REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
8TH WONDER LTD. |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
8TH WONDER LTD. |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
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 | 5 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
8TH WONDER LTD. |
Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Review of business |
8th Wonder Ltd is a trading company which designs, manufactures and supplies wooden and plush children's toys within the United Kingdom and internationally. |
The company is a member of a group of companies headed by 8th Wonder Holdings Limited, which produces consolidated financial statements for the group. |
In the year the company recorded a £82.7k loss compared to prior year which incurred losses of £1.45m and an increase in gross profit margin from 7.7% to 19.9%. The company sees these as its key performance indicators. |
This increase in financial performance was mainly due to reduced overheads and increased focus on margin. |
Going Concern |
The directors have adopted the going concern basis in preparing these financial statements. They have assessed the 12-month period from the signing date of the financial statements and have prepared detailed cash flow forecasts. |
The cash flow forecasts have been sensitised for a range of material downside senoritas and stress tested to allow the directors to assess the impact of these scenarios on liquidity. Based on these scenarios the directors are satisfied that the company will have sufficient liquidity to see it through the next 12 months. |
The director's assessment of going concern assumes that the current bank facility regarding the trade loan will be renewed in April 2025 to meet increase demands due to seasonality. The bank has not yet renewed the facility, but the directors do not anticipate any issues. |
The directors are in the process of disposing of the company's investment property with the intention of using the anticipated proceeds to reduce the company's debts. |
On this basis the company continues to adopt the going concern basis. |
2024/25 Outlook |
The company expects to recover its position in 2024 but it will be 2025 when it returns to its historic profitability levels. It has gained new business globally and ceased its Domestic business in the UK in 2024. The company's 2025 focus on FOB and DDP sales will give much greater certainty over its financial results. |
The company will continue to identify cost saving opportunities where possible and has reduced all third-party storage facilities. |
Future Developments |
The company will continue to invest in personnel, creating a team structure to support the growth ambition of the business. |
To combat increased costs of shipping, strong relationships have been formed with selected shipping partners who have worked closely with the company to reduce overall impact. |
To reduce the company's exposure to foreign exchange fluctuations it is using hedging techniques to lower the overall impact. |
The company has secured a significant overseas contract post year end. This will reduce the overall impact of seasonality. |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Principal risks and uncertainties |
Financial risks relate to interest rate increases, exchange rate fluctuations and increased costs from overseas suppliers. |
The company has successfully absorbed interest rate rises to date and no significant future rate increases are anticipated. |
To mitigate any fluctuations, they will continue to enter into hedging arrangements. |
As noted above the company is forming stronger relationships with overseas partners to mitigate cost increases. |
Non-financial risks relate to global issues causing disruption to supply lines and to competition from suppliers. The director constantly reviews potential supply chain disruptions and seeks to mitigate any effects as early as possible. Whilst competition in the market is strong the director believes that they now have relationships and procedures in place to ensure they stay at the forefront of the market. |
On behalf of the board: |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
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. |
Principal activity |
The principal activity of the company in the year under review was that of manufacturing toys. |
Dividends |
The total distribution of dividends for the year ended 31 December 2023 will be £165,359. |
Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
Directors |
Other changes in directors holding office are as follows: |
Disclosure in the strategic report |
The disclosures in respect of the business review and principal risks and uncertainties are included in the Strategic Report. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, NRB, 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 |
8th Wonder Ltd. |
Opinion |
We have audited the financial statements of 8th Wonder Ltd. (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other 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 loss 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 unqualified 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. |
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. |
Report of the Independent Auditors to the Members of |
8th Wonder Ltd. |
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: |
- Consideration was given to the entity's susceptibility to material misstatement at all times during the audit including consideration of how fraud could occur. This involved consideration of the nature of the entity's activities and transactions with the potential identification of fraud |
- Identification of key laws and regulations considered central to the entity, including a review of any policies and procedures in place to ensure compliance. Key laws and regulations identified include the UK Companies Act, tax legislation and health and safety regulations |
- Ensured that the engagement team had the necessary competence and capabilities to identify any examples of non-compliance at all stages |
- Audit work was completed in all relevant areas that were deemed to be appropriate for the client and the associated risks in respect of potential misstatements, including fraud. Our audit work was designed to assess these risks in all areas and included enquiry of management, testing the appropriateness of journal entries, reviewing financial statement disclosures and tracing to relevant documentation as well as the consideration of the risk of potential management override |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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 |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Income Statement |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(158,705 | ) | (1,555,348 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Gain/loss on revaluation of investment property |
365,000 |
365,000 |
280,467 | (1,125,170 | ) |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Other Comprehensive Income |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Balance Sheet |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Fair value reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Transfer to fair value reserve | - | (309,989 | ) | 309,989 | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Transfer to fair value reserve | - | (273,750 | ) | 273,750 | - |
Balance at 31 December 2023 |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
8th Wonder Ltd. is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value. |
Going Concern |
The directors have adopted the going concern basis in preparing these financial statement. They have assessed the 12-month period from the signing date of the financial statements and have prepared detailed cash flow forecasts. |
The cash flow forecasts have been sensitised for a range of material downside scenarios and stress tested to allow the directors to assess the impact of these scenarios on liquidity. Based on these scenarios the directors are satisfied that the company will have sufficient liquidity to see it through the next 12 months. |
The directors are in the process of disposing of the company's investment property with the intention of using the anticipated proceeds to reduce the company's debts. |
On this basis, the company continues to adopt the going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
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 requirement of paragraph 3.17(d); |
• | 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 requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7. |
Related party exemption |
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. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the director is 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. |
The directors consider that significant estimates are required in the financial statements in respect of the value of investment property. The basis on which this value has been included is set out in note 11. |
The directors also consider that the provision for slow moving stock as being an area requiring estimation. |
When determining accounting estimates, the directors use their experience and expertise. |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer in line with the contractual agreement. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets at rates calculated to write off the costs, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Short leasehold | - Straight line over 7 years |
Plant and machinery | - 20% on reducing balance |
Fixtures and fittings | - 20% on reducing balance |
Motor vehicles | - 20% on reducing balance |
Investment property |
Investment property for which fair value can be measured reliably is measured at fair value at each reporting date with changes in fair value recognised in the income statement. |
Stocks |
Stock is valued at the lower of cost and net realisable value. Cost is calculated by reference to the most recent purchase price, including attributable freight and duty costs. |
Stock provision is provided for slow moving stock. |
Goods in transit is included at cost, based on the purchase invoice relating to each item. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
4. | TURNOVER |
The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Australia | 171,528 | - |
The company turnover relates entirely to it's principal activity of manufacturing toys. |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Office | 50 | 57 |
Warehouse | 1 | 1 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Foreign exchange differences |
Auditors' remuneration |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest |
Bank loan interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax |
Tax on profit/(loss) |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Movement in deferred tax | 85,904 | 58,151 |
Loss on disposal assets | 5,387 | - |
Group relief | - | 5,646 |
Loss to be carried forward | 75,578 | 323,152 |
Gain on revaluation investment property | (91,250 | ) | (69,350 | ) |
Total tax charge | 85,904 | 58,151 |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Interim |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
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 |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Revaluations | 365,000 |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2008 | 425,000 |
Valuation in 2016 | (340,350 | ) |
Valuation in 2022 | 365,000 |
Valuation in 2023 | 365,000 |
Cost | 750,350 |
1,565,000 |
The fair value of investment property has been assessed as the post year end agreed sales price. |
12. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Stocks |
Goods in transit |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | DEBTORS |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by associates |
Other debtors |
Prepayments |
Amounts falling due after more than one year: |
Amounts owed by associates |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' loan accounts | 90,206 | 127,258 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 16) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 215,980 | 232,954 |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank overdrafts |
Bank loans |
The company has provided security to the bank by way of a fixed and floating charge over all of its assets. |
The company has provided security in respect of a group company's bank loan.This is limited to an amount of £321,300. |
19. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 165,539 | 79,635 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (5,346 | ) |
Property fair value increase | 91,250 |
Balance at 31 December 2023 |
The provision of £74,289 as at 31 December 2023 relates to £146,261 in respect of the property fair value increase and £19,278 in respect of accelerated capital allowances. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 125 | 125 |
All shares rank equally. |
21. | RESERVES |
Profit and loss reserves represent accumulated profits and losses, less dividends paid. |
Fair value reserve relates to unrealised fair value gains less related deferred tax provisions. |
8TH WONDER LTD. (REGISTERED NUMBER: 03430336) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | RELATED PARTY DISCLOSURES |
Transactions with related parties in the year were as follows : |
2023 | 2022 |
£ | £ |
Rents paid to associated companies | 219,102 | 194,102 |
Amounts due from associated companies | 787,978 | 1,673,386 |
23. | POST BALANCE SHEET EVENTS |
In September 2024 the company moved their main business premises from Unit E Sovereign Business Park, Kingscroft Court, Wigan, WN1 3AP to Progress House, Westwood Park Drive, Wigan, WN3 4HH terminating the lease in note 17. They company entered into a new lease at a minimum lease payment off £300,000 for three years. The lease for the old premises was terminated and no costs were incurred. |
24. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent undertaking is 8th Wonder Group Limited, a company registered in England and Wales. |
The ultimate parent company is 8th Wonder Holdings Limited. This company prepares group financial statements, copies of which can be obtained from 8th Wonder Holdings Ltd, Unit E Sovereign Business Park, Kingscroft Court, Wigan, England, WN1 3AP. |