REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ASTON & FINCHER LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ASTON & FINCHER LIMITED |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
ASTON & FINCHER LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
161 Newhall Street |
Birmingham |
B3 1SW |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
The Directors present their strategic report of the company for the year ended 31 December 2023. This strategic review is written in the context of the risks and uncertainties faced by the company and is consistent with the size and non-complex nature of the company's operations. |
REVIEW OF BUSINESS |
The directors are satisfied with the results of the company given the challenging market conditions and general economic climate that prevailed during the year. The company supplies the hair and beauty industry and saw a small decline of 2.6% in turnover compared to the previous year. This is primarily attributed to the natural lifecycle of a non-exclusive brand and a full year impact following the closure of a store in 2022. These have been offset by a large degree by increases in sales of other brands and products, together with additional sales following the hive-up in the year from a business purchased at the end of 2022. The company has also seen rising costs, in particular, payroll, rates and utility costs as a result of legislative changes, removal of Covid relief and inflationary pressures. Despite these factors, the company have reported a robust profit and an increase in Net Assets. The company continues to have a high level of cash reserves which puts it in a strong position to exploit future trading opportunities as and when they arise. |
The company is always evolving, adding new products to its offering, and devising strategies to grow the business with existing customers as well as attracting new customers. The directors remain committed to sustainably growing the business by growing the company's customer base and continuing to invest in the team, technology and new products. Since the year end, the company has continued to trade in line with the directors' expectations. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The risks faced by the company are regularly reviewed by the board and appropriate management strategies are put in place to monitor and mitigate them. |
As for many companies of this size the business environment continues to be challenging, the market is highly competitive and as a result there is always downward pressure on margins. Due to the company's dedication to customer care and extensive product range priced competitively and representing value for money the company enjoys a loyal and longstanding customer base. The directors, having reflected upon the current position of the company, consider it is operationally and financially well placed to face the challenges of the continuing economic uncertainty. |
The company holds a significant level of stock and therefore there is a potential risk of stock obsolescence. Stock is actively managed and reviewed frequently to identify slow moving stock lines so that management can act accordingly to mitigate the risk of obsolete stock. |
The company is also exposed to foreign currency exchange risk due to a reasonable proportion of purchases being made from overseas suppliers. |
The quality of staff is an integral factor of the company's performance, in particular the branch managers. The resignation of key individuals and the possibility of not being able to recruit people with the necessary skills to replace them represent a key risk to the business. To mitigate this issue the company has had, for a number of years, schemes linked to their results that are designated to retain key individuals. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
SECTION 172(1) STATEMENT |
The Board of Directors always consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172(1) (a)-(f) of the Companies Act 2006, in the decisions taken during the year ended 31 December 2023 and this is exhibited within this report. |
The directors understand the business and the environment in which it operates. This is key when considering the likely consequences of any long term decisions. |
We are committed to respecting and upholding human rights within our business and within our supply chain. We recognise our responsibility to identify and address potential or actual human rights infringements linked to the products and services we provide. We encourage our suppliers to uphold the same standards as we apply to ourselves. |
The company is committed to conducting its operations in a socially responsible manner and will not tolerate any form of bribery or corruption from its employees, suppliers or any other parties. The company conducts its business with honesty and integrity and expects all of the employees to maintain high standards. Both the antibribery and Whistle Blowing policies are available upon request. |
Where possible the company works with its suppliers to reduce the impact on the environment by utilising reusable packaging materials. Additionally the company seeks to recycle materials where it is able to do so. |
The company recognises that its employees and their skills are key to business success and seeks to train and support its employees in the delivery of its excellent products and services. Employee welfare and wellbeing are of utmost importance and the company engages with them all through regular internal communications. |
The company has policies in place which are designed to ensure that all IT and other communication equipment and resources, are used properly and kept secure. The company has various monitoring, firewalls and anti-virus software with structured file access in place to protect against the risk of IT security breaches. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Directors consider the return on capital employed as being the key performance indicator as this communicates the financial performance and strength of the company as a whole. The company saw a decrease in turnover from £41,261,710 in 2022 to £40,196,468 in 2023, return on capital employed (operating profit, excluding exceptional items, expressed as a percentage of total assets less current liabilities) was 5.34%, (2022: 17.83%). |
ON BEHALF OF THE BOARD: |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
Dividends of £596,000 (2022: £697,667) were paid on Ordinary shares in the year. |
Dividends of £72,062 (2022: £38,500) were paid on the Preference shares in the year. |
FUTURE DEVELOPMENTS |
This is covered within the strategic report on page 2. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
ENGAGEMENT WITH EMPLOYEES |
The company places considerable value on the involvement of its employees and is committed to keeping employees as fully informed as possible with regard company's performance. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
This is covered within the strategic report on page 2. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company has taken the exemption available to not disclose this information as it is included in the consolidated financial statements of its parents company Fincher Holdings Limited. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASTON & FINCHER LIMITED |
Opinion |
We have audited the financial statements of Aston & Fincher Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASTON & FINCHER LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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 recognise 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 sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, 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; |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASTON & FINCHER LIMITED |
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 the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining 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; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and other relevant parties. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
161 Newhall Street |
Birmingham |
B3 1SW |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
15,972,939 | 14,542,003 |
709,718 | 2,581,977 |
Other operating income |
OPERATING PROFIT | 6 |
Income from shares in group undertakings |
Interest receivable and similar income | 7 |
637,321 | 328,968 |
1,436,945 | 2,910,945 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
Other comprehensive income | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Aston & Fincher Limited is a private company, limited by shares, registered in England. The company's registered number and registered office address can be found on the Company Information page. The principal activity of the company is the wholesale supply of hairdressing supplies and related products. The Company has branches throughout the country, with its head office based as the same address as the registered office. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Aston & Fincher Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Fincher Holdings Limited, Pavilion Drive, Birmingham, B6 7BB. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life of ten years. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries and associates |
Investments in subsidiary and associate undertakings are recognised at cost less accumulated losses. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
(a) Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
(b) Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of financial statements in conformity with generally accepted accounting principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change. The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. In this respect, the directors believe that the critical accounting policies where judgements or estimations are necessarily applied as follows: |
Stock |
The Company holds a significant level of goods for resale. Provision is made for slow-moving and potential obsolete stock: this, by its very nature, requires management to make judgements. These are based on historical experience and on other factors that are believed to be relevant in the circumstances. |
Goodwill |
Purchased goodwill is a significant figure in the balance sheet and the assessment of its useful economic life requires management to make judgements. These judgements, particularly relating to the rate of amortisation and any additional impairment, are based on the directors' knowledge and experience of the industry. |
Fair value of loans to related parties |
The Company makes an assessment of the market rate of interest which would apply to loans to related parties, in order to determine whether there is any material difference between the loan carrying value and the fair value of cash flows arising from loans to related parties discounted at a market rate of interest. The carrying value of loans to related parties are not discounted where the difference is not material. |
4. | TURNOVER |
The whole of the turnover is attributable to the one principal activity of the Company which was carried out wholly within the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Selling and distribution | 254 | 266 |
Administration | 49 | 42 |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest |
Interest from HMRC |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Interest to HMRC |
Hire purchase |
Preference share dividends | 72,062 | 38,500 |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Over/ Under Tax Provision | 694 | 4,631 |
Total current tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
Profit and loss on disposal | (1,510 | ) | - |
Deferred tax change | 23,779 | (831 | ) |
Other differences leading to an increase (decrease) in tax charge | 13,386 | 5,794 |
Total tax charge | 298,684 | 547,682 |
The corporation tax changed from 19% to 25% on 1st April 2023. |
10. | DIVIDENDS |
Dividends paid during the year on Ordinary shares amounted to £596,000 (2022: £697,667). |
Dividends paid during the year on Preference shares amounted to £72,062 (2022: £38,500). |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
12. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Leasehold improvements include long leasehold property at a cost of £99,077 (2022: £99,077). |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | FIXED ASSET INVESTMENTS |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 160,340 |
Disposals | ( |
) | (100,000 | ) |
At 31 December 2023 | 60,340 |
NET BOOK VALUE |
At 31 December 2023 | 60,340 |
At 31 December 2022 | 160,340 |
The following were subsidiary undertakings of the Company: |
Name |
Registered office |
Principal activity |
Class of shares |
Holding |
AKS Hair & Beauty Limited | as parent | Dormant | Ordinary | 100% |
Direct Hairdressing Supplies Limited | as parent | Dormant | Ordinary | 100% |
John Coldham (Norwich) Limited | as parent | Dormant | Ordinary | 100% |
Sasha Hair & Beauty Limited |
as parent |
Wholesale of hairdressing supplies |
Ordinary |
100% |
During the year, on 31 March 2023, the trade and assets of Sasha Hair & Beauty were hived up into Aston & Fincher Limited. Since the year end, on 27 August 2024, Sasha Hair & Beauty was dissolved. |
Aston & Fincher also own 50% of the Ordinary share capital of The Avec Corporation Limited, a joint venture. The Avec Corporation Limited made a profit after taxation of £448,075 during the year ended 31 December 2023 and aggregate share capital and reserves of £3,360,466. |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
An impairment loss totalling £45,225 (2022: £157,588) has been recognised in profit and loss. |
15. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 943,385 | 742,874 |
Prepayments |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | DEBTORS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Statutory disclosures related to amounts due from the directors and related parties are given in note 24 to the financial statements. |
16. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Amounts held on bank deposits |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Preference shares (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
18. | PREFERENCE SHARES |
An analysis of the maturity of preference shares is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Preference shares | 700,000 | 700,000 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Preference Shares | £1 | 700,000 | 700,000 |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | PREFERENCE SHARES - continued |
The cumulative redeemable preference shares are redeemable at the option of the company. The holders of these shares are entitled to receive a dividend prior to ordinary shareholders of 12.64% per annum on each share which shall accrue on a daily basis and shall be due and payable in equal instalments on 30 June and 31 December in every year. In the event of the company being wound up the preference shareholders are entitled in preference to the ordinary shareholders to any arrears or deficiency of dividend and are to be repaid the nominal value of the shares. The holders of these shares shall not be entitled to any voting rights. |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 146,779 | 123,000 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary Shares | £1 | 12,492 | 12,492 |
Rights attaching to the ordinary shares: |
Upon the winding up of the company or otherwise, capital shall be applied first in repaying the holders of the preference shares as set out below. Thereafter the capital shall then be applied first in repaying holders of the ordinary shares one thousand times the amount of the nominal value and share premium paid up thereon and any balance shall be distributed amongst the holders of the ordinary shares. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 14,347,901 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 14,814,486 |
Share premium account |
Includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
Capital redemption reserve |
Includes all amounts transferred following the redemption of share capital. |
Profit and loss account |
Contains all current and prior period retained profits and losses. |
23. | PENSION COMMITMENTS |
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £603,543 (2022: £554,650). Contributions totalling £32,478 (2022: £26,927) were payable to the fund at the balance sheet date. |
24. | RELATED PARTY DISCLOSURES |
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. |
At the year end, total balances due from the directors amounted to £943,385 (2022: £742,874). These loans are interest free and repayable on demand. |
During the year, the company made purchases from Avec Corporation Limited of £2,281,543 (2022: £2,131,987). At the year end there was an amount of £294,385 (2022: £186,008) due to that company. |
During the year, a dividend was received from Avec Corporation Limited totalling £500,000 (2022: £300,000). |
During the year the company paid rent and other charges of £314,000 (2022: £277,600) to a related party. |
At the year end, a loan owed to the company from a related party totalled £1,189,378 (2022: £1,189,378). The loan carries an interest rate of 0% and is repayable with 367 days notice at the option of the company. The fair value of the loan discounted at a market rate of interest is not materially different from the carrying value and therefore the loan receivable has not been discounted. |
At the end of the year, the company was owed £19,202 (2022: £44,564) by other related parties. |
ASTON & FINCHER LIMITED (REGISTERED NUMBER: 00970902) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | GUARANTEES |
Total bank guarantees given on behalf of a related party which are not included in the balance sheet amount to £1,187,219 (2022: £1,250,140). This guarantee relates to a commercial mortgage underpinned by property assets held by the related party, which is secured on assets held by the company. |
26. | CONTROLLING PARTY |
The ultimate controlling party was O.J. Fincher, a director of Aston & Fincher Limited and a director and shareholder of the immediate and ultimate parent company Fincher Holdings Limited. |
Fincher Holdings Limited is the immediate and ultimate parent undertaking which is also the smallest and largest group for which consolidated financial statements are prepared. Consolidated financial statements are available from the company's registered office, Unit 2 Pavilion Drive, Off Holford Drive, Birmingham, West Midlands, United Kingdom, B6 7BB. |