Company registration number 04793171 (England and Wales)
INKLEFINKLESTEIN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INKLEFINKLESTEIN LIMITED
COMPANY INFORMATION
Directors
Mr W R Bavin
Mrs F D Bennett
Mrs P M Mytton
Secretary
Mrs T H Bavin
Company number
04793171
Registered office
The Old Pottery
Pottery Road
Bovey Tracey
Devon
England
TQ13 9DS
Auditor
Bush & Co Limited
2 Barnfield Crescent
Exeter
EX1 1QT
INKLEFINKLESTEIN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
INKLEFINKLESTEIN LIMITED
CONTENTS
Notes to the financial statements
15 - 35
INKLEFINKLESTEIN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The results of the group, for the year under review, show turnover of £12,155,404 (2022: £10,887,812), gross profit of £4,551,093 (2022: £3,582,868) and an operating profit of £981,144 (2022: £402,604) This equates to a gross profit Margin of 37.4% (2022: 32.9%) and operating profit margin of 8.1% (2022: 3.7%). Net assets of the group as at the year-end totalled £3,233,845, an increase of £660,056 over the corresponding position last year (2022: £2,573,789).

The group demonstrated remarkable financial performance in 2023, marked by substantial growth across key financial metrics. Strategic initiatives and market conditions that contributed to this include a reduction in global shipping container rates and the successful launch of a new product range, alongside a focus on improving operational efficiencies and implementing effective cost management strategies.

In 2024, the group aims to maintain profitability and increase turnover by exploring and capitalising on diverse opportunities within the supply chain. The strategic initiatives are designed to enhance operational efficiency, expand revenue streams, and ensure sustainable growth. Key focus areas include supply chain optimisation, digital transformation, strategic partnerships, market expansion, and product diversification.

 

Principal risks and uncertainties

The management of the business and the execution of the group's strategy are subject to a number of risks.

The key business risks and uncertainties facing the group are primarily associated with a decline in consumer spending, reduced disposable income, and weakening exchange rates, largely driven by the current economic downturn.

The group endeavours to mitigate these challenges by diversifying its income streams and maintaining a broad customer base, both geographically and by customer type. This strategy minimises the risks associated with any single sector, and our hedging policy helps to offset potential exchange rate losses.

Our continuous product development enhances our range, ensuring we maintain a competitive edge and retain strong consumer confidence in our brand. The traditional nature of our business model has allowed the group to thrive even during recessions, positioning us well to minimise the impact of economic fluctuations on our business.

We recognise that risks and uncertainties are inherent in the business landscape. Our commitment to diligent risk management and proactive mitigation measures is fundamental to our long-term success and our ability to adapt to evolving challenges. We remain vigilant in monitoring these risks and uncertainties and will continue to refine our strategies to ensure the sustainable growth and resilience of our business.

 

 

 

INKLEFINKLESTEIN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr W R Bavin
Director
6 September 2024
INKLEFINKLESTEIN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the group during the year was that of the manufacture and sale of a wide range of products, principally games, toys, marbles, glassware and giftware.

Results and dividends

The results for the year are set out on page 8.

Preference dividends were paid amounting to £7,800. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr W R Bavin
Mrs F D Bennett
Mrs P M Mytton
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr W R Bavin
Director
5 September 2024
INKLEFINKLESTEIN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INKLEFINKLESTEIN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INKLEFINKLESTEIN LIMITED
- 5 -
Opinion

We have audited the financial statements of Inklefinklestein Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 group and parent 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 group's and parent 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.

INKLEFINKLESTEIN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INKLEFINKLESTEIN LIMITED
- 6 -

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 report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

INKLEFINKLESTEIN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INKLEFINKLESTEIN LIMITED
- 7 -
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.

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

- Reviewing professional fees nominal ledgers.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 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 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.

Shane Cann BA(Hons) ACA FCCA CTA
Senior Statutory Auditor
For and on behalf of Bush & Co Limited
10 September 2024
Chartered Accountants
Statutory Auditor
2 Barnfield Crescent
Exeter
EX1 1QT
INKLEFINKLESTEIN LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,155,404
10,887,812
Cost of sales
(7,604,311)
(7,304,944)
Gross profit
4,551,093
3,582,868
Distribution costs
(1,225,767)
(1,248,892)
Administrative expenses
(2,369,182)
(1,931,372)
Other operating income
25,000
-
Operating profit
4
981,144
402,604
Interest receivable and similar income
8
1,457
1,653
Interest payable and similar expenses
9
(104,400)
(58,933)
Profit before taxation
878,201
345,324
Tax on profit
10
(210,346)
(31,439)
Profit for the financial year
25
667,855
313,885
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
INKLEFINKLESTEIN LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
11,143
16,785
Tangible assets
13
2,424,002
2,193,595
Investments
14
99,274
99,274
2,534,419
2,309,654
Current assets
Stocks
16
2,564,979
2,311,315
Debtors
17
1,052,723
1,362,014
Cash at bank and in hand
294,782
161,027
3,912,484
3,834,356
Creditors: amounts falling due within one year
18
(2,757,187)
(3,231,897)
Net current assets
1,155,297
602,459
Total assets less current liabilities
3,689,716
2,912,113
Creditors: amounts falling due after more than one year
19
(333,483)
(271,502)
Provisions for liabilities
Deferred tax liability
22
122,388
66,822
(122,388)
(66,822)
Net assets
3,233,845
2,573,789
Capital and reserves
Called up share capital
24
350,000
350,000
Revaluation reserve
25
563,267
563,267
Capital redemption reserve
25
50,000
50,000
Other reserves
25
1,066,184
1,066,184
Profit and loss reserves
25
1,204,394
544,338
Total equity
3,233,845
2,573,789
INKLEFINKLESTEIN LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
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:
05 September 2024
Mr W R Bavin
Director
Company registration number 04793171 (England and Wales)
INKLEFINKLESTEIN LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
400,002
400,002
Current assets
-
-
Creditors: amounts falling due within one year
18
(142,559)
(138,434)
Net current liabilities
(142,559)
(138,434)
Net assets
257,443
261,568
Capital and reserves
Called up share capital
24
350,000
350,000
Capital redemption reserve
25
50,000
50,000
Profit and loss reserves
25
(142,557)
(138,432)
Total equity
257,443
261,568

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,675 (2022 - £3,705 profit).

These financial statements have been prepared 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:
05 September 2024
Mr W R Bavin
Director
Company registration number 04793171 (England and Wales)
INKLEFINKLESTEIN LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
375,000
563,267
25,000
1,066,184
409,030
2,438,481
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
313,885
313,885
Dividends
11
-
-
-
-
(11,700)
(11,700)
Own shares acquired
-
-
-
-
(166,877)
(166,877)
Redemption of shares
24
(25,000)
-
25,000
-
-
-
0
Balance at 31 December 2022
350,000
563,267
50,000
1,066,184
544,338
2,573,789
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
667,855
667,855
Dividends
11
-
-
-
-
(7,800)
(7,800)
Balance at 31 December 2023
350,000
563,267
50,000
1,066,184
1,204,393
3,233,844
INKLEFINKLESTEIN LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
375,000
25,000
36,440
436,440
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
3,705
3,705
Dividends
11
-
-
(11,700)
(11,700)
Own shares acquired
-
-
(166,877)
(166,877)
Redemption of shares
24
(25,000)
25,000
-
-
0
Balance at 31 December 2022
350,000
50,000
(138,432)
261,568
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
3,675
3,675
Dividends
11
-
-
(7,800)
(7,800)
Balance at 31 December 2023
350,000
50,000
(142,557)
257,443
INKLEFINKLESTEIN LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
1,165,133
(121,315)
Interest paid
(104,400)
(58,933)
Income taxes paid
(40,726)
-
0
Net cash inflow/(outflow) from operating activities
1,020,007
(180,248)
Investing activities
Purchase of tangible fixed assets
(337,192)
(164,906)
Proceeds from disposal of tangible fixed assets
3,400
-
Interest received
1,457
1,653
Net cash used in investing activities
(332,335)
(163,253)
Financing activities
Share repurchase
-
0
(166,877)
Proceeds from new bank loans
90,000
207,494
Repayment of bank loans
(507,785)
(42,815)
Payment of finance leases obligations
(29,077)
(2,074)
Proceeds from new finance leases
110,000
9,651
Dividends paid to equity shareholders
(7,800)
(11,700)
Net cash used in financing activities
(344,662)
(6,321)
Net increase/(decrease) in cash and cash equivalents
343,010
(349,822)
Cash and cash equivalents at beginning of year
(130,050)
219,772
Cash and cash equivalents at end of year
212,960
(130,050)
Relating to:
Cash at bank and in hand
294,782
161,027
Bank overdrafts included in creditors payable within one year
(81,822)
(291,077)
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Inklefinklestein Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Old Pottery, Pottery Road, Bovey Tracey, Devon, England, TQ13 9DS.

 

The group consists of Inklefinklestein Ltd and all of its subsidiaries.

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.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Inklefinklestein Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

- the Group has transferred the significant risks and rewards of ownership to the buyer;

- the Group 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 Group 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.

1.6
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.

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
25% on cost or 25% on reducing balance
1.7
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.

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% or 10% on cost
Fixtures and fittings
20% or 15% on cost
Motor vehicles
20% on cost

Freehold land is not depreciated.

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 recognised in the profit and loss account.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
Equity instruments

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

1.14
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 profit and loss account 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 group’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 profit and loss account, 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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

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

 

An analysis of the group's turnover by geographical market is as follows:

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,774,049
6,043,065
Europe
216,059
207,637
United States
4,513,274
4,290,361
Rest of the world (primarily Australia)
652,022
346,749
12,155,404
10,887,812
2023
2022
£
£
Other revenue
Interest income
1,457
1,653
Grants received
25,000
-
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
34,050
143,785
Government grants
(25,000)
-
Depreciation of owned tangible fixed assets
104,812
66,289
Profit on disposal of investment property
(3,400)
-
0
Amortisation of intangible assets
5,642
4,563
5
Auditor's remuneration
2023
2022
£
£
Preparation and audit of the financial statements of the group, company and subsidiaries
30,472
24,995
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
92
88
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,960,244
1,753,874
440,279
342,643
Social security costs
190,206
65,816
55,670
45,944
Pension costs
143,516
96,259
69,714
6,947
2,293,966
1,915,949
565,663
395,534
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
440,279
342,643
Company pension contributions to defined contribution schemes
69,714
6,947
509,993
349,590
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
329,000
312,200
Company pension contributions to defined contribution schemes
63,987
5,120
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
1,457
1,653
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
93,361
56,661
Other finance costs:
Interest on finance leases and hire purchase contracts
11,039
2,272
Total finance costs
104,400
58,933
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
154,780
13,769
Deferred tax
Origination and reversal of timing differences
55,566
17,670
Total tax charge
210,346
31,439
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 27 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
878,201
345,324
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
219,550
65,612
Tax effect of expenses that are not deductible in determining taxable profit
7,194
3,426
Tax effect of income not taxable in determining taxable profit
(850)
(704)
Unutilised tax losses carried forward
11,284
-
0
Adjustments in respect of prior years
54
-
0
Effect of change in corporation tax rate
(10,268)
-
Group relief
(1,919)
(57,425)
Permanent capital allowances in excess of depreciation
(62,655)
(24,300)
Under/(over) provided in prior years
(7,610)
(34,567)
Group losses in the period
-
0
60,218
Consolidation adjustments
-
0
1,509
Movement in deferred tax provision
55,566
17,670
Taxation charge
210,346
31,439
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
7,800
11,700
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
12
Intangible fixed assets
Group
Software
£
Cost
At 1 January 2023 and 31 December 2023
51,486
Amortisation and impairment
At 1 January 2023
34,701
Amortisation charged for the year
5,642
At 31 December 2023
40,343
Carrying amount
At 31 December 2023
11,143
At 31 December 2022
16,785
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,879,173
1,518,773
254,755
83,858
3,736,559
Additions
-
0
329,982
22,383
-
0
352,365
Disposals
-
0
(17,145)
-
0
(16,980)
(34,125)
At 31 December 2023
1,879,173
1,831,610
277,138
66,878
4,054,799
Depreciation and impairment
At 1 January 2023
320
1,206,639
252,148
83,858
1,542,965
Depreciation charged in the year
-
0
91,203
13,609
-
0
104,812
Eliminated in respect of disposals
-
0
-
0
-
0
(16,980)
(16,980)
At 31 December 2023
320
1,297,842
265,757
66,878
1,630,797
Carrying amount
At 31 December 2023
1,878,853
533,768
11,381
-
0
2,424,002
At 31 December 2022
1,878,853
312,134
2,608
-
0
2,193,595
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
99,274
99,274
400,002
400,002
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
99,274
Carrying amount
At 31 December 2023
99,274
At 31 December 2022
99,274
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
400,002
Carrying amount
At 31 December 2023
400,002
At 31 December 2022
400,002
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Town Mills Craft Centre Limited
The Old Pottery, Pottery Road, Bovey Tracey, Devon, TQ13 9DS
Wholesaler
£1 Ordianry Shares, 6% Preference Shares
100.00
The Bovey Tracey Craft Centre Limited
The Old Pottery, Pottery Road, Bovey Tracey, Devon, TQ13 9DS
Retailer
£1 Ordinary Shares
100.00
Teign Valley Glass Limited
The Old Pottery, Pottery Road, Bovey Tracey, Devon, TQ13 9DS
Dormant
£1 Ordianry Shares
100.00
Town Mills Craft Centre (Australia) Pty Ltd
Level 14, Australia Square, 264-278 George Street, Sydney Cove NSW 2000,
Australia
Wholesaler
Ordinary Shares
100.00
House of Marbles Online Limited
The Old Pottery, Pottery Road, Bovey Tracey, Devon, TQ13 9DS
Dormant
£1 Ordinary Shares
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,564,979
2,311,315
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
811,378
1,160,258
-
0
-
0
Other debtors
87,130
75,100
-
0
-
0
Prepayments and accrued income
154,215
126,656
-
0
-
0
1,052,723
1,362,014
-
-
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
547,569
1,196,102
-
0
-
0
Obligations under finance leases
21
39,713
2,914
-
0
-
0
Trade creditors
207,974
369,889
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
138,239
134,339
Corporation tax payable
162,390
48,336
-
0
-
0
Other taxation and social security
243,545
160,268
-
-
Other creditors
1,497,022
1,354,283
-
0
-
0
Accruals and deferred income
58,974
100,105
4,320
4,095
2,757,187
3,231,897
142,559
138,434
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
280,703
259,210
-
0
-
0
Obligations under finance leases
21
52,780
12,292
-
0
-
0
333,483
271,502
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
746,450
1,164,235
-
0
-
0
Bank overdrafts
81,822
291,077
-
0
-
0
828,272
1,455,312
-
-
Payable within one year
547,569
1,196,102
-
0
-
0
Payable after one year
280,703
259,210
-
0
-
0
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 32 -

There are 4 loans relating to Town Mill Craft Centre Limited. One is a short-term buyer loan relating to the importing of goods for resale, which assists in foreign currency cash flows. The three long-term loans are payable by fixed instalments. The first is for £46,451 over 8 years at an interest rate of 2.5%, the second for £253,927 over 6 years at 2.85%, and the third advanced this year of £90,000 over 5 years.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
39,713
2,914
-
0
-
0
In two to five years
52,780
12,292
-
0
-
0
92,493
15,206
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
122,388
66,822
The company has no deferred tax assets or liabilities.
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
66,822
-
Charge to profit or loss
55,566
-
Liability at 31 December 2023
122,388
-

The deferred tax liability balance set out above relates to accelerated capital allowances on the group's tangible fixed assets.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,516
96,259

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
300,000
300,000
300,000
300,000
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
6% Preference Shares of £1 each
50,000
50,000
50,000
50,000
Preference shares classified as equity
50,000
50,000
Total equity share capital
350,000
350,000
INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
25
Reserves
Profit and loss reserves

The merger reserve represents the difference between the nominal value of shares issued on formation of the parent company and the assets transferred.

 

Any movement of the revaluation reserve relates to the difference on revaluation of the foreign subsidiary.

 

26
Financial commitments, guarantees and contingent liabilities

The group has provided the bank with an unlimited cross guarantee in respect of the debts of Town Mills Craft Centre Limited and The Bovey Tracey Craft Centre Limited. As at the year-end, the liability was £746,450 (2022: £1,164,235).

27
Related party transactions

FR Bavin Trust has an interest in the share capital of Inklefinklestein Limited.

 

Town Mills Craft Centre Limited is a subsidiary of Inklefinklestein Limited and was due £138,237 (2022: £134,337) at the end of the period.

28
Directors' transactions

As at the year-end, the group was owed by W R Bavin, a director, £86,705 (2022: £75,011). Interest has been charged at market rate of 2% and there are no fixed repayment terms.

29
Controlling party

The ultimate controlling party is the F R Bavin Trust. As far as the directors are aware there is no individual who has control of the trust.

INKLEFINKLESTEIN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
30
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
667,855
313,887
Adjustments for:
Taxation charged
210,346
31,439
Finance costs
104,400
58,933
Investment income
(1,457)
(1,653)
Gain on disposal of tangible fixed assets
(3,400)
-
Amortisation and impairment of intangible assets
5,642
4,563
Depreciation and impairment of tangible fixed assets
106,785
66,289
Movements in working capital:
Increase in stocks
(253,664)
(959,864)
Decrease/(increase) in debtors
309,291
(162,784)
Increase in creditors
19,335
527,875
Cash generated from/(absorbed by) operations
1,165,133
(121,315)
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
161,027
133,755
294,782
Bank overdrafts
(291,077)
209,255
(81,822)
(130,050)
343,010
212,960
Borrowings excluding overdrafts
(1,164,235)
417,785
(746,450)
Obligations under finance leases
(15,206)
(77,287)
(92,493)
(1,309,491)
683,508
(625,983)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr W R BavinMrs F D BennettMrs P M MyttonMrs T H 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