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REGISTERED NUMBER: 07705721 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Ship It Appliances Limited

Ship It Appliances Limited (Registered number: 07705721)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Profit and Loss Account 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Ship It Appliances Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: S Johnson
B Johnson
Mrs H Johnson





REGISTERED OFFICE: 8 Coronet Way
Salford
Greater Manchester
M50 1RE





REGISTERED NUMBER: 07705721 (England and Wales)





AUDITORS: Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

Ship It Appliances Limited (Registered number: 07705721)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
Business Overview
Ship It Appliances Limited specializes in the online retail of kitchen appliances, offering a diverse range of products including cooker hoods, ovens, hobs, and sinks. The company emphasizes affordability and quality, catering to both individual consumers and trade customers.

Going concern
The company is funded by intercompany loans within its parent For Everyone Group Limited. For Everyone Group Limited Group (Group) endured a difficult financial year in 2023, with negative economic conditions reducing margins, increasing operating costs and causing the group to make operating losses. These losses were driven by reduced margin, increased delivery costs, foreign exchange losses, stock provisions and high operating costs with key partners. Whilst revenue has remained strong the group acknowledges costs have not been focused on. In 2024 the group has realigned its buying strategy and recovered inventory management to ensure stock is acquired to demand plans whilst also reviewing prices and undergoing a major cost restructuring exercise. Restructuring costs includes closure of a large warehouse in Mansfield, key partner costs have been renegotiated to reduce rates and an internal review on resourcing.

The Group continues to be funded by third party lenders Close Invoice Finance Ltd (Close), through an invoice financing facility, stock based lending facility and term loan which grants the company working capital to run its day to day operations. This funding arrangement was completed on 13th October 2023 and is provided with monthly covenant conditions on debt servicing and cash headroom. These covenants were breached throughout inception, as such, following the restructuring strategy and with the agreement of Close these covenants were adjusted on the 18th October 2024 to ensure adjusted covenants are achievable whilst the business transitions. Close have agreed to take no action on previous covenant breaches whilst requiring the group has an external review of forecasts by a third party accountancy firm, the adjusted agreement was indemnified by Stephen and Brian Johnson.

After reviewing the company forecasts and projections up to 31 December 2025, the Directors have a reasonable expectation that the group has adequate resources and support to continue in operational existence for the foreseeable future. The group's ability to continue as a going concern is dependant on the continued access to financing from third party lenders (Close Invoice Finance Limited) and key Chinese suppliers. The company has adequate headroom within its invoicing financing facility with the support of outstanding Chinese suppliers debts and enhanced terms for payment.

The shareholders are committed to not withdrawing equity or repaying shareholder loans within the group. Any inflows from shareholders will continue to support the group and the Directors have indemnified Close Brothers. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Business Model
Operating primarily through its e-commerce platform, Ship It Appliances sources products from various manufacturers, including its in-house brand, SIA. The company maintains a streamlined supply chain to ensure timely delivery and competitive pricing. Customer service excellence and a user-friendly online shopping experience are central to its operations.

Strategic Objectives
1. Product Range Expansion: Continuously broadening the selection of kitchen appliances to meet evolving customer preferences.

2. Brand Development: Enhancing the market presence of the SIA brand by introducing innovative and reliable products.

3. Customer Experience: Investing in website enhancements and customer support to improve the overall shopping experience.

4. Operational Efficiency: Streamlining logistics and inventory management to reduce costs and improve delivery times.

Market Environment
The UK kitchen appliance market is highly competitive, with numerous retailers offering a wide array of products. Consumer trends indicate a growing demand for energy-efficient and smart appliances. The shift towards online shopping has been accelerated by recent global events, increasing the importance of a robust digital presence.


Ship It Appliances Limited (Registered number: 07705721)

Strategic Report
for the Year Ended 31 December 2023


Principal Risks and Uncertainties
1. Supply Chain Disruptions: Potential delays or shortages from suppliers could impact product availability.

2. Market Competition: Intense competition may affect market share and profit margins.

3. Economic Factors: Economic downturns could reduce consumer spending on non-essential items.

4. Technological Changes: Rapid advancements in technology require continuous adaptation to meet consumer expectations.

Key Performance Indicators (KPIs)

2023 2022
Turnover '000 £19,146 £13,134
Gross profit % 22.65% 30.95%

Future Prospects
Ship It Appliances aims to strengthen its market position by expanding its product offerings, enhancing the SIA brand, and improving the online shopping experience. The company plans to invest in marketing initiatives to increase brand awareness and attract a broader customer base. Additionally, efforts to optimize operational processes are expected to contribute to sustained growth and profitability.

ON BEHALF OF THE BOARD:





S Johnson - Director


12 December 2024

Ship It Appliances Limited (Registered number: 07705721)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

S Johnson
B Johnson

Other changes in directors holding office are as follows:

Mrs H Johnson - appointed 18 April 2023

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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 the financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;
- make judgements and accounting estimates that are reasonable and prudent; and
- 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.

The directors 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.

AUDITORS
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Johnson - Director


12 December 2024

Report of the Independent Auditors to the Members of
Ship It Appliances Limited

Opinion
We have audited the financial statements of Ship It Appliances Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Other 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 31 December 2023 and of its loss 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 qualified 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.

We were not appointed as auditors of Ship It Appliances Limited until after 31st December 2022 and thus did not observe the counting of physical stock at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31st December 2022, which are stated in the balance sheet at £2,416,316.

As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded stock, and the elements making up the profit and loss account, statement of changes in equity and statement of cash flows.

Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the company has held discussions regarding its principal financing.

As part of these discussions, revised forecasts have been prepared and reduced covenant obligations have been agreed until June 2025, as the original covenants were unable to be met. The revised forecasts are to be subject to a review by a competent third party firm of accountants as requested by the company's main lender of finances. If the third party's review of the revised forecasts indicates that the reduced covenants will not be met, the lender will complete a further internal review before deciding upon the future funding facility.

The wider group is also considering the potential sale of business assets, which would significantly reduce the group's exposure to requiring third party lending.

As stated in Note 2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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, as noted above.

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.

Report of the Independent Auditors to the Members of
Ship It Appliances Limited


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.

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 Directors' Responsibilities Statement 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
Ship It Appliances 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the domestic appliances sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental consumer rights act, other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.


Report of the Independent Auditors to the Members of
Ship It Appliances Limited

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.

Other matters which we are required to address
In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.

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.




Richard Thompson BA FCA (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

12 December 2024

Ship It Appliances Limited (Registered number: 07705721)

Profit and Loss Account
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 19,146,229 13,133,567

Cost of sales 14,811,207 9,238,864
GROSS PROFIT 4,335,022 3,894,703

Distribution costs 1,560,571 1,301,548
Administrative expenses 5,019,963 3,671,083
6,580,534 4,972,631
OPERATING LOSS 5 (2,245,512 ) (1,077,928 )


Interest payable and similar expenses 7 7,368 4,054
LOSS BEFORE TAXATION (2,252,880 ) (1,081,982 )

Tax on loss 8 157,411 (191,266 )
LOSS FOR THE FINANCIAL YEAR (2,410,291 ) (890,716 )

Ship It Appliances Limited (Registered number: 07705721)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (2,410,291 ) (890,716 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (2,410,291 ) (890,716 )

Ship It Appliances Limited (Registered number: 07705721)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 202,795 284,594

CURRENT ASSETS
Stocks 10 2,707,664 2,416,316
Debtors 11 2,934,709 2,465,354
Cash at bank and in hand 92,231 194,496
5,734,604 5,076,166
CREDITORS
Amounts falling due within one year 12 9,401,240 5,448,449
NET CURRENT LIABILITIES (3,666,636 ) (372,283 )
TOTAL ASSETS LESS CURRENT LIABILITIES (3,463,841 ) (87,689 )

CREDITORS
Amounts falling due after more than one year 13 - 965,861
NET LIABILITIES (3,463,841 ) (1,053,550 )

CAPITAL AND RESERVES
Called up share capital 16 137 137
Share premium 17 99,963 99,963
Retained earnings 17 (3,563,941 ) (1,153,650 )
SHAREHOLDERS' FUNDS (3,463,841 ) (1,053,550 )

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2024 and were signed on its behalf by:





S Johnson - Director


Ship It Appliances Limited (Registered number: 07705721)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 137 (262,934 ) 99,963 (162,834 )

Changes in equity
Total comprehensive income - (890,716 ) - (890,716 )
Balance at 31 December 2022 137 (1,153,650 ) 99,963 (1,053,550 )

Changes in equity
Total comprehensive income - (2,410,291 ) - (2,410,291 )
Balance at 31 December 2023 137 (3,563,941 ) 99,963 (3,463,841 )

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Ship It Appliances 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.

Going concern
The financial statements have been prepared on the basis of going concern, which assumes that the company will continue to operate its business for the foreseeable future. The company's and the group's ability to continue as a going concern is dependent on the continued access to adequate headroom within its invoice financing facility together with the support of suppliers and enhanced terms of payment. However, as at the date of signing these accounts, the company has agreed reduced covenant obligations with its lender until June 2025 and these amended covenants are pending a third party review by a firm of accountants, as requested by the lender, against trading forecasts prepared by the directors. These forecasts assess whether the company has sufficient working capital and cash flows to meet its obligations as they fall due over the 12 months following the signing of these financial statements, including servicing its debt, maintaining operations, and fulfilling its commitments to employees and suppliers.

The company's directors are actively addressing the situation and are working towards finding a resolution that takes into account the interests of all its stakeholders. In particular, the directors are working with the company's principal lender along with third party advisors to consider the optimal route forward, including a possible sale of business assets which would significantly reduce the group's exposure to requiring third party funding. The funding facility is disclosed in the notes.

If the company is unable to successfully address the situation and its associated challenges, it may have a material adverse effect on the company's financial condition and operating results. Given the outcome of the third party review is not yet complete, there is a material uncertainty in relation to the ability of the company to continue as a going concern. The financial statements presented do not include any adjustments to reflect the downside scenario.

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions 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;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

The company has taken advantage of the exemption under paragraph 1.12(b) from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company For Everyone Group Limited includes the company's cash flows in its consolidated financial statements.

Critical Accounting Judgements and Key Estimates of Estimation Uncertainty.

The preparation of financial statements in conformity with generally accepted principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change.

The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects the period, or in the period of the revision and future periods if the revision affects both current and future periods. In this respect the directors believe that the critical accounting policies where judgements or estimations are necessarily applied are as follows.

Critical judgements in applying the company's accounting policies

There were no critical judgements made in applying the company's accounting policies.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - Straight line over 10 years
Plant and machinery - 15% on reducing balance
Motor vehicles - 15% on reducing balance

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, of economic utilisation of the assets.

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

Impairment of debtors

Management perform ongoing reviews of the recoverability of debtor balances. An allowance for doubtful debts is maintained for potential credit losses based on management's assessment of the expected collectability of amounts receivable. The allowance for bad debts is reviewed periodically to assess the adequacy of the allowance.

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

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.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 19,146,229 13,133,567
19,146,229 13,133,567

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 652,556 734,040
Social security costs 62,581 71,147
Other pension costs 15,282 16,035
730,419 821,222

The average number of employees during the year was as follows:
2023 2022

Administration 5 4
Operations 16 15
21 19

2023 2022
£    £   
Directors' remuneration - -

5. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 16,883 13,795
Other operating leases 292,618 230,257
Depreciation - owned assets 50,733 48,418
Loss on disposal of fixed assets 8,110 -
Auditors' remuneration 10,000 -

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional items (427,019 ) (193,700 )

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

During 2022, the exceptional items related to the correction of accounting transactions related to other debtor balances.

During 2023, the exceptional items related to a one off transaction relating to dilapidation on the leased building.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest payable 7,043 3,166
Hire purchase 325 888
7,368 4,054

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
Adjustment in respect of prior
years 56,668 (63,366 )

Deferred tax 100,743 (127,900 )
Tax on loss 157,411 (191,266 )

9. TANGIBLE FIXED ASSETS
Long Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 January 2023 61,845 439,962 49,990 551,797
Additions - 5,051 - 5,051
Disposals - - (49,990 ) (49,990 )
At 31 December 2023 61,845 445,013 - 506,858
DEPRECIATION
At 1 January 2023 34,049 219,281 13,873 267,203
Charge for year 6,495 44,238 - 50,733
Eliminated on disposal - - (13,873 ) (13,873 )
At 31 December 2023 40,544 263,519 - 304,063
NET BOOK VALUE
At 31 December 2023 21,301 181,494 - 202,795
At 31 December 2022 27,796 220,681 36,117 284,594

10. STOCKS
2023 2022
£    £   
Stocks 2,707,664 2,416,316

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 141,189 90,837
Amounts owed by group undertakings 2,595,669 1,563,888
Other debtors 114,817 104,311
S455 tax - 60,077
Deferred tax asset - 100,743
Prepayments 83,034 545,498
2,934,709 2,465,354

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) - 8,333
Trade creditors 285,840 1,147,950
Amounts owed to group undertakings 8,249,589 3,746,319
Tax - 42,324
Social security and other taxes 30,104 22,367
VAT 238,973 105,496
Other creditors 108,109 56,877
Accrued expenses 488,625 318,783
9,401,240 5,448,449

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) - 5,556
Amounts owed to group undertakings - 960,305
- 965,861

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 8,333
Between one and five years - 5,556
- 13,889

Non-cancellable operating leases
2023 2022
£    £   
Within one year 203,360 203,360
Between one and five years 389,773 593,133
593,133 796,493

The financial commitments noted above represents the total amount of payments remaining on property leases.

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts - 13,889

A fixed and floating charge over all company assets and undertakings is held by Lloyds Bank Commercial Finance Ltd, this charge contains a negative pledge.

The group has entered into a multilateral guarantee with the Lloyds Bank Commercial Finance Ltd as follows:

Debentures consisting of fixed and floating charged over all the assets and undertaking of the reporting entity, OEM Appliances, Coolmed Limited, Xingbang UK Limited, Ship It Appliances Limited, For Everyone Group Ltd, Evec Ltd, CWW Holdings Limited and Coolmed Calibration Ltd.

In addition a further debenture has been entered into with Close Brothers Limited which includes a fixed and floating charges of the assets of the company and its fellow group companies, Coolmed Limited, Evec Limited, OEM Appliances Limited and Xingbang UK Limited.

As at 31 December 2023, the group had an invoice finance facility of £3,865,346 and a loan of £1,208,334.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
66 A ordinary £1 66 66
4 B ordinary £1 4 4
33 C ordinary £1 33 33
17 D ordinary £1 17 17
17 E ordinary £1 17 17
137 137

17. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 (1,153,650 ) 99,963 (1,053,687 )
Deficit for the year (2,410,291 ) (2,410,291 )
At 31 December 2023 (3,563,941 ) 99,963 (3,463,978 )

18. OTHER FINANCIAL COMMITMENTS

Pension Commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge in respect of contributions to the fund amounts to £15,282 (2022 £16,035).

19. 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.

Ship It Appliances Limited (Registered number: 07705721)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. ULTIMATE CONTROLLING PARTY

On 1st April 2022, For Everyone Group Limited acquired 100% of the shareholding in OEM Appliances Limited, the parent company of Ship It Appliances Limited. At this point, For Everyone Group Limited became the ultimate parent undertaking and controlling party by means of its shareholding in OEM Appliances Limited. The registered office of For Everyone Group Limited is Unit 8 Centenary Park, Coronet Way, Salford, Greater Manchester, England, M50 1RE.