Company registration number 04341488 (England and Wales)
SIMPLY PLEASURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
SIMPLY PLEASURE LIMITED
COMPANY INFORMATION
Director
T Hemming
Company number
04341488
Registered office
Forest Gate
Spring Lane
Ringwood
Dorset
BH24 3FH
Auditor
Simpson Wreford LLP
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
SIMPLY PLEASURE LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
Detailed profit and loss account
SIMPLY PLEASURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The director presents the strategic report for the year ended 31 January 2024.
Principal activities
The principal activity of the company is the wholesale and retail of adult products.
Review of the business
This year has been a challenging year although we have managed to continue to maintain turnover with just a slight fall in revenue.
Our focus was to costs and we managed to reduce these significantly over the year , seeing the fruits of our investments in IT and accounting and stock management systems .
The increase in our own brands investment has enabled us to maintain margin and these now account for the majority of sales through all our sales channels , retail , online and wholesale.
We aim to continue to expand the brands moving in to next year and promote through our wholesale division . I am excited that we have created some new and unique items that I envisage will perform well in the coming year.
Again our on line sales have continued to increase, with European sales now performing well, the upgrade of our own sites has seen an uplift in sales. We will continue to build new sites in house for both the US and European markets for our own brand items.
Principal risks and uncertainties
Concerns over exchange rate fluctuations are always present but we constantly try to mitigate risk with forward buying and strategic management, close monitoring of costs and overheads is always key and we have been able to manage this successfully. The implementation of large solar panels at our Head Quarters is an example of our desire to reduce our carbon foot print.
Development and performance
Retail stores have continued to perform strongly throughout the year and we saw some excellent results throughout the country in the summer with the large Pride Events which we participate fully in and of course Christmas which again saw very encouraging numbers throughout the country.
I forecast that we will continue to achieve our aims and targets for the business in 2024/5 with a stable and experienced team.
Key performance indicators
The key performance indicator for the group is the level of cash held, turnover and profitability. The business is in a positive cash position at 31 January 2024, with £2,065,158 of cash freely available. Current assets cover current liabilities 2.0 times in 2024, maintaining similar figures in 2023. The group has a gross profit margin of 50.7% for 2024 a 6.7% increase on 2023 which stood at 47.5%. Turnover has decreased this year for the group from £14,687,670 in 2023 to £13,912,269, a fall of 5.3%.
T Hemming
Director
24 October 2024
SIMPLY PLEASURE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 January 2024.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
No preference dividends were paid.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
T Hemming
Auditor
Simpson Wreford LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is 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.
On behalf of the board
T Hemming
Director
24 October 2024
SIMPLY PLEASURE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 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:
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 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.
SIMPLY PLEASURE LIMITED
INDEPENDENT AUDITOR REPORT
TO THE MEMBER OF SIMPLY PLEASURE LIMITED
- 4 -
Opinion
We have audited the financial statements of Simply Pleasure Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 director's 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 director 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 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
SIMPLY PLEASURE LIMITED
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBER OF SIMPLY PLEASURE 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 or the director's 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 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 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 report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Focused on specific laws and regulations relevant to the entity.
To address the risk of fraud through management bias and override of controls, we:
sampled sales from orders and where available other documentation outside of the accounting system to ensure they are complete in the accounts. We have reviewed delivery documentation to ensure correct recognition of income and in accordance with accounting policy;
reviewed legal and professional costs to identify any potential litigation or non-compliance with laws and regulations that could have a material affect on the financial statements;
audited the risk of management override of controls via testing of journal entries throughout the period and post balance sheet period and review of any significant transactions that could be outside of the normal course of business;
reviewed estimates and judgements made in the accounts for any indication of management bias and challenged the assumptions and rationale used by management in making the estimates;
performed analytical procedures to identify any unusual or unexpected relationships.
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 report.
SIMPLY PLEASURE LIMITED
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBER OF SIMPLY PLEASURE LIMITED
- 6 -
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor 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 member, for our audit work, for this report, or for the opinions we have formed.
Michael Broder BSc FCA
Senior Statutory Auditor
For and on behalf of Simpson Wreford LLP
30 October 2024
Chartered Accountants
Statutory Auditor
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
SIMPLY PLEASURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,018,710
13,652,856
Cost of sales
(5,153,623)
(6,807,921)
Gross profit
6,865,087
6,844,935
Administrative expenses
(5,043,285)
(5,104,790)
Other operating income
88,883
48,150
Operating profit
5
1,910,685
1,788,295
Interest receivable and similar income
8
19,866
Interest payable and similar expenses
9
(57,378)
(42,913)
Profit before taxation
1,873,173
1,745,382
Tax on profit
10
(458,729)
(337,384)
Profit for the financial year
1,414,444
1,407,998
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SIMPLY PLEASURE LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
23,894
21,435
Tangible assets
13
273,063
301,444
Investments
100
297,057
322,879
Current assets
Stocks
15
3,571,005
3,304,470
Debtors
16
3,645,128
3,629,991
Cash at bank and in hand
1,646,489
727,187
8,862,622
7,661,648
Creditors: amounts falling due within one year
17
(4,019,853)
(3,468,648)
Net current assets
4,842,769
4,193,000
Total assets less current liabilities
5,139,826
4,515,879
Creditors: amounts falling due after more than one year
18
(784,340)
Provisions for liabilities
Deferred tax liability
20
33,195
39,352
(33,195)
(39,352)
Net assets
5,106,631
3,692,187
Capital and reserves
Called up share capital
22
165,000
165,000
Profit and loss reserves
4,941,631
3,527,187
Total equity
5,106,631
3,692,187
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 24 October 2024
T Hemming
Director
Company registration number 04341488 (England and Wales)
SIMPLY PLEASURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
165,000
2,149,189
2,314,189
Year ended 31 January 2023:
Profit and total comprehensive income
-
1,407,998
1,407,998
Dividends
11
-
(30,000)
(30,000)
Balance at 31 January 2023
165,000
3,527,187
3,692,187
Year ended 31 January 2024:
Profit and total comprehensive income
-
1,414,444
1,414,444
Balance at 31 January 2024
165,000
4,941,631
5,106,631
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
1
Accounting policies
Company information
Simply Pleasure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Forest Gate, Spring Lane, Ringwood, Dorset, BH24 3FH.
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of ABS Wholesale Limited. These consolidated financial statements are available from its registered office, Forest Gate, Spring Lane, Ringwood, Dorset, BH24 3FH.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Retail income at the company's shops is recognised at the point of sale.
Wholesale and online sales are recognised at the point of despatch to the customer when the significant risks and rewards of ownership of the goods has passed.
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 11 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website costs
2 years straight line
Trademarks, patents and licences
3 - 10 years straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the length of the lease
Plant and equipment
4 years straight line
Fixtures and fittings
3-5 years straight line
Motor vehicles
4 years straight line
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.
1.7
Fixed asset investments
Interests in subsidiaries, associates and 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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Cost is determined using the average (AVCO) method.
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.
1.10
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.
1.11
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 balance sheet 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.12
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.
1.13
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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
11,909,648
13,563,076
Management charges receivable
109,062
89,780
12,018,710
13,652,856
2024
2023
£
£
Other revenue
Interest income
19,866
-
All turnover arises from the company's principal activity,being the wholesale and retail of adult products. The analysis of turnover by geographical market has not been disclosed as the director believes that this disclosure would be seriously prejudicial to the company's interests.
4
Exceptional item
2024
2023
£
£
Income
Exceptional item - Other operating income
70,083
29,350
The company has reduced provisions against the amounts owed by subsidiary companies by £65,842 (2023 decrease - £29,350). The provision reflects the amount of recoverable net assets in the subsidiary.
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
13,888
(25,634)
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
19,405
Depreciation of owned tangible fixed assets
72,202
55,892
Amortisation of intangible assets
12,846
7,037
Operating lease charges
1,189,636
1,142,684
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and support
111
109
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,226,580
2,183,511
Social security costs
190,074
184,905
Pension costs
35,355
34,705
2,452,009
2,403,121
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
16,654
17,964
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
19,866
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
57,378
37,831
Other interest
5,082
57,378
42,913
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
465,082
311,420
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(6,353)
25,964
Total tax charge
458,729
337,384
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
1,873,173
1,745,382
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
468,293
331,623
Tax effect of expenses that are not deductible in determining taxable profit
15,559
1,337
Effect of change in corporation tax rate
(18,770)
Permanent capital allowances in excess of depreciation
(21,540)
Deferred tax
(6,353)
25,964
Taxation charge for the year
458,729
337,384
11
Dividends
2024
2023
£
£
Interim paid
30,000
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
12
Intangible fixed assets
Goodwill
Website costs
Trademarks, patents and licences
Total
£
£
£
£
Cost
At 1 February 2023
2,616,633
157,483
72,490
2,846,606
Additions
5,785
9,520
15,305
At 31 January 2024
2,616,633
163,268
82,010
2,861,911
Amortisation and impairment
At 1 February 2023
2,616,633
145,889
62,649
2,825,171
Amortisation charged for the year
10,601
2,245
12,846
At 31 January 2024
2,616,633
156,490
64,894
2,838,017
Carrying amount
At 31 January 2024
6,778
17,116
23,894
At 31 January 2023
11,594
9,841
21,435
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
217,903
237,659
837,833
8,300
1,301,695
Additions
17,181
5,130
3,520
17,990
43,821
At 31 January 2024
235,084
242,789
841,353
26,290
1,345,516
Depreciation and impairment
At 1 February 2023
82,317
172,379
737,255
8,300
1,000,251
Depreciation charged in the year
9,849
18,368
40,612
3,373
72,202
At 31 January 2024
92,166
190,747
777,867
11,673
1,072,453
Carrying amount
At 31 January 2024
142,918
52,042
63,486
14,617
273,063
At 31 January 2023
135,586
65,280
100,578
301,444
14
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Subsidiaries
(Continued)
- 19 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Pleasure Me Publishing Limited
England and Wales
Online retail of adult products
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Forest Gate, Spring Lane, Ringwood, Hampshire, BH24 3FH
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Pleasure Me Publishing Limited
(94,781)
64,388
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,571,005
3,304,470
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
486,005
725,009
Amounts owed by group undertakings
827,217
708,336
Other debtors
1,562,825
1,456,425
Prepayments and accrued income
769,081
740,221
3,645,128
3,629,991
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
809,547
104,880
Trade creditors
1,910,755
1,721,040
Corporation tax
301,748
240,604
Other taxation and social security
401,692
307,765
Other creditors
506,375
787,542
Accruals and deferred income
89,736
306,817
4,019,853
3,468,648
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
784,340
19
Loans and overdrafts
2024
2023
£
£
Bank loans
809,547
889,220
Payable within one year
809,547
104,880
Payable after one year
784,340
The loans are secured by a cross guarantee between Simply Pleasure Limited and the parent company ABS Wholesale Limited as well as a first legal charge over properties held by the director T Hemming.
Barclay's £1m Term Loan is denominated in pounds with a nominal interest rate of 2.1% (over fixed marginal rate), and the final instalment is due on 22 November 2024. The carrying amount at the year end is £809,547 (2023: £855,887)
The Barclay's £250k CBIL is denominated in pounds with a nominal interest rate of 3.84% (over fixed marginal rate) and the final instalment was paid in May 2023. The carrying amount at the year end is £Nil (2023: £33,333).
Some of the Group's loan agreements (classified as current during the year) are subjected to covenant clauses, whereby the Group is required to meet certain key financial ratios. The Group fulfilled all of the covenant clauses during the year.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
33,195
39,352
2024
Movements in the year:
£
Liability at 1 February 2023
39,352
Credit to profit or loss
(6,157)
Liability at 31 January 2024
33,195
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
20
Deferred taxation
(Continued)
- 21 -
The deferred tax liability set out above is expected to reverse within12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,355
34,705
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.
The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £34,705 (2022: £27,752).
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable preference shares of £1 each
115,000
115,000
115,000
115,000
Preference shares classified as equity
115,000
115,000
Total equity share capital
165,000
165,000
23
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:
2024
2023
£
£
Within one year
575,038
547,114
Between two and five years
1,586,847
897,047
In over five years
252,367
2,161,885
1,696,528
SIMPLY PLEASURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Name of related party
Nature of relationship
Entities with control, joint control or significant influence over the company
Company under common control
Description of
Income
Payments
transaction
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
Lease rental paid
178,000
178,000
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
1,525,325
1,418,925
1,037,100
823,500
25
Ultimate controlling party
The company's immediate parent is ABS Wholesale Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is ABS Wholesale Limited. These financial statements are available upon request from Forest Gate, Spring Lane, Ringwood, Hampshire, BH24 3FH.
The ultimate controlling party is Mr T M Hemming.
The company is consolidated into the accounts of ABS Wholesale Limited. This is the largest group to which the company belongs.
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