REGISTERED NUMBER: |
CHRIS & SONS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
REGISTERED NUMBER: |
CHRIS & SONS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Profit and Loss Account | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
CHRIS & SONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditors |
Sterling House |
Fulbourne Road |
Walthamstow |
London |
E17 4EE |
BANKERS: |
1 Church Hill Place |
Canary Wharf |
E13 5BH |
SOLICITORS: |
2 Stone Buildings, Lincoln's Inn, |
London, WC2A 3TH |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their strategic report with the financial statements of the company for the year ended 29th February 2024. |
The principal activity of Chris & Sons Limited in the period under review continues to be that of wholesale and retail supply of hairdressing and beauty products together with hairdressers' furniture and electrical equipment. |
REVIEW OF BUSINESS |
The results of the company for the period are set out on page 10 and show a profit for the year of £573,018 (2023: £723,236). The shareholders' funds total £11,125,990 (2023: £10,825,619). |
The performance of the company for the year has produced encouraging results. The beauty and care products continue to sell strongly and furniture and electrical equipment sales are increasing. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk assessment and risk management is achieved through a framework of policies, procedures and internal controls. |
All purchases are subject to assessment and senior management control with ongoing reviews by the directors. |
Compliance with regulation, legal and ethical standards is a high priority of the directors who are responsible for satisfying themselves that a proper internal control framework, appropriate to the size and ability of management, exists to manage the possible risk areas of the business. |
The possible risk areas arise from competition, pricing and debt control. |
The markets in which Chris & Sons limited operates can be impacted by the current economic climate. This uncertainties may impact the company over a period of time and the impact may be unknown. |
The director have assessed the main risk facing the Company as being from the increased cost of purchases, Staff costs, intense competition within the market in which company trading and cost of living crisis. |
Employee risk - Company's knowledge that shortages of trained staff and loss of key employees can interrupt the effectiveness of its trading operation. To minimise this, the company offers competitive rewards to its staff and has good succession plans in place. The Company's employees are provided with comfortable working environments that comply with all relevant safety regulations. |
There is a risk of information and cybersecurity systems malfunction or breakdown, internal or at external third-party providers. Constant technological development and the increasing use of virtual and digital tools increases the risk on business activities. The company follow the IT support provides guideline with regard to the data backup, access and security of its hardware and software systems. |
The risks originate from the uncertainties of the current geopolitical and economic environment, in particular, the war in European countries will probably jeopardise economic stability in whole Europe for a long time to come. Higher energy prices, potential gas shortages, lack of skill workers, cost of employment could force a reduction in production, increase cost of sales and changing consumer behaviour as a result of high inflation and dampening purchasing power. This could pose a risk to sales. |
Chris & Sons Limited insures against all the risks that it perceives could damage its financial position. This includes employee liability, public liability, business interruption as well as damage to its stocks and buildings. |
The Company's management has implemented business continuity plans as a result of current uncertainty, which are operating as designed, and is implementing mitigating actions to minimise the impact on the financial position of the Company. |
Although the directors have a reasonable expectation that the Company will remain viable and able to operate, uncertainty still exits over the timeframe over which the UK and wider global economy will emerge from the current epidemic and uncertainty. |
BUSINESS ENVIRONMENT |
The UK wholesale and retail supplies of hairdressing and beauty products is highly competitive. However, there are a number of companies offering similar coverage, giving rise to aggressive pricing structures. The impact of technology has been enormous and it is essential that the company keeps abreast of advances, not only in distribution channels but also in sales and marketing. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
STRATEGY |
The company's success is dependent on proper selection of pricing, marketing and ongoing management of the risks it accepts. The company believes it is important to retain a diversified product range in order to achieve maximum profitability in the highly competitive market place. |
The company aims to improve efficiency in all areas of our operations through cost reduction, improved computer technology, and an improved website. Customer service remains a top priority. |
2024 | 2023 |
Gross profit | 25.87% | 29.78% |
Net Profit | 3.12% | 5.19% |
Trade debtor days | 20.06 | 16.11 |
Employee retention | 80.95% | 86.96% |
The company officials are very conscious of environmental matters. These include usage of paper and disposal of any chemical products. Machinery and electrical equipment are disposed of by specific environmental firms. |
The company aims to employ people from all races and background and the company is an equal opportunities employer. No discrimination is made and help is offered to employees should their circumstances warrant it. |
FUTURE DEVELOPMENTS |
The Company intends to continue adding to its range of products and services and expand in its chosen markets in the UK. In the coming year we aim to continue the company's growth in turnover, whilst at the same time investing in measures to achieve a reduction in its long term cost of sales. |
The directors are also looking to improve the company's website to help customers choose the products that they require. |
ON BEHALF OF THE BOARD: |
28 November 2024 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their 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 the wholesale and retail supply of hairdressing materials and beauty equipment. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 29 February 2024 will be £ |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The company did not made any political donations and electoral expenditure during the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 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 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
AUDITORS |
The auditors, Kounnis And Partners Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
CHRIS & SONS LIMITED |
Opinion |
We have audited the financial statements of Chris & Sons Limited (the 'company') for the year ended 29 February 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 29 February 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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. |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
CHRIS & SONS LIMITED |
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 Report of the Directors. |
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 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 Statement of Directors' Responsibilities, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
CHRIS & SONS LIMITED |
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. |
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: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector, |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; and |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; |
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and noncompliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reviewing correspondence with HMRC; and |
- enquiring of management as to actual and potential litigation and claims; |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
CHRIS & SONS LIMITED |
Use of our report |
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
& Statutory Auditors |
Sterling House |
Fulbourne Road |
Walthamstow |
London |
E17 4EE |
Note: |
The maintenance and integrity of the Chris & Sons Limited website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
612,645 | 747,583 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
624,645 | 765,508 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Realised through depreciation |
Movement in deferred tax |
Movement in fair value reserve | ( |
) | ( |
) |
Income tax relating to components of other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
BALANCE SHEET |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Fair value reserve |
Retained earnings |
SHAREHOLDERS' FUNDS | 25 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 29 February 2024 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
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 | ( |
) | ( |
) |
Amount introduced by directors | 100,000 | 100,000 |
Amount withdrawn by directors | (106,854 | ) | (80,235 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
738,844 |
Cash and cash equivalents at end of year | 2 | 1,305,611 | 1,183,321 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 51,627 | 42,272 |
Finance income | - | (5 | ) |
737,852 | 887,591 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease 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 Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 1,305,611 | 1,183,321 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 1,183,321 | 738,844 |
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 | 1,183,321 | 122,290 | 1,305,611 |
1,183,321 | 1,305,611 |
Debt |
Debts falling due within 1 year | (244,058 | ) | 194,503 | (49,555 | ) |
Debts falling due after 1 year | (675,612 | ) | 53,452 | (622,160 | ) |
(919,670 | ) | 247,955 | (671,715 | ) |
Total | 263,651 | 370,245 | 633,896 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
Chris & Sons Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The nature of the company's operations and principal activities are that of wholesale and retails supply of hairdressing and beauty products together with hairdresser's furniture and electrical equipment. |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standards 102, the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: |
Provision for bad and doubtful debts |
The Company reviews its trade and other receivables for evidence of their recoverability. Such evidence includes the customer's payment record and the customer's overall financial position. If indications of irreconcilability exist, the recoverable amount is estimated and a respective provision for bad and doubtful debts is made. The amount of the provision is charged through profit or loss. The review of credit risk is continuous and the methodology and assumptions used for estimating the provision are reviewed regularly and adjusted accordingly. |
Stock provisions |
Where necessary, a provision is made for obsolete and slow moving inventory. A provision is created on the basis of sales trend showing zero movement, stock almost near to their expiry date, change in fashion and their probable net realised value. |
Management has estimated the inventory provisioning for different product categories based on various factors, including losses associated with slow-moving inventory, Stock Obsolescence is creating from the ageing stock schedule, the expected sales profiles of the items, the prevailing sales prices and the item's seasonality pattern. |
Fair value of properties |
Properties are measured initially at cost. After initial recognition, properties are measured and carried at fair value. |
Fair value is based on valuation performed by an expert taking into account factors such as the property growth and market in the surrounding area. The fair value of the investment properties reflects the market conditions at the balance sheet date. Changes in fair values are recorded in the other comprehensive income statement as investment properties fair value adjustment. |
Impairment of investments |
The Company periodically evaluates the market value of investment properties. Indicators of impairment includes items such as declines in revenues or cash flows or material adverse changes in the property market, which may indicate that the carrying amount of an investment property is excessive. If facts and circumstances indicate that investment property may be impaired, the estimated market value is compared to their carrying amounts to determine if a write down to fair value is necessary. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable excluding value added tax and net of discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from sale of goods is recognised when significant risks and rewards of ownership of the goods have been transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when goods are sold or despatched. |
Interest receivable |
Interest income is recognised using the effective interest method. |
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. |
Tangible fixed assets |
Freehold land and buildings | - |
Plant machinery and alarms | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computers and equipment | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Investment properties |
Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provisions are made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 balance sheet date. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Debtors receivable and creditors payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
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. |
Government grants |
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Dividend |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
3. | 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: |
2024 | 2023 |
£ | £ |
United Kingdom |
EU sales | 1,233,666 | 125,534 |
Rest of the world | 50,617 | 13,659 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 5 | 5 |
Administration | 3 | 3 |
Sales | 55 | 49 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Interest on tax |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
7. | TAXATION - continued |
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: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Marginal relief | (3,351 | ) | - |
Deferred tax | 11,149 | 2,284 |
Total tax charge | 172,647 | 164,486 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Realised through depreciation | - | 58,461 |
Movement in deferred tax |
Movement in fair value reserve | ( |
) | - | (58,461 | ) |
- | - | - |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Realised through depreciation | - | 52,461 |
Movement in deferred tax |
Movement in fair value reserve | ( |
) | (265,803 | ) | (554,629 | ) |
(236,365 | ) | (265,803 | ) | (502,168 | ) |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 March 2023 |
Additions |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
10. | TANGIBLE FIXED ASSETS |
Plant |
Freehold | machinery | Fixtures |
land and | and | and |
buildings | alarms | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Disposals |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Computers |
Motor | and |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Included in cost or valuation of land and buildings is freehold land of £ 2,400,000 (2023 - £ 2,400,000 ) which is not depreciated. |
Cost or valuation at 29 February 2024 is represented by: |
Plant |
Freehold | machinery | Fixtures | Computers |
land and | and | and | and |
buildings | alarms | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2015 | 1,286,703 | - | - | - | 1,286,703 |
Valuation in 2016 | 500,000 | - | - | - | 500,000 |
Valuation in 2017 | 5,450,000 | - | - | - | 5,450,000 |
Valuation in 2022 | 86,858 | - | - | - | 86,858 |
Valuation in 2023 | (77,509 | ) | - | - | - | (77,509 | ) |
Cost | 4,573,948 | 34,587 | 155,015 | 150,848 | 4,914,398 |
11,820,000 | 34,587 | 155,015 | 150,848 | 12,160,450 |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
If Freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 4,573,948 | 4,573,948 |
Aggregate depreciation | 903,766 | 868,027 |
Value of land in freehold land and buildings | 1,000,000 | 1,000,000 |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Fair value at 29 February 2024 is represented by: |
£ |
Valuation in 2012 | (183,866 | ) |
Valuation in 2020 | 200,000 |
Valuation in 2023 | (158,856 | ) |
Cost | 442,722 |
300,000 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 52,146 | 59,000 |
Accruals |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 years | - | 452,675 |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
The bank loan and overdraft facilities are secured by a first legal charge dated 26th July 2013 over the freehold commercial properties, together with a debenture over the company's assets. |
The directors, Mr & Mrs A Hajivassiliou have given personal guarantees dated 10th July 2013 totalling £300,000 in favour of the bank. |
The Bank loan was subject to a 5 yearly review on 31 July 2023. On 9th of August 2023, the loan was extended for a further five years till 9th August 2028 at 7.75% fixed interest rate. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 1,291,271 | 1,280,122 |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Provided during year |
Balance at 29 February 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 0.01 | 100 | 100 |
21. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The pension charge £24,131 (2023:£20,570) represents the amounts payable by the company to the fund in respect of the period. |
CHRIS & SONS LIMITED (REGISTERED NUMBER: 00915223) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 29 February 2024 and 28 February 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) | ( |
) |
23. | POST BALANCE SHEET EVENTS |
The company's business activities, together with the relevant business risks likely to affect its performance and position are set out in the Strategic report and the Directors' Report. The company is operationally and financially strong with past performance showing that it consistently generates profits and cash. |
We considered the impact of the current geopolitical conflict, as well as the cost of living crisis driven by inflation and interest rate increases and their impact on the economy and the consumers. |
The company has good knowledge into the ecommerce hair and beauty market, how customers shop online, what product they are looking for and how to provide easy and smooth service. As a result online sales went up significantly. |
We are satisfied that our profit will be maintained at a healthy level and there are no significant risks to the cash position. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from approval of the financial statement. |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr A C Hajivassiliou. |
25. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
2024 | 2023 |
£ | £ |
Profit for the financial year |
Dividends | ( |
) | ( |
) |
300,371 | 458,750 |
Other comprehensive income relating to the year (net) | - | (502,168 | ) |
Realised through depreciation | 58,641 | 52,641 |
Movement on Fair Value reserve | (58,641 | ) | (52,641 | ) |
Net addition/(reduction) to shareholders' funds | 300,371 | (43,418 | ) |
Opening shareholders' funds | 10,825,619 | 10,869,037 |
Closing shareholders' funds | 11,125,990 | 10,825,619 |