REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTOR'S REPORT AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
FOR |
ACME VAPE LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTOR'S REPORT AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
FOR |
ACME VAPE LTD |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Director's Report | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
ACME VAPE LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
109 Coleman Road |
Leicester |
Leicestershire |
LE5 4LE |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
The director presents his strategic report for the year ended 29th February 2024. |
REVIEW OF BUSINESS |
The director is pleased with the progress made this year. The Company turnover during the year increased to £52.1m (2023: £39.5m), with gross profit increasing to £21.2m (2023: £11.8m) and profit before tax increasing to £6.1m (2023: £1.2m). The gross profit margin increased to 40.7% (2023: 30.0%). |
The director is committed to continual investment in future years to increase the Company's capacity to continue to deliver a high level of service to customers. The director is focusing on working in partnership with both it's suppliers and customers, to develop relationships in order to achieve the highest customer satisfaction. The director believes that the continued commitment to invest in new technology and to further understand customer's requirements will enable them to exceed customers' expectations and further grow and develop the business over the coming years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The director considers the key risks to the business through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. Compliance with regulations, legal and ethical standards is a high priority for the Company and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that the controls operate effectively. |
The key risk to the business centres around the USD/GBP and EUR/GBP currency rate, due to the raw materials being purchased in these currencies. This risk is managed where possible through natural hedging of the currencies as well as product engineering. |
The Company also manages the risks by providing added value services to its customers through fast response times, high quality products and maintaining strong customer relationships. |
Interest rate risk |
The Company finances its operations through a mixture of retained profit and external financing. Management periodically reviews its funding structures to ensure an optimal structure is in place, bearing in mind the commercial needs of the wider group and relevant legislation. |
Liquidity risk |
The Company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
Human Resources |
The Company's employees are its most important resource. It is essential to the future success of the business that a skilled and motivated workforce is retained. |
Environmental |
There has been significant changes in the UK with regards to the way in which plastic is used and the impact it has on the environment, with the aim of reducing plastic usage over time. |
FINANCIAL KEY PERFORMANCE INDICATORS |
Given the nature of the business, the director has determined certain key performance indicators to help them to both understand and manage the growing customer base. These are monitored closely on at least a monthly basis and the Company will continue to monitor those measures that are key to ensuring that the Company remains profitable. The KPI's are regularly circulated to the key management team to ensure full visibility by those helping to drive the business forward. |
Turnover and gross profit are seen as key performance indicators, as margins for these businesses need to be healthy due to significant staff costs and other overheads. These have been disclosed above. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES |
The director ensures wherever possible that the business objectives are aligned with risk management. The director is responsible for maintaining sound systems of internal control that provide reasonable assurance that the Company will not be hindered in achieving its business objectives by circumstances that are not foreseen. |
No major risks have been identified other than those relating to the uncertainties and challenges set out above. In this respect, the directors have built up a strong team of staff with whom they work closely on a regular basis to ensure these risks are mitigated effectively. |
ON BEHALF OF THE BOARD: |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
DIRECTOR'S REPORT |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
The director presents his report with the financial statements of the Company for the year ended 29th February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Company in the year under review was that of vape manufacturing and wholesale distribution. |
DIVIDENDS |
No interim dividend was paid during the year. The director recommends a final dividend of £ |
The total distribution of dividends for the year ended 29th February 2024 will be £ |
FUTURE DEVELOPMENTS |
The Company will continue to seek opportunities to maximise turnover and profitability. |
The Company is focused on delivering innovative and great value products to its customers, allowing them to differentiate themselves in an increasingly competitive landscape. Management remain wary of the economic climate and have reflected this within its forecasts. The results for the year to date show the business to be in line with its projections, supported by growth in the order book. The director is cautiously optimistic that their forecasts can be achieved. |
DIRECTOR |
POLITICAL DONATIONS AND EXPENDITURE |
Donations during the year related to charitable donations only. |
GOING CONCERN |
The director continues to adopt the going concern basis in preparing the financial statements. Their assessment of going concern is presented in note 2. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Director's 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 him 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. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
DIRECTOR'S REPORT |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
AUDITORS |
The auditors, Watergates Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACME VAPE LTD |
Qualified opinion |
We have audited the financial statements of Acme Vape Ltd (the 'Company') for the year ended 29th February 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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, except for the effects of the matter described in the Basis for qualified opinion section, the financial statements: |
- give a true and fair view of the state of the Company's affairs as at 30th September 2023 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 qualified opinion |
This is the first year we are carrying out an audit for this entity and we have not been able to satisfy ourselves by alternative means on the opening or comparative balances. As a result, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded inventories and opening balances, and the elements making up the statement of comprehensive income, statement of changes in equity and statement of cash flows and strategic report. |
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 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 qualified 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. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACME VAPE LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the matters described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the 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. |
Matters on which we are required to report by exception |
Except for the matters described in the Basis for qualified opinion section of our report, 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 where 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 director's 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 Statement of Director's Responsibilities set out on page four, 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 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. |
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 a Report of the Auditors 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: |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACME VAPE LTD |
However, 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. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors. |
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment regulations. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities as appropriate. |
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
109 Coleman Road |
Leicester |
Leicestershire |
LE5 4LE |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
INCOME STATEMENT |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
29/2/24 | 28/2/23 |
as | restated |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
5,951,694 | 1,123,610 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
6,124,327 | 1,161,294 |
Interest payable and similar expenses | 7 | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
29/2/24 | 28/2/23 |
as | restated |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
STATEMENT OF FINANCIAL POSITION |
29TH FEBRUARY 2024 |
29/2/24 | 28/2/23 |
as | restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
15 |
( |
) |
( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 29th February 2024 |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
29/2/24 | 28/2/23 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Capital repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,434,361 |
Cash and cash equivalents at end of year |
2 |
7,337,452 |
5,039,207 |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Finance costs | 56,907 | - |
Finance income | (9,955 | ) | (515 | ) |
6,546,365 | 1,479,235 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29th February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 7,337,452 | 5,039,207 |
Year ended 28th February 2023 |
28.2.23 | 1.3.22 |
as restated |
£ | £ |
Cash and cash equivalents | 5,039,207 | 2,434,361 |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,039,207 | 2,298,245 | 7,337,452 |
5,039,207 | 7,337,452 |
Debt |
Finance leases | (256,913 | ) | 28,373 | (228,540 | ) |
Debts falling due within 1 year | (16,242 | ) | (328,947 | ) | (345,189 | ) |
Debts falling due after 1 year | (700,302 | ) | 489,768 | (210,534 | ) |
(973,457 | ) | 189,194 | (784,263 | ) |
Total | 4,065,750 | 2,487,439 | 6,553,189 |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
Acme Vape Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
GOING CONCERN |
The Company uses liquid resources and working capital balances that arise directly from its operations. The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Liquidity is monitored regularly by reference to forecasts and available facilities. The business has continued to fulfil significant order delivery commitments, confirm and progress negotiations on new orders for delivery in the next 12 months and secure payments, for prior and future deliveries. |
The business is financed through cash generated from operating activities as well as loans. Cash at bank at the year end was £7.3m (2023: £5.0m) at 29 February 2024. Furthermore, turnover and profitability has increased during the year as highlighted in the strategic report. |
The directors have reviewed future projections, including preparing cash flow forecasts, which they feel adequately reflect the current uncertain economic environment. After considering all relevant uncertainties, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
TURNOVER |
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. |
Where cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. |
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); |
- 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. |
INTANGIBLE ASSETS |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment |
losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual |
value of each asset over its estimated useful life: |
Plant and machinery - 25% reducing balance |
Furniture, fittings and equipment - 25% reducing balance |
Motor vehicles - 25% reducing balance |
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. |
IMPAIRMENT OF ASSETS |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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 balance sheet date, stocks are assessed for impairment. If stock is 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. |
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. |
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. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured: |
- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably; |
- at cost less impairment for all other investments. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
RESEARCH AND DEVELOPMENT |
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from one to three years reflecting the period of use for the relevant customer project. |
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
FOREIGN CURRENCIES |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the Company recognises annual rent expense equal to amounts owed to the lessor. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Critical judgements in applying the Company's accounting policies |
The director concludes that there are no critical judgements in applying the Company's accounting policies. |
Key source of estimation uncertainty |
Depreciation and amortisation rates are based on estimates of the useful lives and residual values of the assets involved. |
The Company manufactures and sells vapes and e-liquids and is subject to changing consumer demands. Determining whether stock values are recoverable requires estimations based on up to date trading information. The director uses their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Company. |
An analysis of turnover by geographical market is given below: |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 4,745,771 | 3,298,364 |
5. | EMPLOYEES AND DIRECTORS |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
29/2/24 | 28/2/23 |
as | restated |
Head office | 53 | 76 |
Production | 69 | 100 |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Director's remuneration |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Software amortisation |
Auditors' remuneration |
Other non- audit services |
Foreign exchange differences |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Bank interest payable |
Interest on other loans |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax - prior year adjustment | (53,753 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Capital allowances | (23,240 | ) | (135,092 | ) |
Deferred tax | 126,304 | - |
Lower tax rate to March 2023 | (34,429 | ) | - |
Total tax charge | 1,731,805 | 146,537 |
9. | DIVIDENDS |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Ordinary shares of 1 each |
Final |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
10. | PRIOR YEAR ADJUSTMENT |
There is a prior year adjustment to correct the fixed asset movements that took place in the prior year due to over depreciation. The impact of prior year adjustments relating to year ended 28 February 2023 was that the fixed assets increased by £65,898, with a corresponding increase to the profit of the same amount. There was no tax effect as it is a disallowable transaction for corporation tax purposes. |
There were also presentational adjustments in for the year ended 28 February 2023 between creditors less than one year and more than one year, being £16,242 of bank loans being reclassified to less than one year, and £232,258 being reclassified from trade creditors within one year to hire purchase contracts more than one year. There was no impact due to this on the income statement nor any tax effect. |
There was also a prior year presentational adjustment for the year ended 28 February 2023 to reclassify wages expenses of £2,342,528 from cost of sales to other administrative expenses. |
11. | INTANGIBLE FIXED ASSETS |
Software |
£ |
COST |
At 1st March 2023 |
and 29th February 2024 |
AMORTISATION |
At 1st March 2023 |
Amortisation for year |
At 29th February 2024 |
NET BOOK VALUE |
At 29th February 2024 |
At 28th February 2023 |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
12. | TANGIBLE FIXED ASSETS |
Furniture, |
fittings |
and |
Plant and | equipm | Motor |
machinery | ent | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 29th February 2024 |
DEPRECIATION |
At 1st March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 29th February 2024 |
NET BOOK VALUE |
At 29th February 2024 |
At 28th February 2023 |
At the year end, the net book value of assets held under finance leases or hire purchase contracts, for the Company, included within Motor Vehicles is £166,043 (2023: £221,391). |
13. | STOCKS |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Raw materials |
Finished goods |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Amounts owed by related party undertakings are unsecured, interest free and repayable on demand. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Bank loans and overdrafts (see note 17) |
Other loans (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 2,045,052 | 253,071 |
Wages control account |
Other creditors | 6,652,955 | 4,746,343 |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Within one year |
Between one and five years |
19. | PROVISIONS FOR LIABILITIES |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Deferred tax |
Accelerated capital allowances |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Provided during year |
Balance at 29th February 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 29/2/24 | 28/2/23 |
value: | as restated |
£ | £ |
Ordinary | 1 | 100 | 100 |
21. | RESERVES |
Retained |
earnings |
£ |
At 1st March 2023 |
Profit for the year |
Dividends | ( |
) |
At 29th February 2024 |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 29th February 2024 and 28th February 2023: |
29/2/24 | 28/2/23 |
as | restated |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
ACME VAPE LTD (REGISTERED NUMBER: 10003856) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29TH FEBRUARY 2024 |
23. | RELATED PARTY DISCLOSURES - continued |
Included within the financial statements were the following transactions and balances with entities under common directorship: |
Expenses during the year: £1,770,833 (2023: £4,090,000) |
Amounts owed by related parties at the year end: £11,002,302 (2023: £853,181) |
The director is considered to be the only key management personnel, for whom the remuneration has been disclosed separately. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party are the shareholders of the company, in the current and preceding year. |