Caseware UK (AP4) 2023.0.135 2023.0.135 2024-02-292024-02-292023-03-01falseNo description of principal activity116118truefalsefalse 07544240 2023-03-01 2024-02-29 07544240 2022-03-01 2023-02-28 07544240 2024-02-29 07544240 2023-02-28 07544240 c:Exceptional 2023-03-01 2024-02-29 07544240 c:Exceptional 2022-03-01 2023-02-28 07544240 d:CompanySecretary1 2023-03-01 2024-02-29 07544240 d:Director3 2023-03-01 2024-02-29 07544240 d:Director10 2023-03-01 2024-02-29 07544240 d:Director13 2023-03-01 2024-02-29 07544240 d:RegisteredOffice 2023-03-01 2024-02-29 07544240 c:Buildings c:LongLeaseholdAssets 2023-03-01 2024-02-29 07544240 c:Buildings c:LongLeaseholdAssets 2024-02-29 07544240 c:Buildings c:LongLeaseholdAssets 2023-02-28 07544240 c:PlantMachinery 2023-03-01 2024-02-29 07544240 c:PlantMachinery 2024-02-29 07544240 c:PlantMachinery 2023-02-28 07544240 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 07544240 c:FurnitureFittings 2023-03-01 2024-02-29 07544240 c:FurnitureFittings 2024-02-29 07544240 c:FurnitureFittings 2023-02-28 07544240 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 07544240 c:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 07544240 c:PatentsTrademarksLicencesConcessionsSimilar 2023-03-01 2024-02-29 07544240 c:PatentsTrademarksLicencesConcessionsSimilar 2024-02-29 07544240 c:PatentsTrademarksLicencesConcessionsSimilar 2023-02-28 07544240 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-03-01 2024-02-29 07544240 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-02-29 07544240 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-02-28 07544240 c:CopyrightsPatentsTrademarksServiceOperatingRights 2023-03-01 2024-02-29 07544240 c:CopyrightsPatentsTrademarksServiceOperatingRights 2024-02-29 07544240 c:CopyrightsPatentsTrademarksServiceOperatingRights 2023-02-28 07544240 c:ComputerSoftware 2024-02-29 07544240 c:ComputerSoftware 2023-02-28 07544240 c:OtherResidualIntangibleAssets 2023-03-01 2024-02-29 07544240 c:CurrentFinancialInstruments 2024-02-29 07544240 c:CurrentFinancialInstruments 2023-02-28 07544240 c:Non-currentFinancialInstruments 2024-02-29 07544240 c:Non-currentFinancialInstruments 2023-02-28 07544240 c:CurrentFinancialInstruments c:WithinOneYear 2024-02-29 07544240 c:CurrentFinancialInstruments c:WithinOneYear 2023-02-28 07544240 c:ShareCapital 2024-02-29 07544240 c:ShareCapital 2023-02-28 07544240 c:SharePremium 2024-02-29 07544240 c:SharePremium 2023-02-28 07544240 c:RetainedEarningsAccumulatedLosses 2024-02-29 07544240 c:RetainedEarningsAccumulatedLosses 2023-02-28 07544240 d:FRS102 2023-03-01 2024-02-29 07544240 d:Audited 2023-03-01 2024-02-29 07544240 d:FullAccounts 2023-03-01 2024-02-29 07544240 d:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 07544240 c:WithinOneYear 2024-02-29 07544240 c:WithinOneYear 2023-02-28 07544240 c:BetweenOneFiveYears 2024-02-29 07544240 c:BetweenOneFiveYears 2023-02-28 07544240 c:PatentsTrademarksLicencesConcessionsSimilar c:ExternallyAcquiredIntangibleAssets 2023-03-01 2024-02-29 07544240 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:ExternallyAcquiredIntangibleAssets 2023-03-01 2024-02-29 07544240 c:CopyrightsPatentsTrademarksServiceOperatingRights c:ExternallyAcquiredIntangibleAssets 2023-03-01 2024-02-29 07544240 c:ComputerSoftware c:ExternallyAcquiredIntangibleAssets 2023-03-01 2024-02-29 07544240 4 2023-03-01 2024-02-29 07544240 6 2023-03-01 2024-02-29 07544240 c:ExternallyAcquiredIntangibleAssets 2023-03-01 2024-02-29 07544240 c:PatentsTrademarksLicencesConcessionsSimilar c:OwnedIntangibleAssets 2023-03-01 2024-02-29 07544240 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:OwnedIntangibleAssets 2023-03-01 2024-02-29 07544240 c:CopyrightsPatentsTrademarksServiceOperatingRights c:OwnedIntangibleAssets 2023-03-01 2024-02-29 07544240 c:ComputerSoftware c:OwnedIntangibleAssets 2023-03-01 2024-02-29 07544240 e:PoundSterling 2023-03-01 2024-02-29 iso4217:GBP xbrli:pure

Registered number: 07544240










FACEGYM LTD










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 29 FEBRUARY 2024

 
FACEGYM LTD
 
 
COMPANY INFORMATION


Directors
Inge Theron 
Etsko de Boer 
Laura Heely 




Secretary
Three Hills Partners LLP



Registered number
07544240



Registered office
6th Floor 1-4 Argyll Street

London

W1F 7TA




Independent auditors
HaysMac LLP

10 Queen Street Place

London

EC4R 1AG





 
FACEGYM LTD
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Notes to the Financial Statements
9 - 18


 
FACEGYM LTD
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 FEBRUARY 2024

The directors present their report and the financial statements for the period ended 29 February 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the period were:

Inge Theron 
Etsko de Boer 
Laura Heely 

Disclosure of information to auditors

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

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

Auditors

On 18 November 2024 the Group’s auditor changed its name from Haysmacintyre LLP to HaysMac LLP.
The auditorsHaysMac LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

 
FACEGYM LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024


Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





Etsko de Boer
Director

Date: 28 November 2024

Page 2

 
FACEGYM LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FACEGYM LTD
 

Opinion on financial statements


We have audited the financial statements of Facegym Ltd (the 'Company') for the period ended 29 February 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 29 February 2024 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 3

 
FACEGYM LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FACEGYM LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
FACEGYM LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FACEGYM LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the company and trade regulations and UK tax laws and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax. 
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls),and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
•          Inspecting correspondence with regulators and tax authorities; 
•          Discussions with management including consideration of known or suspected instances of non-
           compliance with laws and regulations and fraud;
•          Evaluating management’s controls designed to prevent and detect irregularities; 
•          Identifying and testing accounting journal entries, in particular those journal entries which exhibited the
           characteristics we had identified as possible indicators of irregularities; and
•          Challenging assumptions and judgements made by management in their critical accounting estimates
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.





Page 5

 
FACEGYM LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FACEGYM LTD (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Anastasia Frangos (Senior Statutory Auditor)
for and on behalf of
HaysMac LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

28 November 2024
Page 6

 
FACEGYM LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2024
2023
£
£

  

Turnover
  
8,077,067
7,765,058

Cost of sales
  
(1,954,649)
(2,803,294)

Gross profit
  
6,122,418
4,961,764

Administrative expenses
  
(10,081,058)
(10,888,931)

Exceptional administrative expenses
  
(330,103)
(313,338)

Operating loss
  
(4,288,743)
(6,240,505)

Loss for the financial period
  
(4,288,743)
(6,240,505)

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

The notes on pages 9 to 18 form part of these financial statements.

Page 7

 
FACEGYM LTD
REGISTERED NUMBER: 07544240

STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024

29 February
28 February
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 6 
395,663
530,764

Tangible assets
 7 
392,395
524,145

Investments
 8 
8
8

  
788,066
1,054,917

Current assets
  

Stocks
 9 
1,346,997
869,592

Debtors
 10 
691,605
732,208

Cash at bank and in hand
 11 
320,908
266,888

  
2,359,510
1,868,688

Creditors: amounts falling due within one year
 12 
(30,182,508)
(25,669,794)

Net current liabilities
  
 
 
(27,822,998)
 
 
(23,801,106)

Total assets less current liabilities
  
(27,034,932)
(22,746,189)

  

Net liabilities
  
(27,034,932)
(22,746,189)


Capital and reserves
  

Called up share capital 
  
935
935

Share premium account
  
7,164,184
7,164,184

Profit and loss account
  
(34,200,051)
(29,911,308)

  
(27,034,932)
(22,746,189)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 November 2024.




Etsko de Boer
Director

The notes on pages 9 to 18 form part of these financial statements.

Page 8

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

1.


General information

Facegym Ltd is a private company, limited by shares, registered in England and Wales. The Company's registered number is 07544240 and its registered office address is 6th Floor 1- 4 Argyll Street, London, England, W1F 7TA
The principal activity of the company is the sale of beauty products and services. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Going concern

As at the period end the Company has net liabilities of £27,064,662. The Company incurred a loss after tax for the financial year of £4,318,473. 
The Directors of Facegym Holdings Limited (parent of the Company and party to the Convertible Loan Note) have prepared cash flow forecasts covering the 12-month period beyond the signing
date of these financial statements. Included in the Directors' cash flows are the receipt of additional
funds relating to the headroom on the Convertible Loan Note agreed in December 2022. This
headroom allows for an additional £5,000,000 to be raised of which £4,074,534 has been raised to
the date of signing these financial statements and allows for an additional £924,113 to be raised to
support the business in the coming 12 months. A commitment letter has been received from the
investors indicating their intention to support the Company up to this remaining balance. In addition,
negotiations are well underway for additional financing beyond the term of the Convertible Loan
Notes.
Since the year end the Company's losses have reduced significantly and the business is close to being EBITDA breakeven and is now set on a path to profitability. The Directors' have made significant strides in increasing revenue and reducing expenses. Unaudited management accounts for 2024 show that the Company's performance has exceeded management's forecasts, with turnover continuing to grow and losses continuing to fall.
Based on this support and the post year end trading performance, the Company’s directors are satisfied that the Company will have sufficient cash to meet liabilities as they fall due for at least another 12 months as the business moves to profitability. As such the Directors consider it appropriate to prepare the financial statements on a going concern basis.

Page 9

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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 profit or loss 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 Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
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.
 
Page 10

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)


2.4
Revenue (continued)


Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

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 3 to 6 years.
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.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Page 11

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

 The estimated useful lives range as follows:

Website
-
2
years
Development expenditure
-
3
years
Trademarks
-
3
years
Computer Software
-
3
years

Page 12

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over the term of the lease
Plant and machinery
-
Over 5 years
Fixtures and fittings
-
Over 3 years

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.15

Debtors

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

 
2.16

Cash and cash equivalents

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

Page 13

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.17

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the process of applying its accounting policies, the Company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.
On an ongoing basis, the Company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.
The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.
Capitalisation of development costs
The Company recognises costs incurred on product range development as an intangible asset which satisfies the requirement of FRS 102. The calculation of the costs incurred are based on invoices from external suppliers. The decision whether to capitalise and how to determine the period of economic benefit of a product range requires an assessment of commerical viability.
Impairment of investments in subsidiaries
The annual impairment assessment in respect of investments requires estimates of the value in use (or fair value less costs to sell) of each cash-generating unit. As a result, estimates of future cash flows are required, together with an appropriate discount factor for the purpose of determining the present value of those cash flows.
Recoverability of amounts owed by group companies
Management judges the recoverability of the amounts owed by group companies at the balance sheet date and makes a provision for impairment where appropriate. 
Stock valuation
Stock is carried at the lower of cost and net realisable value, on a weighted average basis. A provision is also made to write down any slow-moving or obsolete inventory to net realisable value. The Directors assess this provision based upon a line-by-line review of the stock items to determine whether, to their best knowledge, any stock is slow moving or obsolete. 


Impairment of Fixed Assets
The annual impairment assessment in respect of intangible and tangible fixed assets requires estimates of the value in use (or fair value less costs to sell) of fixed assets assigned to each cash-generating unit. As a result, estimates of future cash flows are required, together with an appropriate discount factor for the purpose of determining the present value of those cash flows.

Page 14

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

4.


Employees

The average monthly number of employees, including directors, during the period was 116 (2023 - 118).


5.


Exceptional items

2024
2023
£
£


Restructuring
232,071
307,781

Funding
98,032
5,557

330,103
313,338


6.


Intangible assets






Website
Development expenditure
Trademarks
Computer software
Total

£
£
£
£
£



Cost


At 1 March 2023
610,137
514,273
31,770
80,173
1,236,353


Additions
49,372
93,984
8,948
-
152,304



At 29 February 2024

659,509
608,257
40,718
80,173
1,388,657



Amortisation


At 1 March 2023
507,401
192,365
5,823
-
705,589


Charge for the period on owned assets
81,946
192,563
12,896
-
287,405



At 29 February 2024

589,347
384,928
18,719
-
992,994



Net book value



At 29 February 2024
70,162
223,329
21,999
80,173
395,663



At 28 February 2023
102,736
321,908
25,947
80,173
530,764



Page 15

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

7.


Tangible fixed assets







Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 March 2023
513,811
609,411
1,889,129
3,012,351


Additions
-
2,500
81,885
84,385



At 29 February 2024

513,811
611,911
1,971,014
3,096,736



Depreciation


At 1 March 2023
242,454
473,113
1,772,639
2,488,206


Charge for the period on owned assets
50,393
68,902
96,840
216,135



At 29 February 2024

292,847
542,015
1,869,479
2,704,341



Net book value



At 29 February 2024
220,964
69,896
101,535
392,395



At 28 February 2023
271,357
136,298
116,490
524,145


8.


Fixed asset investments








Investments in subsidiary companies

£



Cost or valuation


At 1 March 2023
8



At 29 February 2024
8




Page 16

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

9.


Stocks

29 February
28 February
2024
2023
£
£

Finished goods and goods for resale
1,346,997
869,592


A stock provision of £222,533 (2023: £256,000) was recognised against stock at the year end due to slow moving and obsolete stock. 


10.


Debtors

29 February
28 February
2024
2023
£
£

Due after more than one year

Rent Deposits
118,250
178,370

118,250
178,370

Due within one year

Trade debtors
206,044
191,184

Other debtors
223,014
107,227

Prepayments and accrued income
144,297
255,427

691,605
732,208



11.


Cash and cash equivalents

29 February
28 February
2024
2023
£
£

Cash at bank and in hand
320,908
266,888


Page 17

 
FACEGYM LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024

12.


Creditors: Amounts falling due within one year

29 February
28 February
2024
2023
£
£

Trade creditors
470,732
492,319

Amounts owed to group undertakings
28,261,725
23,918,188

Other taxation and social security
272,558
239,628

Other creditors
29,847
52,973

Accruals and deferred income
1,147,646
966,686

30,182,508
25,669,794



13.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £138,033 (2023 - £140,474). Contributions totalling £29,343 (2023 - £29,227) were payable to the fund at the reporting date and are included in creditors.


14.


Commitments under operating leases

At 29 February 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 February
28 February
2024
2023
£
£


Not later than 1 year
364,800
398,200

Later than 1 year and not later than 5 years
932,000
956,800

1,296,800
1,355,000


15.


Controlling party

The Directors of the company have ultimate control by virtue of their shareholdings in the parent company Facegym Holdings Ltd. The parent undertaking's registered address is 6th Floor 1-4 Argyll Street, London, England, W1F 7TA. Facegym Holdings Ltd prepare consolidated accounts which includes the figures of Facegym Ltd.
The consolidated financial statements for the group are available to the public and may be obtained from Companies House (England and Wales) as well as from the trading address of the parent company.

Page 18