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REGISTERED NUMBER: 03018632 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2024

for

Salons Direct Limited

Salons Direct Limited (Registered number: 03018632)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


Salons Direct Limited

Company Information
for the Year Ended 31 March 2024







DIRECTORS: S Hill
G M Jones
G Langman
D G Roberts
V M Roberts
D L Jones



SECRETARY: V M Roberts



REGISTERED OFFICE: Unit 8, Bassendale Road
Croft Business Park
Bromborough
CH62 3QL



REGISTERED NUMBER: 03018632 (England and Wales)



SENIOR STATUTORY
AUDITOR:
Timothy Cherry FCCA



AUDITORS: Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

Salons Direct Limited (Registered number: 03018632)

Strategic Report
for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
The directors are satisfied with the results for the year as set out on page 9.

During the year to 31 March 2024, the company experienced an 8.2% increase in turnover (2023 - 4.4% decrease) due to increased stability in the economy following the prior year.

Gross profit margin remains stable at 28.2% (2023 - 28.1%) despite pressure from the falling value of Sterling and strong competition in the market. The company has continued to remain competitive and also cover its staff and overhead expenses.

During the year the company reported a profit before tax of £803,682 (2023 - £308,991), details of which are set out in the profit and loss account on page 10.

The profit levels are in line with the directors expectations as the company invested in its people, brand and products. The company is always evolving, adding new products to its offering and devising new strategies to grow with both existing and new customers.

The directors believe this investment will allow the company to exceed the profits levels achieved this year and are committed to growing the company.

Competition remains strong from other hair and beauty suppliers however the directors are committed to providing great value for money and customer service.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors work closely with management and continue to anticipate risks from economic and global factors and devise and implement strategies to mitigate impacts on the company.

The directors have assessed the key risks to the business as increased costs of purchases through exposure to foreign currency exchange risk, employee risk from key members of staff leaving and staff shortages and competition risk as the company remains in a highly competitive market.

The company regularly reviews its key risks and continues to develop strategies to minimize its exposure.

Risk arising from business interruption are insured up to an economically reasonable level.

The company continues to trade strongly and the directors believe that the company has adequate reserves in place to meet all financial commitments as they fall due.

STRATEGY
The company aims to continue its strategy to become the UK's leading and most trusted supplier of hair and beauty products.

The company will do this by developing its product range and offering as well as providing first class service to its customers. The company will continue to improve its online proposition and distribution channels using the latest technology in order to maximize profitability.


Salons Direct Limited (Registered number: 03018632)

Strategic Report
for the Year Ended 31 March 2024

KEY PERFORMANCE INDICATORS
The directors monitor the following key performance indicators (KPI's) of the company on a regular basis:

2024 2023
Turnover growth 8.2% (4.4% )
Gross profit margin 28.2% 28.1%
Operating profit margin 3.4% 1.5%
Profit before tax percentage 3.1% 1.3%

The KPI's show an increase in turnover, a maintained gross profit margin and an increase in the operating profit margin and profit before tax percentage.

ON BEHALF OF THE BOARD:





D G Roberts - Director


19 December 2024

Salons Direct Limited (Registered number: 03018632)

Report of the Directors
for the Year Ended 31 March 2024

The directors present their report and financial statements for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year was the sales of hair and beauty equipment and supplies.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2024 is £532,200.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

S Hill
G M Jones
G Langman
D G Roberts
V M Roberts
D L Jones

DONATIONS AND EXPENDITURE
Donations totalling £3,300 (2023 - £1,050) were made to charitable causes in the year.

DISCLOSURE IN THE STRATEGIC REPORT
The strategic report covers a fair review of the business, the principal risks and uncertainties facing the company and an analysis of the development and performance of the company through the use of financial key performance indicators.

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). 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.

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.

Salons Direct Limited (Registered number: 03018632)

Report of the Directors
for the Year Ended 31 March 2024


AUDITORS
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D G Roberts - Director


19 December 2024

Report of the Independent Auditors to the Members of
Salons Direct Limited

Opinion
We have audited the financial statements of Salons Direct Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of 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 31 March 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 Members of
Salons Direct 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 set out on page four, 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 Members of
Salons Direct 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:

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, 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. 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 principle risks were related to inflated revenue and profit.

Audit procedures performed included:

- review of the financial statement disclosures to underlying supporting documentation.
- review of any correspondence with legal advisors, and enquiries of management and those charged with governance around actual and potential litigation and claims
- enquiries with company's staff to identify any instances with non-compliance with laws and regulations
- enquiries of management and review of monthly management accounts and reports in so far as they related to the financial statements
- testing of journals and evaluating, whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud, and evaluating the business rationale of significant transactions outside the normal course of business
- undertaking detailed substantive testing of material items and a sample of other items
- consideration of the reasonableness of the figures and analytical review, including comparison with previous years and expected trends
- review of the compliance with and effectiveness of internal controls

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Members of
Salons Direct Limited


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.




Timothy Cherry FCCA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Statutory Auditor
3rd Floor Pacific Chambers
11-13 Victoria Street
Liverpool
Merseyside
L2 5QQ

19 December 2024

Salons Direct Limited (Registered number: 03018632)

Statement of Comprehensive Income
for the Year Ended 31 March 2024

31.3.24 31.3.23
Notes £ £

TURNOVER 3 25,716,524 23,762,691

Cost of sales 18,461,361 17,085,771
GROSS PROFIT 7,255,163 6,676,920

Administrative expenses 6,662,488 6,325,315
592,675 351,605

Other operating income 290,413 -
OPERATING PROFIT 5 883,088 351,605

Interest receivable and similar income 8,237 2,053
891,325 353,658

Interest payable and similar expenses 6 87,643 44,667
PROFIT BEFORE TAXATION 803,682 308,991

Tax on profit 7 208,205 68,142
PROFIT FOR THE FINANCIAL YEAR 595,477 240,849

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

595,477

240,849

Salons Direct Limited (Registered number: 03018632)

Balance Sheet
31 March 2024

31.3.24 31.3.23
Notes £ £ £ £
FIXED ASSETS
Intangible assets 9 66,481 -
Tangible assets 10 2,682,251 2,636,853
2,748,732 2,636,853

CURRENT ASSETS
Stocks 11 2,581,621 2,880,340
Debtors 12 3,529,193 3,200,639
Cash at bank and in hand 955,868 1,500,604
7,066,682 7,581,583
CREDITORS
Amounts falling due within one year 13 4,078,464 4,525,953
NET CURRENT ASSETS 2,988,218 3,055,630
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,736,950

5,692,483

CREDITORS
Amounts falling due after more than one
year

14

(870,515

)

(945,120

)

PROVISIONS FOR LIABILITIES 19 (193,756 ) (156,500 )
NET ASSETS 4,672,679 4,590,863

CAPITAL AND RESERVES
Called up share capital 20 5,150 5,150
Retained earnings 21 4,667,529 4,585,713
SHAREHOLDERS' FUNDS 4,672,679 4,590,863

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2024 and were signed on its behalf by:





D G Roberts - Director


Salons Direct Limited (Registered number: 03018632)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 April 2022 5,150 4,877,064 4,882,214

Changes in equity
Dividends - (532,200 ) (532,200 )
Total comprehensive income - 240,849 240,849
Balance at 31 March 2023 5,150 4,585,713 4,590,863

Changes in equity
Dividends - (513,661 ) (513,661 )
Total comprehensive income - 595,477 595,477
Balance at 31 March 2024 5,150 4,667,529 4,672,679

Salons Direct Limited (Registered number: 03018632)

Cash Flow Statement
for the Year Ended 31 March 2024

31.3.24 31.3.23
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 951,269 356,163
Interest paid (87,643 ) (44,667 )
Tax paid (503,670 ) -
Net cash from operating activities 359,956 311,496

Cash flows from investing activities
Purchase of intangible fixed assets (77,682 ) -
Purchase of tangible fixed assets (132,983 ) (202,750 )
Interest received 8,237 2,053
Net cash from investing activities (202,428 ) (200,697 )

Cash flows from financing activities
Loan repayments in year (59,150 ) (68,649 )
Amount withdrawn by directors (129,453 ) (198,438 )
Equity dividends paid (513,661 ) (532,200 )
Net cash from financing activities (702,264 ) (799,287 )

Decrease in cash and cash equivalents (544,736 ) (688,488 )
Cash and cash equivalents at beginning of
year

2

1,500,604

2,189,092

Cash and cash equivalents at end of year 2 955,868 1,500,604

Salons Direct Limited (Registered number: 03018632)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31.3.24 31.3.23
£ £
Profit before taxation 803,682 308,991
Depreciation charges 98,786 68,431
Government grants (199,300 ) -
Finance costs 87,643 44,667
Finance income (8,237 ) (2,053 )
782,574 420,036
Decrease/(increase) in stocks 298,719 (29,949 )
Increase in trade and other debtors (199,020 ) (324,269 )
Increase in trade and other creditors 68,996 290,345
Cash generated from operations 951,269 356,163

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 31 March 2024
31.3.24 1.4.23
£ £
Cash and cash equivalents 955,868 1,500,604
Year ended 31 March 2023
31.3.23 1.4.22
£ £
Cash and cash equivalents 1,500,604 2,189,092


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank and in hand 1,500,604 (544,736 ) 955,868
1,500,604 (544,736 ) 955,868
Debt
Debts falling due within 1 year (85,920 ) (15,457 ) (101,377 )
Debts falling due after 1 year (945,120 ) 74,605 (870,515 )
(1,031,040 ) 59,148 (971,892 )
Total 469,564 (485,588 ) (16,024 )

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Salons Direct Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

- The expected lives of property, plant and equipment.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding value added tax and other sales taxes. All sales are in relation to the sole activity of providing hairdressing and beauty supplies and equipment.

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.

Computer software is being amortised evenly over its estimated useful life of three years.

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 bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life.

Freehold property2% on cost for buildings, nil for land
Improvements to property2% on cost
Plant and machinery15% on reducing balance
Fixtures and fittings10-20% on cost

Freehold property is held under the historical cost model as permitted by FRS 102.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Deferred 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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.

Hire purchase and 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.

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Debtors
Short term debtors are measured at transaction price, less any impairment.

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.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and directors loan accounts (being repayable on demand).

Going concern
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.24 31.3.23
£ £
Hair 17,757,610 15,552,270
Beauty 6,037,244 5,999,756
Furniture 3,816,385 3,044,603
Discounts (2,508,181 ) (1,524,743 )
Other 613,466 690,805
25,716,524 23,762,691

4. EMPLOYEES AND DIRECTORS
31.3.24 31.3.23
£ £
Wages and salaries 3,242,388 2,549,122
Social security costs 315,680 273,200
Other pension costs 68,755 48,878
3,626,823 2,871,200

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.3.24 31.3.23

Administration 50 42
Warehouse and Call Centre 50 50
100 92

31.3.24 31.3.23
£ £
Directors' remuneration 108,500 141,111
Directors' pension contributions to money purchase schemes 1,750 1,750

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 6

5. OPERATING PROFIT

The operating profit is stated after charging:

31.3.24 31.3.23
£ £
Other operating leases 27,168 25,812
Depreciation - owned assets 87,585 68,430
Computer software amortisation 11,201 -
Auditors' remuneration 14,000 14,000
Foreign exchange differences 7,871 -
Auditors remuneration for non-audit services (Other) - 6,033

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.24 31.3.23
£ £
Bank interest 87,643 44,667

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.24 31.3.23
£ £
Current tax:
UK corporation tax 170,947 31,233

Deferred tax 37,258 36,909
Tax on profit 208,205 68,142

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 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:

31.3.24 31.3.23
£ £
Profit before tax 803,682 308,991
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

200,921

58,708

Effects of:
Capital allowances in excess of depreciation (29,974 ) (27,475 )


Deferred taxation 37,258 36,909
Total tax charge 208,205 68,142

8. DIVIDENDS
31.3.24 31.3.23
£ £
Ordinary shares of 1 each
Final 124,000 132,000
A Ordinary shares of 1 each
Final 389,661 400,200
513,661 532,200

9. INTANGIBLE FIXED ASSETS
Computer
software
£
COST
Additions 77,682
At 31 March 2024 77,682
AMORTISATION
Amortisation for year 11,201
At 31 March 2024 11,201
NET BOOK VALUE
At 31 March 2024 66,481

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Freehold Improvements Plant and and
property to property machinery fittings Totals
£ £ £ £ £
COST
At 1 April 2023 2,086,574 525,751 239,071 1,322,393 4,173,789
Additions - - 2,487 130,496 132,983
At 31 March 2024 2,086,574 525,751 241,558 1,452,889 4,306,772
DEPRECIATION
At 1 April 2023 127,030 53,015 165,264 1,191,627 1,536,936
Charge for year 20,824 10,515 11,195 45,051 87,585
At 31 March 2024 147,854 63,530 176,459 1,236,678 1,624,521
NET BOOK VALUE
At 31 March 2024 1,938,720 462,221 65,099 216,211 2,682,251
At 31 March 2023 1,959,544 472,736 73,807 130,766 2,636,853

11. STOCKS
31.3.24 31.3.23
£ £
Stocks 2,581,621 2,880,340

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£ £
Trade debtors 404,361 171,621
Other debtors 1,082,274 1,121,294
Directors' current accounts 1,505,739 1,376,205
Prepayments 536,819 531,519
3,529,193 3,200,639

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£ £
Bank loans and overdrafts (see note 15) 101,377 85,920
Trade creditors 2,830,299 2,910,079
Corporation tax 273,334 606,057
VAT 471,576 434,834
Other creditors 230,191 -
Social security 62,543 72,084
Directors' current accounts 473 392
Accrued expenses 108,671 217,287
Deferred government grants - 199,300
4,078,464 4,525,953

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.3.24 31.3.23
£ £
Bank loans (see note 15) 870,515 945,120

15. LOANS

An analysis of the maturity of loans is given below:

31.3.24 31.3.23
£ £
Amounts falling due within one year or on demand:
Bank loans 101,377 85,920

Amounts falling due between one and two years:
Bank loans - 1-2 years 101,376 85,920

Amounts falling due between two and five years:
Bank loans - 2-5 years 304,130 257,760

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 465,009 601,440

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.24 31.3.23
£ £
Within one year 54,204 38,724
Between one and five years 120,789 72,340
In more than five years - 1,999
174,993 113,063

17. SECURED DEBTS

The following secured debts are included within creditors:

31.3.24 31.3.23
£ £
Bank loans 971,892 1,031,040

The bank loan is secured through a legal charge dated 27th March 2015 against the property to which it relates.

The bank loan is repayable over 20 years with an interest rate of 2.25% above The Bank of England base rate.

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

18. FINANCIAL INSTRUMENTS

Financial assets that are debt instruments measured at amortised cost comprise of trade debtors and other debtors.

Financial liabilities measure at amortised cost comprise trade creditors, accrued expenses and hire purchase contracts.

19. PROVISIONS FOR LIABILITIES
31.3.24 31.3.23
£ £
Deferred tax 193,756 156,500

Deferred tax
£
Balance at 1 April 2023 156,500
Unused amounts reversed during year (2 )
Charge in year 37,258
Balance at 31 March 2024 193,756

Deferred tax represents the tax charge on the timing difference between the value of the company's assets for tax purposes versus the value in the financial statements.

In the budget on 3 March 2021, the UK Government announced an increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. The change in rate was substantively enacted on 24 May 2021. Deferred tax has been calculated at 25% (2023 - 25%).

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.24 31.3.23
value: £ £
5,000 Ordinary 1 5,000 5,000
150 A Ordinary 1 150 150
5,150 5,150

Called up share capital - Represents the nominal value of shares that have been issued.
The company's ordinary shares and ordinary 'A' shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

21. RESERVES
Retained
earnings
£

At 1 April 2023 4,585,713
Profit for the year 595,477
Dividends (513,661 )
At 31 March 2024 4,667,529

Retained earnings includes all current and prior period retained profits and losses.

22. PENSION COMMITMENTS

The company operates a defined contribution scheme on behalf of its directors and employees. The scheme is held in a separately administered fund from the company. Contributions in the year amounted to £67,035 (2023 - £47,128).

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023:

31.3.24 31.3.23
£ £
D G Roberts and V M Roberts
Balance outstanding at start of year 1,375,868 1,177,512
Amounts advanced 253,871 330,356
Amounts repaid (124,000 ) (132,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,505,739 1,375,868

Overdrawn directors' loan accounts are interest free and repayable on demand.

Mr D G Roberts and Mrs V M Roberts (directors of the company) hold personal guarantees against the company's bank loans. The personal guarantees amount to £450,000 (2023 - £450,000), against bank loans with an outstanding balance of £971,892 (2023 - £1,031,040).

Salons Direct Limited (Registered number: 03018632)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

24. RELATED PARTY DISCLOSURES

Included within other debtors as at 31 March 2024, the company is owed the following amounts from companies under the control of the ultimate controlling party:
31.3.24 31.3.23
£    £   

House of Famuir Limited 195,319 170,384
Hof Beauty Holdings Limited 424,058 424,058
Salon Fittings Limited (41,051 ) 3,880


In the year, the company made sales to, and purchases from, House of Famuir Limited amounting to £12,729 (2023 - £7,430) and £201,953 (2023 - £101,107) respectively. The following balances in relation to trading activities undertaken with these parties are included within debtors and creditors:

31.3.23 31.3.23
£    £   

Due from House of Famuir Limited - included within trade debtors 12,007 3,532
Due to House of Famuir Limited - included within trade creditors (70,379 ) (46,681 )

25. ULTIMATE CONTROLLING PARTY

The company is under the control of Mr D G Roberts and Mrs V M Roberts by way of their shareholdings.