Company registration number 04775980 (England and Wales)
THE BOVEY TRACEY CRAFT CENTRE LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE BOVEY TRACEY CRAFT CENTRE LTD
COMPANY INFORMATION
Directors
Mr W R Bavin
Mrs F D Bennett
Mrs P M Mytton
Ms A Harkin
(Appointed 6 June 2023)
Mrs T H Bavin
Secretary
Mrs T H Bavin
Company number
04775980
Registered office
The Old Pottery
Pottery Road
Bovey Tracey
Devon
England
TQ13 9DS
Auditor
Bush & Co Limited
2 Barnfield Crescent
Exeter
EX1 1QT
THE BOVEY TRACEY CRAFT CENTRE LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
THE BOVEY TRACEY CRAFT CENTRE LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
10,003
18,453
Tangible assets
4
44,075
30,001
54,078
48,454
Current assets
Stocks
412,020
420,696
Debtors
5
1,078
1,923
Cash at bank and in hand
111,351
98,257
524,449
520,876
Creditors: amounts falling due within one year
6
(2,859,952)
(2,636,108)
Net current liabilities
(2,335,503)
(2,115,232)
Net liabilities
(2,281,425)
(2,066,778)
Capital and reserves
Called up share capital
1
1
Retained earnings
(2,281,426)
(2,066,779)
Total equity
(2,281,425)
(2,066,778)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 5 September 2024 and are signed on its behalf by:
Mr W R Bavin
Director
Company Registration No. 04775980
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
The Bovey Tracey Craft Centre Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Old Pottery, Pottery Road, Bovey Tracey, Devon, England, TQ13 9DS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant on the continued support of Town Mills Craft Centre Limited, a fellow group company. The company has indicated its willingness to continue to support and therefore the directors consider that the going concern basis is appropriate.true
1.3
Turnover
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 the 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.
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is twenty years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Intangible assets other than goodwill comprise of costs related to website development. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of five years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% on cost
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% on cost
Fixtures and fittings
20% and 15% on cost
Motor vehicles
20% on cost
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 profit or loss.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 balance sheet 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.
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
56
53
3
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
75,000
38,120
113,120
Amortisation and impairment
At 1 January 2023
67,500
27,167
94,667
Amortisation charged for the year
3,750
4,700
8,450
At 31 December 2023
71,250
31,867
103,117
Carrying amount
At 31 December 2023
3,750
6,253
10,003
At 31 December 2022
7,500
10,953
18,453
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
134,361
254,755
42,888
432,004
Additions
9,995
22,383
32,378
Disposals
(1,695)
(1,695)
At 31 December 2023
142,661
277,138
42,888
462,687
Depreciation and impairment
At 1 January 2023
106,967
252,148
42,888
402,003
Depreciation charged in the year
3,000
13,609
16,609
At 31 December 2023
109,967
265,757
42,888
418,612
Carrying amount
At 31 December 2023
32,694
11,381
44,075
At 31 December 2022
27,394
2,607
30,001
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,077
1,833
Amounts owed by group undertakings
1
1
Other debtors
89
1,078
1,923
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
30,126
43,477
Amounts owed to group undertakings
2,710,962
2,478,947
Taxation and social security
109,417
85,809
Other creditors
9,447
27,875
2,859,952
2,636,108
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shane Cann BA(Hons) ACA FCCA CTA
Statutory Auditor:
Bush & Co Limited
8
Financial commitments, guarantees and contingent liabilities
The company has provided the bank with an unlimited cross guarantee in respect in respect of the debts of Town Mills Craft Centre Limited and The Bovey Tracey Craft Centre Limited. As at 31 December 2023, the liability was £746,131 (2022: £1,164,235).
9
Related party transactions
Bovey Tracey Craft Centre Limited is a 100% subsidiary of Inklefinklestein Limited, for which consolidated accounts are prepared. The registered office of Inklefinklestein Limited is The Old Pottery, Pottery Road, Bovey Tracey, Devon, TQ13 9DS.
The Company has taken advantage of exemptions under FRS102 1AC.35 to not disclose transactions with its parent, Inklefinklestein Limited, or fellow subsidiary, Town Mills Craft Centre Limited.
THE BOVEY TRACEY CRAFT CENTRE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
10
Ultimate controlling party
The company's parent undertaking is Inklefinklestein Limited.
The controlling shareholders F R Bavin Trust. As far as the directors are aware, there is no individual who has control of the Trust company.