Company registration number 09698305 (England and Wales)
BONDI SANDS EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
BONDI SANDS EUROPE LIMITED
COMPANY INFORMATION
Directors
S. Wilson
S. Cagle
(Appointed 1 November 2023)
K. Frank
(Appointed 1 November 2023)
Company number
09698305
Registered office
55 Station Road
Beaconsfield
Buckinghamshire
United Kingdom
HP9 1QL
Auditor
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
BONDI SANDS EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 19
BONDI SANDS EUROPE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the period ended 31 December 2023.
Principal activities
The principal activities of the group continued to be that of selling self-tanning, sun care and skin care products across the UK and Europe.
Fair review of the business
Bondi Sands Europe Limited has realigned their financial year end to 31st of December, with these financial statements for 2023 representing the 18-month period from 1 July 2022 to 31 December 2023. Consequently, the financial results compare an 18-month period versus a 12-month period for the comparative period.
For the 18-month period ending 31st December 2023, the business delivered a strong trading result with robust sales performance across both the UK and EU markets. The business maintained strong engagement with retailers and distributors, enabling continued momentum in market share gains in both self-tanning and sun care categories.
On 1st of November 2023, the business was acquired by Kao Corporation. This acquisition resulted in serval once-off costs being incurred in 2023 as part of the sale completion and to align to Kao’s accounting policies, resulting in higher costs for the period, primarily due to provisions for inventory adjustments.
Principal risks and uncertainties
The following key financial risks have been identified:
Market risk
The Directors believe that inflation remains a key risk for the business, as high inflation may lead consumers to reduce discretionary spending, causing a softening largely in the tanning category.
Supply chain risk
Supply Chain risks have significantly reduced since 2022, a challenging year marked by a steep rise in freight prices and ingredient scarcity. In 2023, freight prices reduced and stablised, and key ingredient pricing improved. The Directors do not foresee any major supply chain risks in 2024.
Currency risk
The company purchases all of its products in foreign currency, with 90% in AUD and the balance in USD. In 2023, the GBP remained relatively stable, and this stability is projected to continue in 2024, with minimal exposure expected due to FX fluctuations.
Liquidity risk
The Directors regularly review the Group’s ongoing liquidity risks as part of the planning process. The Group actively manages short and long-term cash flows. The acquisition by Kao has provided access to Kao funding facilities, ensuring sufficient resources to meet its payment obligations.
Credit risk
The Group’s principal credit risk pertains to the recovery of amounts owed by customers for invoiced sales. This risk is managed through credit checks on customers before engagement, proactive communications on debtor balances, and active overdue debt management and reporting. Customer payment histories are regularly reviewed, and allowances for bad debts are made if necessary.
Development and performance
The business is projected to have a strong 2024, with top-line sales expected to continue growing through market share gains in the self-tanning and sun care categories, improved distribution, and strong innovation. The operating cost base remains stable, with optimisation in organisational structure and synergies anticipated as the business integrates with Kao in H2 of 2024. The Directors are confident in meeting the 2024 Operating Profit goals.
BONDI SANDS EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The group continues to focus on key financial performance indicators that are reviewed regularly by Directors. Including, but not limited to Net Revenue, Gross Profit, EBITDA, Working Capital and Free Cash Flow. The Directors and key management personal of Bondi Sands Group Europe Limited reviews these in detail monthly to continually assess strategies based on their performance.
Other performance indicators
The Group also reviews several non-financial performance indicators regularly, including Net Promoter Score, Market Penetration, Marketing Performance, Employee Retention, and Sustainability. The Group values the quality and engagement of its employees, supported by the strong culture underpinned by “Bondi Connect.” Regular staff engagement surveys and reviews are conducted to measure staff engagement.
Engagement with suppliers, customers and others in a business relationship
The Directors regularly engage with external parties to ensure smooth operation of the supply chain and exceed customer expectations. The Group collaborates with a trusted panel of preferred and approved manufacturers and suppliers, maintaining good communication and high delivery standards. Directors proactively discuss potential delays, quality concerns, and commercial issues with employees, customers, and vendors to ensure operational excellence.
S. Wilson
Director
6 October 2024
BONDI SANDS EUROPE LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the period ended 31 December 2023.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
S. Wilson
B. James
(Resigned 1 November 2023)
S. Tjarks
(Resigned 15 July 2023)
S. Cagle
(Appointed 1 November 2023)
K. Frank
(Appointed 1 November 2023)
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.
BONDI SANDS EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
S. Wilson
Director
6 October 2024
BONDI SANDS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BONDI SANDS EUROPE LIMITED
- 5 -
Opinion
We have audited the financial statements of Bondi Sands Europe Limited (the 'company') for the period 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 loss for the period 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 period 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.
BONDI SANDS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BONDI SANDS EUROPE LIMITED (CONTINUED)
- 6 -
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 team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management, we identified the laws and regulations applicable to the company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.
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;
BONDI SANDS EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BONDI SANDS EUROPE LIMITED (CONTINUED)
- 7 -
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 the accounting estimates detailed in the accounting policies were indicative of potential bias; and
investigated the rationale behind significant or unusual bank 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;
enquiring of management as to actual and potential litigation and claims;
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Leighton Bower
Senior Statutory Auditor
For and on behalf of Rouse Audit LLP
10 October 2024
Chartered Accountants
Statutory Auditor
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
BONDI SANDS EUROPE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
Year
ended
ended
31 December
30 June
2023
2022
Notes
£
£
Turnover
3
43,508,394
24,723,669
Cost of sales
(34,238,986)
(16,003,251)
Gross profit
9,269,408
8,720,418
Administrative expenses
(9,026,847)
(5,566,139)
Operating profit
4
242,561
3,154,279
Interest payable and similar expenses
7
(515,896)
(52,482)
(Loss)/profit before taxation
(273,335)
3,101,797
Tax on (loss)/profit
8
50,591
(588,961)
(Loss)/profit for the financial period
(222,744)
2,512,836
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BONDI SANDS EUROPE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
Year
ended
ended
31 December
30 June
2023
2022
£
£
(Loss)/profit for the period
(222,744)
2,512,836
Other comprehensive income
-
-
Total comprehensive income for the period
(222,744)
2,512,836
BONDI SANDS EUROPE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
31 December 2023
30 June 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
34,378
Current assets
Stocks
10
10,578,642
7,635,339
Debtors
11
6,859,065
7,115,949
Cash at bank and in hand
372,212
240,137
17,809,919
14,991,425
Creditors: amounts falling due within one year
12
(14,092,383)
(11,077,508)
Net current assets
3,717,536
3,913,917
Total assets less current liabilities
3,717,536
3,948,295
Provisions for liabilities
Deferred tax liability
13
8,015
-
(8,015)
Net assets
3,717,536
3,940,280
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
3,717,436
3,940,180
Total equity
3,717,536
3,940,280
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 6 October 2024 and are signed on its behalf by:
S. Cagle
K. Frank
Director
Director
Company registration number 09698305 (England and Wales)
BONDI SANDS EUROPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2021
100
1,427,344
1,427,444
Year ended 30 June 2022:
Profit and total comprehensive income
-
2,512,836
2,512,836
Balance at 30 June 2022
100
3,940,180
3,940,280
Period ended 31 December 2023:
Loss and total comprehensive income
-
(222,744)
(222,744)
Balance at 31 December 2023
100
3,717,436
3,717,536
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Bondi Sands Europe Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Station Road, Beaconsfield, Buckinghamshire, United Kingdom, HP9 1QL.
1.1
Reporting period
The company changed it's reporting period end from 30 June to 31 December. The change of year end allowed the reporting period to align with the seasonality of the business. The company is reporting the result of the business for the 18 month period to 31 December 2023. The comparative period in these financial statements represents the results for the year ended 30 June 2022.
1.2
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.
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 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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 Kao Corporation. These consolidated financial statements are available from its registered office, 14-10, Nihonbashi Kayabacho 1-chome Chuo-ku, Tokyo, 103-8210, Japan.
1.3
Going concern
The company has the continued support of its parent company, Kao Corporation, via a long term loan and for day to day working capital requirements. The directors have considered this funding and therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods, at the point of sale, provided in the normal course of business, and is shown net of VAT and other sales related taxes. Revenue is recognised at the point of despatch of goods.
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
10% Straight Line
Computers
33% Straight Line
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.
1.6
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. 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 including freight and repackaging costs. Freight costs are deferred over the stock holding period of three to six months.
Cost is calculated using the average costing method.
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
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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. 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. Trade creditors are recognised initially at transaction price.
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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
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.
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.
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Deferred freight costs
An estimate is made to defer the cost of freight of items held in stock. It is calculated by deferring freight invoices for stock delivered within three to six months of the year end and is based on an estimated stock holding policy of three to six months. This estimate will have an impact on the stock value and profit of the company.
Stock provision
A provision is made against slow moving stock items in accordance with the group policy. This involves certain judgement on the probability of future sales.
3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
33,950,931
19,968,163
Europe
7,531,914
3,277,440
Rest of World
2,025,549
1,478,066
43,508,394
24,723,669
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(435,518)
154,976
Fees payable to the company's auditor for the audit of the company's financial statements
42,000
30,000
Depreciation of owned tangible fixed assets
30,732
19,957
Loss on disposal of tangible fixed assets
22,165
-
Operating lease charges
186,578
112,175
5
Employees
The average monthly number of persons (excluding directors) employed by the company during the period was:
2023
2022
Number
Number
Administration
9
7
Sales and marketing
20
15
Total
29
22
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,327,595
1,276,542
Social security costs
373,576
157,176
Pension costs
112,441
45,102
3,813,612
1,478,820
6
Directors' remuneration
No remuneration was paid to the directors.
7
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
327,774
52,482
Other interest
188,122
515,896
52,482
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
587,009
Deferred tax
Origination and reversal of timing differences
(50,591)
1,952
Total tax (credit)/charge
(50,591)
588,961
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 17 -
The actual (credit)/charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(273,335)
3,101,797
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
(60,148)
589,341
Tax effect of expenses that are not deductible in determining taxable profit
16,234
760
Effect of change in corporation tax rate
(6,060)
468
Permanent capital allowances in excess of depreciation
(617)
(1,608)
Taxation (credit)/charge for the period
(50,591)
588,961
9
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2022
16,813
56,896
73,709
Additions
308
18,209
18,517
Disposals
(17,121)
(75,105)
(92,226)
At 31 December 2023
Depreciation and impairment
At 1 July 2022
4,196
35,135
39,331
Depreciation charged in the period
7,442
23,290
30,732
Eliminated in respect of disposals
(11,638)
(58,425)
(70,063)
At 31 December 2023
Carrying amount
At 31 December 2023
At 30 June 2022
12,617
21,761
34,378
10
Stocks
2023
2022
£
£
Raw materials and consumables
10,578,642
7,635,339
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,580,641
6,395,373
Other debtors
98,255
33,865
Prepayments and accrued income
137,593
649,606
6,816,489
7,078,844
Deferred tax asset (note 13)
42,576
6,859,065
7,078,844
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
37,105
Total debtors
6,859,065
7,115,949
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,574,817
4,186,336
Amounts owed to group undertakings
4,256,699
3,542,482
Corporation tax
827,022
Other taxation and social security
1,544,188
1,049,308
Other creditors
51,812
731,481
Accruals and deferred income
1,664,867
740,879
14,092,383
11,077,508
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
8,015
-
-
Short term timing difference
-
-
1,556
-
Losses and other deductions
-
-
41,020
-
-
8,015
42,576
-
BONDI SANDS EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Deferred taxation
(Continued)
- 19 -
2023
Movements in the period:
£
Liability at 1 July 2022
8,015
Credit to profit or loss
(50,591)
Asset at 31 December 2023
(42,576)
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,441
45,102
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.
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
16
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
8,835
106,015
Between two and five years
61,842
8,835
167,857
17
Ultimate controlling party
The ultimate parent undertaking is Kao Corporation, a company incorporated in Japan.
The smallest group in which these accounts are consolidated is that headed up by Kao Corporation. The registered office of this company is 14-10, Nihonbashi Kayabacho 1-chome Chuo-ku, Tokyo, 103-8210, Japan.
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