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REGISTERED NUMBER: 04094887 (England and Wales)
























STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

FOR

SPECIALIST CRAFTS LIMITED

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


SPECIALIST CRAFTS LIMITED

COMPANY INFORMATION
For The Year Ended 30 June 2024







DIRECTORS: D W Edwards
S Khele
A P Skidmore





REGISTERED OFFICE: Hamilton House
21 Mountain Road
Leicester
Leicestershire
LE4 9HQ





REGISTERED NUMBER: 04094887 (England and Wales)





INDEPENDENT AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

STRATEGIC REPORT
For The Year Ended 30 June 2024


The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The company delivered strong revenue growth for the 12 months to 30 June 2024, which was primarily driven by strong UK customer retention and increased market share penetration in international markets.

Inflationary driven headwinds continued to put pressure on margins and overheads for the 12 months to 30 June 2024, however strong procurement effectiveness, operational efficiency gains and robust cost control mitigated the impact on profitability from continued operations.

Strong cashflow growth for the period was achieved through further year on year working capital enhancements and strong profitability, whilst at the same time significantly reducing the level of AR linked short term borrowings.

Whilst the economic climate remains a challenge with continued pressure on customer budgets and inflationary pressures on key overheads, the board of directors has accelerated investments in marketing, technology developments and operational processes to further advance business prosperity.


KEY PERFORMANCE INDICATORS

The company's performance during the period was as follows:

2024 (12 months ) 2023 (10 months ) 2022 (12 months )
Turnover 15,522,974 11,389,249 15,190,596
EBITDA 1,222,105 887,314 1,331,580
Restructuring Costs - (137,000 ) -
EBT 1,072,858 590,882 1,169,453
Headcount 65 68 70

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the business continue to be the competitive nature of the market place in which the company operates and the impact of Government spending cuts on the customer base.

Financial risk management objectives and policies
The Company uses financial instruments comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations. The main risks arising from the financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.

Interest rate risk
The company finances its operations through a mixture of retained profits, bank borrowings and other borrowings. The company's exposure to interest fluctuations on its borrowings is managed by the use of both fixed and floating facilities.


SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

STRATEGIC REPORT
For The Year Ended 30 June 2024

Liquidity risk
The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities.

Currency risk
The company is exposed to transaction foreign exchange risk. Transaction exposures are hedges when known, mainly using the forward hedge market.

ON BEHALF OF THE BOARD:





D W Edwards - Director


19 December 2024

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

DIRECTORS' REPORT
For The Year Ended 30 June 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesaling of arts and crafts materials, by mail order and via the internet.

DIVIDENDS
The total distribution of dividends for the year ended 30 June 2024 will be £ 330,000 .

FUTURE DEVELOPMENTS
The directors continue to innovate, building on the group's existing customer portfolio and product range.

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

D W Edwards
S Khele

Other changes in directors holding office are as follows:

A P Skidmore - appointed 15 February 2024

FINANCIAL INSTRUMENTS
The company uses financial instruments comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

DIRECTORS' REPORT
For The Year Ended 30 June 2024


AUDITORS
In accordance with section 485 of the Companies Act 2006, the auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D W Edwards - Director


19 December 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPECIALIST CRAFTS LIMITED


Opinion
We have audited the financial statements of Specialist Crafts Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 30 June 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 Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPECIALIST CRAFTS 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 Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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.

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 irrelagularities
including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

- We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

- We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

- Based on our understanding, we designed our audit procedures to identify any non-compliance with laws
and regulations identified in the paragraphs above.

- We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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
SPECIALIST CRAFTS 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.




Emma Jones FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

19 December 2024

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

STATEMENT OF COMPREHENSIVE
INCOME
For The Year Ended 30 June 2024

Period
3.9.22
Year ended to
30.6.24 30.6.23
Notes £    £   

TURNOVER 4 15,522,974 11,389,249

Cost of sales 10,870,440 8,154,373
GROSS PROFIT 4,652,534 3,234,876

Administrative expenses 3,489,593 2,554,596
OPERATING PROFIT 7 1,162,941 680,280

Interest receivable and similar income 9 4,319 2,215
1,167,260 682,495

Interest payable and similar expenses 10 94,402 91,613
PROFIT BEFORE TAXATION 1,072,858 590,882

Tax on profit 11 188,215 91,577
PROFIT FOR THE FINANCIAL YEAR 884,643 499,305

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

884,643

499,305

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

BALANCE SHEET
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 13 39,195 79,378
Tangible assets 14 93,055 138,352
Investments 15 75,000 75,000
207,250 292,730

CURRENT ASSETS
Stocks 16 2,767,545 3,214,139
Debtors 17 4,694,331 4,593,248
Cash at bank 469,176 405,112
7,931,052 8,212,499
CREDITORS
Amounts falling due within one year 18 3,277,370 3,690,836
NET CURRENT ASSETS 4,653,682 4,521,663
TOTAL ASSETS LESS CURRENT LIABILITIES 4,860,932 4,814,393

CREDITORS
Amounts falling due after more than one
year

19

(100,000

)

(600,000

)

PROVISIONS FOR LIABILITIES 22 (37,496 ) (45,600 )
NET ASSETS 4,723,436 4,168,793

CAPITAL AND RESERVES
Called up share capital 23 2,000,000 2,000,000
Retained earnings 24 2,723,436 2,168,793
SHAREHOLDERS' FUNDS 4,723,436 4,168,793

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 W Edwards - Director


SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 3 September 2022 2,000,000 1,969,488 3,969,488

Changes in equity
Dividends - (300,000 ) (300,000 )
Total comprehensive income - 499,305 499,305
Balance at 30 June 2023 2,000,000 2,168,793 4,168,793

Changes in equity
Dividends - (330,000 ) (330,000 )
Total comprehensive income - 884,643 884,643
Balance at 30 June 2024 2,000,000 2,723,436 4,723,436

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2024


1. STATUTORY INFORMATION

Specialist Crafts 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.

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.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Specialist Crafts Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Dryad Creative Limited, 21 Mountain Road, Leicester, LE4 9HQ.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/ value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of twenty years.

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Short leasehold - Straight line over 10 years
Plant and machinery - Straight line over 4 years and Straight line over 10 years
Fixtures and fittings - Straight line over 5 years and Straight line over 20 years
Computer equipment - Straight line over 5 years

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where the fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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 reporting date in the countries where the company operates and generates taxable income.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

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. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right., at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Trade debtors - The directors carefully consider the recoverability of trade debtors based on their experience of customers' payment history and the likelihood of recovery.

Determining net realisable values of stocks - In determining the net realisable value of stocks, management takes into account the most reliable evidence available at the dates the estimates are made.

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
United Kingdom 6,759,748 7,612,028
Europe 1,545,986 1,120,065
Rest of the world 7,217,240 2,657,156
15,522,974 11,389,249

5. EMPLOYEES AND DIRECTORS
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Wages and salaries 2,285,783 1,693,685
Social security costs 227,122 164,990
Other pension costs 35,171 24,479
2,548,076 1,883,154

The average number of employees during the year was as follows:
Period
3.9.22
Year ended to
30.6.24 30.6.23

Directors 2 1
Other departments 64 67
66 68

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


6. DIRECTORS' EMOLUMENTS
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Directors' remuneration 287,587 102,432
Directors' pension contributions to money purchase schemes 1,871 1,835

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

Money purchase schemes 1 1

Information regarding the highest paid director for the year ended 30 June 2024 is as follows:


Year ended
30.6.24
£   
Emoluments etc 123,000
Pension contributions to money purchase schemes 1,321

7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Other operating leases 21,937 23,078
Depreciation - owned assets 16,684 39,010
(Profit)/loss on disposal of fixed assets (54 ) 4,471
Computer software amortisation 42,534 31,023
Foreign exchange differences 153,092 39,094
Operating lease expense - Vehicles 29,945 26,702

8. AUDITORS' REMUNERATION
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

21,805

14,653

The above auditors' remuneration includes fees in relation to the audit of the parent company, Dryad Creative Limited.

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


9. INTEREST RECEIVABLE AND SIMILAR INCOME
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Deposit account interest 4,319 2,215

10. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Bank loan interest 94,402 91,613

11. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax 196,319 83,601

Deferred tax (8,104 ) 7,976
Tax on profit 188,215 91,577

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
Profit before tax 1,072,858 590,882
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 20.810%)

268,215

122,963

Effects of:
Expenses not deductible for tax purposes 1,278 17,382
Capital allowances in excess of depreciation - (1,732 )
Depreciation in excess of capital allowances 6,861 -
Adjustments to tax charge in respect of previous periods - (19 )
Deferred tax movement (8,104 ) (541 )
Group relief (80,035 ) (57,680 )
Adjustment in respect of PY Deferred Tax - 11,204
Total tax charge 188,215 91,577

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


12. DIVIDENDS
Period
3.9.22
Year ended to
30.6.24 30.6.23
£    £   
A Ordinary shares of £1 each
Final 330,000 300,000

13. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 July 2023 3,551,791 132,745 3,684,536
Additions - 2,351 2,351
At 30 June 2024 3,551,791 135,096 3,686,887
AMORTISATION
At 1 July 2023 3,551,791 53,367 3,605,158
Amortisation for year - 42,534 42,534
At 30 June 2024 3,551,791 95,901 3,647,692
NET BOOK VALUE
At 30 June 2024 - 39,195 39,195
At 30 June 2023 - 79,378 79,378

14. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 July 2023 58,566 79,997 785,600 70,397 994,560
Additions - 12,310 16,578 615 29,503
Disposals - - (66,144 ) - (66,144 )
At 30 June 2024 58,566 92,307 736,034 71,012 957,919
DEPRECIATION
At 1 July 2023 42,907 74,592 671,797 66,912 856,208
Charge for year (12,549 ) 1,408 26,922 903 16,684
Eliminated on disposal - - (8,028 ) - (8,028 )
At 30 June 2024 30,358 76,000 690,691 67,815 864,864
NET BOOK VALUE
At 30 June 2024 28,208 16,307 45,343 3,197 93,055
At 30 June 2023 15,659 5,405 113,803 3,485 138,352

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


15. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 July 2023
and 30 June 2024 75,000
NET BOOK VALUE
At 30 June 2024 75,000
At 30 June 2023 75,000

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Specialist Crafts Leicester Limited
Registered office: England
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

16. STOCKS
2024 2023
£    £   
Stocks 1,984,932 2,168,601
Goods In Transit 782,613 1,045,538
2,767,545 3,214,139

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,517,570 1,370,299
Amounts owed by group undertakings 2,635,765 2,664,303
Other debtors 100,000 100,000
VAT 43,289 79,887
Prepayments and accrued income 397,707 378,759
4,694,331 4,593,248

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Debt Factoring facility (CID) (see note 20) 35,173 216,246
Other loans (see note 20) 300,000 300,000
Trade creditors 2,028,656 2,514,907
Amounts owed to group undertakings 75,000 75,000
Corporation tax 78,397 46,961
Social security and other taxes 102,404 74,189
Other creditors 199,339 156,036
Accrued expenses 458,401 307,497
3,277,370 3,690,836

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Other loans (see note 20) 100,000 600,000

Loans totalling £400,000 (2023: £900,000) are secured on all the property and undertaking of the company.

20. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Debt Factoring facility (CID) 35,173 216,246
Other loans 300,000 300,000
335,173 516,246

Amounts falling due between one and two years:
Other loans - 1-2 years 100,000 300,000

Amounts falling due between two and five years:
Other loans - 2-5 years - 300,000

21. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 392,797 305,593
Between one and five years 1,378,109 1,655,075
In more than five years 55,000 55,000
1,825,906 2,015,668

22. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 37,496 45,600

Deferred
tax
£   
Balance at 1 July 2023 45,600
Credit to Statement of Comprehensive Income during year (8,104 )
Balance at 30 June 2024 37,496

SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 30 June 2024


23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,040,001 A Ordinary £1 479,999 479,999
479,999 B Ordinary £1 1,040,001 1,040,001
479,999 C Ordinary £1 479,999 479,999
1 D Ordinary £1 1 1
2,000,000 2,000,000

24. RESERVES
Retained
earnings
£   

At 1 July 2023 2,168,793
Profit for the year 884,643
Dividends (330,000 )
At 30 June 2024 2,723,436

25. 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 £35,171 (2023 - £24,478).

Contributions totalling £15,387 (2023: £12,962) were payable to the fund balance sheet date.

26. ULTIMATE PARENT COMPANY

Dryad Creative Limited is regarded by the directors as being the company's ultimate parent company.

Dryad Creative Limited is owned and controlled by the directors of Specialist Crafts Limited.

27. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, a total of key management personnel compensation of £ 331,823 (2023 - £ 109,227 ) was paid.