Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-01-312023-02-01falsefalsefalse3029 04989385 2023-02-01 2024-01-31 04989385 2022-02-01 2023-01-31 04989385 2024-01-31 04989385 2023-01-31 04989385 2022-02-01 04989385 5 2023-02-01 2024-01-31 04989385 5 2022-02-01 2023-01-31 04989385 d:CompanySecretary1 2023-02-01 2024-01-31 04989385 d:Director1 2023-02-01 2024-01-31 04989385 d:Director2 2023-02-01 2024-01-31 04989385 d:Director3 2023-02-01 2024-01-31 04989385 d:Director5 2023-02-01 2024-01-31 04989385 d:Director6 2023-02-01 2024-01-31 04989385 d:Director7 2023-02-01 2024-01-31 04989385 d:RegisteredOffice 2023-02-01 2024-01-31 04989385 e:FurnitureFittings 2023-02-01 2024-01-31 04989385 e:FurnitureFittings 2024-01-31 04989385 e:FurnitureFittings 2023-01-31 04989385 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 04989385 e:ComputerEquipment 2023-02-01 2024-01-31 04989385 e:ComputerEquipment 2024-01-31 04989385 e:ComputerEquipment 2023-01-31 04989385 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 04989385 e:OtherPropertyPlantEquipment 2023-02-01 2024-01-31 04989385 e:OtherPropertyPlantEquipment 2024-01-31 04989385 e:OtherPropertyPlantEquipment 2023-01-31 04989385 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 04989385 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 04989385 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-01-31 04989385 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-31 04989385 e:CurrentFinancialInstruments 2024-01-31 04989385 e:CurrentFinancialInstruments 2023-01-31 04989385 e:CurrentFinancialInstruments 1 2024-01-31 04989385 e:CurrentFinancialInstruments 1 2023-01-31 04989385 e:Non-currentFinancialInstruments 2024-01-31 04989385 e:Non-currentFinancialInstruments 2023-01-31 04989385 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 04989385 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 04989385 e:Non-currentFinancialInstruments e:AfterOneYear 2024-01-31 04989385 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 04989385 f:UnitedKingdom 2023-02-01 2024-01-31 04989385 f:UnitedKingdom 2022-02-01 2023-01-31 04989385 f:RestEuropeOutsideUK 2023-02-01 2024-01-31 04989385 f:RestEuropeOutsideUK 2022-02-01 2023-01-31 04989385 f:RestWorldOutsideUK 2023-02-01 2024-01-31 04989385 f:RestWorldOutsideUK 2022-02-01 2023-01-31 04989385 e:UKTax 2023-02-01 2024-01-31 04989385 e:UKTax 2022-02-01 2023-01-31 04989385 e:ShareCapital 2024-01-31 04989385 e:ShareCapital 2023-01-31 04989385 e:ShareCapital 2022-02-01 04989385 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 04989385 e:RetainedEarningsAccumulatedLosses 2024-01-31 04989385 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 04989385 e:RetainedEarningsAccumulatedLosses 2023-01-31 04989385 e:RetainedEarningsAccumulatedLosses 2022-02-01 04989385 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-01-31 04989385 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-01-31 04989385 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2024-01-31 04989385 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:UnlistedNon-exchangeTraded 2023-01-31 04989385 e:TaxLossesCarry-forwardsDeferredTax 2024-01-31 04989385 e:TaxLossesCarry-forwardsDeferredTax 2023-01-31 04989385 d:OrdinaryShareClass3 2023-02-01 2024-01-31 04989385 d:OrdinaryShareClass3 2024-01-31 04989385 d:OrdinaryShareClass3 2023-01-31 04989385 d:OrdinaryShareClass4 2023-02-01 2024-01-31 04989385 d:OrdinaryShareClass4 2024-01-31 04989385 d:OrdinaryShareClass4 2023-01-31 04989385 d:FRS102 2023-02-01 2024-01-31 04989385 d:Audited 2023-02-01 2024-01-31 04989385 d:FullAccounts 2023-02-01 2024-01-31 04989385 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 04989385 e:Subsidiary1 2023-02-01 2024-01-31 04989385 e:Subsidiary1 1 2023-02-01 2024-01-31 04989385 e:Subsidiary2 2023-02-01 2024-01-31 04989385 e:Subsidiary2 1 2023-02-01 2024-01-31 04989385 e:Subsidiary3 2023-02-01 2024-01-31 04989385 e:Subsidiary3 1 2023-02-01 2024-01-31 04989385 e:Subsidiary4 2023-02-01 2024-01-31 04989385 e:Subsidiary4 1 2023-02-01 2024-01-31 04989385 e:Subsidiary5 2023-02-01 2024-01-31 04989385 e:Subsidiary5 1 2023-02-01 2024-01-31 04989385 e:Subsidiary6 2023-02-01 2024-01-31 04989385 e:Subsidiary6 1 2023-02-01 2024-01-31 04989385 2 2023-02-01 2024-01-31 04989385 6 2023-02-01 2024-01-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 04989385









CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
COMPANY INFORMATION


Directors
R D North 
K I McAndrew 
G J Taylor 
E K Gibb 
S J Gardner 
D H B Lavalette 




Company secretary
S J Burton



Registered number
04989385



Registered office
Creative Industries Centre
Wolverhampton Science Park

Wolverhampton

West Midlands

WV10 9TG




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

Cornerblock

2 Cornwall St

Birmingham

B3 2DX





 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12
Statement of Cash Flows
13
Analysis of Net Debt
14
Notes to the Financial Statements
15 - 31


 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Business review
 
The directors are pleased to present results to January 31st 2024 showing continued profit growth for the business and excellent strengthening of our balance sheet while maintaining investment in innovation. 
We took the decision some years ago to invest strongly in product development and Intellectual Property creation. These product development investments have been significant over the previous years and we are excited they can realise significant sales and profit growth as new products come to market from FYE 25 onwards.
Profit Before Tax increased over the previous year and from this report forward we will report on EBITDA and our Balance Sheet as measures of our Key Performance; 
EBITDA increased by 10.2%, rising from £531k to £585k. The company’s balance sheet asset positon increased by 78%, rising from £1.25m  to £2.22m.
Turnover for the year at £14.4m showed a slight fall from the £15.8m prior year figure to Jan 2023 reflecting the fact that the Jurassic World Dominion movie in the year to 2023 boosted sales of our Real FX Puppetronics™ item Baby Blue in that year – a Walmart Best Seller. Despite this inevitable slight dip (see commentary below), in the following year to January 2024 sales of RealFX Baby Blue Puppetronic™ remained strong.
Following a hiatus caused by the Hollywood writers strikes and the subsequent delays in content coming to screens, there was an inevitable impact on the company’s core licensed branded product sales. Notably MGM’s Wednesday franchise 2nd Netflix series was pushed back more than 18 months, impacting forecast sales. However, the slate of content now coming down the line over the next 3 years from our partner licensed brands is extensive. Notable opportunities to be realised by our business include Disney Stitch and other Disney brands, Warner Bros. Harry Potter new innovative Wow! Stuff range, now agreed for launch in North America and EMEA, Universal Studios and Jurassic World new movie 2025 with global product rights in Puppetronics™. MGM’s Wednesday range with signature Wow! Stuff innovation will launch during 2025 after the delays aforementioned. The new NANO PODS factory pricing and packaging re-design is forecast to boost sales of this innovative collectible and has been listed by major USA big box stores for launch January 2025. The summary here is that 2023 was a good year, 2024 will be a stronger year and 2025 and 2026 will see more innovation from Wow! Stuff than ever.
During the year we continued to invest in research and development and build on our reputation for innovation, winning many awards. These include a number of Gold Awards at the Outdoor Toy Awards, the Independent Toy Awards, Dads Choice and Blog-On awards and a Walmart Toy of the Year - plus finalist at the UK Licensing Awards.
Having launched the concept with the award-winning RealFX Baby Blue product in the Universal Jurassic franchise, the industry trade media started to report that Wow! Stuff had spawned a new toy category; ‘Puppetronics’ – the title we had used to describe classic puppetry combined with electronics/animatronics. Creating a new product category enables the company to work with Licensors and Retailers to build out a range in a previously unexploited retail ‘white space’. The excitement of this new IP and category and our reputation for innovation is reflected in the conversations we are now having at the highest levels with the biggest franchise brands.
The challenge remains that our business under-exploits the huge consumer opportunity that exists in North America and to that end the company will continue to look at either a ‘boots on the ground’ country manager and office, or a partnership with a major US/International toy company that has extensive distribution and marketing capability. We are constantly approached by fans of our brands who wish to purchase our items in their countries and we will address this during 2025.

Page 1

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Looking ahead, we continue to sign new licenses and work with existing Licensors in a way that will allow us to show our innovation to full potential, with “on brand and in universe products”. With much of the investments in innovation now set to come to market we anticipate an exciting time ahead and strong expansion of the company. We will launch our WWE range working off the back of the phenomenon that this Wrestling Entertainment franchise has become with our launch timed to coincide with the WWE global Netflix launch, January 2025. 2024 and 2025 will also see very exciting new launches in Puppetronics™ lines at varying price points. In the years ahead we will continue to work with Tier 1 Brand Licensors where we can add our signature innovation. The company will add at least 2 new global hit brands to our portfolio and further develop and invest in our flagship Real FX™ brand that collaborates with Tier 1 licensed brands to create halo toys that “look real, feel real and sound real”.
Building on work started in recent years, in addition to third party branded items we are taking our innovation strategy and applying it to newly created and wholly owned, non-licensed or co-created IP.  We continue to work on exciting long-term innovations in the digital meets physical, and sustainability in toys areas using the skills of our world class scientists and product engineers that are at the heart of our wider New Product Development team.  
Once again, the directors pay tribute to our licensing partners, fellow collaborative toy companies and the hard work and dedication of all our staff, our “Wow! Stuffers”! Their hard work and fellowship continues to enable us to grow our business and to build the most innovative toys in the finest brands that elicit the all-important “WOW!” reaction from children young and old!

Principal risks and uncertainties
 
As we work towards January 2025 the principal issues the business is managing are:
a) We continue to watch the risks to global supply chains from conflicts including the war in Ukraine and attacks on shipping in the approaches to the Suez canal.  We collaborate successfully with multiple partners to protect supply routes from Asia to get goods into the hands of customers on time.  We have also broadened our sourcing locations to start to source some product outside of China to build greater resilience into our own sourcing and supply chain.
b) Demand uncertainty in a world of inflationary, high cost of living pressures combined with high geopolitical turmoil, places challenges on all parts of the business including sales demand.  However, we continue to see strong demand for our ranges and products in all geographies. We continue to innovate, and to refresh our ranges and grow and add new countries in which we trade.  We continue to engineer our product price points to ensure we offer ranges that appeal to all pockets, and which combine with our core innovation to maintain strong value-for-money appeal.  The strength of our new collectibles Pods range at one end of the price range is currently mirrored by strong demand for our higher priced Puppetronics items.   We will continue to cultivate relationships with Licensors and sign new hit / Tier 1 licenses.
c) We remain extremely focused on cost control.  We continue to embrace the opportunities of a hybrid “home / office” working  model.  
d)  We also remain very focused on inventory management and optimisation and ensure we stock only proven high demand lines and to service confirmed demand forecasts for our large customers. 
e) We continue to manage exchange rates with a balanced portfolio of currencies ensuring we manage to a maximum naturally hedged position.   We watch the exchange rate position closely and being a net dollar surplus producer and with a natural currency hedge to gross margin level, we remain well placed to deal with currency fluctuations. 

Page 2

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


This report was approved by the board on 25 October 2024 and signed on its behalf.



E K Gibb
Director

Page 3

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company continued to be the innovative design and supply of toys and gifts to major retailers and distributors.

Results and dividends

The profit for the year, after taxation, amounted to £969,065 (2023 - £268,986).

Directors

The directors who served during the year were:

R D North 
K I McAndrew 
G J Taylor 
E K Gibb 
S J Gardner 
D H B Lavalette 

Page 4

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 October 2024 and signed on its behalf.
 





E K Gibb
Director

Page 5

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

Opinion


We have audited the financial statements of China Industries Limited Trading as Wow! Stuff (the 'Company') for the year ended 31 January 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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 directors' 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 set out on page 4, 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.


Page 7

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)


Auditors' 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 Auditors' 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.
Based on our understanding of the company and industry, key laws and regulations that we identified included:

Companies Act;
Tax Legislation; and
Health and Safety and Employment Legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

management bias in respect of accounting estimates and judgements made;
management override of controls; and
posting of unusual journals or transactions.

We focussed on those areas that could give rise to a material misstatement in the Company's financial statements.
Our procedures included, but were not limited to:

Enquiry of management and those charged with governance/review of available correspondence around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of those charged with governance, where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular stock provision.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  
 
Page 8

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)



The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
Cornerblock
2 Cornwall St
Birmingham
B3 2DX

28 October 2024
Page 9

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
14,403,317
15,821,291

Cost of sales
  
(9,555,412)
(11,294,836)

Gross profit
  
4,847,905
4,526,455

Distribution costs
  
(3,310,456)
(3,023,353)

Administrative expenses
  
(1,341,888)
(1,303,765)

Operating profit
 5 
195,561
199,337

Interest receivable and similar income
  
4
-

Interest payable and expenses
 10 
(81,942)
(98,851)

Profit before tax
  
113,623
100,486

Tax on profit
 11 
855,442
168,500

Profit for the financial year
  
969,065
268,986

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 31 form part of these financial statements.

Page 10

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
REGISTERED NUMBER: 04989385

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
-
-

Tangible assets
 13 
339,291
441,717

Investments
 14 
111,462
111,462

  
450,753
553,179

Current assets
  

Stocks
 15 
657,140
1,080,097

Debtors: amounts falling due after more than one year
 16 
375,000
-

Debtors: amounts falling due within one year
 16 
3,523,714
2,745,316

Cash at bank and in hand
 17 
865,388
1,470,787

  
5,421,242
5,296,200

Creditors: amounts falling due within one year
 18 
(2,411,830)
(3,284,398)

Net current assets
  
 
 
3,009,412
 
 
2,011,802

Total assets less current liabilities
  
3,460,165
2,564,981

Creditors: amounts falling due after more than one year
 19 
(1,237,523)
(1,311,404)

  

Net assets
  
2,222,642
1,253,577


Capital and reserves
  

Called up share capital 
 22 
16,538
16,538

Profit and loss account
 23 
2,206,104
1,237,039

  
2,222,642
1,253,577


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 October 2024.




E K Gibb
Director

The notes on pages 15 to 31 form part of these financial statements.

Page 11

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
16,538
968,053
984,591



Profit for the year
-
268,986
268,986



At 1 February 2023
16,538
1,237,039
1,253,577



Profit for the year
-
969,065
969,065


At 31 January 2024
16,538
2,206,104
2,222,642


The notes on pages 15 to 31 form part of these financial statements.

Page 12

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
969,065
268,986

Adjustments for:

Depreciation of tangible assets
362,610
330,119

Loss on disposal of tangible assets
26,678
1,137

Interest payable
81,942
98,851

Interest receivable
(4)
-

Taxation charge
(855,442)
(168,500)

Decrease in stocks
422,957
332,324

(Increase)/decrease in debtors
(466,930)
1,463,268

(Decrease) in creditors
(705,901)
(2,351,491)

Corporation tax received
168,974
70,208

Net cash generated from operating activities

3,949
44,902


Cash flows from investing activities

Purchase of tangible fixed assets
(286,862)
(341,482)

Interest received
4
-

Net cash from investing activities

(286,858)
(341,482)

Cash flows from financing activities

Repayment of other loans
(260,000)
(260,001)

Interest paid
(62,490)
(79,279)

Net cash used in financing activities
(322,490)
(339,280)

Net (decrease) in cash and cash equivalents
(605,399)
(635,860)

Cash and cash equivalents at beginning of year
1,470,787
2,106,647

Cash and cash equivalents at the end of year
865,388
1,470,787


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
865,388
1,470,787

865,388
1,470,787


Page 13

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2024




At 1 February 2023
Cash flows
At 31 January 2024
£

£

£

Cash at bank and in hand

1,470,787

(605,399)

865,388

Debt due after 1 year

(1,311,404)

73,881

(1,237,523)

Debt due within 1 year

(199,999)

166,667

(33,332)


(40,616)
(364,851)
(405,467)

The notes on pages 15 to 31 form part of these financial statements.

Page 14

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

China Industries Limited is a private company, limited by shares, incorporated in the United Kingdom. The address of the registered office is given in the company information of these financial statements. The company's registration number is 04989385. The principal activity of the company continued to be the innovative design and supply of toys and gifts to major retailers and distributors.
The financial statements are prepared in Sterling which is the functional currency of the company. The financial statements level of rounding is to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The directors have opted not to prepare consolidated financial statements as all of its subsidiaries are not material for the purpose of giving a true and fair view. The Company is therefore exempt from the requirement to prepare consolidated financial statements under section 402 of the Companies Act 2006.

 
2.3

Going concern

The financial statements have been prepared on the going concern basis, the validity of which depends upon the ability of the company to meet its obligations as they fall due. The directors have reviewed the funding in place for the company and have taken into account the amounts of £1,237,523 (2023 - £1,278,071) which are included in creditors greater than one year where the timing of repayments is under the control of the board. In the light of the future trading indications, orders held, and the funding position of the company the directors consider the company to be a going concern.

 
2.4

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Comprehensive Income.

Page 15

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.5

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods) in accordance with contractual terms;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

               
 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.7

Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.
Deferred development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related development is written off to the Statement of Comprehensive Income.

 
2.8

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

Page 16

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

For development expenditure see accounting policy on research and development.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 17

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
50%
Computer equipment
-
25%
Other fixed assets
-
50%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in Statement of Comprehensive Income.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchases on a first in, first out basis.


 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

Derivative financial instruments ("derivatives") are only used to manage risks arising from changes in foreign currency exchange rates relating to sales denominated in foreign currencies. In accordance with the foreign exchange policy, the company does not enter into derivatives for speculative purposes. Derivatives are stated at their fair value, being the estimated amount that the company would receive or pay to terminate the contracts at the balance sheet dated based on prevailing foreign currency exchange rates.
Changes in fair value of foreign currency derivatives which are designated and effective as hedges of future cash flows are recognised in equity in the cash flow hedge reserve, and subsequently transferred to the carrying amount of the hedged item or the statement of comprehensive income. Realised gains and losses on cash flow hedges are therefore recognised as turnover in the statement of comprehensive income in the same period as the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument previously recognised in equity is retained in equity until the hedged transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is then transferred to the Statement of Comprehensive Income. 
Changes in fair value of derivatives which are ineffective or do not meet the criteria for hedge accounting in FRS 102 are recognised in the Statement of Comprehensive Income under turnover.


3.


Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Stock provision
Stock is stated net of provisions for slow moving and obsolete stock, the calculation of which includes judgements. The directors review these periodically to ensure slow moving and obsolete stock is identified and provisions are appropriately calculated.
Depreciation
The charge in respect of periodic depreciation and amortisation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of all assets are determined at the time the asset is acquired and reviewed at least annually for appropriateness by the directors.


Page 19

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

4.


Turnover

The whole of the turnover is attributable to the one principal activity of the company.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
4,669,595
6,161,492

Rest of Europe
2,988,342
3,145,875

Rest of the World
6,745,380
6,513,924

14,403,317
15,821,291



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange (gains) / losses
(13,139)
54,978

Depreciation of tangible fixed assets
362,610
330,119

Loss on sale of tangible fixed assets
26,678
1,137


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements

31,000
28,500

Page 20

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,220,611
2,373,219

Social security costs
174,169
181,346

Cost of defined contribution scheme
44,491
50,150

2,439,271
2,604,715


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Sales and support
29
30


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
636,204
615,599

Company contributions to defined contribution pension schemes
5,284
5,284

Amounts paid to third parties in respect of directors' services
15,177
9,650

656,665
630,533


During the year retirement benefits were accruing to 5 directors (2023 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £172,595 (2023: £167,937).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023: £1,321).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
4
-

Page 21

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
13,731
19,727

Other loan interest payable
41,708
43,291

Other interest payable
26,503
35,833

81,942
98,851


11.


Taxation


2024
2023
£
£

Corporation tax


Prior years R&D credit claimed during current period
(117,000)
(168,500)

Adjustments in respect of previous periods
11,558
-


Deferred tax


Tax losses
(750,000)
-


Taxation on profit on ordinary activities
(855,442)
(168,500)
Page 22

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 24% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
113,623
100,486


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24% (2023 - 19%)
27,270
19,092

Effects of:


Expenses not deductible for tax purposes
6,170
1,900

Fixed asset differences
(297,770)
(27,773)

Adjustments to tax charge in respect of prior periods
(105,442)
(168,500)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(120,000)
-

Movement in deferred tax not recognised
(351,514)
-

Remeasurement of deferred tax for change in tax rates
(14,156)
-

Unrelieved tax losses carried forward
-
6,781

Total tax charge for the year
(855,442)
(168,500)


Factors that may affect future tax charges

The company has estimated losses of £2.9m (2023 - £2.6m) available for carry forward against future trading profits.

Page 23

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

12.


Intangible assets




Product development

£



Cost


At 1 February 2023
1,482,929



At 31 January 2024

1,482,929



Amortisation


At 1 February 2023
1,482,929



At 31 January 2024

1,482,929



Net book value



At 31 January 2024
-



At 31 January 2023
-



Page 24

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Other fixed assets
Total

£
£
£
£



Cost 


At 1 February 2023
3,390
87,922
1,261,998
1,353,310


Additions
-
9,673
277,189
286,862


Disposals
(2,143)
(25,429)
(108,906)
(136,478)



At 31 January 2024

1,247
72,166
1,430,281
1,503,694



Depreciation


At 1 February 2023
3,390
54,837
853,366
911,593


Charge for the year
-
16,495
346,115
362,610


Disposals
(2,143)
(24,950)
(82,707)
(109,800)



At 31 January 2024

1,247
46,382
1,116,774
1,164,403



Net book value



At 31 January 2024
-
25,784
313,507
339,291



At 31 January 2023
-
33,085
408,632
441,717

Page 25

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 February 2023
111,462



At 31 January 2024
111,462





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Wow! Stuff (H.K.) Limited
Ordinary
100%
Wow Stuff USA LLC
Ordinary
100%
Txt4vid Limited
Ordinary
100%
The Printable Mask Co Ltd
Ordinary
100%
Wow! Stuff Limited
Ordinary
100%
Nexttoptoy Limited
Ordinary
100%

The registered office for Wow! Stuff (H.K.) Limited is in Hong Kong. The registered office for Wow Stuff USA LLC is in USA.
The registered office for Txt4vid Limited, The Printable Mask Co Ltd, Wow! Stuff Limited and Nexttoptoy Limited is Creative Industries Centre, Mammoth Drive, Wolverhampton Science Park, Wolverhampton, WV10 9TG.











Page 26

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Stocks

2024
2023
£
£

Finished goods and goods for resale
657,140
1,080,097


The carrying value of stocks are stated net of impairment losses totalling £61,929 (2023 - £12,599). Impairment losses occurred due to items of stock which are deemed to be slow moving or obsolete.


16.


Debtors

2024
2023
£
£

Due after more than one year

Deferred tax asset
375,000
-

375,000
-


2024
2023
£
£

Due within one year

Trade debtors
1,777,519
2,025,854

Amounts owed by group undertakings
19,589
7,265

Other debtors
811,098
237,411

Prepayments and accrued income
540,508
474,786

Deferred taxation
375,000
-

3,523,714
2,745,316


The company discounts its trade debtors. The debtors discounted at the year end were £533,547 (2023 - £1,374,360). 
Other debtors include amounts of £542,606 (2023 - £nil) relating to funds in hand on the invoice discounting facility.


17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
865,388
1,470,787


Page 27

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Other loans
33,332
199,999

Trade creditors
1,108,695
1,472,090

Amounts owed to group undertakings
91,848
128,744

Other taxation and social security
48,853
88,872

Invoice discounting
138,895
420,416

Other creditors
8,208
7,719

Accruals and deferred income
981,999
966,558

2,411,830
3,284,398


The invoice discounting creditor is secured by a fixed and floating charge over the assets of the company. 


19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other loans
-
33,333

A loan notes (held by BGF)
276,640
306,737

Management A loan notes
681,745
662,156

Management B loan notes
87,977
125,117

Management C loan notes
80,651
78,551

Director loan
110,510
105,510

1,237,523
1,311,404


The amounts outstanding include accrued interest. The interest rate is fixed at 3.5% for A loan notes, Management B loan notes, Management C loan notes and the Director loan and 5% for Management A loan notes.  
A loan notes of £276,640 (2023 - £306,737) are secured on the assets of the company and Management B loan notes of £87,977 (2023 - £125,117) are secured by a fixed and floating charge over the assets of the company. 
The creditors have agreed an order of priority for the repayment of loan notes, director loan and accrued interest. The company has control over the timing of the repayment of this debt and as at the date of signing these accounts the directors have concluded that no further repayments are likely in the near future. Repayments will commence when the Board of Directors are confident that the cash flow exists to support the cash outflows. 

Page 28

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

20.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at amortised cost
2,491,176
2,089,998

Financial assets measured at fair value through Statement of Comprehensive Income
865,388
1,470,787

3,356,564
3,560,785


Financial liabilities


Financial liabilities measured at amortised cost
(3,600,500)
(4,506,930)


Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial assets measured at fair value through Statement of Comprehensive Income comprise cash at bank and in hand.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, proceeds of invoice discounting, other creditors, accruals and deferred income, other loans, director loan and loan notes.


21.


Deferred taxation




2024


£






Credited to statement of comprehensive income
750,000



At end of year
750,000

The deferred tax asset is made up as follows:

2024
2023
£
£


Tax losses carried forward
750,000
-

750,000
-

Page 29

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



5,893 (2023 - 5,893) deferred shares of £1.000 each
5,893
5,893
10,645,000 (2023 - 10,645,000) ordinary shares of £0.001 each
10,645
10,645

16,538

16,538



23.


Reserves

Profit and loss account

This reserve records all current and prior period retained profits and losses.


24.


Contingent liabilities

HSBC Bank plc holds an unlimited multilateral guarantee between the company and all of its subsidiary companies. The company is therefore jointly and severally liable for the amount owed by its subsidiary companies to HSBC Bank plc. At the balance sheet date this amounted to £nil (2023 - £nil).
A group VAT registration is in force. The company is, therefore, jointly and severally liable for the amount of VAT owed by other members of the group. At the balance sheet date this amounted to £nil (2023 - £nil). 


25.


Capital commitments


At 31 January 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
57,535
10,928

57,535
10,928


26.


Pension commitments

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £44,491 (2023 - £50,150). Contributions totalling £5,858 (2023 - £5,369) were payable to the scheme at the end of the year and are included in creditors.

Page 30

 
CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

27.Other financial commitments

Total financial commitments to licensors at the balance sheet date were $433,649 (2023 - $556,861). This approximately translates to £341,725 (2023 - £449,807).


28.


Transactions with directors

During the year the company advanced £201 (2023 - £nil) to a director and the director repaid £139 (2023 - £nil). At the balance sheet date, the amount due to the company was £37,480 (2023 - £37,418). The amount advanced is interest free and holds no conditions. 


29.


Related party transactions

During the year, the company paid £15,140 (2023 - £9,650) to a third party for director services. At 31 January 2024, the company owed the third party £1,500 (2023 - £1,500). A director of the company is also a director of the third party.
During the year, interest of £43,618 (2023 - £45,901) was charged on existing loan notes to directors and shareholders of the company. At the balance sheet date, the company owed £1,219,654 (2023 - £1,258,292) to the directors and shareholders. Interest and repayment terms of these loan notes are disclosed in note 19.
During the year, the company purchased £161,949 (2023 - £nil) from a company in which the controlling party has an interest and is also a director. At the balance sheet date, the company owed £117,418 (2023 - £nil) to this related party. The company also received royalties of £35,653 (2023 - £nil) during the year and at 31 January 2024 was owed £121 (2023 - £nil) by the related party.
All individuals of the company who have authority and responsibility for planning, directing and controlling activities of the company are considered to be the key management personnel. Total remuneration in respect of these individuals is disclosed in note 8.
The company has taken advantage of the exemption in paragraph 33.1A of Financial Reporting Standard 102, from the requirement to disclose transactions with wholly owned members of the group.


30.


Controlling party

The company is controlled by the North family by virtue of their interest in the share capital of the company.  

 
Page 31