REGISTERED NUMBER: 01355367 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Enfield Fancy Goods Limited and |
subsidiary companies |
REGISTERED NUMBER: 01355367 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Enfield Fancy Goods Limited and |
subsidiary companies |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Enfield Fancy Goods Limited and |
subsidiary companies |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants and statutory auditor |
Old Station Road |
Loughton |
Essex |
IG10 4PL |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The Company continued its principal activity of the wholesale of housewares and continued to expand the range of products to ensure customers’ requirements are met. The Company’s key objectives are the retention of existing customers through continued high levels of service and organic growth by securing new customers. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Overseas markets - The company continues to monitor the situation in its overseas markets particularly those in West Africa and reduce exposure to the more volatile markets. |
Increased competition - The housewares market continues to be a very competitive one and the company continues to monitor costs and sales prices to ensure it keeps up with current market trends. The expansion of the product range continues to ensure we are seen as the market leader in meeting customer requirements. |
Credit risk - The Company is exposed to credit risk from its trading activities primarily from its trade receivables. Credit quality of customers is continually monitored. Outstanding receivable balances are monitored and chased on a regular basis to ensure compliance with trading terms. |
RESULTS AND PERFORMANCE |
Company turnover for the year was £37.5m very slightly down on the previous year £37.6m, this was due to the very competitive nature of the market in which the Company operates. |
The gross profit for the year increased to £6.18m (2022 - £5.63m), the gross margin of 16.5% showed a significant increase from 14.9% in the prior year. |
Net profit for the year was £349,762 (2022 - £250,452) |
FUTURE DEVELOPMENTS |
The Company is continually looking at increasing and improving its product range and sourcing new suppliers across the world. |
The Company continues to invest in its IT infrastructure and system developments. The website has undergone an upgrade and there are plans for further developments in the foreseeable future. The web presence is seen as a critical part of the future plans for the business. |
ON BEHALF OF THE BOARD: |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Haslers, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Enfield Fancy Goods Limited and |
subsidiary companies |
Qualified opinion |
We have audited the financial statements of Enfield Fancy Goods Limited and subsidiary companies (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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). |
We have audited the financial statements of EFG Housewares Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 31 December 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 |
Whilst completing audit procedures during the audit for the year ended 31st December 2022 of the physical inventories held by the company as at 31st December 2022, we identified that there had been a malfunction in the transfer of data to the new stock system. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £4,304,782 held at 31st December 2022. Consequently, we were unable to determine whether any adjustment to this amount at 31st December 2022 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31st December 2023. In addition, were any adjustment to the 31st December 2022 inventory balance be required, the strategic report would also need to be amended. |
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 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 qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Enfield Fancy Goods Limited and |
subsidiary companies |
Other information |
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £4,304,872 held at 31 December 2022. We have concluded that where the other information refers to the inventory balance as at 31 December 2022 or related balances such as cost of sales, it may be materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, 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 directors’ report. |
Arising solely from the limitation on the scope of our work relating to inventory held by the company as at 31st December 2022, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- we were unable to determine whether adequate accounting records have been kept. |
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: |
- 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; |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Enfield Fancy Goods Limited and |
subsidiary companies |
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. |
Irregularities, including fraud, are instances of noncompliance 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 obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and |
determined that the most significant are those that: |
- Had a direct effect on the determination of material amounts and disclosures in the financial statements. |
These include the UK Companies Act and tax legislation etc; and |
- Do not have a direct effect on the financial statements but compliance with which may be fundamental to |
the company's ability to operate. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how |
fraud might occur. Audit procedures performed by the audit engagement team include: |
- Identifying and testing journal entries, in particular any unusual journal entries posted around the year |
end and journal entries with no descriptions |
- Assessing the extent of compliance with the relevant laws and regulations |
- Identifying and assessing the design effectiveness of controls management has in place to prevent and |
detect fraud. |
- Challenging assumptions and judgements made by management in significant accounting estimates; |
and |
- Carrying out a review of large and unusual bank transactions |
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 noncompliance 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 noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Enfield Fancy Goods Limited and |
subsidiary companies |
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 |
Chartered accountants and statutory auditor |
Old Station Road |
Loughton |
Essex |
IG10 4PL |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 37,568,741 | 37,668,696 |
Cost of sales | 31,382,869 | 32,035,201 |
GROSS PROFIT | 6,185,872 | 5,633,495 |
Administrative expenses | 5,808,528 | 5,365,019 |
OPERATING PROFIT | 6 | 377,344 | 268,476 |
Interest receivable and similar income | 96,200 | 96,200 |
473,544 | 364,676 |
Interest payable and similar expenses | 7 | 123,782 | 114,224 |
PROFIT BEFORE TAXATION | 349,762 | 250,452 |
Tax on profit | 8 | 89,754 | 56,614 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 260,008 | 193,838 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 260,008 | 193,838 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
260,008 |
193,838 |
Total comprehensive income attributable to: |
Owners of the parent | 260,008 | 193,838 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 3,622,017 | 3,662,692 |
Investments | 11 | 373,694 | 373,694 |
3,995,711 | 4,036,386 |
CURRENT ASSETS |
Stocks | 12 | 5,250,040 | 4,304,782 |
Debtors | 13 | 6,432,639 | 6,082,267 |
Cash at bank and in hand | 470,864 | 1,299,717 |
12,153,543 | 11,686,766 |
CREDITORS |
Amounts falling due within one year | 14 | 5,691,334 | 3,938,423 |
NET CURRENT ASSETS | 6,462,209 | 7,748,343 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,457,920 |
11,784,729 |
CREDITORS |
Amounts falling due after more than one year |
15 |
5,372 |
1,592,190 |
NET ASSETS | 10,452,548 | 10,192,539 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 6,740 | 6,740 |
Revaluation reserve | 21 | 1,842,405 | 1,842,405 |
Capital redemption reserve | 21 | 11,535 | 11,535 |
Retained earnings | 21 | 8,591,668 | 8,331,659 |
SHAREHOLDERS' FUNDS | 10,452,348 | 10,192,339 |
NON-CONTROLLING INTERESTS | 22 | 200 | 200 |
TOTAL EQUITY | 10,452,548 | 10,192,539 |
The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2024 and were signed on its behalf by: |
D Shipton - Director |
M W Shipton - Director |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 160,005 | 89,399 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2022 | 6,740 | 8,137,821 | 1,842,405 |
Changes in equity |
Total comprehensive income | - | 193,838 | - |
Balance at 31 December 2022 | 6,740 | 8,331,659 | 1,842,405 |
Changes in equity |
Total comprehensive income | - | 260,008 | - |
Balance at 31 December 2023 | 6,740 | 8,591,667 | 1,842,405 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 11,535 | 9,998,501 | 200 | 9,998,701 |
Changes in equity |
Total comprehensive income | - | 193,838 | - | 193,838 |
Balance at 31 December 2022 | 11,535 | 10,192,339 | 200 | 10,192,539 |
Changes in equity |
Total comprehensive income | - | 260,008 | - | 260,008 |
Balance at 31 December 2023 | 11,535 | 10,452,347 | 200 | 10,452,547 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Total comprehensive income | - |
Total transactions with owners, recognised directly in equity |
- |
- |
- |
- |
- |
Balance at 31 December 2022 |
Total comprehensive income | - |
Total transactions with owners, recognised directly in equity |
- |
- |
- |
- |
- |
Balance at 31 December 2023 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (355,901 | ) | 916,630 |
Interest paid | (123,781 | ) | (114,224 | ) |
Tax paid | (62,119 | ) | (133,930 | ) |
Net cash from operating activities | (541,801 | ) | 668,476 |
Cash flows from financing activities |
Loan repayments in period | (126,526 | ) | (132,602 | ) |
Amount withdrawn by directors | (160,526 | ) | 13,762 |
Net cash from financing activities | (287,052 | ) | (118,840 | ) |
(Decrease)/increase in cash and cash equivalents | (828,853 | ) | 549,636 |
Cash and cash equivalents at beginning of year |
2 |
1,299,717 |
750,081 |
Cash and cash equivalents at end of year | 2 | 470,864 | 1,299,717 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 349,762 | 250,452 |
Depreciation charges | 40,674 | 51,745 |
Finance costs | 123,782 | 114,224 |
Finance income | (96,200 | ) | (96,200 | ) |
418,018 | 320,221 |
(Increase)/decrease in stocks | (945,258 | ) | 52,120 |
(Increase)/decrease in trade and other debtors | (482,968 | ) | 714,870 |
Increase/(decrease) in trade and other creditors | 654,307 | (170,581 | ) |
Cash generated from operations | (355,901 | ) | 916,630 |
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 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 470,864 | 1,299,717 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,299,717 | 750,081 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,299,717 | (828,853 | ) | 470,864 |
1,299,717 | (828,853 | ) | 470,864 |
Debt |
Finance leases | (52,064 | ) | 26,435 | (25,629 | ) |
Debts falling due within 1 year | (156,282 | ) | (1,464,276 | ) | (1,620,558 | ) |
Debts falling due after 1 year | (1,566,561 | ) | 1,564,367 | (2,194 | ) |
(1,774,907 | ) | 126,526 | (1,648,381 | ) |
Total | (475,190 | ) | (702,327 | ) | (1,177,517 | ) |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Enfield Fancy Goods Limited and subsidiary companies is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Financial Instruments |
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year) including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payable or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
Judgements and key sources of estimation uncertainty |
In applying the Group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. |
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, if the revision effects only that period, or in the period of the revision and future periods, if the revision effects both current and future periods. |
The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements. |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Warehouse Equipment | - |
Fixtures and fittings | - |
Computer equipment | - |
The freehold property was professionally revalued (see Note 9) on 14 February 2012. The valuation was on an open market basis. No depreciation is provided on the freehold property in accordance with FRS 102. |
Investments |
Investments held as fixed assets are shown at cost less provision for impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
In the period to 31 December 2023, 48% of the company's turnover was derived from markets outside the United Kingdom (December 2022 - 47%). |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 3,823,917 | 3,475,445 |
Social security costs | 386,857 | 367,405 |
Other pension costs | 50,952 | 88,308 |
4,261,726 | 3,931,158 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Directors | 4 | 4 |
Warehouse Operatives | 106 | 102 |
Office and administration | 4 | 4 |
The average number of employees by undertakings that were proportionately consolidated during the year was 114 (2022 - 110 ) . |
5. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 739,992 | 697,624 |
Directors' pension contributions to money purchase schemes | - | 40,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | - | 2 |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc | 348,148 | 328,311 |
Pension contributions to money purchase schemes | - | 40,000 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 27,127 | 33,682 |
Depreciation - assets on hire purchase contracts | 13,548 | 18,064 |
Auditors' remuneration | 17,030 | 11,800 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 85,416 | 64,323 |
Tax interest and penalties | 33,915 | 45,220 |
Hire purchase | 4,451 | 4,681 |
123,782 | 114,224 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 89,754 | 56,614 |
Tax on profit | 89,754 | 56,614 |
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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 349,762 | 250,452 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
82,194 |
47,586 |
Effects of: |
Depreciation in excess of capital allowances | 8,743 | 9,028 |
enhanced deduction |
Differences attributing to change in tax rate | (1,183 | ) | - |
Total tax charge | 89,754 | 56,614 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
Factors affecting future tax charges |
The corporation tax rate increased from 19% to 25% with effect from 1 April 2023. This results in the increase in tax rate shown above. Next year the Company's rate will be the full 25%. The deferred taxation balances have been measured using 25%, which is the enacted rate applicable in the reporting periods when the timing differences reverse. |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Warehouse |
property | property | Equipment |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 | 3,500,000 | 74,591 | 582,306 |
DEPRECIATION |
At 1 January 2023 | - | 44,754 | 480,407 |
Charge for year | - | 7,459 | 25,475 |
At 31 December 2023 | - | 52,213 | 505,882 |
NET BOOK VALUE |
At 31 December 2023 | 3,500,000 | 22,378 | 76,424 |
At 31 December 2022 | 3,500,000 | 29,837 | 101,899 |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 | 603,585 | 39,282 | 4,799,764 |
DEPRECIATION |
At 1 January 2023 | 585,440 | 26,471 | 1,137,072 |
Charge for year | 4,537 | 3,204 | 40,675 |
At 31 December 2023 | 589,977 | 29,675 | 1,177,747 |
NET BOOK VALUE |
At 31 December 2023 | 13,608 | 9,607 | 3,622,017 |
At 31 December 2022 | 18,145 | 12,811 | 3,662,692 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 December 2023 is represented by: |
Improvements |
Freehold | to | Warehouse |
property | property | Equipment |
£ | £ | £ |
Valuation in 2005 | 1,242,405 | - | - |
Valuation in 2012 | 600,000 | - | - |
Cost | 1,657,595 | 74,591 | 582,306 |
3,500,000 | 74,591 | 582,306 |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
Valuation in 2005 | - | - | 1,242,405 |
Valuation in 2012 | - | - | 600,000 |
Cost | 603,585 | 39,282 | 2,957,359 |
603,585 | 39,282 | 4,799,764 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Warehouse |
Equipment |
£ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 | 137,130 |
DEPRECIATION |
At 1 January 2023 | 82,938 |
Charge for year | 13,548 |
At 31 December 2023 | 96,486 |
NET BOOK VALUE |
At 31 December 2023 | 40,644 |
At 31 December 2022 | 54,192 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold |
property |
£ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Freehold |
property |
£ |
Valuation in 2005 | 1,242,405 |
Valuation in 2012 | 600,000 |
Cost | 1,657,595 |
3,500,000 |
If Freehold Property had not been revalued it would have been included at the following historical cost: |
31.12.23 | 31.12.22 |
£ | £ |
Cost | 1,657,595 | 1,657,595 |
Aggregate depreciation | 536,390 | 536,390 |
Freehold property was valued on an open market basis on 14 February 2012 by Glenny LLP . |
11. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 373,694 |
NET BOOK VALUE |
At 31 December 2023 | 373,694 |
At 31 December 2022 | 373,694 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 11,581 |
NET BOOK VALUE |
At 31 December 2023 | 11,581 |
At 31 December 2022 | 11,581 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Building 1, St. Cross Chambers, Upper Marsh Lane, Hoddesdon, Herts, EN11 8LQ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Building 1, St. Cross Chambers, Upper Marsh Lane, Hoddesdon, Herts, EN11 8LQ |
Nature of business: |
% |
Class of shares: | holding |
Unlisted Investments |
The unlisted investment net book value is being reduced by the impairment. |
12. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 5,250,040 | 4,304,782 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | DEBTORS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,164,700 | 3,287,382 |
Amounts owed by participating interests | 70,000 | 70,000 | - | - |
Sundry Debtors and Prepayments | 459,185 | 284,349 |
Directors' current accounts | 196,062 | 35,536 | 196,062 | 35,536 |
VAT | 137,692 | - |
4,027,639 | 3,677,267 |
Amounts falling due after more than one | year: |
Amounts owed by connected parties | 2,405,000 | 2,405,000 |
Aggregate amounts | 6,432,639 | 6,082,267 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 1,620,558 | 156,282 |
Hire purchase contracts (see note 17) | 22,451 | 26,435 |
Trade creditors | 3,947,626 | 3,304,769 |
Amounts owed to group undertakings | - | - |
Tax | 89,754 | 56,613 |
Social security and other taxes | (64,423 | ) | 254,494 |
VAT | - | 81,278 | - | 159,975 |
Creditors and Accruals | 74,704 | 57,890 | 17,030 | 25,256 |
Directors' current accounts | 664 | 662 | 664 | 662 |
5,691,334 | 3,938,423 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans (see note 16) | - | 1,564,367 |
Other loans (see note 16) | 2,194 | 2,194 |
Hire purchase contracts (see note 17) | 3,178 | 25,629 |
5,372 | 1,592,190 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 1,620,558 | 156,282 |
Amounts falling due between one and two | years: |
Bank Loan between 1 and 2 yrs | - | 312,564 |
Film Investment Loan | 2,194 | 2,194 | 1,097 | 1,097 |
2,194 | 314,758 |
Amounts falling due between two and five | years: |
Bank Loan between 2 and 5 yrs | - | 468,846 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loan over 5 yrs instlmts | - | 782,957 | - | 782,957 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 26,371 | 30,903 |
Between one and five years | 3,688 | 30,059 |
30,059 | 60,962 |
Finance charges repayable: |
Within one year | 3,920 | 4,468 |
Between one and five years | 510 | 4,430 |
4,430 | 8,898 |
Net obligations repayable: |
Within one year | 22,451 | 26,435 |
Between one and five years | 3,178 | 25,629 |
25,629 | 52,064 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans | 1,620,558 | 1,720,649 |
Film Investment Loan | - | 1,097 | 1,097 | 1,097 |
Hire purchase agreements | - | 52,064 | - | - |
1,620,558 | 1,773,810 |
The bank borrowings are secured on the Group's freehold property and by an unlimited guarantee given by the principal trading subsidiary. |
19. | FINANCIAL INSTRUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost | 6,059,555 | 6,082,267 |
Financial liabilities |
Financial liabilities measured at amortised cost | 5,606,953 | 5,530,613 |
Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors. |
Financial liabilities measured at amortised cost comprise bank overdrafts, loans, trade creditors, amounts owed to group undertakings, finance leases and other creditors. |
20. | CALLED UP SHARE CAPITAL |
Allotted,issued and fully paid |
Number | Class | Nominal | 31.12.22 | 31.12.21 |
Value | £ | £ |
46,024 | 'A' Ordinary | £0.01 | 460 | 460 |
308,888 | 'B' Ordinary | £0.01 | 3,089 | 3,089 |
3,191,132 | 'C' Ordinary | £0.001 | 3,191 | 3,191 |
6,740 | 6,740 |
Enfield Fancy Goods Limited and |
subsidiary companies (Registered number: 01355367) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 8,331,660 | 1,842,405 | 11,535 | 10,185,600 |
Profit for the year | 260,008 | 260,008 |
At 31 December 2023 | 8,591,668 | 1,842,405 | 11,535 | 10,445,608 |
Company |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 2,659,105 |
Profit for the year |
At 31 December 2023 | 2,819,110 |
22. | NON-CONTROLLING INTERESTS |
200 Non equity B Ordinary shares of £1 each held by third parties in the principal operating subsidiary. |
23. | PENSION COMMITMENTS |
The Company and it's subsidiary operate defined contributions pension schemes. The assets of the schemes are held separately from those of the Companies in independently administered funds. The pension cost charge represents contributions payable by the Company and it's subsidiary to the funds and amounted to £50,952 (2022 £88,308). Contributions totalling £10,902 (2022 £8,816) were payable to the funds at the balance sheet date and are included in creditors. |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
During the year, the company advanced loans to two directors of the company. All amounts due have been repaid by the directors after the year end. |
25. | RELATED PARTY DISCLOSURES |
The amounts owed by the directors on their current accounts at 31 December 2023 totalled £196,062 (December 2022 £34,874). |
The company has advanced a loan to a company controlled by one of the directors. At the year end, the amount outstanding on this loan was £2,405,000 (2022 : £2,405,000). Interest of 4% is charged on this loan and interest receivable of £96,200 is included in the year ended 31 December 2023. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the Shipton family by virtue of the fact that they and family trusts in which they have beneficial interests own the majority of the issued share capital. |