REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 March 2024 |
for |
Salons Direct Limited |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
3rd Floor Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
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 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
592,675 | 351,605 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
891,325 | 353,658 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Salons Direct Limited (Registered number: 03018632) |
Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (129,453 | ) | (198,438 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 87,643 | 44,667 |
Finance income | (8,237 | ) | (2,053 | ) |
782,574 | 420,036 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the 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 | ( |
) | 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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
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 property | 2% on cost for buildings, nil for land |
Improvements to property | 2% on cost |
Plant and machinery | 15% on reducing balance |
Fixtures and fittings | 10-20% 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 |
£ | £ |
( |
) | ( |
) |
4. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
31.3.24 | 31.3.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.3.24 | 31.3.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange differences |
Auditors remuneration for non-audit services (Other) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
£ | £ |
Bank interest |
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 |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
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 |
A Ordinary shares of 1 each |
Final |
9. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
Additions |
At 31 March 2024 |
AMORTISATION |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
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 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
11. | STOCKS |
31.3.24 | 31.3.23 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 1,505,739 | 1,376,205 |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Corporation tax |
VAT |
Other creditors |
Social security | 62,543 | 72,084 |
Directors' current accounts | 473 | 392 |
Accrued expenses |
Deferred government grants |
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) |
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 |
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 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 |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans |
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 |
Unused amounts reversed during year | ( |
) |
Charge in year | 37,258 |
Balance at 31 March 2024 |
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: | £ | £ |
Ordinary | 1 | 5,000 | 5,000 |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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. |