Company Registration No. 03749171 (England and Wales)
HEATHCOTE & IVORY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HEATHCOTE & IVORY LIMITED
COMPANY INFORMATION
Director
D L Aaronson
Secretary
L Aaronson
Company number
03749171
Registered office
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Business address
2 Lonsdale Road
Kilburn
London
NW6 6RD
Bankers
NatWest Group plc
36 St Andrew Square
Edinburgh
EH2 2YB
HEATHCOTE & IVORY LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
HEATHCOTE & IVORY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

The director is pleased to announce that revenues have continued to increase. The company continues to expand its logistics, development and social media content creation to support these activities. The company continues to be profitable and expects another year of growth and is confident that it has all the resources in place to support this.

The company made a pre-tax profit of £654,183 (2022: £559,113) for the year on turnover of £15,239,311 (2022: £15,076,313).

As at 31 December 2023 the company had net assets of £2,328,824 (2022: £2,148,074).

Turnover has increased by 1.1% from 2022.

Principal risks and uncertainties

The director recognises that within the business there are a number of risks as described below which may affect the performance of the company. These risks are subject to regular review and where appropriate processes are established to minimise the level of exposure.

Operating expenses

These are monitored against budgeted amounts for each expense category.

 

Financial risk

The director acknowledges responsibility for the company's internal financial control and credit insurance and believes the systems are appropriate to the business and to minimise risk.

Key performance indicators

In the opinion of the director, there are no other key performance indicators other than those referred to in the fair review of the business above.

On behalf of the board

D L Aaronson
Director
17 October 2024
HEATHCOTE & IVORY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his report and financial statements for the year ended 31 December 2023.

Principal activities
The principal activity of the company continues to be that of supplying cosmetic and toiletry products.
Results and dividends

The results for the year are set out on Page 7.

Interim ordinary dividends were paid amounting to £260,000 (2022: £500,000). The director does not recommend payment of a final dividend.

Director
The director who served during the year was:
D L Aaronson
Auditor

In accordance with the company's articles, a resolution proposing that HW Fisher LLP be reappointed as auditor of the company will be put to the members.

Statement of disclosure to auditor

So far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that he ought to take as director in order to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
D L Aaronson
Director
17 October 2024
HEATHCOTE & IVORY LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

HEATHCOTE & IVORY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HEATHCOTE & IVORY LIMITED
- 4 -
Opinion

We have audited the financial statements of Heathcote & Ivory Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company in accordance with the ethical requirements that are relevant to our audit of the revised 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 director's use of the going concern basis of accounting in the preparation of the revised 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 original financial statements were authorised for issue.

 

Our responsibilities and the responsibilities of the director 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 director is 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:

HEATHCOTE & IVORY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEATHCOTE & IVORY LIMITED
- 5 -
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 and the director's report.

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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

 

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

HEATHCOTE & IVORY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HEATHCOTE & IVORY LIMITED
- 6 -

Owing 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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

 

We are also required to report whether in our opinion the original annual report and financial statements failed to comply with the requirements of the Companies Act 2006 in the respects identified by the directors. The audit of revised financial statements includes the performance of procedures to assess whether the revisions made by the directors are ppropriate and have been properly made.

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 him 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.

Gary Miller (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
17 October 2024
HEATHCOTE & IVORY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
15,239,311
15,076,313
Cost of sales
(8,674,422)
(9,137,998)
Gross profit
6,564,889
5,938,315
Administrative expenses
(5,639,677)
(5,295,181)
Operating profit
4
925,212
643,134
Interest receivable and similar income
7
6,489
3
Interest payable and similar expenses
8
(277,518)
(84,024)
Profit before taxation
654,183
559,113
Tax on profit
9
(213,433)
(153,784)
Profit for the financial year
440,750
405,329

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

HEATHCOTE & IVORY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
150,000
-
0
Tangible assets
12
200,859
247,671
350,859
247,671
Current assets
Stocks
13
2,119,615
2,407,294
Debtors
14
3,458,013
3,267,037
Cash at bank and in hand
348,488
370,687
5,926,116
6,045,018
Creditors: amounts falling due within one year
15
(3,816,207)
(3,939,264)
Net current assets
2,109,909
2,105,754
Total assets less current liabilities
2,460,768
2,353,425
Creditors: amounts falling due after more than one year
16
(131,944)
(205,351)
Net assets
2,328,824
2,148,074
Capital and reserves
Called up share capital
19
100
100
Share premium account
299,970
299,970
Profit and loss reserves
2,028,754
1,848,004
Total equity
2,328,824
2,148,074
The financial statements were approved and signed by the director and authorised for issue on 17 October 2024
D L Aaronson
Director
Company Registration No. 03749171
HEATHCOTE & IVORY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
299,970
1,942,675
2,242,745
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
405,329
405,329
Dividends
10
-
-
(500,000)
(500,000)
Balance at 31 December 2022
100
299,970
1,848,004
2,148,074
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
440,750
440,750
Dividends
10
-
-
(260,000)
(260,000)
Balance at 31 December 2023
100
299,970
2,028,754
2,328,824
HEATHCOTE & IVORY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,355,088
379,375
Interest paid
(277,518)
(84,024)
Income taxes paid
(268,044)
(34,387)
Net cash inflow from operating activities
809,526
260,964
Investing activities
Purchase of intangible assets
(150,000)
-
0
Purchase of tangible fixed assets
(46,490)
-
0
Proceeds on disposal of tangible fixed assets
-
0
29,000
Receipts arising from loans made
(50,837)
(338,550)
Interest received
6,489
3
Net cash used in investing activities
(240,838)
(309,547)
Financing activities
Repayment of bank loans
(73,407)
(80,775)
Dividends paid
(260,000)
(500,000)
Net cash used in financing activities
(333,407)
(580,775)
Net increase/(decrease) in cash and cash equivalents
235,281
(629,358)
Cash and cash equivalents at beginning of year
(827,457)
(198,099)
Cash and cash equivalents at end of year
(592,176)
(827,457)
Relating to:
Cash at bank and in hand
348,488
370,687
Bank overdrafts included in creditors payable within one year
(940,664)
(1,198,144)
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Heathcote & Ivory Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The director is pleased to announce that revenues have continued to increase. The company continues to expand its logistics, development and social media content creation to support the increase in sales The company continues to be profitable and is constantly monitoring its working capital and cash flow and are confident they have sufficient procedures in place to manage their working capital and cash flow effectively. Therefore, the director remains confident that the business has adequate resources to continue in operation for the foreseeable future and as such continues to adopt the going concern basis in preparing these financial statements.true

 

1.3
Turnover
Turnover represents the invoiced value of goods dispatched to customers during the year, net of VAT.

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.

1.4
Intangible fixed assets other than goodwill

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.

Trademarks
10 years

 

1.5
Tangible fixed assets

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

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements
Over duration of lease
Fixtures, fittings & equipment
2 to 3 years straight line
Motor vehicles
2 to 3 years straight line
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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

1.6
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.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

Basic financial assets

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

Impairment of financial assets

Financial assets 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

Derecognition of financial liabilities

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

HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

 

HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

Stocks are valued at the lower of the cost and net realisable value. The net realisable value includes, where necessary, provisions for slow moving stocks. Calculations of these provisions are estimated based on the last 6 month's sales of the year and involve an element of judgement by the director.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales of goods
14,332,140
13,945,590
Royalties
907,171
1,130,723
15,239,311
15,076,313
2023
2022
£
£
Other significant revenue
Interest income
6,489
3
2023
2022
£
£
Turnover analysed by geographical market
UK and Ireland
7,913,109
9,196,551
Europe
446,239
301,526
Rest of the world
6,879,963
5,578,236
15,239,311
15,076,313
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
32,425
Depreciation of owned tangible fixed assets
36,175
43,553
Depreciation of tangible fixed assets held under finance leases
57,127
61,270
(Profit)/Loss on sale of tangible assets
-
(15,556)
Operating lease charges
234,902
234,604
5
Employees

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

2023
2022
Number
Number
Admin
45
45
Sales
5
5
Total
50
50

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,846,720
2,208,418
Social security costs
310,869
342,405
Pension costs
60,894
58,368
3,218,483
2,609,191
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
135,000
-
0

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,489
3
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Interest receivable and similar income
(Continued)
- 16 -

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
6,489
3
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
277,518
84,024
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
213,433
153,784

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:

2023
2022
£
£
Profit before taxation
654,183
559,113
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
153,864
106,231
Tax effect of expenses that are not deductible in determining taxable profit
40,305
35,880
Fixed asset differences
(43)
4,737
Deferred tax not recognised
20,515
8,164
Remeasurement of deferred tax for changes in tax rates
(1,214)
(1,949)
Other
6
721
Taxation charge for the year
213,433
153,784
10
Dividends
2023
2022
£
£
Interim paid
260,000
500,000
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Intangible fixed assets
Brand
Trademarks
Total
£
£
£
Cost
At 1 January 2023
644,000
-
0
644,000
Additions
-
0
150,000
150,000
At 31 December 2023
644,000
150,000
794,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
644,000
-
0
644,000
Carrying amount
At 31 December 2023
-
0
150,000
150,000
At 31 December 2022
-
0
-
0
-
0
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
249,344
63,579
171,573
484,496
Additions
-
0
-
0
46,490
46,490
At 31 December 2023
249,344
63,579
218,063
530,986
Depreciation and impairment
At 1 January 2023
71,622
59,585
105,618
236,825
Depreciation charged in the year
24,938
3,994
64,370
93,302
At 31 December 2023
96,560
63,579
169,988
330,127
Carrying amount
At 31 December 2023
152,784
-
0
48,075
200,859
At 31 December 2022
177,722
3,994
65,955
247,671

Included within tangible fixed assets are assets held under hire purchase contracts. The net book value of these assets is £48,075 (2022: £58,712) and the depreciation charge for the year is £57,127 (2022: £61,270).

2023
2022
£
£
Motor vehicles
48,075
58,712
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,119,615
2,407,294
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,450,452
1,902,674
Other debtors
1,012,443
951,570
Prepayments and accrued income
745,283
412,793
3,208,178
3,267,037
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
249,835
-
0
Total debtors
3,458,013
3,267,037
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and borrowings
17
1,023,997
1,281,477
Trade creditors
1,370,321
993,755
Corporation tax
237,944
292,555
Other taxation and social security
386,107
320,574
Other creditors
12,044
10,063
Accruals and deferred income
785,794
1,040,840
3,816,207
3,939,264
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
131,944
205,351

The company's bank borrowings are secured by fixed and floating charges over the assets of the company and by personal guarantees provided by the director and shareholder.

HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
215,277
288,684
Bank overdrafts
940,664
1,198,144
1,155,941
1,486,828
Payable within one year
1,023,997
1,281,477
Payable after one year
131,944
205,351

The company's bank borrowings are secured by fixed and floating charges over the assets of the company and by personal guarantees provided by the director and majority shareholder.

Included within bank loans and overdrafts is £940,663 (2022: £1,198,144) relating to advances in respect of trade debtor balances under an invoice discounting arrangement. This is subject to a recourse period of 120 days. Also included within bank loans is £83,333 (2022: £83,333) due less than one year and £131,945 (2022: £205,351) due in more than one year in respect of a Coronavirus Business Interruption Loan which includes interest at 3.8% plus base rate.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,894
58,368

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
20
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
195,985
195,985
Between two and five years
432,800
40,830
628,785
236,815
21
Directors' transactions

As at the year ended 31 December 2023 the director owes the company £789,779 (2022: £696,566).

22
Related party transactions

Included within other debtors is an amount of £210,638 (2022: £nil) owed from a connected party. The loan is repayable in 5 years. No interest is charged on this balance. Furthermore, there is an additional amount owed from the same connected party of £10,036 (2022: £nil), also included within 'Other Debtors'.

23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
440,750
405,329
Adjustments for:
Taxation charged
213,433
153,784
Finance costs
277,518
84,024
Investment income
(6,489)
(3)
Gain on disposal of tangible fixed assets
-
(15,556)
Depreciation and impairment of tangible fixed assets
93,302
104,823
Movements in working capital:
Decrease/(increase) in stocks
287,679
(489,237)
(Increase)/decrease in debtors
(140,139)
801,839
Increase/(decrease) in creditors
189,034
(665,628)
Cash generated from operations
1,355,088
379,375
HEATHCOTE & IVORY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
24
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
370,687
(22,199)
348,488
Bank overdrafts
(1,198,144)
257,480
(940,664)
(827,457)
235,281
(592,176)
Borrowings excluding overdrafts
(288,684)
73,407
(215,277)
(1,116,141)
308,688
(807,453)
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