Company registration number 08403960 (England and Wales)
EYESPACE EYEWEAR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EYESPACE EYEWEAR LIMITED
COMPANY INFORMATION
Directors
Mrs J V Fullard
Mrs J A Jones
Secretary
Mrs B Abel
Company number
08403960
Registered office
Sugarbrook House
25a Harris Business Park
Hanbury Road, Stoke Prior
Bromsgrove
Worcestershire
B60 4BD
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
HSBC Bank Plc
130 New Street
Birmingham
West Midlands
B2 4JU
EYESPACE EYEWEAR LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
EYESPACE EYEWEAR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The principal activity and strategic focus of the company remains the design and manufacture of eyewear. The Company has established a strong presence in the market through its commitment to quality, innovative design, and exceptional craftsmanship.
The company continues to review its product portfolio and develop new product ranges to suit the needs of the market and maintain it’s market position. We are also continuously working on strengthening our relationships with existing customers whilst also looking to develop new customer relationships and routes to market.
Principal risks and uncertainties
Supply Chain Disruptions: As the Company's products are manufactured overseas, any disruption in the supply chain, including political instability, logistical challenges, or global events like pandemics, could significantly impact operations and profitability.
Development and performance
For the financial year ending 2023, the Company reported a turnover of £10,968,544, reflecting a decrease of 7.7% from £11,885,488 in 2022. This decline in turnover can be attributed to competition within the market and changing market conditions.
Despite the decrease in revenue, the Company maintained a solid gross profit margin of 45.1%, slightly improving from 44.7% in the previous year. This improvement in margin is indicative of effective cost management and pricing strategies.
Indeed, our cost management strategies were effective at controlling cost of sales which decreased by 8.5% from 2022 (£6,571,558) to 2023 (£6,016,527) and helped keep other administrative expenditure down, with these costs only increasing by £26,861 between 2022 (£4,141,911) and 2023 (£4,168,772). This is considered a strong positive considering the level of inflation that existed in the wider economy for much of 2023.
While 2023 presented several challenges, the company has taken proactive steps to address them and is well-positioned for future growth.
Key performance indicators
The directors regularly monitor the trading climate in terms of product performance, customer satisfaction and financial performance of the business.
Mrs J A Jones
Director
11 September 2024
EYESPACE EYEWEAR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company during the year under review was that of the supply of eyewear and related accessories.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs J V Fullard
Mrs J A Jones
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 of 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 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 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
EYESPACE EYEWEAR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mrs J A Jones
Director
11 September 2024
EYESPACE EYEWEAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EYESPACE EYEWEAR LIMITED
- 4 -
Opinion
We have audited the financial statements of Eyespace Eyewear Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 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.
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.
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 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.
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 our 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.
EYESPACE EYEWEAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EYESPACE EYEWEAR LIMITED (CONTINUED)
- 5 -
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 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 auditor's 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or operations of the company and group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
EYESPACE EYEWEAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EYESPACE EYEWEAR LIMITED (CONTINUED)
- 6 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual transactions or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Colm McGrory FCA
Senior Statutory Auditor
For and on behalf of Ormerod Rutter Limited
12 September 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
EYESPACE EYEWEAR LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,968,544
11,885,489
Cost of sales
(6,016,527)
(6,571,558)
Gross profit
4,952,017
5,313,931
Administrative expenses
(4,168,772)
(4,141,912)
Other operating income
490
9,000
Operating profit
4
783,735
1,181,019
Interest receivable and similar income
7
630
520
Interest payable and similar expenses
8
(9,609)
(2,573)
Profit before taxation
774,756
1,178,966
Tax on profit
9
(181,179)
(188,755)
Profit for the financial year
593,577
990,211
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EYESPACE EYEWEAR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
593,577
990,211
Other comprehensive income
-
-
Total comprehensive income for the year
593,577
990,211
EYESPACE EYEWEAR LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
122,991
131,610
Current assets
Stocks
12
1,641,400
1,348,474
Debtors
13
1,642,241
1,387,262
Cash at bank and in hand
436,794
722,330
3,720,435
3,458,066
Creditors: amounts falling due within one year
14
(2,923,135)
(2,859,344)
Net current assets
797,300
598,722
Total assets less current liabilities
920,291
730,332
Provisions for liabilities
Provisions
16
89,288
Deferred tax liability
17
28,696
21,602
(117,984)
(21,602)
Net assets
802,307
708,730
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
802,207
708,630
Total equity
802,307
708,730
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mrs J A Jones
Director
Company registration number 08403960 (England and Wales)
EYESPACE EYEWEAR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
618,419
618,519
Year ended 31 December 2022:
Profit and total comprehensive income
-
990,211
990,211
Dividends
10
-
(900,000)
(900,000)
Balance at 31 December 2022
100
708,630
708,730
Year ended 31 December 2023:
Profit and total comprehensive income
-
593,577
593,577
Dividends
10
-
(500,000)
(500,000)
Balance at 31 December 2023
100
802,207
802,307
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Eyespace Eyewear Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sugarbrook House, 25a Harris Business Park, Hanbury Road, Stoke Prior, Bromsgrove, Worcestershire, England, B60 4BD.
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.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of F J A Design Limited. These consolidated financial statements are available from its registered office, Sugarbrook House, 25a Harris Business Park, Hanbury Road, Stoke Prior, Bromsgrove, Worcestershire, England, B60 4BD.
1.2
Going concern
These financial statements have been drawn up on the going concern basis. If the going concern basis were not appropriate, adjustments would have been made to reduce assets to recoverable amounts, to provide for any further liabilities that might arise, and to re-classify fixed assets as current assets and long term liabilities as current liabilities.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
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
33% on cost, 20% on cost and 10% on cost
Plant and machinery
33% on cost, 20% on cost
Fixtures, fittings & equipment
33% on cost, 20% on cost and 10% on cost
Computer equipment
33% on cost and 10% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Financial instruments
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.8
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.
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,812,696
9,864,367
Rest of the World
2,155,848
2,021,122
10,968,544
11,885,489
2023
2022
£
£
Other revenue
Interest income
630
520
Grants received
-
9,000
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(9,000)
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
Depreciation of owned tangible fixed assets
47,857
61,773
(Profit)/loss on disposal of intangible assets
-
15,452
Operating lease charges
270,198
265,606
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
61,251
78,619
Company pension contributions to defined contribution schemes
1,321
-
62,572
78,619
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
52
50
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,331,254
2,305,318
Social security costs
7,197
15,144
Pension costs
34,725
32,999
2,373,176
2,353,461
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
630
Other interest income
520
Total income
630
520
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
9,609
2,573
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
184,989
251,964
Adjustments in respect of prior periods
(11,728)
(41,894)
Total current tax
173,261
210,070
Deferred tax
Origination and reversal of timing differences
7,918
(21,315)
Total tax charge
181,179
188,755
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
774,756
1,178,966
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
182,223
224,004
Tax effect of expenses that are not deductible in determining taxable profit
15,498
30,435
Tax effect of income not taxable in determining taxable profit
(12,732)
(2,396)
Change in unrecognised deferred tax assets
7,918
(21,395)
Adjustments in respect of prior years
(11,728)
(41,893)
Taxation charge for the year
181,179
188,755
10
Dividends
2023
2022
£
£
Final paid
500,000
900,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
47,393
56,749
126,572
149,259
379,973
Additions
28,624
4,942
2,730
5,842
42,138
Disposals
(2,900)
(2,900)
At 31 December 2023
76,017
61,691
129,302
152,201
419,211
Depreciation and impairment
At 1 January 2023
29,087
36,696
84,226
98,354
248,363
Depreciation charged in the year
10,702
6,731
12,424
18,000
47,857
At 31 December 2023
39,789
43,427
96,650
116,354
296,220
Carrying amount
At 31 December 2023
36,228
18,264
32,652
35,847
122,991
At 31 December 2022
18,306
20,053
42,346
50,905
131,610
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,641,400
1,348,474
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,493,374
1,222,131
Other debtors
6,860
6,246
Prepayments and accrued income
142,007
158,885
1,642,241
1,387,262
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
128,472
Trade creditors
1,258,838
772,778
Amounts owed to group undertakings
1,132,052
1,623,262
Corporation tax
8,994
21,214
Other taxation and social security
105,504
99,057
Deferred income
18
7,908
Other creditors
96,157
175,353
Accruals and deferred income
185,210
167,680
2,923,135
2,859,344
15
Loans and overdrafts
2023
2022
£
£
Bank loans
128,472
Payable within one year
128,472
Bank loans are secured by a fixed and floating charge over all property and undertaking of the company.
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
16
Provisions for liabilities
2023
2022
£
£
Warranty provision
89,288
-
Movements on provisions:
Warranty provision
£
Additional provisions in the year
89,288
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
28,696
21,602
2023
Movements in the year:
£
Liability at 1 January 2023
21,602
Charge to profit or loss
7,094
Liability at 31 December 2023
28,696
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
18
Deferred income
2023
2022
£
£
Other deferred income
7,908
-
EYESPACE EYEWEAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,725
32,999
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
100
100
100
100
21
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
198,430
197,033
Between two and five years
395,541
441,917
593,971
638,950
23
Ultimate controlling party
The immediate parent company is F J A Design Limited, a company registered in England and Wales. There is no ultimate controlling party by virtue of no controlling interest in the immediate parent company.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mrs J V FullardMrs J A JonesMrs B Abelfalsefalse084039602023-01-012023-12-3108403960bus:Director12023-01-012023-12-3108403960bus:Director22023-01-012023-12-3108403960bus:CompanySecretary12023-01-012023-12-3108403960bus:RegisteredOffice2023-01-012023-12-3108403960bus:Agent12023-01-012023-12-31084039602023-12-31084039602022-01-012022-12-3108403960core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3108403960core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31084039602022-12-3108403960core:LeaseholdImprovements2023-12-3108403960core:PlantMachinery2023-12-3108403960core:FurnitureFittings2023-12-3108403960core:ComputerEquipment2023-12-3108403960core:LeaseholdImprovements2022-12-3108403960core:PlantMachinery2022-12-3108403960core:FurnitureFittings2022-12-3108403960core:ComputerEquipment2022-12-3108403960core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108403960core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108403960core:CurrentFinancialInstruments2023-12-3108403960core:CurrentFinancialInstruments2022-12-3108403960core:ShareCapital2023-12-3108403960core:ShareCapital2022-12-3108403960core:RetainedEarningsAccumulatedLosses2023-12-3108403960core:RetainedEarningsAccumulatedLosses2022-12-3108403960core:ShareCapital2021-12-3108403960core:RetainedEarningsAccumulatedLosses2021-12-3108403960core:LeaseholdImprovements2023-01-012023-12-3108403960core:PlantMachinery2023-01-012023-12-3108403960core:FurnitureFittings2023-01-012023-12-3108403960core:ComputerEquipment2023-01-012023-12-3108403960core:UKTax2023-01-012023-12-3108403960core:UKTax2022-01-012022-12-3108403960core:LeaseholdImprovements2022-12-3108403960core:PlantMachinery2022-12-3108403960core:FurnitureFittings2022-12-3108403960core:ComputerEquipment2022-12-31084039602022-12-3108403960core:WithinOneYear2023-12-3108403960core:WithinOneYear2022-12-3108403960core:BetweenTwoFiveYears2023-12-3108403960core:BetweenTwoFiveYears2022-12-3108403960bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108403960bus:FRS1022023-01-012023-12-3108403960bus:Audited2023-01-012023-12-3108403960bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP