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Registration number: 06715478

Louietex Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Louietex Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Louietex Limited

Company Information

Director

S B Babuta

Company secretary

B Babuta

Registered office

Louie House, Dunston Industrial Estate
Lancaster Road
Dunston
Gateshead
Tyne & Wear
NE11 9JR

Accountants

Torgersens
Chartered Accountants
East Suite, Ground Floor
Avalon House
St Catherine's Court
Sunderland
SR5 3XJ

 

Louietex Limited

(Registration number: 06715478)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

6,341

8,457

Current assets

 

Stocks

860,587

1,647,835

Debtors

6

1,302,119

1,521,927

Cash at bank and in hand

 

98,559

334,516

 

2,261,265

3,504,278

Creditors: Amounts falling due within one year

7

(1,737,535)

(2,963,805)

Net current assets

 

523,730

540,473

Total assets less current liabilities

 

530,071

548,930

Creditors: Amounts falling due after more than one year

7

(9,664)

(28,994)

Net assets

 

520,407

519,936

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

519,407

518,936

Shareholders' funds

 

520,407

519,936

 

Louietex Limited

(Registration number: 06715478)
Balance Sheet as at 31 December 2023

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 25 September 2024
 

.........................................
S B Babuta
Director

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Louie House, Dunston Industrial Estate
Lancaster Road
Dunston
Gateshead
Tyne & Wear
NE11 9JR

These financial statements were authorised for issue by the director on 25 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Motor vehicles

25% straight line

Equipment

25% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 12 (2022 - 13).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

568,000

568,000

At 31 December 2023

568,000

568,000

Amortisation

At 1 January 2023

568,000

568,000

At 31 December 2023

568,000

568,000

Carrying amount

At 31 December 2023

-

-

The aggregate amount of research and development expenditure recognised as an expense during the period is £- (2022 - £2,854).
 

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

5

Tangible assets

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

22,302

35,511

20,004

77,817

At 31 December 2023

22,302

35,511

20,004

77,817

Depreciation

At 1 January 2023

20,048

31,025

18,287

69,360

Charge for the year

563

1,124

429

2,116

At 31 December 2023

20,611

32,149

18,716

71,476

Carrying amount

At 31 December 2023

1,691

3,362

1,288

6,341

At 31 December 2022

2,254

4,486

1,717

8,457

6

Debtors

Current

2023
£

2022
£

Trade debtors

1,052,135

1,285,299

Prepayments

247,161

233,805

Other debtors

2,823

2,823

 

1,302,119

1,521,927

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

872,703

2,105,365

Trade creditors

 

23,956

36,872

Amounts owed to group undertakings and undertakings in which the company has a participating interest

9

403,200

480,000

Taxation and social security

 

173,512

243,817

Accruals and deferred income

 

34,029

27,774

Other creditors

 

230,135

69,977

 

1,737,535

2,963,805

Creditors: amounts falling due after more than one year

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9,664

28,994

 

Louietex Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

-

-

Operating leases

The amount of non-cancellable operating lease payments recognised as an expense during the year was £Nil (2022 - £Nil).

9

Related party transactions

Summary of transactions with parent

Louie (Holdings) Limited also provided additional security for the company's bank loan by way of a first legal mortgage over its freehold property and a fixed and floating charge over all of its assets and undertakings.

 Additional security for the company's bank loan comprising of a first legal mortgage on freehold property owned by A K and B Babuta, who are directors and key management personnel or the ultimate parent company, has been provided.
 

Loans from related parties

2023

Parent
£

Total
£

At start of period

483,000

483,000

Repaid

(76,800)

(76,800)

At end of period

406,200

406,200

2022

Parent
£

Total
£

At start of period

568,000

568,000

Repaid

(85,000)

(85,000)

At end of period

483,000

483,000

Terms of loans from related parties

The company has not been charged interest on the loan.
 

10

Parent and ultimate parent undertaking

The company's immediate parent is Louie (Ho;ldings) Limited, incorporated in England and Wales.