible fixed assets (652,858 ) (476,229 )
Sale of tangible fixed assets 250,296 458,654
Interest received 25,449 2,080
Net cash from investing activities (377,113 ) (15,495 )

Cash flows from financing activities
New hire purchases 404,202 -
Capital repayments in year (364,815 ) (252,182 )
Amount introduced by directors - 54,579
Amount withdrawn by directors (59,934 ) (66 )
Equity dividends paid (1,497,470 ) (788,001 )
Net cash from financing activities (1,518,017 ) (985,670 )

Increase/(decrease) in cash and cash equivalents 795,335 (375,224 )
Cash and cash equivalents at
beginning of year

2

3,020,497

3,395,721

Cash and cash equivalents at end of
year

2

3,815,832

3,020,497

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Cash Flow Statement
for the Year Ended 30 November 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
30.11.23 30.11.22
£    £   
Profit before taxation 10,307,497 6,140,131
Depreciation charges 133,441 104,113
Loss on disposal of fixed assets 66,449 12,159
Government grants - (15,428 )
Finance costs 23,402 22,234
Finance income (25,449 ) (2,080 )
10,505,340 6,261,129
Increase in stocks (1,408,631 ) (4,499,731 )
Increase in trade and other debtors (4,494,252 ) (4,042,613 )
Increase in trade and other creditors 298,475 3,489,727
Cash generated from operations 4,900,932 1,208,512

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 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 3,815,832 3,020,497
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 3,020,497 3,395,721


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.22 Cash flow At 30.11.23
£    £    £   
Net cash
Cash at bank and in hand 3,020,497 795,335 3,815,832
3,020,497 795,335 3,815,832
Debt
Finance leases (308,597 ) (39,387 ) (347,984 )
(308,597 ) (39,387 ) (347,984 )
Total 2,711,900 755,948 3,467,848

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

Flawless UK Vape Distribution 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.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current accounting estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

ii) Stock
In determining stock provisions, future demand and selling price is evaluated and appropriate provisions are made to reflect the risk of obsolescence and impairment in carrying value. The provisioning policy is in place to ensure that the carrying value of stock recognised in the financial statements is the lower of cost and estimated selling price, in accordance with the stated accounting policy.

Turnover
Turnover is measured at fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and Valued Added Tax.

The company recognises turnover when the following criteria have been met:

i) Sale of goods

Revenue from the sale of goods is recognised when :
(a) the significant risks and rewards of ownership have been transferred to the buyer;
(b) the company retains no ongoing involvement or control over the goods;
(c) the revenue can be reliably measured;
(d) it is probable that the Company will receive the consideration due under the transaction; and
(e) the costs incurred in respect of the transaction can be reliably measured.

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to the location and condition necessary for its intended use.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery20% on cost
Fixtures and fittings20% on cost
Motor vehicles25% on cost
Computer equipment25% on cost

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to sell and an impairment charge is recognised in the Statement of Comprehensive Income.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and other third parties.

Financial assets that are measured at cost and amortised cost are assessed at the end to each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

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 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.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

30.11.23 30.11.22
£    £   
United Kingdom 76,870,611 38,597,513
Europe 13,689,877 14,492,148
Rest of the World 3,405,402 3,364,314
93,965,890 56,453,975

4. EMPLOYEES AND DIRECTORS
30.11.23 30.11.22
£    £   
Wages and salaries 2,613,162 1,901,418
Social security costs 240,296 181,556
Other pension costs 33,791 27,486
2,887,249 2,110,460

The average number of employees during the year was as follows:
30.11.23 30.11.22

Directors 5 5
Employees 92 72
97 77

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

4. EMPLOYEES AND DIRECTORS - continued

30.11.23 30.11.22
£    £   
Directors' remuneration 107,079 99,623
Directors' pension contributions to money purchase schemes 376 376

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING PROFIT

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

30.11.23 30.11.22
£    £   
Hire of plant and machinery 7,883 8,736
Other operating leases 240,516 159,279
Depreciation - owned assets 84,262 70,003
Depreciation - assets on hire purchase contracts 49,179 34,109
Loss on disposal of fixed assets 66,449 12,159
Foreign exchange differences 13,241 (17,765 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.23 30.11.22
£    £   
Hire purchase 23,402 22,234

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.11.23 30.11.22
£    £   
Current tax:
UK corporation tax 2,368,862 1,137,065

Deferred tax 27,597 53,007
Tax on profit 2,396,459 1,190,072

UK corporation tax has been charged at 23.01% (2022 - 19%).

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

7. TAXATION - continued

Reconciliation of total tax charge 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:

30.11.23 30.11.22
£    £   
Profit before tax 10,307,497 6,140,131
Profit multiplied by the standard rate of corporation tax in the UK of
23.011% (2022 - 19%)

2,371,858

1,166,625

Effects of:
Expenses not deductible for tax purposes 22,443 1,441
Enhanced capital allowances (33 ) (8,073 )
Differing tax rates applicable 2,191 30,079
Total tax charge 2,396,459 1,190,072

The Finance Bill 2021 provided for an increase in the mainstream corporation tax rate to 25% from 1 April 2023. This law was substantively enacted on 24th May 2021. Deferred taxes at the balance sheet date have been measured using these enacted rates and reflected in these financial statements. Deferred tax has been calculated at 25%.

8. DIVIDENDS
30.11.23 30.11.22
£    £   
Ordinary 'B' shares of £1 each
Interim 306,169 188,409
Ordinary 'C' shares of £1 each
Interim 355,682 188,409
Ordinary 'D' shares of £1 each
Interim 370,756 187,955
Ordinary 'E' shares of £1 each
Interim 306,136 187,046
Ordinary 'F' shares of £1 each
Interim 158,727 36,182
1,497,470 788,001

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 December 2022 97,000 390,260 357,441 22,067 866,768
Additions - 173,353 450,317 29,188 652,858
Disposals - - (357,441 ) - (357,441 )
At 30 November 2023 97,000 563,613 450,317 51,255 1,162,185
DEPRECIATION
At 1 December 2022 53,554 210,924 40,696 3,669 308,843
Charge for year 19,400 70,319 35,114 8,608 133,441
Eliminated on disposal - - (40,696 ) - (40,696 )
At 30 November 2023 72,954 281,243 35,114 12,277 401,588
NET BOOK VALUE
At 30 November 2023 24,046 282,370 415,203 38,978 760,597
At 30 November 2022 43,446 179,336 316,745 18,398 557,925

Included within tangible fixed assets are assets held under hire purchase with a net book value of £370,692 (2022 - £333,745).

10. STOCKS
30.11.23 30.11.22
£    £   
Stocks 7,425,967 5,682,899
Goods in transit 483,393 817,830
7,909,360 6,500,729

Stock recognised in costs of sales during the year as an expense was £74,810,696 (2022 - £44,859,393).

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Trade debtors 3,125,175 1,877,531
Other debtors 6,828,511 3,534,609
VAT - 151,200
Prepayments 125,223 21,317
10,078,909 5,584,657

An impairment loss of £75,143 (2022 - £59,904) has been recognised in profit or loss in the year in respect of bad and doubtful debts.

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Hire purchase contracts (see note 14) 228,672 201,761
Trade creditors 2,746,799 4,262,756
Corporation tax 1,336,451 1,154,654
Social security and other taxes 63,011 44,185
VAT 1,437,109 -
Other creditors 97,194 181,656
Directors' current accounts - 59,934
Accrued expenses 1,490,567 1,047,608
7,399,803 6,952,554

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.11.23 30.11.22
£    £   
Hire purchase contracts (see note 14) 119,312 106,836

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.11.23 30.11.22
£    £   
Net obligations repayable:
Within one year 228,672 201,761
Between one and five years 119,312 106,836
347,984 308,597

15. SECURED DEBTS

The following secured debts are included within creditors:

30.11.23 30.11.22
£    £   
Hire purchase contracts 347,984 308,597

Hire purchase liabilities are secured on the individual assets being acquired.

16. PROVISIONS FOR LIABILITIES
30.11.23 30.11.22
£    £   
Deferred tax
Accelerated capital allowances 152,927 125,330

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 December 2022 125,330
Charge to Statement of Comprehensive Income during year 27,597
Balance at 30 November 2023 152,927

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
12 Ordinary 'B' £1 12 12
12 Ordinary 'C' £1 12 12
17 Ordinary 'D' £1 17 17
16 Ordinary 'E' £1 16 16
9 Ordinary 'F' £1 9 9
66 66

18. RESERVES

Retained Earnings

Retained earnings represents cumulative profits or losses, net of dividends paid in the current and previous periods.

Capital Redemption Reserve

This reserve arose following the purchase of the company's own shares in prior years.

19. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)

Key management personnel is considered to be the directors of the company, remuneration is stated in Note 4.

During the year total dividends of £1,497,470 (2022 - £788,001) were paid to the directors.

Flawless UK Vape Distribution Ltd (Registered number: 10343378)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023

Other related parties

The directors and shareholders are also directors and shareholders of another company. During the year rent of £186,000 (2022 - £124,000) and expenses of £3,198 (2022 - £4,110) were paid to this
company. During the year, loan advances of £1,375,286 (2022 - £3,216,248) were made to this company and repayments of £400,286 (2022 - £634,861) were received from it. The loan balance due from the aforementioned company at the year end is £3,556,387 (2022 - £2,581,387) and is included in other debtors.

During the year sales of £105,881 (2022 - £107,785) were made to another commonly controlled
company. Purchases of £11,340 (2022 - £5,793) were also made from the aforementioned company. A debtor of £7,366 (2022 - £23,757) was outstanding at the year end and included in trade debtors.

During the year sales of £122,053 (2022 - £104,610) were made to another commonly controlled
company. Purchases of £467,582 (2022 - £566,292) were also made from the aforementioned company. A debtor of £3,510 (2022 - £2,988) was outstanding in relation to the sales made at the year end and included in trade debtors.

Sales of £2,421,275 (2022 - £1,950,438) were made to another company which is commonly controlled by the directors and shareholders. A debtor of £13,942 (2022 - £27,639) was outstanding at the year end and is included in trade debtors.