Company Registration No. 06981955 (England and Wales)
FB Beauty LTD
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
FB Beauty LTD
Contents
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
FB Beauty LTD
Statement of financial position
As at 31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
26,977
40,558
Tangible assets
6
1,429,512
2,003,146
Investments
7
457,107
457,107
1,913,596
2,500,811
Current assets
Stocks
2,641,173
2,451,059
Debtors falling due after more than one year
9
3,317,983
3,738,478
Debtors falling due within one year
9
2,237,274
1,955,471
Cash at bank and in hand
418,676
222,016
8,615,106
8,367,024
Creditors: amounts falling due within one year
10
(21,492,474)
(23,193,062)
Net current liabilities
(12,877,368)
(14,826,038)
Net liabilities
(10,963,772)
(12,325,227)
Capital and reserves
Called up share capital
11
848
848
Share premium account
904,317
904,317
Other reserves
(49,398)
(49,398)
Profit and loss reserves
(11,819,539)
(13,180,994)
Total equity
(10,963,772)
(12,325,227)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
David Wormser
Director
Company Registration No. 06981955
FB Beauty LTD
Statement of changes in equity
For the year ended 31 December 2023
2
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
848
904,317
(49,398)
(18,294,179)
(17,438,412)
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
5,113,185
5,113,185
Balance at 31 December 2022
848
904,317
(49,398)
(13,180,994)
(12,325,227)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,361,455
1,361,455
Balance at 31 December 2023
848
904,317
(49,398)
(11,819,539)
(10,963,772)
FB Beauty LTD
Notes to the financial statements
For the year ended 31 December 2023
3
1
Accounting policies
Company information
FB Beauty LTD is a private company limited by shares incorporated in England and Wales. The registered office is Unit A Midway, Gilchrist Road, Irlam, Manchester, M44 5AY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
During 2023 the company's trade continued to grow resulting in an increase in turnover for the year to £10.4m from £6.6m in 2022. trueThe directors have continued to improve the financial performance of the business in 2023. This increase in turnover, together with an ongoing commitment to cost control resulted in a positive EBITDA of £2.3m before exceptional items, being a £0.65m insurance receipt in relation to COVID business interruption, and a gain of £0.1m on US Dollar Denominated historical debt, due to foreign exchange rate movements in the financial year. The company made a profit before tax for the financial year of £1.9m (2022 - £0.8m).
At the balance sheet date the company’s liabilities exceeded its total assets by £11.0m (2022 - £12.3m), with net current liabilities of £12.9m (2022 - £14.8m). Included within current liabilities are loans of £15.6m from Wormser UK Limited, the company's subsidiary. During the current year the group debt position is being restructured, as a result of intercompany debt of £15m will be converted into share capital strengthening the company balance sheet accordingly.
The year to date results for 2024 show that turnover has continued to increase while margins have been maintained, as a result the company is showing a net profit and this position is expected to continue for the rest of the year. Looking forward to 2025 the directors have prepared forecasts which show a continued increase in turnover and forecast that the company will continue to be profitable in 2025. Further the directors expect the company to remain cashflow positive allowing it to meet its third party liabilities as they fall due.
Therefore 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Where goods are sold on a sale or return basis, a provision is calculated based on information available at the date the financial statements are signed together with where necessary an estimate based on available historic data and trends. A reduction in revenue and cost of sales is made accordingly.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks
Finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
straight line over term of lease
Fixtures and fittings
14 - 33% straight line
Computer equipment
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
5
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to its present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
7
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
2
Critical accounting 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of stocks
Stocks are reviewed to ensure that they are carried at the lower of cost and net realisable value. A provision has been applied to fully impair stocks which have been physically segregated as unsellable or represent testers for discontinued products. Additionally the directors review sales activity in comparison to stock levels and recognise an impairment against any unsold stock that would be held after 2 years.
Useful economics life of display stands
A significant element of fixtures and fittings as reported in note 6 represent make up display stands. The useful economic life of these stands is reviewed regularly, taking into account cyclical upgrades and the lifetime of the underlying units. A depreciation policy has been adopted to recognise the cost of the display stands over 3-7 years.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
15
15
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(10,065)
Deferred tax
Origination and reversal of timing differences
543,041
(4,290,742)
Total tax charge/(credit)
543,041
(4,300,807)
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
9
5
Intangible fixed assets
Other
£
Cost
At 1 January 2023 and 31 December 2023
135,819
Amortisation and impairment
At 1 January 2023
95,261
Amortisation charged for the year
13,581
At 31 December 2023
108,842
Carrying amount
At 31 December 2023
26,977
At 31 December 2022
40,558
6
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
170,221
5,975,913
81,109
6,227,243
Additions
69,247
518,521
4,472
592,240
At 31 December 2023
239,468
6,494,434
85,581
6,819,483
Depreciation and impairment
At 1 January 2023
136,393
4,011,255
76,449
4,224,097
Depreciation charged in the year
14,374
1,148,602
2,898
1,165,874
At 31 December 2023
150,767
5,159,857
79,347
5,389,971
Carrying amount
At 31 December 2023
88,701
1,334,577
6,234
1,429,512
At 31 December 2022
33,828
1,964,658
4,660
2,003,146
7
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
457,107
457,107
8
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
Subsidiaries (continued)
10
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Wormser UK Limited
Unit A Midway Gilchrist Road, Irlam, Manchester, England, M44 5AY
Supply of cosmetic accessories, components and gifting sets
Ordinary
100
-
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,041,534
721,207
Other debtors
766,022
682,000
1,807,556
1,403,207
Deferred tax asset
429,718
552,264
2,237,274
1,955,471
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
3,317,983
3,738,478
Total debtors
5,555,257
5,693,949
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,020,736
770,957
Amounts owed to group undertakings
15,562,885
15,748,999
Corporation tax
400
400
Other taxation and social security
222,993
143,618
Other creditors
4,685,460
6,529,088
21,492,474
23,193,062
The amounts owed to group undertakings are secured with a fixed and floating charge, interest free and repayable on demand.
Included within other creditors are amounts of £4,354,352 (2022 - £6,216,528) due to the directors and Wormser Corporation, these liabilities are secured with a fixed and floating charge interest free and repayable on demand.
FB Beauty LTD
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
84,842
84,842
848
848
All Ordinary shares carry full rights for voting, dividends, and distribution of assets on winding up.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Sheryl Davis
Statutory Auditors:
Saffery LLP
Date of audit report:
20 September 2024
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
355,583
497,816
14
Related party transactions
Wormser Corporation
A company in which Alan Wormser and David Wormser are directors, shareholders and the controlling parties.
Wormser Corporation recharged £188,750 (2022 - £193,076) in the year to FB Beauty Limited.
At 31 December 2023, the balance due to Wormser Corporation was £2,758,947 (2022 - £2,662,809). This balance is denoted in USD, secured, interest free and repayable upon demand.
At 31 December 2023, the balance due to Alan and Davis Wormser was £1,595,405 (2022 - £3,553,719). This balance is denoted in USD, secured, interest free and repayable upon demand.
15
Parent company
At the year end the immediate and ultimate parent undertaking was LARD-FBB LLC, a company incorporated in the United States of America.
At the year end the ultimate controlling parties were Alan Wormser and David Wormser.
2023-12-312023-01-01false20 September 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedAlan WormserDavid WormserJoanne ArdernQuayseco Limitedfalse069819552023-01-012023-12-31069819552023-12-31069819552022-12-3106981955core:IntangibleAssetsOtherThanGoodwill2023-12-3106981955core:IntangibleAssetsOtherThanGoodwill2022-12-3106981955core:LeaseholdImprovements2023-12-3106981955core:FurnitureFittings2023-12-3106981955core:ComputerEquipment2023-12-3106981955core:LeaseholdImprovements2022-12-3106981955core:FurnitureFittings2022-12-3106981955core:ComputerEquipment2022-12-3106981955core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3106981955core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3106981955core:CurrentFinancialInstruments2023-12-3106981955core:CurrentFinancialInstruments2022-12-3106981955core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3106981955core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3106981955core:ShareCapital2023-12-3106981955core:ShareCapital2022-12-3106981955core:SharePremium2023-12-3106981955core:SharePremium2022-12-3106981955core:OtherMiscellaneousReserve2023-12-3106981955core:OtherMiscellaneousReserve2022-12-3106981955core:RetainedEarningsAccumulatedLosses2023-12-3106981955core:RetainedEarningsAccumulatedLosses2022-12-3106981955core:ShareCapital2021-12-3106981955core:SharePremium2021-12-3106981955core:RetainedEarningsAccumulatedLosses2021-12-3106981955bus:Director22023-01-012023-12-3106981955core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31069819552022-01-012022-12-3106981955core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3106981955core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3106981955core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3106981955core:LeaseholdImprovements2023-01-012023-12-3106981955core:FurnitureFittings2023-01-012023-12-3106981955core:ComputerEquipment2023-01-012023-12-3106981955core:UKTax2023-01-012023-12-3106981955core:UKTax2022-01-012022-12-3106981955core:IntangibleAssetsOtherThanGoodwill2022-12-3106981955core:LeaseholdImprovements2022-12-3106981955core:FurnitureFittings2022-12-3106981955core:ComputerEquipment2022-12-31069819552022-12-310698195522023-01-012023-12-310698195512023-01-012023-12-3106981955core:WithinOneYear2023-12-3106981955core:WithinOneYear2022-12-3106981955core:AfterOneYear2023-12-3106981955core:AfterOneYear2022-12-3106981955bus:PrivateLimitedCompanyLtd2023-01-012023-12-3106981955bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3106981955bus:FRS1022023-01-012023-12-3106981955bus:Audited2023-01-012023-12-3106981955bus:Director12023-01-012023-12-3106981955bus:Director32023-01-012023-12-3106981955bus:CompanySecretary12023-01-012023-12-3106981955bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP