Company registration number 10648424 (England and Wales)
TATTI LASHES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TATTI LASHES LTD
COMPANY INFORMATION
Directors
Mr E F Barton
Mrs C M Tiplady
Company number
10648424
Registered office
Unit 2 Essex House
Bridle Road
Bootle
Merseyside
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
TATTI LASHES LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
TATTI LASHES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business
The key performance indicators for the company are as follows:
2024
2023
As restated
£
£
Turnover
22,065,609
15,417,301
Operating profit
5,898,049
4,039,070
Gross profit margin
48.65%
46.39%
Operating profit margin
26.73%
26.20%
Current ratio
6.00
5.09

Tatti Lashes Ltd is a beauty brand that operates in the eyelashes segment of the beauty market. The company offers best in class products to lash technicians, beauty salons, wholesale customers and online direct to consumers. In the last 12 months the company has launched new products which have performed well and the company has seen increases in turnover, gross profit and operating profit.

Principal Risks and Uncertainties

In operating its business and strategy, the Company is exposed to several inherent risks. As part of the Company’s risk management framework, the management team has implemented robust procedures for the assessment and management of risks. This includes periodic reviews of the key risks and the effectiveness of control processes in place to manage those risks. The principal risks faced by the Company are summarised below:

 

 

 

 

The Company manages the above risks through a wide range of actions including ongoing monitoring of the economic and competitive market environment, ongoing reviews of business continuity plans, development of new products, and investment in people and operational technologies to ensure our products and the delivery of the products remain competitive and differentiated. The effectiveness of these actions is monitored on an ongoing basis, and plans varied to meet the changing requirements of the business.

Corporate and Social Responsibility

The Company has invested in its corporate and social responsibility. The Company takes measures to reduce its carbon footprint including promoting recycling and energy efficiency. The Company also has a strong interest in local charities as well as motivating staff to take part in charitable events.

 

The Company looks to provide rewarding and progressive careers for all its employees, with wide ranging training initiatives and promotion opportunities offered wherever possible. The levels of staff retention and satisfaction provide the most effective measure of such initiatives and are monitored on a regular basis.

TATTI LASHES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Future Developments

The Company aims to deliver increased market share and sustainable sales and profit growth over the medium term, through focusing on continued product development and expanding the business internationally. To deliver this strategy the Company will continue to develop new products, and expand its distribution models internationally.

On behalf of the board

Mrs C M Tiplady
Director
30 September 2024
TATTI LASHES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the sale of beauty products.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £296,400. 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:

Mr E F Barton
Mrs C M Tiplady
Research and development

Research and development activities continue to be a priority and we have been working in areas such as web application development and materials engineering. In particular, the focus was to create software specifically to help solve technical problems, and to build and test product prototypes.

Auditor

The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mrs C M Tiplady
Director
30 September 2024
TATTI LASHES LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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:

 

 

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.

TATTI LASHES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TATTI LASHES LTD
- 5 -

Qualified opinion

We have audited the financial statements of Tatti Lashes Ltd (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

The financial statements of the company for the year ended 31 March 2022 did not require an audit. We were not appointed as auditor of the company until after 31 March 2023 and, thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £1,388,660 held at 31 March 2023 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount, or cost of sales, for the year ending 31 March 2023 was necessary, or whether there was any consequential effect on the cost of sales for the year ended 31 March 2024.

 

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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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, however, we draw your attention to the basis for qualified opinion section of this report.

TATTI LASHES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TATTI LASHES LTD (CONTINUED)
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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:

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.

TATTI LASHES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TATTI LASHES LTD (CONTINUED)
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

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 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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Harland
Senior Statutory Auditor
For and on behalf of Barlow Andrews LLP
30 September 2024
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
TATTI LASHES LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
22,065,609
15,417,301
Cost of sales
(11,331,200)
(8,264,938)
Gross profit
10,734,409
7,152,363
Administrative expenses
(4,836,360)
(3,113,293)
Operating profit
4
5,898,049
4,039,070
Interest receivable and similar income
7
96,330
11,068
Interest payable and similar expenses
8
-
0
(24,554)
Profit before taxation
5,994,379
4,025,584
Tax on profit
9
(1,809,586)
(637,453)
Profit for the financial year
4,184,793
3,388,131

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There is no other comprehensive income for the year. The total comprehensive income is the profit for the financial year shown above.

TATTI LASHES LTD
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
219,124
70,093
Current assets
Stocks
12
1,454,166
1,388,660
Debtors
13
6,052,880
4,018,047
Cash at bank and in hand
8,485,627
6,499,902
15,992,673
11,906,609
Creditors: amounts falling due within one year
14
(2,663,853)
(2,340,599)
Net current assets
13,328,820
9,566,010
Total assets less current liabilities
13,547,944
9,636,103
Creditors: amounts falling due after more than one year
15
-
0
(4,045)
Provisions for liabilities
Deferred tax liability
17
(40,810)
(13,317)
(40,810)
(13,317)
Net assets
13,507,134
9,618,741
Capital and reserves
Called up share capital
19
216
216
Profit and loss reserves
13,506,918
9,618,525
Total equity
13,507,134
9,618,741

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 30 September 2024 and are signed on its behalf by:
Mrs C M Tiplady
Director
Company registration number 10648424 (England and Wales)
TATTI LASHES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
200
6,509,669
6,509,869
Year ended 31 March 2023:
Profit and total comprehensive income
-
3,388,131
3,388,131
Issue of share capital
19
16
-
16
Dividends
10
-
(279,275)
(279,275)
Balance at 31 March 2023
216
9,618,525
9,618,741
Year ended 31 March 2024:
Profit and total comprehensive income
-
4,184,793
4,184,793
Dividends
10
-
(296,400)
(296,400)
Balance at 31 March 2024
216
13,506,918
13,507,134
TATTI LASHES LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,624,202
3,614,938
Interest paid
-
0
(24,554)
Income taxes paid
(1,043,520)
(151,131)
Net cash inflow from operating activities
2,580,682
3,439,253
Investing activities
Purchase of tangible fixed assets
(180,685)
(22,210)
Interest received
96,330
11,068
Net cash used in investing activities
(84,355)
(11,142)
Financing activities
Proceeds from issue of shares
-
0
16
Loans made to directors
(201,791)
(392,512)
Repayment of bank loans
-
0
(245,939)
Payment of finance leases obligations
(12,411)
(11,314)
Dividends paid
(296,400)
(279,275)
Net cash used in financing activities
(510,602)
(929,024)
Net increase in cash and cash equivalents
1,985,725
2,499,087
Cash and cash equivalents at beginning of year
6,499,902
4,000,815
Cash and cash equivalents at end of year
8,485,627
6,499,902
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Tatti Lashes Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Essex House, Bridle Road, Bootle, Merseyside.

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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Prior period error

In the prior year, all costs relating to wages and salaries were included within administrative expenses. On further reflection, £377,508 of these costs should have been included within cost of sales and have been reallocated as necessary within the comparative figures.

 

This reallocation does not have any effect on operating profit or the balance sheet. The prior period adjustment does not give rise to any effect upon equity.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% reducing balance
Fixtures and fittings
25/33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

 

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.15
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.

1.16

Research and development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
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
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
22,065,609
15,417,301
2024
2023
£
£
Turnover analysed by geographical market
UK
21,118,875
14,347,133
Europe
481,303
493,743
Rest of World
465,431
576,425
22,065,609
15,417,301
2024
2023
£
£
Other revenue
Interest income
96,330
11,068
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
151,615
50,245
Research and development costs
-
669,378
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
15,000
Depreciation of owned tangible fixed assets
31,654
19,648
Operating lease charges
157,504
120,879
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management and administration
27
20
Warehouse and distribution
22
17
Total
49
37

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,557,426
885,892
Social security costs
109,170
65,963
Pension costs
21,642
12,162
1,688,238
964,017
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,200
18,200
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
96,330
11,068
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
96,330
11,068
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
22,373
Other finance costs:
Interest on finance leases and hire purchase contracts
-
2,181
-
0
24,554
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,477,407
636,967
Adjustments in respect of prior periods
304,686
-
0
Total current tax
1,782,093
636,967
Deferred tax
Origination and reversal of timing differences
27,493
486
Total tax charge
1,809,586
637,453

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:

2024
2023
£
£
Profit before taxation
5,994,379
4,025,584
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,498,595
764,861
Tax effect of expenses that are not deductible in determining taxable profit
1,394
1,040
Permanent capital allowances in excess of depreciation
4,911
(1,266)
Research and development tax credit
-
0
(127,182)
Under/(over) provided in prior years
304,686
-
0
Taxation charge for the year
1,809,586
637,453
10
Dividends
2024
2023
£
£
Final paid
296,400
279,275
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2023
77,155
78,692
155,847
Additions
84
180,601
180,685
At 31 March 2024
77,239
259,293
336,532
Depreciation and impairment
At 1 April 2023
41,217
44,537
85,754
Depreciation charged in the year
24,985
6,669
31,654
At 31 March 2024
66,202
51,206
117,408
Carrying amount
At 31 March 2024
11,037
208,087
219,124
At 31 March 2023
35,938
34,155
70,093
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,454,166
1,388,660
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
360,130
349,557
Other debtors
3,210,760
2,915,899
Prepayments and accrued income
2,481,990
752,591
6,052,880
4,018,047
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
1,775
10,141
Trade creditors
794,629
635,112
Corporation tax
1,575,685
769,008
Other taxation and social security
223,912
834,883
Other creditors
42,475
80,505
Accruals and deferred income
25,377
10,950
2,663,853
2,340,599
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
-
0
4,045
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,775
10,141
In two to five years
-
0
4,045
1,775
14,186

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
40,810
13,317
TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 April 2023
13,317
Charge to profit or loss
27,493
Liability at 31 March 2024
40,810
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,642
12,162

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.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
A Ordinary Shares of £1 each
50
50
50
50
B Ordinary Shares of £1 each
50
50
50
50
C Ordinary Shares of £1 each
16
16
16
16
216
216
216
216

Ordinary shares, A Ordinary shares, and B Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. C Ordinary shares have attached to them capital distribution rights on wind up or disposal, following initial distributions to all other share categories.

20
Related party transactions

During the year, Tatti Lashes Ltd incurred expenses of £90,532 (2023: £103,816) from a company under common control. At the year end £2,374,524 (2023: £2,389,688) was due from the connected company. This balance is interest free and there are no fixed repayment terms.

 

During the year, Tatti Lashes Ltd incurred expenses of £162,200 (2023: £131,775) from another company associated via one of the shareholders. At the year end £8,800 (2023: £nil) was due from the connected company. This balance is interest free and there are no fixed repayment terms.

 

During the year, immediate family members of the directors and shareholders were remunerated with a total of £48,170 (2023: £45,082).

TATTI LASHES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
21
Directors' transactions

Dividends totalling £296,400 (2023: £279,275) were paid in the year in respect of shares held by the company's directors.

 

At the year end, there were amounts included within other debtors of £593,026 (2023: £391,235) due from directors. No interest has been paid on the loans and there are no fixed terms for repayment.

22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,184,793
3,388,131
Adjustments for:
Taxation charged
1,809,586
637,453
Finance costs
-
0
24,554
Investment income
(96,330)
(11,068)
Depreciation and impairment of tangible fixed assets
31,654
19,648
Movements in working capital:
Increase in stocks
(65,506)
(102,049)
Increase in debtors
(1,764,938)
(1,060,097)
(Decrease)/increase in creditors
(475,057)
718,366
Cash generated from operations
3,624,202
3,614,938
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
6,499,902
1,985,725
8,485,627
Obligations under finance leases
(14,186)
12,411
(1,775)
6,485,716
1,998,136
8,483,852
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