REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
NOVA OF LONDON LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
NOVA OF LONDON LIMITED |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
NOVA OF LONDON LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
12 Conqueror Court |
Sittingbourne |
Kent |
ME10 5BH |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
The company's turnover decreased by 13.85% from £41,365,627 to £35,634,528. The company's gross profit margin decreased to 10.85% this year versus 15.92% last year. The gross profit margin decrease was due to the increase in purchase costs whilst being in a challenging current economic climate. The market conditions are expected to continue to be very competitive but the directors are optimistic that the company will be able to maintain its current performance with regard to turnover and possibly improve upon it in 2024. However, the directors do expect the gross profit margins to come under pressure again next year. |
The directors are continuously monitoring the potential risks and uncertainty to the business in order to take the necessary mitigating steps to maintain the company's competitive edge. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are number of risks and uncertainties which could impact the performance of the company. The company |
operates robust risk management processes which identify risks and uncertainties and evaluates mitigation |
opportunities and solutions. |
The management follow a continuous review of the performance of the company through monthly senior |
management meetings. Action plans are developed and reviewed on an ongoing basis. The key risks are |
principally the competitiveness of the UK market. Sales opportunities are continually evaluated to |
the current market and economic climate |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
SECTION 172(1) STATEMENT |
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. |
In doing this, section 172 requires a director to have regards, amongst other matters, to the: |
- likely consequences of any decisions in the long term |
- interests of the company's employees |
- need to foster the company's business relationships with suppliers, customers and others |
- impact of the company's operations on the community and environment |
- desirability of the company maintaining a reputation for high standards of business conduct; and |
- need to act fairly as between members of the company. |
The directors confirm that in discharging their duties under section 172, they have had regard to the factors set out above. The company delegates authority for day to day management to key personnel who are responsible for setting, approving and overseeing the execution of the business strategy and related policies. |
The company delegates to key management to review the Company's financial and operational performance, risk and compliance, and health and safety matters. |
Customer service is a key area of focus for the company and the company is committed to maintaining and improving its online customer satisfaction survey rating. Customer satisfaction is maintained through training and development of the company's employees, offering a comprehensive range of stock, and a hassle free purchase experience. |
Managing good relationships with suppliers is key to facilitating the offering of a wide range of high quality stock. The company engages with its suppliers to ensure that they are consulted and informed. |
The company also has regard to the local community in all of its activities and acknowledges its role as a major employer in the local area. |
KEY PERFORMANCE INDICATORS |
The management team analyse various key performance indicators as part of their overall strategic review but |
have identified the following as being particularly important. |
Sales performance versus main competitors, sales versus budget and prior year and quality statistics. |
ON BEHALF OF THE BOARD: |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of Import, Export and Wholesale of ladies clothing. |
DIVIDENDS |
The directors have recommended interim dividends totalling £8,000 per share. No final dividend is proposed. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities. |
The company's principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company's activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the company's operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with company's treasury policy, derivative instruments are not entered into for speculative purposes. |
Liquidity risk |
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. |
Interest rate risk |
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates. |
Credit risk |
The company is exposed to the risk of claw back on finance commissions, if the customer fails the necessary standards set out in the terms and conditions of the finance companies. The risk is limited to the value of the commission received. |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
Price risk |
The company is exposed to price risk as a result of its operations in a competitive market. The company monitors this using Key Performance indicators (KPIs) and acts accordingly. |
Disabled persons |
It is the policy of the company to give full and fair consideration to applications for employment from disabled persons, to continue wherever possible the employment of members of staff who may become disabled and to ensure that suitable training, career development and promotion are offered to such persons. |
Employee involvement |
The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests. |
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. |
STREAMLINED ENERGY AND CARBON REPORTING |
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities. |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Xeinadin Audit Ltd, is deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NOVA OF LONDON LIMITED |
Opinion |
We have audited the financial statements of Nova of London Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then |
ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion except for the counting of physical inventories at the 30 June 2023. A Stock count did not take place and thus we were unable to observe the counting of physical inventories. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 June 2023 which are included in the balance sheet at £3,367,722. Consequently we were unable to determine whether any adjustment to this amount was necessary. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NOVA OF LONDON LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management, those charged with governance and the entity's solicitors 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 regulation.. |
- Reviewing minutes of meetings of those charged with governance. |
- Reviewing internal audit reports. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Reviewing licensing laws and ensuring compliance. |
- 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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NOVA OF LONDON LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
12 Conqueror Court |
Sittingbourne |
Kent |
ME10 5BH |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(258,751 | ) | 2,761,465 |
Other operating income |
OPERATING PROFIT | 7 |
Interest receivable and similar income |
522,150 | 3,428,015 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (2,050,223 | ) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
7,015,456 |
9,372,050 |
Cash and cash equivalents at end of year | 2 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 3,116 | 1,928 |
Finance income | (482,494 | ) | (348,610 | ) |
148,479 | 3,172,409 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 6,481,160 | 7,015,638 |
Bank overdrafts | ( |
) | ( |
) |
6,480,978 | 7,015,456 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 7,015,638 | 9,372,232 |
Bank overdrafts | ( |
) | ( |
) |
7,015,456 | 9,372,050 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,015,638 | (534,478 | ) | 6,481,160 |
Bank overdrafts | (182 | ) | - | (182 | ) |
7,015,456 | ( |
) | 6,480,978 |
Liquid resources |
Current asset investments | 221,000 | - | 221,000 |
221,000 | - | 221,000 |
Total | 7,236,456 | (534,478 | ) | 6,701,978 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Nova of London Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 £. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for the wholesale of ladies garments in the normal course of business. excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial instruments are recognised in the company's financial statements when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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 non-current assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company 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. |
3. | JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company’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. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
UK Sales | 34,192,204 | 39,040,517 |
EU Sales | 540,972 | 1,123,839 |
Non EU Sales | 901,352 | 1,201,271 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Selling and distribution | 33 | 36 |
Administration | 32 | 22 |
6. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The total benefits in kind received by the directors during the year was £42,989 (2022: £25,839). |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
Operating lease rentals - land & buildings |
8. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Bad debts | (488,583 | ) | (105,356 | ) |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax interest | 16,366 | 5,318 |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowance | 11,766 | 1,446 |
Disallowable expenses | - | (1,872 | ) |
Deferred tax | (9,605 | ) | 13,975 |
Interest | 16,366 | 5,318 |
Total tax charge | 130,737 | 673,856 |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
12. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
£ | £ |
Carrying amount of financial assets |
Financial assets measured at cost | 23,856,061 | 30,615,815 |
========== | ========= |
Carrying amount of financial liabilities |
Financial liabilities measured at cost | 2,933,055 | 8,855,202 |
========== | ========= |
Financial assets that are debt instruments measured at cost comprise trade debtors, amounts owed by group undertakings and other debtors. |
Financial liabilities measured at cost comprise trade creditors, amount owed to group undertakings, other creditors and finance lease obligations. |
13. | TANGIBLE FIXED ASSETS |
Improvements |
Short | to | Plant and |
leasehold | property | machinery |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Reclassification/transfer |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Reclassification/transfer |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Finished goods and goods for |
resale |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments and accrued income |
16. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Unlisted investments | 221,000 | 221,000 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 510,550 | 506,883 |
Other creditors |
Accrued expenses |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
The bank borrowings are secured by a charge on the properties owned by the associated company and a cross guarantee. The factoring account is secured on trade debtors.. |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 22,251 | 31,856 |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Provided during year | ( |
) |
Movement |
Balance at 30 June 2023 |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
22. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2023 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2023 and 30 June 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Mr SS Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends. |
Mr A S Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends. |
Mr D S Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends. |
Mrs R K Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends. |
NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
24. | RELATED PARTY DISCLOSURES |
Mr SS Chawla, Mr A S Chawla, Mr D S Chawla and Mrs R K Chawla have an interest in Silver Shadow Investments Limited, the company in which the fixed asset investments of £10,674,042 (2022: £10,544,169) and current asset investments of £nil (2022: £nil) were made. The loans are interest bearing at a commercial rate and are repayable within ten years from the balance sheet date. Interest receivable in the year was £427,370 (2022: £318,799). |
The company has guaranteed the bank borrowings of Silver Shadow Investments Limited and at the balance sheet date the amount due under the guarantee was £422,703 (2022: £315,176). |
The company leases five properties from Silver Shadow Investments Limited at an annual combined rental of £524,000 (2022: £524,000) per annum. |
The company has made a loan to Blue Vanilla Clothing Ltd, of £1,463,680.43 (2022: £1,463,680.43), and received a loan from Vanilla Retail of £379,499 (2022: £568,105 (loan to)). Companies in which Mr S S Chawla, Mrs R K Chawla, Mr D S Chawla and Mr A S Chawla are also directors. Sales to Blue Vanilla Clothing Ltd were £1,223,825 (2022: £1,849,429) and Vanilla Retail Ltd were £14,457,313 in 2023 (2022: £9,907,089.96). |
During the year the company paid the dividend of £800,000 to the directors and they received the following dividend payments: |
Mr S S Chawla | £200,000 |
Mr A S Chawla | £200,000 |
Mr D S Chawla | £200,000 |
Mr R K Chawla | £200,000 |
During the year, a total of key management personnel compensation of £439,324 was paid. This is broken down as follows: |
Directors | 119,600 |
Sales | 292,779 |
Accounts | 26,945 |
439,324 |
25. | CONTROL |
During the year, the company was controlled by the directors. |