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Registered number: 00620455









TAKARA BELMONT (U.K.) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

 
TAKARA BELMONT (U.K.) LIMITED
 
 
COMPANY INFORMATION


Directors
Hidetaka Yoshikawa 
Stephen Price 
Tomohide Yoshikawa 
Akira Ogawa (appointed 1 November 2023)




Company secretary
Stephen Price



Registered number
00620455



Registered office
Belmont House
One St Andrews Way

London

E3 3PA




Independent auditor
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA




Bankers
MUFG Bank Limited
Ropemaker Place

25 Ropemaker Street

London

EC2Y 9AN





HSBC

Canada Place

Canary Wharf

London

E14 5AH





 
TAKARA BELMONT (U.K.) LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditor's report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 25


 
TAKARA BELMONT (U.K.) LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

Business review
 
The directors are pleased to report that Takara Belmont (UK) Limited (“The Company”) achieved a profit before tax of £4,653,972 for the fifteen-month period ended 31st March 2024 (12 months to December 2022 - £4,369,551).
The dental market remained buoyant for the majority of 2023 with availability of components and products slowly returning back to pre-pandemic levels. Good relationships continued with dealers, customers and other stakeholders contributing to an increase in the dental turnover. There were also good signs that the hairdressing business was returning to normal after the struggles it experienced over the last few years. Confidence with hairdressers is returning, resulting in a healthy increase in turnover.
The directors expect the latest high quality and technological advanced products produced by the Company would help the Company to remain profitable in subsequent years.

Principal risks and uncertainties
 
The company's sales and purchases are denominated mainly in GBP, which provides a natural hedge against foreign exchange risk. No other foreign exchange hedging activities are performed. Price risk is minimised through entering into long term pricing arrangements with major customers; purchases are made solely from the company's parent and at agreed long term purchase price.
Credit risk is mainly controlled by dealing only with large prestigious customers with which the company has long trading relationships and credit insurance.
Liquidity and cash flow risk are managed through agreeing appropriate payment terms with both customers and with the parent company.

Financial key performance indicators
 
The directors actively review the monthly management accounts, sales order value, cash and stock levels as key indicators to monitor the performance of the company.


This report was approved by the board on 5 August 2024 and signed on its behalf.



................................................
Stephen Price
Director

Page 1

 
TAKARA BELMONT (U.K.) LIMITED
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

The directors present their report and the financial statements for the period ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.

Principal activity

The principal activity of the Company is the stockholding, assembly and sale of dental and hairdressing equipment.

Results and dividends

The profit for the period, after taxation, amounted to £3,533,585 (2022 - £3,475,737).

During the year, a dividend was paid of £640,000 (2022 - 640,000).
The directors do not recommend a final dividend 
(2022 - £Nil).

Page 2

 
TAKARA BELMONT (U.K.) LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024


Directors

The directors who served during the period were:

Hidetaka Yoshikawa 
Masato Ishida (resigned 11 August 2023)
Stephen Price 
Tomohide Yoshikawa 
Akira Ogawa (appointed 1 November 2023)

Future developments

The Company aims to fulfil the market with the latest, high-quality products and ensure the highest level of professional service is provided to all customers.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end. 

Auditor

The auditor, Barnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 5 August 2024 and signed on its behalf.
 





................................................
Stephen Price
Director

Page 3

 
TAKARA BELMONT (U.K.) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TAKARA BELMONT (U.K.) LIMITED
 

Opinion


We have audited the financial statements of Takara Belmont (U.K.) Limited (the 'Company') for the period ended 31 March 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 March 2024 and of its profit for the period 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 4

 
TAKARA BELMONT (U.K.) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TAKARA BELMONT (U.K.) LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


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:


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 Directors' responsibilities statement set out on page 2, 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 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.


Page 5

 
TAKARA BELMONT (U.K.) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TAKARA BELMONT (U.K.) LIMITED (CONTINUED)

Auditor's 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 Auditor's 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;
Enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and
Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

Any instances of non-compliance with laws and regulations identified and communicated were considered in our audit approach. The most significant laws and regulations were determined as follows:
UK GAAP FRS 102 and Companies Act; and
Tax compliance regulations.

Additional audit procedures performed by the audit engagement team included:
Review of the financial statement disclosures and testing to supporting documentation; and
Completion of disclosure checklists to identify areas of non-compliance.

The areas that we identified as being susceptible to material misstatement due to fraud were:
Revenue Recognition; and
Management Override.

Audit procedures in response to the identified areas above:
Obtaining an understanding of the processes and controls around revenue recognition;
Substantively testing revenue via various testing including transactional, cut off and sequencing;
Evaluation of the appropriateness of the accounting policies;
Testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Page 6

 
TAKARA BELMONT (U.K.) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TAKARA BELMONT (U.K.) LIMITED (CONTINUED)

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained 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.


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 Auditor's report.


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 2006Our 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 an Auditor's report 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.





Stuart Moon (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

 
Date: 
5 August 2024
Page 7

 
TAKARA BELMONT (U.K.) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024

Period to March
2024
Year to December
2022
Note
£
£

  

Turnover
 4 
32,736,850
26,857,019

Cost of sales
  
(21,279,522)
(17,462,859)

Gross profit
  
11,457,328
9,394,160

Distribution costs
  
(1,311,014)
(959,134)

Administrative expenses
  
(5,675,322)
(4,064,994)

Operating profit
 5 
4,470,992
4,370,032

Interest receivable and similar income
 9 
184,261
4,972

Interest payable and similar expenses
 10 
(1,281)
(5,453)

Profit before tax
  
4,653,972
4,369,551

Tax on profit
 11 
(1,120,387)
(893,814)

Profit for the financial period
  
3,533,585
3,475,737

There were no recognised gains and losses for 2024 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2022:£NIL).

The notes on pages 11 to 25 form part of these financial statements.

Page 8

 
TAKARA BELMONT (U.K.) LIMITED
REGISTERED NUMBER:00620455

BALANCE SHEET
AS AT 31 MARCH 2024

31 March
31 December
2024
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,228,977
3,204,122

Investment property
 14 
1,179,309
-

  
4,408,286
3,204,122

Current assets
  

Stocks
 15 
11,541,487
8,691,637

Debtors: amounts falling due within one year
 16 
4,250,166
5,945,849

Cash at bank and in hand
 17 
5,238,549
4,749,929

  
21,030,202
19,387,415

Creditors: amounts falling due within one year
 18 
(6,748,415)
(6,796,269)

Net current assets
  
 
 
14,281,787
 
 
12,591,146

Total assets less current liabilities
  
18,690,073
15,795,268

Provisions for liabilities
  

Deferred tax
 19 
(165,109)
(163,889)

Net assets
  
18,524,964
15,631,379


Capital and reserves
  

Called up share capital 
 21 
1,600,000
1,600,000

Profit and loss account
 20 
16,924,964
14,031,379

  
18,524,964
15,631,379


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 August 2024.




................................................
Stephen Price
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
TAKARA BELMONT (U.K.) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,600,000
11,195,642
12,795,642


Comprehensive income for the year

Profit for the year
-
3,475,737
3,475,737


Contributions by and distributions to owners

Dividends: Equity capital
-
(640,000)
(640,000)



At 1 January 2023
1,600,000
14,031,379
15,631,379


Comprehensive income for the period

Profit for the year
-
3,533,585
3,533,585


Contributions by and distributions to owners

Dividends: Equity capital
-
(640,000)
(640,000)


At 31 March 2024
1,600,000
16,924,964
18,524,964


The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

1.


General information

Takara Belmont (U.K.) Limited ("the Company") is a private company limited by shares, incorporated in England and Wales. Its registered office is Belmont House, One St Andrews Way, London, E3 3PA. Its registered company number is 00620455.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Takara Belmont Corporation as at 31 March 2024 and these financial statements may be obtained from 7-1-19, Akasaka, Minato-ku, Tokyo, 107-0052 Japan.

 
2.3

Going concern

The directors pay careful attention to the cost base of the Company ensuring that it is kept at a level to satisfy the commercial requirements but also that it remains appropriate to the level of activity of the group and the financial resources available to it. 

Based on the above the directors expect the Company to have adequate resources to continue to adopt the going concern basis of accounting in preparing these financial statements.

Page 11

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised in the month of despatch with invoice runs occurring two to three times a month.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following annual basis:.


Freehold property
-
2% on cost
Leasehold property
-
Over the lease term
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
15% and 50% on cost or net book value

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 12

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Investment property

Investment property is carried at fair value determined annually by external valuers and the directors derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Stocks held in the showrooms and damaged stock are provided against, at rates of 50% and 100% respectively, to reduce the value to its net realisable value.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.9

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

Page 13

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Financial instruments (continued)

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.10

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.

 
2.11

Creditors

Short-term creditors are measured at the transaction price.

Page 14

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 15

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.17

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Judgements in applying accounting policies 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.
Critical accounting estimates and assumptions
There are no critical accounting estimates and assumptions.

Page 16

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

4.


Turnover

The whole of the turnover is attributable to the design, stockholding, assembly and after sales services of dental and hairdressing equipment.

Analysis of turnover by country of destination:

2024
2022
£
£

United Kingdom
32,267,924
25,966,172

Rest of Europe
464,619
890,179

Rest of the world
4,307
668

32,736,850
26,857,019



5.


Operating profit

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

2024
2022
£
£

Depreciation of tangible fixed assets*
3,644
177,898

(Profit)/loss on foreign exchange
94,807
(90,109)

Defined pension contribution cost
112,400
82,757

*Depreciation of fixed assets includes an adjustment relating to the over depreciation of assets in prior periods.


6.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor:


2024
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
20,000
20,000

Page 17

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2022
£
£

Wages and salaries
3,434,359
2,493,925

Social security costs
350,820
254,258

Cost of defined contribution scheme
112,400
82,757

3,897,579
2,830,940


The average monthly number of employees, including the directors, during the period was as follows:


2024
2022
No.
No.







Office and management
28
25



Warehouse
23
24

51
49


8.


Directors' remuneration

2024
2022
£
£

Directors' emoluments
243,455
155,707

Company contributions to defined contribution pension schemes
8,750
7,000

252,205
162,707


During the period retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £206,882 (2022 - £159,811).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,750 (2022 - £7,000).

Page 18

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

9.


Interest receivable and similar income

2024
2022
£
£


Bank interest receivable
184,261
4,972


10.


Interest payable and similar charges

2024
2022
£
£


Other interest payable
1,281
5,453


11.


Taxation


2024
2022
£
£

Corporation tax


Current tax on profits for the year
1,120,265
811,525

Adjustments in respect of previous periods
(1,098)
4,149


Total current tax
1,119,167
815,674

Deferred tax


Origination and reversal of timing differences
1,162
78,140

Changes to tax rates
58
-

Total deferred tax
1,220
78,140


Tax on profit
1,120,387
893,814
Page 19

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.82% (2022 - 19   %). The differences are explained below:

2024
2022
£
£


Profit on ordinary activities before tax
4,653,972
4,369,551


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.82% (2022 - 19   %)
1,108,576
830,215

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13,124
23,050

Adjustments to tax charge in respect of prior periods
(1,097)
13,611

Changes in tax rates
(156)
39,333

Non-taxable income
(60)
(12,395)

Total tax charge for the period/year
1,120,387
893,814


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

31 March
31 December
2024
2022
£
£


Dividends paid
640,000
640,000

Page 20

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

13.


Tangible fixed assets







Freehold property
Leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
3,726,334
688,705
206,978
39,516
1,128,351
5,789,884


Additions
5,219
11,421
-
-
21,799
38,439


Disposals
-
-
(19,544)
-
(60,473)
(80,017)



At 31 March 2024

3,731,553
700,126
187,434
39,516
1,089,677
5,748,306



Depreciation


At 1 January 2023
795,356
661,890
128,698
26,987
972,831
2,585,762


Charge for the period on owned assets
(94,232)
(7,779)
12,218
3,812
89,625
3,644


Disposals
-
-
(18,390)
-
(51,687)
(70,077)



At 31 March 2024

701,124
654,111
122,526
30,799
1,010,769
2,519,329



Net book value



At 31 March 2024
3,030,429
46,015
64,908
8,717
78,908
3,228,977



At 31 December 2022
2,930,978
26,815
78,280
12,529
155,520
3,204,122


14.


Investment property





Investment property

£



Valuation


Additions at cost
1,179,309



At 31 March 2024
1,179,309

Investment property comprises a leasehold property.

The 2024 valuations were made by the directors, on an open market value for existing use basis.



Page 21

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

15.


Stocks

31 March
31 December
2024
2022
£
£

Raw materials and consumables
1,634,535
1,206,237

Goods in transit
2,409,994
2,684,676

Finished goods and goods for resale
7,496,958
4,800,724

11,541,487
8,691,637



16.


Debtors

31 March
31 December
2024
2022
£
£


Trade debtors
2,990,037
5,456,660

Amounts owed by group undertakings
25,954
279,029

Other debtors
255,216
12,456

Prepayments and accrued income
978,959
197,704

4,250,166
5,945,849



17.


Cash and cash equivalents

31 March
31 December
2024
2022
£
£

Cash at bank and in hand
5,238,549
4,749,929


Page 22

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

18.


Creditors: Amounts falling due within one year

31 March
31 December
2024
2022
£
£

Trade creditors
584,843
263,222

Amounts owed to group undertakings
5,298,115
5,107,152

Corporation tax
146,307
327,140

Other taxation and social security
64,243
316,036

Other creditors
2,966
5,752

Accruals and deferred income
651,941
776,967

6,748,415
6,796,269



19.


Deferred taxation






2024


£






At beginning of year
163,889


Charged to profit or loss
(1,220)



At end of year
165,109

The provision for deferred taxation is made up as follows:

31 March
31 December
2024
2022
£
£


Accelerated capital allowances
165,109
163,889


20.


Reserves

Profit and loss account

The profit and loss account represents accumulated profits and losses of the Company since incorporation less dividends paid. 

Page 23

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

21.


Share capital

31 March
31 December
2024
2022
£
£
Allotted, called up and fully paid



1,600,000 (2022 - 1,600,000) Ordinary shares of £1.00 each
1,600,000
1,600,000

All shares rank equally in all respects.



22.


Contingent liabilities

Dilapidation costs  
Lease agreements in respect of the Company's head office will terminate in 2028. However the company has an option to extend the lease agreement. At cessation of the lease, Takara Belmont (U.K.) Limited will be required to pay an amount for dilapidations. It is impractical to determine the exact point of cessation of the lease and therefore the value is also impractical to determine.  


23.


Pension commitments

The Company has a money purchase pension scheme to cover all eligible employees. The assets of the scheme are held separately from those of the Company, in an independently administered fund. Under a defined scheme, benefits depend on the contribution levels and the emerging investment performance. The Company contributions to this scheme in the period ended 31 March 2024 totalled £112,400 (year to 31 December 2022 - £82,757). There were no outstanding contributions at the balance sheet date (2022 - £Nil)

Page 24

 
TAKARA BELMONT (U.K.) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

24.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 March
31 December
2024
2022
£
£

Land & buildings


Not later than 1 year
541,960
238,363

Later than 1 year and not later than 5 years
1,419,497
800,000

Later than 5 years
-
133,333

1,961,457
1,171,696

31 March
31 December
2024
2022

£
£

Other


Not later than 1 year
49,396
44,899

Later than 1 year and not later than 5 years
48,118
54,960

97,514
99,859


25.


Related party transactions

The Company has taken the exemption available under FRS102 Section 33 'Related Party Transactions' not to disclose inter-group information. 
Remuneration of key management personnel is included in note 8.


26.


Controlling party

The directors regard Takara Belmont Corporation, a company incorporated in Japan, as the immediate and ultimate holding company. According to the register maintained by the company, Takara Belmont Corporation had a 100% interest in the equity capital of Takara Belmont (U.K.) Limited. The ultimate parent company is controlled by Hidetaka Yoshikawa.  

 
Page 25