Company registration number 08224640 (England and Wales)
NICOLE FARHI LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
NICOLE FARHI LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
NICOLE FARHI LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 1 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Current assets
Stocks
-
106
Debtors
3
55
60
Cash at bank and in hand
281
336
166
Creditors: amounts falling due within one year
4
(434)
(2,837)
Net current liabilities
(98)
(2,671)
Creditors: amounts falling due after more than one year
5
(26,978)
(26,578)
Net liabilities
(27,076)
(29,249)
Capital and reserves
Called up share capital
6
Profit and loss reserves
(27,076)
(29,249)
Total equity
(27,076)
(29,249)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 14 November 2024 and are signed on its behalf by:
D A Dooley
Director
Company registration number 08224640 (England and Wales)
NICOLE FARHI LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
1
Accounting policies
Company information
Nicole Farhi Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 7a, No 1 The Courtyard Earl Road, Stanley Green, Cheadle Hulme, Cheadle, Cheshire, SK8 6GN.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Wholesale and online turnover is recognised upon delivery of goods to the customer and retail turnover is recognised at the point of sale.
Licensing income is recognised on the accruals basis in accordance with the substance of the relevant agreements. Licensing income is presented in in the profit and loss account as other income net off expenses directly related to incurring such income.
1.4
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.
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.
1.5
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.
NICOLE FARHI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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 related companies 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.
1.7
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
NICOLE FARHI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
3
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
2
Other debtors
55
58
55
60
4
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Bank loans and overdrafts
239
Trade creditors
17
20
Taxation and social security
4
Other creditors
417
2,574
434
2,837
5
Creditors: amounts falling due after more than one year
2024
2023
£'000
£'000
Other creditors
26,978
26,578
6
Called up share capital
2024
2023
£
£
Issued and fully paid
1 Ordinary share of £1
1
1
1
1
NICOLE FARHI LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 5 -
7
Related party transactions
At the balance sheet date, an amount of £nil (2023: £2,257,107) was due to Wolsey Limited, a company who has the same ultimate controlling party as Nicole Farhi Limited. The balance in the prior year was included in other creditors within creditors: amounts failing due within one year.
At the balance sheet date, an amount of £8,487,500 (2023 £8,487,500) was due to director shareholder Maxine Adams. This amount is interest free, due on demand with 12 months’ notice. The balance is included in creditors: amounts falling due after one year.
At the balance sheet date, amounts of £17,490,000 (2023 £17,090,000) and £1,000,000 (2023 £1,000,000) were due to John Hargreaves, a family member of Maxine Adams. £17,490,000 is interest free, due for repayment on demand with 12 months notice, £1,000,000 accrues interest at 5% above base rate per annum.