Company registration number 13221076 (England and Wales)
FESTIVE LIGHTS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S Alty
Mrs M Alty
Mr M P Higginson
Mr M M Higginson
Mr M J Higginson
Company number
13221076
Registered office
2 Southport Road
Chorley
Lancashire
PR7 1LB
Auditor
Smith & Goulding Limited
2 Southport Road
Chorley
Lancashire
PR7 1LB
FESTIVE LIGHTS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
22
Notes to the financial statements
15 - 33
FESTIVE LIGHTS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Review of the business

The principal activities of the group are the sale of outdoor and festive lights and accessories.

 

The year ended 31 January 2024 reported turnover of £10.45m (2023 £11.60m), with a gross profit margin of 56.47%. Group net assets is reported at £1.465m. (2023:£1.068m).

 

The results for the year are set out on page 8. The year was much improved from the previous year which was impacted by both the cost of living crisis and problems in the UK's logistics market in December 2022. The Group has managed to reduce its stock levels and increase its cash position significantly, leaving the group in a much stronger position this year.

 

Principal risks and uncertainties

Supply chain disruption

The Directors consider that the biggest risk facing the business continues to be the disruption to the supply of goods for resale. There has been significant disruption in the last two years which has been caused by a number of factors – the COVID pandemic; the changes brought about by Brexit and also the recent conflict in Ukraine. The Directors consider that they have planned as much as possible to mitigate the effect of this disruption.

 

Financial risk management

The group's policy is to ensure that adequate and cost effective arrangements are maintained to finance current and future activities and that exposure to financial risk is minimised.

 

Liquidity and funding

The group is financed by agreed bank facilities and makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the group is able to meet foreseeable debts as they fall due.

 

Interest rate risk

The group is subject to the risk of increases in the base rate of interest which would impact its borrowing costs. As at the date of signing the accounts, the Directors are aware that the base rate of interest is anticipated to increase, however they do not anticipate that this will have a material impact on the business.

 

Credit risk

To control credit risk from trade debtors, limits are set based on a combination of trade history and third party credit references and are reviewed regularly by the group directors.

 

Key performance indicators

 

2024

2023

 

£'000

£'000

 

 

 

Turnover

10,452

11,591

Gross profit as % of turnover

56.47%

53.48%

Operating profit

644

247

Profit before taxation

504

138

Profit before taxation as % of turnover

4.82%

1.19%

Shareholders' funds

1,465

1,068

Number of employees

70

79

FESTIVE LIGHTS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

On behalf of the board

Mr M J Higginson
Director
4 October 2024
FESTIVE LIGHTS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

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

Principal activities

The principal activity of the company is a holding company. The principal activity of the group that of retaining garden and festive lights and accessories.

Results and dividends

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

No ordinary dividends were paid. 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 S Alty
Mrs M Alty
Mr M P Higginson
Mr M M Higginson
Mr M J Higginson
Auditor

The auditor, Smith & Goulding Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr M J Higginson
Director
4 October 2024
FESTIVE LIGHTS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FESTIVE LIGHTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FESTIVE LIGHTS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Festive Lights Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

FESTIVE LIGHTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FESTIVE LIGHTS HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

 

 

 

 

 

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

 

FESTIVE LIGHTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FESTIVE LIGHTS HOLDINGS LIMITED
- 7 -

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

 

 

 

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.

Kieran Brophy ACA (Senior Statutory Auditor)
For and on behalf of Smith & Goulding Limited
4 October 2024
Chartered Accountants
Statutory Auditor
2 Southport Road
Chorley
Lancashire
PR7 1LB
FESTIVE LIGHTS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,452,173
11,591,273
Cost of sales
(4,550,044)
(5,392,286)
Gross profit
5,902,129
6,198,987
Distribution costs
(2,343,786)
(2,646,542)
Administrative expenses
(3,278,126)
(3,618,717)
Other operating income
363,849
313,604
Operating profit
6
644,066
247,332
Interest payable and similar expenses
7
(140,330)
(109,044)
Profit before taxation
503,736
138,288
Tax on profit
8
(117,616)
(16,822)
Profit for the financial year
23
386,120
121,466
Profit for the financial year is all attributable to the owners of the parent company.
FESTIVE LIGHTS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
£
£
Profit for the year
386,120
121,466
Other comprehensive income
-
-
Total comprehensive income for the year
386,120
121,466
Total comprehensive income for the year is all attributable to the owners of the parent company.
FESTIVE LIGHTS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
5,154
6,872
Negative goodwill
9
(358,091)
(409,568)
Net goodwill
(352,937)
(402,696)
Other intangible assets
9
5,951
33,429
Total intangible assets
(346,986)
(369,267)
Tangible assets
10
2,798,158
2,903,766
2,451,172
2,534,499
Current assets
Stocks
13
1,112,581
2,262,479
Debtors
14
1,311,565
1,348,334
Cash at bank and in hand
815,706
89,734
3,239,852
3,700,547
Creditors: amounts falling due within one year
15
(1,716,353)
(2,265,562)
Net current assets
1,523,499
1,434,985
Total assets less current liabilities
3,974,671
3,969,484
Creditors: amounts falling due after more than one year
16
(2,158,720)
(2,519,289)
Provisions for liabilities
Deferred tax liability
19
361,980
382,344
(361,980)
(382,344)
Net assets
1,453,971
1,067,851
Capital and reserves
Called up share capital
21
200
200
Capital redemption reserve
22
951,815
651,815
Profit and loss reserves
23
501,956
415,836
Total equity
1,453,971
1,067,851
The financial statements were approved by the board of directors and authorised for issue on 4 October 2024 and are signed on its behalf by:
04 October 2024
Mr M J Higginson
Director
Company registration number 13221076 (England and Wales)
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
2,261,250
2,261,250
Current assets
Cash at bank and in hand
200
200
Creditors: amounts falling due within one year
15
(11,250)
(14,550)
Net current liabilities
(11,050)
(14,350)
Total assets less current liabilities
2,250,200
2,246,900
Creditors: amounts falling due after more than one year
16
(1,298,185)
(1,598,185)
Net assets
952,015
648,715
Capital and reserves
Called up share capital
21
200
200
Capital redemption reserve
22
951,815
651,815
Profit and loss reserves
23
-
0
(3,300)
Total equity
952,015
648,715

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £303,300 (2023 - £321,700 profit).

The financial statements were approved by the board of directors and authorised for issue on 4 October 2024 and are signed on its behalf by:
04 October 2024
Mr M J Higginson
Director
Company registration number 13221076 (England and Wales)
FESTIVE LIGHTS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
200
326,815
619,370
946,385
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
121,466
121,466
Redemption of shares
21
-
325,000
(325,000)
-
0
Balance at 31 January 2023
200
651,815
415,836
1,067,851
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
386,120
386,120
Redemption of shares
21
-
300,000
(300,000)
-
0
Balance at 31 January 2024
200
951,815
501,956
1,453,971
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
200
326,815
-
0
327,015
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
321,700
321,700
Redemption of shares
21
-
325,000
(325,000)
-
0
Balance at 31 January 2023
200
651,815
(3,300)
648,715
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
303,300
303,300
Redemption of shares
21
-
300,000
(300,000)
-
0
Balance at 31 January 2024
200
951,815
-
0
952,015
FESTIVE LIGHTS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,451,775
609,286
Interest paid
(140,330)
(109,044)
Income taxes paid
(23,710)
(213,133)
Net cash inflow from operating activities
1,287,735
287,109
Investing activities
Purchase of intangible assets
-
(18,871)
Purchase of tangible fixed assets
(36,422)
(63,287)
Net cash used in investing activities
(36,422)
(82,158)
Financing activities
Repayment of preference shares
(300,000)
(325,000)
Repayment of bank loans
(38,557)
(284,159)
Payment of finance leases obligations
(18,367)
(18,895)
Net cash used in financing activities
(356,924)
(628,054)
Net increase/(decrease) in cash and cash equivalents
894,389
(423,103)
Cash and cash equivalents at beginning of year
(78,683)
344,420
Cash and cash equivalents at end of year
815,706
(78,683)
Relating to:
Cash at bank and in hand
815,706
89,734
Bank overdrafts included in creditors payable within one year
-
(168,417)
FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
1
Accounting policies
Company information

Festive Lights Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Festive Lights Holdings Limited and all of its subsidiaries.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Festive Lights Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.6
Research and development expenditure

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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -

Amortisation 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:

Website development costs
3 years straight line
1.9
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:

Freehold land and buildings
2% straight line
Leasehold land and buildings
20% straight line
Plant and equipment
15% reducing balance or 1/3 straight line
Motor vehicles
25% 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 recognised in the profit and loss account.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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 group after deducting all of its liabilities.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

FESTIVE LIGHTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.17
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.

1.18
Retirement benefits

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

1.19
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.

1.20
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.

FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Purchase of intangible assets
-
11,250
Proceeds from disposal of subsidiaries
-
(11,250)
Dividends received
300,000
325,000
Net cash generated from investing activities
300,000
325,000
Financing activities
Redemption of preference shares
(300,000)
Repayment of preference shares
-
(325,000)
Net cash used in financing activities
(300,000)
(325,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
200
200
Cash and cash equivalents at end of year
200
200
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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
2024
2023
£
£
Turnover analysed by geographical market
UK
10,217,762
11,126,256
Overseas
234,411
465,017
10,452,173
11,591,273
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,300
3,300
Audit of the financial statements of the company's subsidiaries
10,000
6,500
13,300
9,800
For other services
All other non-audit services
9,000
9,000
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
16
18
5
5
Sales and marketing
21
17
-
-
Fulfilment and customer service
33
44
-
-
Total
70
79
5
5
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
5
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,012,200
2,286,589
-
0
-
0
Social security costs
186,702
213,272
-
-
Pension costs
40,318
44,816
-
0
-
0
2,239,220
2,544,677
-
0
-
0
6
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
69,688
20,896
Depreciation of owned tangible fixed assets
142,030
149,242
Amortisation of intangible assets
29,196
62,281
Release of negative goodwill
(51,477)
(52,602)
Operating lease charges
117,593
116,223
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
138,160
106,555
Other finance costs:
Interest on finance leases and hire purchase contracts
2,170
2,489
Total finance costs
140,330
109,044
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
138,024
24,882
Adjustments in respect of prior periods
(44)
-
0
Total current tax
137,980
24,882
Deferred tax
Origination and reversal of timing differences
(20,364)
(8,060)
Total tax charge
117,616
16,822
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
8
Taxation
(Continued)
- 25 -

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
503,736
138,288
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
125,934
26,275
Tax effect of expenses that are not deductible in determining taxable profit
-
0
153
Unutilised tax losses carried forward
(825)
627
Depreciation on assets not qualifying for tax allowances
13,993
10,649
Amortisation on assets not qualifying for tax allowances
429
326
Other permanent differences
(3,307)
(2,514)
Under/(over) provided in prior years
(44)
-
0
Enhanced capital allowances
(125)
(6,765)
Increase in rate of calculation of deferred tax
(5,570)
(1,935)
Amortisation of negative goodwill
(12,869)
(9,994)
Taxation charge
117,616
16,822

In the budget on 3 March 2021, the UK Government announced an increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. The change in rate was substantively enacted on 24 May 2021. Deferred tax has been calculated at 25% which was the tax rate substantively enacted at 31 January 2023.

9
Intangible fixed assets
Group
Goodwill
Negative goodwill
Website development costs
Total
£
£
£
£
Cost
At 1 February 2023 and 31 January 2024
10,164
(514,772)
142,600
(362,008)
Amortisation and impairment
At 1 February 2023
3,292
(105,204)
109,171
7,259
Amortisation charged for the year
1,718
(51,477)
27,478
(22,281)
At 31 January 2024
5,010
(156,681)
136,649
(15,022)
Carrying amount
At 31 January 2024
5,154
(358,091)
5,951
(346,986)
At 31 January 2023
6,872
(409,568)
33,429
(369,267)
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Intangible fixed assets
(Continued)
- 26 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 February 2023
2,711,153
935
571,632
4,248
3,287,968
Additions
6,920
-
0
29,502
-
0
36,422
At 31 January 2024
2,718,073
935
601,134
4,248
3,324,390
Depreciation and impairment
At 1 February 2023
218,934
935
162,523
1,810
384,202
Depreciation charged in the year
57,711
-
0
83,708
611
142,030
At 31 January 2024
276,645
935
246,231
2,421
526,232
Carrying amount
At 31 January 2024
2,441,428
-
0
354,903
1,827
2,798,158
At 31 January 2023
2,492,219
-
0
409,109
2,438
2,903,766
The company had no tangible fixed assets at 31 January 2024 or 31 January 2023.

Freehold land and buildings with a carrying amount of £2.55 million were revalued on 20 January 2022 by Keppie Massie Limited, commercial property consultants and independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

 

The revaluation resulted in an impairment to the carrying value of the property in the prior year, which was recognised within administrative expenses.

 

 

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been :

2024
2023
£
£
Group
Cost
1,670,479
1,663,559
Accumulated depreciation
(217,903)
(184,619)
Carrying value
1,452,576
1,478,940
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
2,261,250
2,261,250
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
2,261,250
Carrying amount
At 31 January 2024
2,261,250
At 31 January 2023
2,261,250
12
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Festive Lights Limited
England
Ordinary shares
100.00
-
Festive Lights BV
Netherlands
Ordinary shares
0
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,112,581
2,262,479
-
0
-
0
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
477,405
457,959
-
0
-
0
Corporation tax recoverable
-
0
1,151
-
0
-
0
Other debtors
744,010
784,913
-
0
-
0
Prepayments and accrued income
90,150
104,311
-
0
-
0
1,311,565
1,348,334
-
-
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
397,071
554,049
-
0
-
0
Obligations under finance leases
18
10,573
18,367
-
0
-
0
Trade creditors
190,318
264,817
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
11,250
14,550
Corporation tax payable
138,024
24,905
-
0
-
0
Other taxation and social security
604,225
600,264
-
-
Other creditors
275,181
737,989
-
0
-
0
Accruals and deferred income
100,961
65,171
-
0
-
0
1,716,353
2,265,562
11,250
14,550
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
845,936
895,932
-
0
-
0
Obligations under finance leases
18
14,599
25,172
-
0
-
0
Other borrowings
17
1,298,185
1,598,185
1,298,185
1,598,185
2,158,720
2,519,289
1,298,185
1,598,185
Amounts included above which fall due after five years are as follows:
Payable by instalments
454,222
255,432
-
-
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,243,007
1,281,564
-
0
-
0
Bank overdrafts
-
0
168,417
-
0
-
0
Preference shares
1,298,185
1,598,185
1,298,185
1,598,185
2,541,192
3,048,166
1,298,185
1,598,185
Payable within one year
397,071
554,049
-
0
-
0
Payable after one year
2,144,121
2,494,117
1,298,185
1,598,185

The bank overdraft and loans are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the group.

FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
17
Loans and overdrafts
(Continued)
- 29 -

As at the balance sheet date, the Group had loan facilities in place as follows:

 

A loan facility with balance as at the year end amounting to £215,760 payable by November 2029 by monthly instalments with interest charged at 2.75% over the Bank of England Base Rate.

 

A loan facility with balance as at the year end amounting to £326,033 payable by November 2032 by monthly instalments with interest charged at 3.25% over the Bank of England Base Rate.

 

A loan facility with balance as at the year end amounting to £404,072 payable by August 2028 by monthly instalments commencing in January 2024 with interest charged at 3% over the Bank of England Base Rate.

 

 

In addition, the Group make use of short term import loan facilities. As at the balance sheet date, the total of import loans outstanding amounted to £297,143.

18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
10,573
18,367
-
0
-
0
In two to five years
14,599
25,172
-
0
-
0
25,172
43,539
-
-

Finance lease payments represent rentals payable by the company or group 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 remaining lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
114,766
129,023
Revaluations
247,214
253,321
361,980
382,344
The company has no deferred tax assets or liabilities.
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
382,344
-
Credit to profit or loss
(20,364)
-
Liability at 31 January 2024
361,980
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,318
44,816

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable preference shares of £1 each
1,298,185
1,598,185
1,298,185
1,598,185
Preference shares classified as liabilities
1,298,185
1,598,185

On 1 March 2021, the company issued 2,250,000 £1 Redeemable Preference Shares as consideration for the acquisition of the entire issued share capital of Festive Lights Limited. On a winding-up or any other return of capital, the holder of any of the Redeemable Preference Shares has the right to repayment, in priority to any payment to the holders of any other shares in the capital of the company, of the amounts paid up on the shares in respect of the Redeemable Preference Shares held. Preference shares are redeemable in full at par by 31 March 2029. During the period 300,000 (2023: 325,000) £1 Redeemable Preference shares were redeemed.

 

Preference shareholder have the right to receive notice of and attend general meetings, and have the right to vote on any matter which directly impact the rights of the preference shareholders.

 

Other than the matters set out above, the preference shareholders have no other rights to vote or participate in the profits or assets of the company.

FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
22
Capital redemption reserve

The capital redemption reserve is a statutory non-distributable reserve into which amounts are transferred following the redemption or purchase of the company's own shares.

23
Profit and loss reserves

The profit and loss reserve represents earnings net of distributions to shareholders.

24
Financial commitments, guarantees and contingent liabilities

At 31 January 2024 the group had purchase commitments of £391,311 (2023: £,341,456). The total purchase orders at 31 January 2024 were £655,646 (2023: £582,778) of which deposits of £264,335 (2023: £241,322) had been paid.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
44,320
117,667
-
-
Between two and five years
14,268
61,923
-
-
58,588
179,590
-
-
26
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Purchases
Management, fulfilment and cost recharges
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
779,727
366,717
638,460
599,419

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
275,181
709,848
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
26
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
705,500
688,365
Other information

One of the premises from which the Group carries on its trading activities is owned by the former directors of Festive Lights Limited. The Group does not pay any rent.

 

The Directors of subsidiary undertaking Festive Lights Limited have provided a personal guarantee to secure all bank liabilities of that company limited to £1,000,000.

27
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
303,300
321,700
Adjustments for:
Investment income
(300,000)
(325,000)
Movements in working capital:
(Decrease)/increase in creditors
(3,300)
3,300
Cash absorbed by operations
-
-
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
386,120
121,466
Adjustments for:
Taxation charged
117,616
16,822
Finance costs
140,330
109,044
Amortisation and impairment of intangible assets
(22,281)
9,679
Depreciation and impairment of tangible fixed assets
142,030
149,242
Movements in working capital:
Decrease/(increase) in stocks
1,149,898
(114,771)
Decrease in debtors
35,618
87,918
(Decrease)/increase in creditors
(497,556)
229,886
Cash generated from operations
1,451,775
609,286
FESTIVE LIGHTS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 33 -
29
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
89,734
725,972
815,706
Bank overdrafts
(168,417)
168,417
-
0
(78,683)
894,389
815,706
Borrowings excluding overdrafts
(2,879,749)
338,557
(2,541,192)
Obligations under finance leases
(43,539)
18,367
(25,172)
(3,001,971)
1,251,313
(1,750,658)
30
Analysis of changes in net debt - company
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
200
-
200
Borrowings excluding overdrafts
(1,598,185)
300,000
(1,298,185)
(1,597,985)
300,000
(1,297,985)
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