Company registration number 01589517 (England and Wales)
VOLANTE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
VOLANTE LIMITED
COMPANY INFORMATION
Directors
S P Holmes
N C Treasure
D Evans
C E Foster
(Appointed 1 February 2023)
Secretary
M K Ball
Company number
01589517
Registered office
50 Cox Lane
Chessington
Surrey
KT9 1TW
Auditor
Ward Williams Limited
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
Bankers
National Westminister Bank Plc
30 Tooting High Street
London
SW17 0XN
VOLANTE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
VOLANTE 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
Turnover increased by 7.8% during the year and gross profit margins have decreased from 19.0% to 17.8%. The company saw a increase in profit before tax for the year from £782,708 in 2023 to £887,692 in 2024.
The company has performed in line with expectations and the directors are satisfied with the results for the year, the year end position and the company's future prospects. The company is in a strong financial position to deal with the challenges and take advantage of the opportunities which are expected to arise in the coming year.
Principal risks and uncertainties
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, invoice discounting and loans to the company. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of the ID facility, however this is rarely called upon.
In respect of loans these comprise loans from group companies. The directors of group companies are aware of the company's required finance and have determined that these will only be repaid, when finance is available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Future development
The directors intend to continue to develop the business by continuing investment and providing outstanding customer service.
Key performance indicators
The directors consider the key performance indicators for the business are:
The directors consider the track of these KPI's indicates that the company is achieving its business objectives.
M K Ball
Secretary
29 October 2024
VOLANTE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of the supply of adhesive and flooring materials.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £750,000. The directors do not recommend payment of a further dividend.
Directors
There are no directors' interests requiring disclosure under the Companies Act 2006.
S P Holmes
N C Treasure
D Evans
C E Foster
(Appointed 1 February 2023)
Auditor
The auditor, Ward Williams Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
By order of the board
M K Ball
Secretary
29 October 2024
VOLANTE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VOLANTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VOLANTE LIMITED
- 4 -
Opinion
We have audited the financial statements of Volante Limited (the 'company') for the year ended 31 January 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
VOLANTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VOLANTE LIMITED (CONTINUED)
- 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 .
The objectives of our audit are to identify and assess the risks of material misstatement of the financial
statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of
material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent
limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may
not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
VOLANTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VOLANTE LIMITED (CONTINUED)
- 6 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
challenging assumptions and judgements made by management in its significant accounting estimates;
identifying and testing journal entries, in particular and journal entries posted with unusual account combinations; and
assessing the extent of compliance with the relevant laws and regulations.
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.
Colin Hamilton
Senior Statutory Auditor
For and on behalf of Ward Williams Limited
29 October 2024
Chartered Accountants
Statutory Auditor
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
VOLANTE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
30,261,099
28,074,713
Cost of sales
(24,864,689)
(22,729,765)
Gross profit
5,396,410
5,344,948
Distribution costs
(3,267,162)
(3,214,409)
Administrative expenses
(1,416,535)
(1,389,661)
Operating profit
4
712,713
740,878
Investment income
7
82,644
71,865
Finance costs
8
(30,000)
(30,035)
Profit before taxation
765,357
782,708
Tax on profit
9
(377,951)
(143,871)
Profit for the financial year
387,406
638,837
The income statement has been prepared on the basis that all operations are continuing operations.
VOLANTE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
£
£
Profit for the year
387,406
638,837
Other comprehensive income
-
-
Total comprehensive income for the year
387,406
638,837
VOLANTE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
478,538
593,860
Investments
12
1
1
478,539
593,861
Current assets
Inventories
14
3,660,676
3,786,918
Trade and other receivables
15
7,118,946
7,023,311
Cash and cash equivalents
1,737,748
1,220,541
12,517,370
12,030,770
Current liabilities
16
(3,376,062)
(2,768,316)
Net current assets
9,141,308
9,262,454
Total assets less current liabilities
9,619,847
9,856,315
Provisions for liabilities
Deferred tax liability
17
637,115
510,989
(637,115)
(510,989)
Net assets
8,982,732
9,345,326
Equity
Called up share capital
19
24,000
24,000
Retained earnings
20
8,958,732
9,321,326
Total equity
8,982,732
9,345,326
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
D Evans
Director
Company registration number 01589517 (England and Wales)
VOLANTE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 February 2022
24,000
9,182,489
9,206,489
Year ended 31 January 2023:
Profit and total comprehensive income
-
638,837
638,837
Dividends
10
-
(500,000)
(500,000)
Balance at 31 January 2023
24,000
9,321,326
9,345,326
Year ended 31 January 2024:
Profit and total comprehensive income
-
387,406
387,406
Dividends
10
-
(750,000)
(750,000)
Balance at 31 January 2024
24,000
8,958,732
8,982,732
VOLANTE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,359,883
189,706
Interest paid
(30,000)
(30,035)
Income taxes (paid)/refunded
(157,897)
327,838
Net cash inflow from operating activities
1,171,986
487,509
Investing activities
Purchase of property, plant and equipment
(29,311)
(147,638)
Proceeds from disposal of property, plant and equipment
41,888
Interest received
82,644
71,865
Net cash generated from/(used in) investing activities
95,221
(75,773)
Financing activities
Dividends paid
(750,000)
(500,000)
Net cash used in financing activities
(750,000)
(500,000)
Net increase/(decrease) in cash and cash equivalents
517,207
(88,264)
Cash and cash equivalents at beginning of year
1,220,541
1,308,805
Cash and cash equivalents at end of year
1,737,748
1,220,541
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
1
Accounting policies
Company information
Volante Limited is a private company limited by shares incorporated in England and Wales. The registered office is 50 Cox Lane, Chessington, Surrey, KT9 1TW.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Revenue
Revenue 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.
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
Property, plant and equipment
Property, plant and equipment 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:
Land and buildings Leasehold
Over the life of the lease
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
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 credited or charged to profit or loss.
1.5
Non-current investments
Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
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) prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
Inventories held for distribution at no or nominal consideration are measured at 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 inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include trade and other receivables 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 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 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 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
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 company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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 income statement 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 at 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 income statement, 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. 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.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.13
Retirement benefits
The company make contributions into both defined benefit and defined contribution retirement benefit schemes on behalf of its employees. The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.
1.14
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful lives of property, plant and equipment
In determining the depreciation rates to apply against property, plant and equipment, the directors have used their knowledge and experience of both the company and the industry to assess the useful lives of each individual asset.
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.
Provision for the impairment of trade receivables
The company establishes a provision for the impairment of trade receivables in accordance with its policy in note 1. The recoverable amount of the receivables is compared to the carrying amount to determine the amount of impairment. These calculations require the use of estimates.
Provision for slow moving inventory
The company establishes a provision for slow moving inventory in accordance with the accounting policy stated in note 1. The net realisable value is compared to its book value in order to determine the amount of impairment. These calculations require the use of estimates.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Sale of goods
30,261,099
28,074,713
2024
2023
£
£
Other revenue
Interest income
82,644
71,865
The company's turnover is derived from its principal activity wholly undertaken in England and Wales.
4
Operating profit
2024
2023
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
8,438
8,063
Depreciation of owned property, plant and equipment
117,973
121,115
(Profit)/loss on disposal of property, plant and equipment
(15,228)
1,835
Operating lease charges
828,295
934,304
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
16
15
Distribution
27
26
Administrative
11
8
Total
54
49
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,407,615
2,303,344
Social security costs
238,865
237,452
Pension costs
160,474
159,839
2,806,954
2,700,635
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
573,553
535,262
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
193,752
261,134
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
15,644
1,972
Interest receivable from group companies
67,000
69,893
Total income
82,644
71,865
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
82,644
71,865
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
30,000
30,035
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
226,645
143,871
Adjustments in respect of prior periods
(4,387)
Total current tax
222,258
143,871
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
155,693
Total tax charge
377,951
143,871
The corporation tax rate increase to 25% was substantively enacted with effect from 1 April 2023. The 24% rate used reflects 10 months of this new rate and 2 months of the previous rate of 19%. The 25% rate is used to measure UK deferred taxes in 2024 (and in 2023 to the extent the related timing differences were expected to reverse after 1 April 2023).
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
765,357
782,708
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
183,686
148,715
Tax effect of expenses that are not deductible in determining taxable profit
56,574
(87)
Gains not taxable
349
Adjustments in respect of prior years
(4,387)
Permanent capital allowances in excess of depreciation
(13,899)
(28,116)
Depreciation on assets not qualifying for tax allowances
23,010
Other permanent differences
284
Movement in deferred tax on previous rolled over gain
155,693
Taxation charge for the year
377,951
143,871
10
Dividends
2024
2023
£
£
Final paid
750,000
500,000
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
11
Property, plant and equipment
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
363,395
389,816
70,035
241,970
1,065,216
Additions
14,944
5,417
8,950
29,311
Disposals
(103,488)
(103,488)
At 31 January 2024
363,395
404,760
75,452
147,432
991,039
Depreciation and impairment
At 1 February 2023
109,876
234,595
39,568
87,317
471,356
Depreciation charged in the year
37,118
40,085
8,182
32,588
117,973
Eliminated in respect of disposals
(76,828)
(76,828)
At 31 January 2024
146,994
274,680
47,750
43,077
512,501
Carrying amount
At 31 January 2024
216,401
130,080
27,702
104,355
478,538
At 31 January 2023
253,519
155,221
30,467
154,653
593,860
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in joint ventures
13
1
1
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
Fixed asset investments not carried at market value
The value of the investment is determined by cost rather than by reference to market value. The investment, Floor IT Trade Sales Limited, is held jointly with one of the company's fellow group subsidiaries and the results of this joint venture are included in its individual company accounts as well as in the group's consolidated accounts.
The company has provided a rental guarantee in respect of Floor IT Trade Sales Limited rental lease.
13
Joint ventures
Details of the company's joint ventures at 31 January 2024 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Floor IT Trade Sales Limited
The Lodge, Leek Road, Endon, Stoke-On-Trent, England, ST9 9HQ
Ordinary
50.00
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
14
Inventories
2024
2023
£
£
Finished goods and goods for resale
3,660,676
3,786,918
An impairment loss of £18,473 (2023: £34,442) has been recognised against inventories.
15
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
2,098,058
2,105,820
Amounts owed by group undertakings
4,033,680
4,149,519
Other receivables
438,511
165,942
Prepayments and accrued income
548,697
602,030
7,118,946
7,023,311
Trade receivables disclosed above are measured at amortised cost.
An impairment loss of £21,713 (2023: £35,893) has been recognised against trade receivables.
16
Current liabilities
2024
2023
£
£
Trade payables
1,296,544
1,260,481
Amounts owed to group undertakings
503,243
337,463
Corporation tax
110,258
16,330
Other taxation and social security
511,681
327,075
Other payables
8,965
6,131
Accruals and deferred income
945,371
820,836
3,376,062
2,768,316
The company have an invoice discounting facility in place secured by a debenture dated 17 June 2016 which contains a fixed and floating charge over the assets of the company and a negative pledge.
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Roll over relief on sale of property
637,115
510,989
2024
Movements in the year:
£
Liability at 1 February 2023
510,989
Charge to profit or loss
126,126
Liability at 31 January 2024
637,115
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,501
29,129
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.
Defined benefit schemes
The company participates as a contributing member of a group pension scheme, The Brookvale Limited Staff Retirement Benefits Scheme.
Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The scheme is a defined benefits, final salary scheme. It is not possible to identify the share of underlying assets and liabilities belonging to individual participating employers.
A full actuarial valuation was carried out at 1 February 2023 by a qualified independent actuary. At 31 January 2024, the scheme had surplus of £5,054,000 (2023: £3,444,000 ) as calculated by the actuary for the purpose of FRS102 section 28. The full defined benefit scheme disclosures are shown in the consolidated accounts of Brookvale Limited.
The charge in the accounts represents the total contributions payable to the scheme and amounted to £132,973 (2023: £130,710).
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
24,000
24,000
24,000
24,000
The company has only one class of ordinary shares which carry no right to fixed income.
20
Retained earnings
The retained earnings account represents cumulative profits and losses net of dividends and other adjustments.
21
Financial commitments, guarantees and contingent liabilities
Volante Limited, Brookvale Limited, Planners Services & Sundries Limited and John Palmer Carpets Limited have an intercompany guarantee with unlimited security. The facility is secured by a debenture dated 13 August 2012 for a fixed and floating charge over all assets of the company.
In 2018, the company entered into a joint venture agreement to incorporate Floor IT Trade Sales Limited. Floor IT Trades Sales Limited have signed a rental lease agreement for their business premises. The company is a joint guarantor on this agreement and the value of their share of the maximum financial commitment outstanding at year-end is £12,401.
22
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for property and motor vehicles. Leases for property are negotiated for a period of 10 years, and motor vehicles for periods of 3 -7 years.
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:
2024
2023
£
£
Within one year
680,898
681,006
Between two and five years
2,472,371
2,498,486
In over five years
2,967,667
2,967,667
6,120,936
6,147,159
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
573,553
535,262
VOLANTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
23
Related party transactions
(Continued)
- 24 -
Transactions with related parties
The company has taken advantage of the exemption in FRS102 section 33 from the requirements to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company. The consolidated financial statements are available from The Lodge, Leek Road, Endon, Stoke on Trent, Staffordshire, ST9 9HQ.
During the year the company purchased goods totalling £2,429,929 (2023: £2,436,457) from F. Ball and Co. Limited, a company under the control of a director of Brookvale Limited. The balance owed to F. Ball and Co. Limited at the year end was £2,428 (2023: £2,428).
24
Ultimate controlling party
The company's ultimate parent company is Brookvale Limited, company number 01751661, a company registered in England and Wales.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
Brookvale Limited
Smallest group
Brookvale Limited
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
387,406
638,837
Adjustments for:
Taxation charged
377,951
143,871
Finance costs
30,000
30,035
Investment income
(82,644)
(71,865)
(Gain)/loss on disposal of property, plant and equipment
(15,228)
1,835
Depreciation and impairment of property, plant and equipment
117,973
121,115
Movements in working capital:
Decrease/(increase) in inventories
126,242
(799,784)
(Increase)/decrease in trade and other receivables
(95,635)
626,913
Increase/(decrease) in trade and other payables
513,818
(501,251)
Cash generated from operations
1,359,883
189,706
26
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,220,541
517,207
1,737,748
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.100S P HolmesN C TreasureD EvansC E FosterM K Ballfalsefalse015895172023-02-012024-01-3101589517bus:Director12023-02-012024-01-3101589517bus:Director22023-02-012024-01-3101589517bus:Director32023-02-012024-01-3101589517bus:Director42023-02-012024-01-3101589517bus:CompanySecretaryDirector12023-02-012024-01-3101589517bus:CompanySecretary12023-02-012024-01-3101589517bus:RegisteredOffice2023-02-012024-01-3101589517bus:Agent12023-02-012024-01-31015895172024-01-31015895172022-02-012023-01-3101589517core:RetainedEarningsAccumulatedLosses2022-02-012023-01-3101589517core:RetainedEarningsAccumulatedLosses2023-02-012024-01-31015895172023-01-3101589517core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-3101589517core:PlantMachinery2024-01-3101589517core:FurnitureFittings2024-01-3101589517core:MotorVehicles2024-01-3101589517core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-3101589517core:PlantMachinery2023-01-3101589517core:FurnitureFittings2023-01-3101589517core:MotorVehicles2023-01-3101589517core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3101589517core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-3101589517core:CurrentFinancialInstruments2024-01-3101589517core:CurrentFinancialInstruments2023-01-3101589517core:ShareCapital2024-01-3101589517core:ShareCapital2023-01-3101589517core:RetainedEarningsAccumulatedLosses2024-01-3101589517core:RetainedEarningsAccumulatedLosses2023-01-3101589517core:ShareCapital2022-01-3101589517core:RetainedEarningsAccumulatedLosses2022-01-31015895172023-01-31015895172022-01-3101589517core:LandBuildingscore:LongLeaseholdAssets2023-02-012024-01-3101589517core:PlantMachinery2023-02-012024-01-3101589517core:FurnitureFittings2023-02-012024-01-3101589517core:MotorVehicles2023-02-012024-01-3101589517core:UKTax2023-02-012024-01-3101589517core:UKTax2022-02-012023-01-310158951712023-02-012024-01-310158951712022-02-012023-01-310158951722023-02-012024-01-310158951722022-02-012023-01-310158951732023-02-012024-01-310158951732022-02-012023-01-310158951742023-02-012024-01-310158951742022-02-012023-01-3101589517core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-3101589517core:PlantMachinery2023-01-3101589517core:FurnitureFittings2023-01-3101589517core:MotorVehicles2023-01-3101589517core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-012024-01-3101589517core:Non-currentFinancialInstruments2024-01-3101589517core:Non-currentFinancialInstruments2023-01-3101589517core:WithinOneYear2024-01-3101589517core:WithinOneYear2023-01-3101589517core:BetweenTwoFiveYears2024-01-3101589517core:BetweenTwoFiveYears2023-01-3101589517core:MoreThanFiveYears2024-01-3101589517core:MoreThanFiveYears2023-01-3101589517bus:PrivateLimitedCompanyLtd2023-02-012024-01-3101589517bus:FRS1022023-02-012024-01-3101589517bus:Audited2023-02-012024-01-3101589517bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP