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COMPANY REGISTRATION NUMBER: 1254443
Corsair Toiletries Ltd
Financial Statements
31 December 2023
Corsair Toiletries Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
8
Statement of financial position
9
Statement of cash flows
10
Notes to the financial statements
11
Corsair Toiletries Ltd
Strategic Report
Year ended 31 December 2023
The directors present their strategic report on the group for the year ended 31 December 2023. Review of the business The Company is a manufacturer, product developer, designers and distributors of licensed toiletries, fragrance and associated products. Results and performance The results of the company for the year, as set out on pages 8, show a profit on ordinary activities before tax of £3.1m (2022: £2.3m). The shareholders' funds of the company total £2.8m(2022:£1.2m). Turnover has increased by around 58%, mainly due to the company having an improved portfolio of licenced products, and also developing "own brands" products for UK retailers. The company also had a marked increase in export sales to Europe. The company also maintained its margin at around 24%.These are the key performance indicators for the business. Business environment The Company support their ranges through strong promotional and marketing plans. Strategy The company's success is dependent on the license selection, pricing and ongoing management of the business it accepts. The company is continually reviewing and renewing its range of brands, whilst it invests time and resources looking for innovative and compelling products to add to its portfolio. Production is based in China, India and Turkey, which has contributed to the competitive unit costs of our products in the year 2023. Principal risks and uncertainties Market Risk The current economic climate remains very competitive. In order to maintain margins in the company, focus will be placed upon achieving this through improving the purchase cycle and pricing with its major suppliers. Selecting the right license is always a potential risk but the Company takes time to consider each and every opportunity before committing. Foreign exchange risk The Company enters foreign exchange in order to hedge against any anticipated currency fluctuations. Credit risk The company carries out vigorous credit check verification and credit control procedures, which assists with cash flow management.
Future developments During the current year 2024 the company has maintained its growth and is still looking to expand its product range and manufacturing processes.
This report was approved by the board of directors on 8 July 2024 and signed on behalf of the board by:
M Pringle
Director
Registered office:
Unit 1, Park Industrial Estate
Park Street Lane
Frogmore
St Albans
Herts
AL2 2DR
Corsair Toiletries Ltd
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Principal activities
The company's principal activity continued to be that of wholesalers in toiletries.
Directors
The directors who served the company during the year were as follows:
M Pringle
G Pringle
O Pringle
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The future developments review is included within the Strategic Report.
Disclosure of information in the strategic report
The business review is included within the Strategic Report on Page 1.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 8 July 2024 and signed on behalf of the board by:
M Pringle
Director
Registered office:
Unit 1, Park Industrial Estate
Park Street Lane
Frogmore
St Albans
Herts
AL2 2DR
Corsair Toiletries Ltd
Independent Auditor's Report to the Members of Corsair Toiletries Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of Corsair Toiletries Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the 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; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's 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.
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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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
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. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
- Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from a fraud or error and are considered material if, individually or in aggregate, they could be reasonably expected to influence the economic decisions of the user of the financial statements. - Irregularities, including fraud, are instances of non-compliance with laws and regulations; We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, are now detailed below - Enquiring of management around actual and potential litigation claims; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. Because of the inherent limitations of an audit, there is a risk we will not detect all irregularities, including those leading to a material misstatement in the financial statements or a non-compliance with a a law or regulation. This risk increases the more 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 the instances of non-compliance. A further description of our responsibilities for the audit of the financial statements is located on the FRC website at: www.frc.org.uk/auditorsresponsibilties. This description forms part of our Auditors 'Report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Shenol Moustafa, FCA
(Senior Statutory Auditor)
For and on behalf of
Hurshens Limited
Chartered accountants & statutory auditor
Unit 2, 32-34 Station Close
Herts
EN6 1TL
8 July 2024
Corsair Toiletries Ltd
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
20,888,504
13,229,459
Cost of sales
15,993,392
9,976,148
-------------
-------------
Gross profit
4,895,112
3,253,311
Administrative expenses
1,731,937
917,957
------------
------------
Operating profit
5
3,163,175
2,335,354
Other interest receivable and similar income
9
3,689
2,752
Interest payable and similar expenses
10
47,927
45,523
------------
------------
Profit before taxation
3,118,937
2,292,583
Tax on profit
11
696,091
437,158
------------
------------
Profit for the financial year and total comprehensive income
2,422,846
1,855,425
------------
------------
Dividends paid and payable
12
( 820,006)
( 1,250,000)
Retained earnings at the start of the year
1,216,652
611,227
------------
------------
Retained earnings at the end of the year
2,819,492
1,216,652
------------
------------
All the activities of the company are from continuing operations.
Corsair Toiletries Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
13
80,991
22,787
Current assets
Stocks
14
2,003,546
615,297
Debtors
15
6,747,370
2,810,534
Cash at bank and in hand
687,823
1,607,120
------------
------------
9,438,739
5,032,951
Creditors: amounts falling due within one year
16
6,680,238
3,352,419
------------
------------
Net current assets
2,758,501
1,680,532
------------
------------
Total assets less current liabilities
2,839,492
1,703,319
Creditors: amounts falling due after more than one year
17
466,667
------------
------------
Net assets
2,839,492
1,236,652
------------
------------
Capital and reserves
Called up share capital
19
20,000
20,000
Profit and loss account
20
2,819,492
1,216,652
------------
------------
Shareholders funds
2,839,492
1,236,652
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 8 July 2024 , and are signed on behalf of the board by:
M Pringle
Director
Company registration number: 1254443
Corsair Toiletries Ltd
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
2,422,846
1,855,425
Adjustments for:
Depreciation of tangible assets
4,081
7,663
Other interest receivable and similar income
( 3,689)
( 2,752)
Interest payable and similar expenses
47,927
45,523
Gains on disposal of tangible assets
( 7,268)
Tax on profit
696,091
437,158
Changes in:
Stocks
( 1,388,249)
( 92,989)
Trade and other debtors
( 3,936,836)
106,336
Trade and other creditors
2,581,728
( 1,013,157)
------------
------------
Cash generated from operations
416,631
1,343,207
Interest paid
( 47,927)
( 45,523)
Interest received
3,689
2,752
Tax paid
( 500,000)
( 405,910)
---------
------------
Net cash (used in)/from operating activities
( 127,607)
894,526
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 70,554)
Proceeds from sale of tangible assets
15,537
---------
------------
Net cash used in investing activities
( 55,017)
---------
------------
Cash flows from financing activities
Proceeds from borrowings
( 166,667)
( 268,134)
Proceeds from loans from group undertakings
250,000
Dividends paid
( 820,006)
( 1,250,000)
---------
------------
Net cash used in financing activities
( 736,673)
( 1,518,134)
---------
------------
Net decrease in cash and cash equivalents
( 919,297)
( 623,608)
Cash and cash equivalents at beginning of year
1,607,120
2,230,728
------------
------------
Cash and cash equivalents at end of year
687,823
1,607,120
------------
------------
Corsair Toiletries Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Unit 1, Park Industrial Estate, Park Street Lane, Frogmore, St Albans, Herts, AL2 2DR.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Invoice discounting
The company has entered into an invoice discounting agreement, whereby it receives a proportion of its sales invoices as an advance. The relevant sales invoices are included in trade debtors, but are assigned to the discount house. Advances are disclosed in the balance sheet as current liabilities when they exist, otherwise amounts due to the company are included within cash at bank with no separate disclosure.
Going concern
Based upon the work we have performed, we have not identified any material uncertainties relating to events or conditions that 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 use.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Stock provisions- The company sells branded products with agreed licence periods. When calculating stock provisions and write downs,management have to consider market conditions and recoverability of stock held at the year end .
Revenue recognition
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date .
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Property improvement
-
25% reducing balance
Plant and equipment
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised
Financial instruments
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all its financial instruments. Inter company loans are classed as basic financial instruments, and are interest free and are repayable on demand. As a result they are not held at amortised value, but instead these loans are stated at fair value. Derivatives such as foreign exchange contracts, are not basic financial instruments.They are initially recognised at fair value on the date the contract is entered into and are subsequently measured at their fair value. Changes in fair value are recorded in the profit and loss account.
Defined contribution plans
The company operates a defined contribution pension scheme for the directors. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the Profit and Loss Account.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
20,888,504
13,229,459
-------------
-------------
The directors consider it to be seriously prejudicial to the interests of the company to disclose information regarding turnover.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
4,081
7,662
Gains on disposal of tangible assets
( 7,268)
Impairment of trade debtors
11,724
(74,037)
--------
--------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,000
8,000
--------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
6,672
10,303
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Distribution staff
21
22
Management staff
2
2
----
----
23
24
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,371,748
1,005,002
Social security costs
153,805
130,369
Other pension costs
13,421
10,875
------------
------------
1,538,974
1,146,246
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
170,916
188,500
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
----
----
9. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
3,689
2,752
-------
-------
10. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
47,927
45,523
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
733,249
437,158
Adjustments in respect of prior periods
( 37,158)
---------
---------
Total current tax
696,091
437,158
---------
---------
---------
---------
Tax on profit
696,091
437,158
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
3,118,937
2,292,583
------------
------------
Profit on ordinary activities by rate of tax
733,590
434,024
Adjustment to tax charge in respect of prior periods
( 37,158)
Effect of capital allowances and depreciation
( 341)
1,567
------------
------------
Tax on profit
696,091
435,591
------------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
820,006
1,250,000
---------
------------
13. Tangible assets
Land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
31,133
241,338
129,394
401,865
Additions
70,554
70,554
Disposals
( 119,443)
( 119,443)
--------
---------
---------
---------
At 31 December 2023
31,133
241,338
80,505
352,976
--------
---------
---------
---------
Depreciation
At 1 January 2023
27,305
232,159
119,614
379,078
Charge for the year
( 599)
478
4,202
4,081
Disposals
( 111,174)
( 111,174)
--------
---------
---------
---------
At 31 December 2023
26,706
232,637
12,642
271,985
--------
---------
---------
---------
Carrying amount
At 31 December 2023
4,427
8,701
67,863
80,991
--------
---------
---------
---------
At 31 December 2022
3,828
9,179
9,780
22,787
--------
---------
---------
---------
14. Stocks
2023
2022
£
£
Finished goods and goods for resale
2,003,546
615,297
------------
---------
15. Debtors
2023
2022
£
£
Trade debtors
3,440,962
2,437,630
Amounts owed by group undertakings
3,177,383
299,370
Prepayments and accrued income
48,260
7,834
Other debtors
80,765
65,700
------------
------------
6,747,370
2,810,534
------------
------------
Trade debtors disclosed are all assigned to the invoice discounting house.
16. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
4,842,707
2,787,474
Amounts owed to group undertakings
250,000
Corporation tax
633,249
437,158
Social security and other taxes
654,282
127,787
Director loan accounts
300,000
------------
------------
6,680,238
3,352,419
------------
------------
The banking facilities are secured by a fixed and floating charge over all the company's assets.
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
466,667
----
---------
The Bank loan consists of the CBIL Scheme that was paid off during the year. Part of this loan was secured by a fixed and floating charge held by the company's bankers.
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 13,421 (2022: £ 10,875 ).
19. Called up share capital
Authorised share capital
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
20,000
20,000
20,000
20,000
--------
--------
--------
--------
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
20,000
20,000
20,000
20,000
--------
--------
--------
--------
20. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
21. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
1,607,120
(919,297)
687,823
Debt due within one year
(550,000)
(550,000)
Debt due after one year
(466,667)
466,667
------------
------------
---------
1,140,453
( 1,002,630)
137,823
------------
------------
---------
22. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Later than 5 years
47,000
47,000
--------
--------
23. Related party transactions
The company operates from a defined contribution pension scheme . The assets of the scheme are held separately from those of the company in an independently administered fund. The company paid rent to the scheme of £47,000 (2022:£47,000) during the year. The company made sales to a related company of £351,795 (2022:£1,929,770) during the year. Amounts due from this company amounted to £- (2022:£196,753). The company also purchased services from a related party for £92,053. The amount due to this company was £110,463. All transactions are at open market value.
Corsair Toiletries Ltd
Notes to the Financial Statements (continued)
Year ended 31 December 2023
24. Controlling party
The ultimate controlling party is the Corsair Group Ownership Trust with shares held by a non trading company Corsair EOT Trustees Limited. The immediate Parent company was Corsair Holdings Ltd of Unit 2, 32-34 Station Close, Potters Bar, EN6 1TL. The Company is 100% owned by this company.
25. Financial risk management
The company has exposures to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. To a lesser extent the company is exposed to interest rate risk.
Foreign exchange transactional currency exposure
The company is exposed to currency exchange rate risk due to a significant proportion of its payables being denominated in non-Sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contract.
Liquidity risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations the company has credit facilities available.
Customer credit exposure
The group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships and by credit insurance.
Interest rate risk
The company borrows from its bankers using either overdrafts or invoice discounting whose tenure depends on the nature of the asset and management's view of the future direction of interest rate.