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REGISTERED NUMBER: 03549429 (England and Wales)















AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024

FOR

FARLOWS LIMITED

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


FARLOWS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2024







DIRECTORS: R Philpott
S P G Hughes



REGISTERED OFFICE: 9 Pall Mall
London
SW1Y 5NP



REGISTERED NUMBER: 03549429 (England and Wales)



SENIOR STATUTORY AUDITOR: Mr Michael F Cox FCA



AUDITORS: Cox Costello & Horne
Chartered Accountants and Statutory Auditors
Batchworth Lock House
99 Church Street, Rickmansworth
WD3 1JJ

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

BALANCE SHEET
31 JANUARY 2024

31.1.24 31.1.23
Notes £ £ £ £
FIXED ASSETS
Tangible assets 4 530,852 421,504

CURRENT ASSETS
Stocks 5 1,422,474 1,584,444
Debtors 6 301,726 142,931
Cash at bank and in hand 743,583 599,306
2,467,783 2,326,681
CREDITORS
Amounts falling due within one year 7 2,693,259 2,768,314
NET CURRENT LIABILITIES (225,476 ) (441,633 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

305,376

(20,129

)

CREDITORS
Amounts falling due after more than one
year

8

560,020

640,822

CAPITAL AND RESERVES
Called up share capital 2,380,109 2,380,109
Revaluation reserve 10 123,314 123,314
Retained earnings (2,758,067 ) (3,164,374 )
SHAREHOLDERS' FUNDS (254,644 ) (660,951 )
305,376 (20,129 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2024 and were signed on its behalf by:





R Philpott - Director


FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024


1. STATUTORY INFORMATION

Farlows Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements are drawn up on the going concern basis which assumes Farlows Ltd will continue in operational existence for the foreseeable future. The Board of Directors have given due consideration to the working capital and cash flow requirements of Farlows Ltd. The Board of Directors consider Farlows Ltd's current and forecast cash resources to be sufficient to cover the working capital requirements of the company for at least 12 months from the date of signing the financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Revenue represents the fair value of amounts receivable for goods and services and is stated net of sales taxes and returns. Turnover is recognised as goods and services supplied.

Tangible fixed assets
Tangible fixed assets, excluding freehold land and buildings, are initially measured at historic cost and subsequently carried at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring an asset into its intended working condition are included in the measurement of cost.

Freehold land and buildings are initially measured at historic cost and subsequently at their revalued amount, being its open market value at the date of revaluation. Any upward valuation is first applied to eliminate any accumulated depreciation. Valuations are taken on a regular basis to ensure that the carrying amount does not differ materially from fair value at the reporting date.

Changes in value are reported in the profit and loss account and disclosed within other recognised gains and losses on the revaluation of fixed assets and taken to a separate revaluation reserve within reserves of the company.

At the reporting date, the company assesses whether there is any indication that an asset may be impaired. An impairment loss is recognised if the recoverable amount of an asset is less than its carrying amount.

Depreciation is provided at rates calculated to write down the cost of each asset to its residual value (its scrap or realistic value at the end of its economic life) on a systematic basis over its useful economic life. The depreciation rates in use on a straight line basis are as follows:

Freehold land-not depreciated
Freehold property-over 50 years
Improvements to property-over 10 years
Fixtures and fittings-over 3 to 5 years
Computer equipment-over 3 to 5 years

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. The cost of finished goods for resale is determine on the first-in first-out basis and comprises the purchase price and incidental costs, such as transportation and duty, incurred in bringing stock to its present location and condition. Net realisable value represents the estimated selling price less necessary incremental costs to achieve the sale.

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024


2. ACCOUNTING POLICIES - continued

Pension costs
From 1 April 2015, under the Pensions Act 2008, the company must put certain staff into a pension scheme and contribute towards it. This is called automatic enrolment. To comply with automatic enrolment laws, the company signed a participation agreement with a pension provider by which staff become members of an independently administered pension plan. The company and staff make contributions as specified in the plan.

For those staff members not enrolled in the above scheme the company makes contributions into their personal pension schemes.

The company has no liability under the aforementioned schemes other than for the payment of those contributions.

At the balance sheet, contributions outstanding amounted to £6,640 (2023: £6,428).

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2023 - 44 ) .

4. TANGIBLE FIXED ASSETS
Freehold Improvements Plant and
property to property machinery
£ £ £
COST
At 1 February 2023 296,000 2,010,040 196,235
Additions - 161,567 -
At 31 January 2024 296,000 2,171,607 196,235
DEPRECIATION
At 1 February 2023 59,617 1,952,402 196,235
Charge for year 8,517 12,114 -
At 31 January 2024 68,134 1,964,516 196,235
NET BOOK VALUE
At 31 January 2024 227,866 207,091 -
At 31 January 2023 236,383 57,638 -

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£ £ £ £
COST
At 1 February 2023 383,158 3,544 1,154,997 4,043,974
Additions 3,854 - 26,715 192,136
At 31 January 2024 387,012 3,544 1,181,712 4,236,110
DEPRECIATION
At 1 February 2023 382,788 3,544 1,027,884 3,622,470
Charge for year 589 - 61,568 82,788
At 31 January 2024 383,377 3,544 1,089,452 3,705,258
NET BOOK VALUE
At 31 January 2024 3,635 - 92,260 530,852
At 31 January 2023 370 - 127,113 421,504

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024


4. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:
Computer
equipment
£
COST
At 1 February 2023
and 31 January 2024 148,410
DEPRECIATION
At 1 February 2023
and 31 January 2024 148,410
NET BOOK VALUE
At 31 January 2024 -
At 31 January 2023 -

Assets held under finance leases are secured over the assets giving rise to them.

5. STOCKS
31.1.24 31.1.23
£ £
Finished goods 1,422,474 1,584,444

6. DEBTORS
31.1.24 31.1.23
£ £
Amounts falling due within one year:
Other debtors 61,107 91,331

Amounts falling due after more than one year:
Other debtors 240,619 51,600

Aggregate amounts 301,726 142,931

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.24 31.1.23
£ £
Trade creditors 571,038 891,921
Amounts owed to group undertakings 1,427,658 1,427,658
Social security and other taxes 28,018 28,142
VAT 208,986 193,126
Other creditors 42,085 34,933
Gift Card Control Account 43,963 49,884
Accruals and deferred income 371,511 142,650
2,693,259 2,768,314

Certain trade creditors are secured against the value of finished goods concerned.

Amounts owed to group undertakings relate to the loan facilities provided by the immediate holding company Farlows Group Limited. This loan is provided on an interest free basis, and has no set repayment date but is repayable upon the issuance of notice by the provider.

FARLOWS LIMITED (REGISTERED NUMBER: 03549429)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024


8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.1.24 31.1.23
£ £
Amount owed to group undertaking 560,020 640,822

Amounts owed to group undertakings relate the loan facilities provided by the immediate holding company, Farlows Group Limited. The loan was provided with an interest rate of 7.00% per annum and due to be repaid prior to 31 May 2027.

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.1.24 31.1.23
£ £
Within one year 165,000 165,000
Between one and five years 495,000 660,000
660,000 825,000

10. RESERVES
Revaluation
reserve
£
At 1 February 2023
and 31 January 2024 123,314

Deferred tax is recognised on the revaluation of property, although at the reporting date the amount was considered to be immaterial.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mr Michael F Cox FCA (Senior Statutory Auditor)
for and on behalf of Cox Costello & Horne

12. RELATED PARTY DISCLOSURES

Farlows Group Ltd
Immediate parent company
Registered office: 9 Pall Mall, London, SW1Y 5NP

Amount due to related party at the balance sheet date

31.1.2431.1.23
£   £   
1,987,6782,068,480

13. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr S P G Hughes who owns 95% of the issued shares of Farlows International Limited.