Company registration number 08672167 (England and Wales)
Luxe Salon Ltd
Unaudited financial statements
For the year ended 26 September 2023
Luxe Salon Ltd
Balance sheet
As at 26 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
6,000
6,000
Tangible assets
4
4,300
5,419
10,300
11,419
Current assets
Stocks
6,000
6,000
Debtors
5
32,021
26,097
Cash at bank and in hand
56,798
43,772
94,819
75,869
Creditors: amounts falling due within one year
6
(100,127)
(88,146)
Net current liabilities
(5,308)
(12,277)
Total assets less current liabilities
4,992
(858)
Creditors: amounts falling due after more than one year
7
(23,333)
(28,333)
Provisions for liabilities
(817)
(1,355)
Net liabilities
(19,158)
(30,546)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(19,258)
(30,646)
Total equity
(19,158)
(30,546)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 26 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Luxe Salon Ltd
Balance sheet (continued)
As at 26 September 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 26 September 2024
Mr J M Wilcock
Director
Company registration number 08672167 (England and Wales)
Luxe Salon Ltd
Notes to the financial statements
For the year ended 26 September 2023
- 3 -
1
Accounting policies
Company information
Luxe Salon Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Crown Vaults Buildings, Chester Road, Buckley, Flintshire, Wales, CH7 3AE.
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
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover from salon services is recognised as amounts receivable for services and the sale of products and goods net of VAT and trade discounts.
1.4
Intangible fixed assets other than goodwill
Cryptocurrencies are recognised as an intangible asset and carried at their fair value. Movements in fair value are recognised through the profit and loss account.
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
25% on reducing balance
Plant and machinery
15% on reducing balance
Fixtures, fittings & equipment
25% on reducing balance
Computer equipment
25% on reducing balance
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.
Luxe Salon Ltd
Notes to the financial statements (continued)
For the year ended 26 September 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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.
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.
1.7
Stocks
Stocks are stated at the lower of cost, value in use and estimated selling price.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price or value in use is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
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 balance sheet 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. As all financial assets are classified within one year, they are not amortised but carried at face value.
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.
Luxe Salon Ltd
Notes to the financial statements (continued)
For the year ended 26 September 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are carried at face value.
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 continue to be measured at face value.
1.10
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.
1.11
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 profit and loss account 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.
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Luxe Salon Ltd
Notes to the financial statements (continued)
For the year ended 26 September 2023
1
Accounting policies
(Continued)
- 6 -
1.14
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.
2
Employees
The average monthly number of persons (including directors without service contracts) employed by the company during the year was 10 (2022 - 12).
2023
2022
Number
Number
Total
10
12
3
Intangible fixed assets
Cryptocurrency
£
Cost
At 27 September 2022 and 26 September 2023
20,000
Amortisation and impairment
At 27 September 2022 and 26 September 2023
14,000
Carrying amount
At 26 September 2023
6,000
At 26 September 2022
6,000
Intangible fixed assets represent cryptocurrency investments with an initial cost of £20,000. The director is of the opinion that the fair value of the investment at the balance sheet date is £6,000 and an impairment of £14,000 has been recognised within previous years accounts.
The cryptocurrency investment is held by the director on behalf of the company under a deed of trust.
Luxe Salon Ltd
Notes to the financial statements (continued)
For the year ended 26 September 2023
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 27 September 2022 and 26 September 2023
3,145
26,610
29,755
Depreciation and impairment
At 27 September 2022
2,586
21,750
24,336
Depreciation charged in the year
140
979
1,119
At 26 September 2023
2,726
22,729
25,455
Carrying amount
At 26 September 2023
419
3,881
4,300
At 26 September 2022
559
4,860
5,419
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
32,021
26,097
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
2,818
1,773
Corporation tax
7,465
4,547
Other taxation and social security
67,559
57,699
Other creditors
12,285
14,127
100,127
88,146
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
23,333
28,333
8
Related party transactions
Luxe Salon Ltd
Notes to the financial statements (continued)
For the year ended 26 September 2023
8
Related party transactions
(Continued)
- 8 -
Key employee & Shareholder
Loan advances of £4,683 and £15,000 have been made to a key employee and company shareholder. No interest was charged on the loan of £4,683, interest of £366 was charged at a rate of 2.25% on the loan advance of £15,000.
The loan balances due and repayable upon demand as at the 26 September 2023 were £4,683 and £15,366 respectively.
Company controlled by the Director
A loan advance of £1,000 (2022 £15,000) has been made by Luxe Salon Limited to a company controlled by the director. The loan advance is interest free and repayable upon demand.
9
Directors' transactions
An interest free and payable upon demand loan has been granted by the company to its director as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan
-
2,937
2,480
(3,000)
2,417
2,937
2,480
(3,000)
2,417