Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312006-05-162023-12-312023-12-31002023-01-01falseLicensing of a trademark and retailing of clothing00falsefalsefalse 05799205 2023-01-01 2023-12-31 05799205 2022-01-01 2022-12-31 05799205 2023-12-31 05799205 2022-12-31 05799205 c:CompanySecretary1 2023-01-01 2023-12-31 05799205 c:Director1 2023-01-01 2023-12-31 05799205 c:Director1 2023-12-31 05799205 c:RegisteredOffice 2023-01-01 2023-12-31 05799205 d:Buildings d:LongLeaseholdAssets 2023-01-01 2023-12-31 05799205 d:MotorVehicles 2023-01-01 2023-12-31 05799205 d:FurnitureFittings 2023-01-01 2023-12-31 05799205 d:OfficeEquipment 2023-01-01 2023-12-31 05799205 d:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 05799205 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 05799205 d:CopyrightsPatentsTrademarksServiceOperatingRights 2023-12-31 05799205 d:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-31 05799205 d:CurrentFinancialInstruments 2023-12-31 05799205 d:CurrentFinancialInstruments 2022-12-31 05799205 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 05799205 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 05799205 d:ShareCapital 2023-12-31 05799205 d:ShareCapital 2022-12-31 05799205 d:CapitalRedemptionReserve 2023-01-01 2023-12-31 05799205 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05799205 d:RetainedEarningsAccumulatedLosses 2023-12-31 05799205 d:RetainedEarningsAccumulatedLosses 2022-12-31 05799205 d:RetainedEarningsAccumulatedLosses 2022-01-01 05799205 c:OrdinaryShareClass1 2023-01-01 2023-12-31 05799205 c:OrdinaryShareClass1 2023-12-31 05799205 c:OrdinaryShareClass1 2022-12-31 05799205 c:FRS102 2023-01-01 2023-12-31 05799205 c:Audited 2023-01-01 2023-12-31 05799205 c:FullAccounts 2023-01-01 2023-12-31 05799205 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05799205 d:Subsidiary1 2023-01-01 2023-12-31 05799205 d:Subsidiary1 1 2023-01-01 2023-12-31 05799205 d:Subsidiary2 2023-01-01 2023-12-31 05799205 d:Subsidiary2 1 2023-01-01 2023-12-31 05799205 d:Subsidiary3 2023-01-01 2023-12-31 05799205 d:Subsidiary3 1 2023-01-01 2023-12-31 05799205 d:Subsidiary4 2023-01-01 2023-12-31 05799205 d:Subsidiary4 1 2023-01-01 2023-12-31 05799205 c:Consolidated 2023-12-31 05799205 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 05799205 d:CopyrightsPatentsTrademarksServiceOperatingRights d:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 05799205 6 2023-01-01 2023-12-31 05799205 d:CopyrightsPatentsTrademarksServiceOperatingRights d:OwnedIntangibleAssets 2023-01-01 2023-12-31 05799205 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05799205










WATER SPRITE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
WATER SPRITE LIMITED
 

COMPANY INFORMATION


Director
Mr Adam Holdsworth 




Company secretary
Mr Ian Taylor



Registered number
05799205



Registered office
The Vineries
Broughton Hall

Broughton

Skipton

BD23 3AE




Independent auditors
Sagars Accountants Ltd

Gresham House

5-7 St Pauls Street

Leeds

LS1 2JG





 
WATER SPRITE LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Director's report
4 - 5
Independent auditors' report
6 - 9
Consolidated statement of income and retained earnings
10
Consolidated statement of financial position
11
Company statement of financial position
12
Consolidated statement of cash flows
13
Notes to the financial statements
14 - 30


 
WATER SPRITE LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The director presents his strategic report together with the audited financial statements for the year to 31st of December 2023. 

Principal activity

The Group was established in 2006 and has become a multi-channel retail business renowned for high quality cashmere under the N.Peal brand. The principal activity of the Group throughout the year was the design and sale of luxury cashmere clothing.
The Group operates through the following channels:
- Retail stores: the brand operates 12 stores across the UK, USA, Germany and Ireland 
- Online: the brand operates a scalable and growing web business in three currencies (UK£, US$ and Euro€)
- Wholesale: the brand operates as a wholesaler to selected brands.  

Business review
 
The director is pleased to report another year of strong growth across the business with sales of £27.7m (2022:£23.9m) up 15.57% on the previous year.  Investment in senior management and the company infrastructure has continued, in order to prepare the Group for the next phase of growth over the coming five years.
During the year, the director made significant progress in implementing its strategies by: 
- Investment in the update of the Harriet Street store in June 2023.
- Delivering significant growth across our Retail Portfolio. Maintaining growth in the Ecommerce channel, by replacing the sales generated by the latest Bond movie. Sales peaked in 2021 and continued into 2022 and 2023, on a diminishing basis.  
- Development of new brand collaborations with third parties.
- Investment in new Product Categories 
- Investment in the Head Office management team and developing & improving processes and systems.

Page 1

 
WATER SPRITE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The Director understands the need for robust risk management and continue to monitor trading performance on a regular basis.
The Director considers the following matters to be the principal risks and uncertainties to the Group:
• Economic Climate: As a luxury retail business, N.Peal will always be exposed to the impact of local economic conditions within the markets in which it operates. As the Group expands further globally, the impact of any local concern will become less significant for the Group as a whole.
• Production risk: The Group continues to build its business through all of its channels to mitigate the effect of each channel and develop a broad range of products to mitigate the decline of individual product categories.
• Foreign Currency Risk: International manufacturers are part of our supply chain so the business is exposed to currency movements in USD and EUR. To mitigate this risk, the business hedges some of its exposure, monitors exchange rates and reviews its overall exchange exposure on a regular basis.
• The principal internal risk arises from the growth of the business putting pressure on key resources. The Group depends on its ability to manage its people and infrastructure. The Group regularly reviews its future requirements for people, space and systems to understand the impact on the business.
• The management of the supply chain from sourcing through to the Group's distribution center is key to the business. The Group continually reviews the management of product delivery to ensure any problems are managed appropriately and in a timely manner.
• Brexit: Although the exit from the EU is now complete, there remains some uncertainty about the impact on long term trading relationships and there was an increase in freight costs into the EU from the start of 2021. The Group has developed an updated distribution model to mitigate these risks and we do not believe there is any significant overall risk to our business model. 

Position of the Group's business at the end of the year
 
The key KPI’s for the business are:
- Adjusted Earnings Before Interest, Tax, Depreciation, Amortisation and Exceptional Items (EBITDA) 
- Gross margin % and margin growth.
- Like for Like (LFL) growth in retail and on-line sales.
For the year ended 31 December 2023:
- Adjusted EBITDA was £3.64m (2022: £3.14m). 
- Gross margin% was 50.46% (2022: 49%)
- LFL increase in sales was +11.4% across the business.
The director feels that the business is in a strong position for the next phase of growth. 

Future Developments
 
The directors expect that turnover for 2024 will show an increase on 2023. The Group will continue to focus on developing a multi-channel offering with a continued emphasis to growing the online channel to full potential through investment, online marketing and continuous development of our ecommerce platform. Marketing efforts remain focused on direct to consumer sales channels. The Group will continue to invest in people, processes and systems to help deliver business growth. 

Page 2

 
WATER SPRITE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board on 12 September 2024 and signed on its behalf.



Mr Adam Holdsworth
Director

Page 3

 
WATER SPRITE LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,179,920 (2022 - £2,161,511).

The particulars of recommended dividends are detailed in the notes to the financial statements.

Director

The director who served during the year was:

Mr Adam Holdsworth (appointed 16 May 2006)

Matters covered in the Strategic Report

Certain information is not shown in the director's report because it is shown in the strategic report instead under s414C (11). The strategic report includes a business review, principal risks and uncertainties and financial key performance indicators.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he 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 and the Group's auditors are aware of that information.

Page 4

 
WATER SPRITE LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

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

Auditors

Under section 487(2) of the Companies Act 2006Sagars Accountants Ltd will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 12 September 2024 and signed on its behalf.
 





Mr Adam Holdsworth
Director

Page 5

 
WATER SPRITE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER SPRITE LIMITED
 

Opinion


We have audited the financial statements of Water Sprite Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of income and retained earnings, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 director's 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 or the 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 director with respect to going concern are described in the relevant sections of this report.


Page 6

 
WATER SPRITE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER SPRITE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
WATER SPRITE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER SPRITE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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:

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of contract income and posting of unusual journals along with complex transactions. We discussed these risks with client management, designed audit procedures to test the timing of contract income, tested a sample of journals, selected on a risk basis, to confirm they were appropriate and reviewed areas of judgement and estimation for indicators of management bias to address these risks.

The organisation is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified health and safety as the area most likely to have such an effect. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.


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.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Page 8

 
WATER SPRITE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WATER SPRITE LIMITED (CONTINUED)



Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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 Auditors' report

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 Auditors' 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.





Helen Daniels LLB FCA CTA (Senior statutory auditor)
for and on behalf of
Sagars Accountants Ltd
Statutory Auditor
Leeds (Statutory Auditor)

16 September 2024
Page 9

 
WATER SPRITE LIMITED
 

CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
27,733,288
23,997,124

Cost of sales
  
(13,739,560)
(12,215,853)

Gross profit
  
13,993,728
11,781,271

Administrative expenses
  
(10,940,805)
(9,208,819)

Other operating income
 5 
10,050
45,707

Operating profit
 6 
3,062,973
2,618,159

Interest payable and similar expenses
 10 
(177,214)
(87,144)

Profit before tax
  
2,885,759
2,531,015

Tax on profit
 11 
(705,839)
(369,504)

Profit after tax
  
2,179,920
2,161,511

  

  

Retained earnings at the beginning of the year
  
7,003,302
6,341,791

  
7,003,302
6,341,791

Profit for the year and total comprehensive income
  
2,179,920
2,161,511

Dividends declared and paid
  
(250,000)
(1,500,000)

Retained earnings at the end of the year
  
8,933,222
7,003,302

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of income and retained earnings.
All the activities of the company are from continuing operations.

The notes on pages 14 to 30 form part of these financial statements.

Page 10

 
WATER SPRITE LIMITED
REGISTERED NUMBER: 05799205

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
32,930
42,889

Tangible assets
 14 
899,276
942,203

  
932,206
985,092

Current assets
  

Stocks
 16 
6,015,088
6,521,496

Debtors: amounts falling due within one year
 17 
2,326,384
1,801,295

Cash at bank and in hand
 18 
4,744,777
3,782,664

  
13,086,249
12,105,455

Creditors: amounts falling due within one year
 19 
(4,036,231)
(5,258,243)

Net current assets
  
 
 
9,050,018
 
 
6,847,212

Total assets less current liabilities
  
9,982,224
7,832,304

Creditors: amounts falling due after more than one year
 20 
(584,000)
(364,000)

Provisions for liabilities
  

Net assets
  
9,398,224
7,468,304


Capital and reserves
  

Called up share capital 
 21 
2
2

Capital redemption reserve
 22 
465,000
465,000

Profit and loss account
 22 
8,933,222
7,003,302

  
9,398,224
7,468,304


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2024.




Mr Adam Holdsworth
Director

The notes on pages 14 to 30 form part of these financial statements.

Page 11

 
WATER SPRITE LIMITED
REGISTERED NUMBER: 05799205

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
26,940
29,264

Investments
 15 
1
1

  
26,941
29,265

Current assets
  

Debtors: amounts falling due within one year
 17 
1,874,946
1,121,799

Cash at bank and in hand
 18 
609,789
801,528

  
2,484,735
1,923,327

Creditors: amounts falling due within one year
 19 
(220,754)
(185,413)

Net current assets
  
 
 
2,263,981
 
 
1,737,914

Total assets less current liabilities
  
2,290,922
1,767,179

  

  

Net assets
  
2,290,922
1,767,179


Capital and reserves
  

Called up share capital 
 21 
2
2

Profit and loss account brought forward
  
1,767,177
1,275,546

Profit for the year
  
773,743
1,991,631

Other changes in the profit and loss account

  

(250,000)
(1,500,000)

Profit and loss account carried forward
  
2,290,920
1,767,177

  
2,290,922
1,767,179


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2024.


Mr Adam Holdsworth
Director

The notes on pages 14 to 30 form part of these financial statements.

Page 12

 
WATER SPRITE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,179,920
2,161,511

Adjustments for:

Amortisation of intangible assets
14,370
66,413

Depreciation of tangible assets
520,441
504,675

Interest paid
177,214
87,144

Tax on profit
705,839
369,504

Decrease/(increase) in stocks
506,408
(3,435,980)

(Increase) in debtors
(523,439)
(363,541)

(Decrease) in creditors and accruals
(268,731)
(809,120)

Tax Paid
(659,133)
(446,599)

Net cash generated from operating activities

2,652,889
(1,865,993)


Cash flows from investing activities

Purchase of intangible assets
(4,411)
(16,635)

Purchase of tangible assets
(585,737)
(666,815)

Proceeds from sale of tangible assets
108,223
524

Net cash from investing activities

(481,925)
(682,926)

Cash flows from financing activities

Proceeds from borrowings
220,000
546,000

Repayment of borrowings
(182,000)
-

Dividends paid
(250,000)
(1,500,000)

Interest paid
(177,214)
(87,144)

Net cash used in financing activities
(389,214)
(1,041,144)

Net increase/(decrease) in cash and cash equivalents
1,781,750
(3,590,063)

Cash and cash equivalents at beginning of year
2,963,027
6,553,090

Cash and cash equivalents at the end of year
4,744,777
2,963,027


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,744,777
3,782,664

Bank overdrafts
-
(819,637)

4,744,777
2,963,027


Page 13

 
WATER SPRITE LIMITED
 

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

1.


General information

The principal actviity of the company was the licensing of a trademark and the group was that of retailing of clothing and licensing of a trademark.

The company is a private company by shares, registered in England and Wales (No. 05799205). The address of the registered office is The Vineries, Broughton Hall, Broughton, Skipton, BD23 3AE.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company is exposed to trading risk in a competitive retail sector. The Company is susceptible to a possible downturn in consumer spending, influenced by factors such as a reduction in disposable income and increases in interest rates. Despite the risks and having assessed the Company's financial position, budgets and cashflow forecasts for the period ending 31 December 2025, the Director has a reasonable expectation that the Company has adequate resources to continue in operational existence for more than a year from the signing of these accounts. Accordingly, the Director continues to adopt the going concernbasis of accounting in preparing the financial statements.

The director has further considered the risks and uncertainties facing the company in the Strategic Report.

  
2.3

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS102:

(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented. 
(d) No disclosure has been given for aggregate remuneration of key management personnel.

  
2.4

Consolidation

The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income.

Page 14

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.5

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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.6

Revenue

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
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.

Page 15

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.7

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of income and retained earnings in the same period as the related expenditure.

 
2.9

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.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Page 16

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.12

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.13

Current and deferred taxation

The tax expense for the year 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

Page 17

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Brand costs
-
20% Reducing balance 
Software
-
33% Straight line

 
2.15

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.

Depreciation is provided on the following basis:

Leasehold property
-
4 to 10 years
Motor vehicles
-
33% Straight line
Fixtures and fittings
-
20% and 25% and 100% Straight line
Equipment
-
33% and 50% and 100% Straight line

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.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 18

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.17

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.18

Debtors

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

 
2.19

Cash and cash equivalents

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

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

 
2.20

Creditors

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

 
2.21

Financial instruments


A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.


Page 19

 
WATER SPRITE LIMITED
 

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

2.Accounting policies (continued)

 
2.22

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and
the amounts reported for revenues and expenses during the year. However, the nature of estimation
means that actual outcomes could differ from those estimates. Details of these judgements are set out in
the accounting policies. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
27,733,288
23,997,124

27,733,288
23,997,124


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
17,404,450
14,499,508

Overseas sales
10,328,838
9,497,616

27,733,288
23,997,124



The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given above.


5.


Other operating income

2023
2022
£
£

Other operating income
10,050
45,707

10,050
45,707


Page 20

 
WATER SPRITE LIMITED
 

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

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Amortisation of intangible assets
61,425
66,413

Exchange differences
124,407
(133,427)

Depreciation of tangible assets
520,441
453,186


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
26,700
18,525

Fees payable to the Company's auditors in respect of:

Other non-audit services
12,300
3,550


8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,106,168
3,621,635
-
-

Cost of defined contribution scheme
2,065
2,065
-
-

4,108,233
3,623,700
-
-


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Distribution staff
72
78



Administrative Staff
24
16



Management Staff
1
6

97
100

Page 21

 
WATER SPRITE LIMITED
 

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

9.


Director's remuneration

2023
2022
£
£

Director's emoluments
77,187
77,372

Group contributions to defined contribution pension schemes
2,065
2,065

79,252
79,437


During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
12,294
20,617

Other loan interest payable
164,920
66,527

177,214
87,144


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
698,604
373,035

Adjustments in respect of previous periods
8,919
(3,531)


707,523
369,504


Total current tax
707,523
369,504

Deferred tax


Origination and reversal of timing differences
(1,684)
-

Total deferred tax
(1,684)
-


Tax on profit
705,839
369,504
Page 22

 
WATER SPRITE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,885,759
2,531,015


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
678,731
480,893

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,275
887

Adjustments to tax charge in respect of prior periods
8,919
1,563

Fixed asset timing differences
7,241
(17,710)

Effect of revenue exempt from tax
21,425
(47,399)

Remeasurement of deferred tax for changes in tax rates
(4,149)
-

Deferred tax not recognised
68,413
(48,730)

Overseas entities taxed outside of the UK
(77,016)
-

Total tax charge for the year
705,839
369,504


Factors that may affect future tax charges

The standard rate of corporation tax in the UK increased from 1 April 2023 to 25% on profits greater than
£250,000.


12.


Dividends

2023
2022
£
£


Dividends on equity shares
250,000
1,500,000


Divdends were paid during the year (excluding those for which a liability existed at the end of the prior year).

Page 23

 
WATER SPRITE LIMITED
 

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

13.


Intangible assets

Group





Development costs
IT software
Total

£
£
£



Cost


At 1 January 2023
247,754
212,420
460,174


Additions
4,411
-
4,411



At 31 December 2023

252,165
212,420
464,585



Amortisation


At 1 January 2023
218,490
198,795
417,285


Charge for the year on owned assets
6,735
7,635
14,370



At 31 December 2023

225,225
206,430
431,655



Net book value



At 31 December 2023
26,940
5,990
32,930



At 31 December 2022
29,264
13,625
42,889



Page 24

 
WATER SPRITE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
           13.Intangible assets (continued)

Company




Development costs

£



Cost


At 1 January 2023
247,754


Additions
4,411



At 31 December 2023

252,165



Amortisation


At 1 January 2023
218,490


Charge for the year
6,735



At 31 December 2023

225,225



Net book value



At 31 December 2023
26,940



At 31 December 2022
29,264

Page 25

 
WATER SPRITE LIMITED
 

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

14.


Tangible fixed assets

Group






Land and buildings
Motor vehicles
Fixtures and fittings
Equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
885,078
19,000
2,635,585
490,432
4,030,095


Additions
106,994
-
438,527
40,216
585,737


Disposals
-
-
(268,901)
(9,000)
(277,901)



At 31 December 2023

992,072
19,000
2,805,211
521,648
4,337,931



Depreciation


At 1 January 2023
654,945
19,000
2,019,625
394,322
3,087,892


Charge for the year on owned assets
47,502
-
414,941
57,998
520,441


Disposals
-
-
(164,369)
(5,309)
(169,678)



At 31 December 2023

702,447
19,000
2,270,197
447,011
3,438,655



Net book value



At 31 December 2023
289,625
-
535,014
74,637
899,276



At 31 December 2022
230,133
-
615,960
96,110
942,203

The company has no tangible assets.


15.


Investments

The group has no investments.

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1



At 31 December 2023
1




Page 26

 
WATER SPRITE LIMITED
 

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

Subsidiaries, associates and other investments


Details of the investments in which the parent company has an interest of 20% or more are as follows:

Name

Class of shares

Holding

N Peal (Retail) Limited
Ordinary
100%
N Peal (USA) inc.
Ordinary
100%
Blue Sky Cashmere
Ordinary
100%
Inner Mongolia Pure Peal Trading Corporation Limited*
Ordinary
100%

*Blue Sky Cashmere Limited is the parent company of Inner Mongolia Pure Peal Trading Corporation Limited.


16.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
6,015,088
6,521,496

6,015,088
6,521,496


Page 27

 
WATER SPRITE LIMITED
 

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

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
619,585
491,407
-
-

Amounts owed by group undertakings
-
-
1,873,262
1,121,799

Other debtors
709,421
219,213
-
-

Called up share capital not paid
2
2
-
-

Prepayments and accrued income
995,692
1,090,673
-
-

Deferred taxation
1,684
-
1,684
-

2,326,384
1,801,295
1,874,946
1,121,799



18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
4,744,777
3,782,664
609,789
801,528

Less: bank overdrafts
-
(819,637)
-
-

4,744,777
2,963,027
609,789
801,528



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank Loans and overdrafts
-
1,001,637
-
-

Trade creditors
871,181
948,034
-
-

Corporation tax
421,427
373,071
159,270
117,000

Other taxation and social security
709,666
1,183,744
55,884
64,813

Other creditors
146,334
481,995
-
-

Accruals and deferred income
1,887,623
1,269,762
5,600
3,600

4,036,231
5,258,243
220,754
185,413



Liabilities of £Nil (2022: £1,001,637) disclosed within other creditors falling due within one year are secured by the group. 

HSBC bank borrowings are secured by a debenture including a fixed and floating charge over all current and future assets of the company. The bank also has a legal right of set-off incorporated in an unlimited, multilateral gurantee with the group.

Page 28

 
WATER SPRITE LIMITED
 

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

20.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
584,000
364,000

584,000
364,000


Liabilities of £584,000 (2022: £364,000) disclosed within other creditors falling due in more than one year are secured by the company. 


HSBC bank borrowngs are secured by a debenture including a fixed and floating charge over all current and future assets of the company. The bank also has a legal right of set-off incorporated in an unlimited multilateral guarantee with the group.


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2 (2022 - 2) Ordinary shares shares of £1.00 each
2
2



22.


Reserves

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss account

This reserve records retained earnings and accumulated losses.

23.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

3,782,664

962,113

4,744,777

Bank overdrafts

(819,637)

819,637

-

Debt due after 1 year

(364,000)

(220,000)

(584,000)

Debt due within 1 year

(182,000)

182,000

-


2,417,027
1,743,750
4,160,777

Page 29

 
WATER SPRITE LIMITED
 

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

24.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
3,384,570
1,116,188

Later than 1 year and not later than 5 years
10,341,726
2,608,867

Later than 5 years
833,271
3,244,583

14,559,567
6,969,638

25.


Transactions with directors

Included in debtors is £168,247 due from Mr A Holdsworth (2022: Creditor balance of £426,966)


26.


Controlling party

The group was under the control of Mr A N C Holdsworth throughout the current and previous year.

Page 30