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Registration number: 07362460

Boutique Modern Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2024

 

Boutique Modern Limited

Contents

Company Information

1

Directors' Report

2 to 4

Balance Sheet

5 to 6

Notes to the Unaudited Financial Statements

7 to 12

 

Boutique Modern Limited

Company Information

Chairman

N D Eckert

Directors

G F Palmer

R Shone

L J P Shone

Company secretary

Clyde Secretaries Limited

Registered office

Unit 3-7
Newhaven Industrial Park
Beach Road
Newhaven
East Sussex
BN9 0BX

Accountants

Chisnall Comer Ismail and Co
Chartered Accountants
Maria House
35 Millers Road
Brighton
BN1 5NP

 

Boutique Modern Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

G F Palmer

R Shone

L J P Shone

N D Eckert - Chairman

Principal activity

The principal activity of the company is the manufacture and distribution of modular homes

Going concern

The directors have indicated that they will continue to provide support for the foreseeable future so these accounts have been prepared on the going concern basis.

 

Boutique Modern Limited

Directors' Report for the Year Ended 30 June 2024

Statement from Dick Shone, MD Boutique Modern

Our trading year was peppered with political upheaval at National and Local level, with periods of instability in the world and repeated upheaval in UK Central Government. Furthermore, Local Elections created uncertainty, interrupting progress on planned developments with our core customers.

The broader construction industry, plagued by continuous bureaucratic and planning delays, continued to be in crisis leading to more Tier 1 Contractors and highly debt leveraged modular companies giving up the ghost.

Despite the widely acknowledged affordable housing shortage, our customers consistently resisted moving forward on developments blaming high interest rates and an unstable outlook for inflation and the economy in general.

Despite all of this, we have made some positive inroads -

• Fort Lane, a garage site development provided a great example of what is possible using our system. Seven homes were delivered in under 18 months, to provide low energy, 2 & 3 bed homes for Council tenants, all completed on program and on budget.
• Pells School, a thirty-two home development in Lewes continues to progress despite delays caused by planning, contract disputes and other delays. The modules were in storage for far longer than planned but are now onsite and the roofs and facias are now nearing completion.
• Leeds Castle and High Hill House were commissioned independent accommodation units via one of our Architect Partners. Providing six beautiful, self-contained ‘hotel’ pods in beautiful locations, that have proved extremely popular with guests since handover.

Other notable projects included the completion of a 16-home project in Worthing, and a garage site development at Ringmer, near Lewes. We finished the year with many projects in design for various local Councils. We are hopeful that the economic landscape will stabilise and improve, and the new Government will support its manifesto pledges to deliver 1.5 million new homes during its term. It appears our customers are now happy to crack-on into 2025 but they will need to eradicate the roadblocks of internal bureaucracy and planning delays to get anywhere close.

Following discussions at Board Level it was agreed to convert loan capital from our Chairman, Neil Eckert, into equity. The results of this are clear in the following pages. This position has been further improved by our continued commitment to research and development, allowing us to benefit from the available HMRC tax incentives.

We have commenced the 2024/25 year in a far better place despite the wider economy, with a stronger Balance Sheet to assist with this next phase of the modular industry entering its 2.0 period - a time when the first bubble bursts and the industry consolidates. We believe we are well established, organically grown and first wave disruptors enabling us to consolidate and grow. Reflecting, you will see similar adjustments have occurred in other industries, like electric cars and renewable energy technologies.

To take of advantage of this, we have plans to move into a larger space within Newhaven (a bigger, modest shed, nothing more) in January 2025 that we hope will further assure our old and new customers, that Boutique Modern is fundamentally different and is here to support the modernisation of housing delivery.
 

 

Boutique Modern Limited

Directors' Report for the Year Ended 30 June 2024

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 31 October 2024 and signed on its behalf by:


 

.........................................
R Shone
Director

 

Boutique Modern Limited

(Registration number: 07362460)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

79,571

79,998

Current assets

 

Stocks

5

567,392

224,875

Debtors

6

1,475,361

1,449,487

Cash at bank and in hand

 

18,919

61,495

 

2,061,672

1,735,857

Creditors: Amounts falling due within one year

7

(1,613,395)

(2,347,681)

Net current assets/(liabilities)

 

448,277

(611,824)

Total assets less current liabilities

 

527,848

(531,826)

Creditors: Amounts falling due after more than one year

7

(539,132)

(5,229,265)

Net liabilities

 

(11,284)

(5,761,091)

Capital and reserves

 

Called up share capital

5,794,116

1,316

Share premium reserve

300

300

Retained earnings

(5,805,700)

(5,762,707)

Shareholders' deficit

 

(11,284)

(5,761,091)

For the financial year ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Boutique Modern Limited

(Registration number: 07362460)
Balance Sheet as at 30 June 2024

Approved and authorised by the Board on 31 October 2024 and signed on its behalf by:



 

.........................................

R Shone

Director

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 3-7
Newhaven Industrial Park
Beach Road
Newhaven
East Sussex
BN9 0BX

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The directors make up a significant amount of the current and long term creditors, The directors have indicated that they will continue to provide support for the foreseeable future so these accounts have been prepared on the going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

5 years straight line

Fixtures and fittings

3 years straight line

Computer equipment

3 years straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 61 (2023 - 60).

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 July 2023

69,157

8,895

110,373

188,425

Additions

18,304

-

26,521

44,825

At 30 June 2024

87,461

8,895

136,894

233,250

Depreciation

At 1 July 2023

42,089

3,558

62,780

108,427

Charge for the year

18,690

1,779

24,783

45,252

At 30 June 2024

60,779

5,337

87,563

153,679

Carrying amount

At 30 June 2024

26,682

3,558

49,331

79,571

At 30 June 2023

27,068

5,337

47,593

79,998

5

Stocks

2024
£

2023
£

Work in progress

400,004

-

Other inventories

167,388

224,875

567,392

224,875

6

Debtors

Current

2024
£

2023
£

Trade debtors

23,009

410,152

Prepayments

334,923

203,279

Other debtors

1,117,429

836,056

 

1,475,361

1,449,487

7

Creditors

Creditors: amounts falling due within one year

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

7,333

8,000

Trade creditors

 

1,293,255

674,870

Taxation and social security

 

184,696

74,013

Accruals and deferred income

 

82,951

1,540,606

Other creditors

 

45,160

50,192

 

1,613,395

2,347,681

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

539,132

5,229,265

8

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Other borrowings

539,132

5,229,265

Current loans and borrowings

2024
£

2023
£

Other borrowings

7,333

8,000

9

Related party transactions

Transactions with directors

2024

At 1 July 2023
£

Advances to director
£

Repayments by director
£

At 30 June 2024
£

N D Eckert

Loan

(5,132,766)

(1,355,000)

6,037,800

(449,966)

R Shone

Loan

(64,223)

-

-

(64,223)

 

Boutique Modern Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024

2023

At 1 July 2022
£

Advances to director
£

At 30 June 2023
£

N D Eckert

Loan

(2,636,766)

(2,496,000)

(5,132,766)

R Shone

Loan

(64,223)

-

(64,223)

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

273,845

233,845

Contributions paid to money purchase schemes

3,962

3,963

277,807

237,808

Expenditure with and payables to related parties

2024

Key management
£

Amounts payable to related party

46,785

2023

Key management
£

Amounts payable to related party

537,377