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Company No: 07188320 (England and Wales)

GRENSON LTD.

Annual Report and Financial Statements
For the financial year ended 31 March 2024

GRENSON LTD.

Annual Report and Financial Statements

For the financial year ended 31 March 2024

Contents

GRENSON LTD.

COMPANY INFORMATION

For the financial year ended 31 March 2024
GRENSON LTD.

COMPANY INFORMATION (continued)

For the financial year ended 31 March 2024
DIRECTORS Jonathan G Hutchings
Julia A Little
Timothy C Little
REGISTERED OFFICE Grenson House
C2
Crown Way
Rushden
NN10 6BS
United Kingdom
COMPANY NUMBER 07188320 (England and Wales)
AUDITOR Dixon Wilson Audit Services LLP, Statutory Auditor
22 Chancery Lane
London
WC2A 1LS
GRENSON LTD.

STRATEGIC REPORT

For the financial year ended 31 March 2024
GRENSON LTD.

STRATEGIC REPORT (continued)

For the financial year ended 31 March 2024

The directors present their Strategic Report for the financial year ended 31 March 2024.

REVIEW OF THE BUSINESS

The Company’s principal activity during the year was that of shoe manufacture, wholesale and retail. The Company retails footwear and accessories at the high end of the market and wholesales worldwide.

The war in Ukraine continued to create economic uncertainty. Matters were further complicated by the continuing effects of Brexit on supply chains.

Sales fell in the year to £5,738,274 (2023- £6,964,858). Increased administrative expenses and the writing off of goodwill resulted in a pre-tax loss of £1,047,900 (2023 - £328,538).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company revolve around the continued uncertainties in the economy which have been exacerbated by the effects of Brexit and the continuation of the war in Ukraine. The war has continued to cause uncertainty and costs such as freight, energy, materials etc. are still high. This looks set to continue at least until the end of the current financial year.

Approved by the Board of Directors and signed on its behalf by:

Timothy C Little
Director

16 January 2025

GRENSON LTD.

DIRECTORS' REPORT

For the financial year ended 31 March 2024
GRENSON LTD.

DIRECTORS' REPORT (continued)

For the financial year ended 31 March 2024

The directors present their annual report on the affairs of the Company, together with the financial statements and auditor's report, for the financial year ended 31 March 2024.

PRINCIPAL ACTIVITIES

The principal activity of the Company during the financial year was the manufacture and sale of footwear.

GOING CONCERN

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements. Further details regarding the adoption of the going concern basis can be found in note 1 to the financial statements.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

Jonathan G Hutchings
Julia A Little
Timothy C Little

Financial Instruments

*Objectives and policies*

The company's financial instruments include bank accounts for day-to-day working capital and other financial assets and liabilities arising from its operations such as trade debtors and trade creditors.

*Price risk, credit risk, liquidity risk and cash flow risk*

The company manages its cash and borrowing requirements to ensure it has sufficient liquid resources to meet the operating needs of the business.

All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an on-going basis and provision is made for doubtful debts where necessary.

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

• So far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and
• The director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself
aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.



Approved by the Board of Directors and signed on its behalf by:

Timothy C Little
Director

16 January 2025

GRENSON LTD.

DIRECTORS' RESPONSIBILITIES STATEMENT

For the financial year ended 31 March 2024
GRENSON LTD.

DIRECTORS' RESPONSIBILITIES STATEMENT (continued)

For the financial year ended 31 March 2024

The directors are responsible for preparing the annual 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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that financial 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;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRENSON LTD.

For the financial year ended 31 March 2024

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRENSON LTD. (continued)

For the financial year ended 31 March 2024

Report on the audit of the financial statements

Opinion

We have audited the financial statements of GRENSON LTD (the ‘company’) for the year ended 31 March 2024 which comprise the profit and loss account, balance sheet, 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 March 2024 and of its loss for the year then ended;
• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
• Have been prepared in accordance with the requirements of the Companies Act 2006.

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).

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 Auditor’s responsibilities for the audit of the financialstatements section of our report.

We are independent of the company in accordance with the ethical requirements thatare 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financialstatements 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 obtainedin 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Responsibilities of directors

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

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered 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:
 
We gained an understanding of the legal and regulatory framework applicable to the company by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that 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.
 
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law, UK tax legislation, UK Employment Law and Health and Safety regulations and the UK General Data Protection Regulation.
 
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
 
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. We did not identify any key audit matters relating to irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Report on other legal and regulatory requirements

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 Directors’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and 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.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Wakefield (Senior Statutory Auditor)
For and on behalf of
Dixon Wilson Audit Services LLP, Statutory Auditor
Statutory Auditor

22 Chancery Lane
London
WC2A 1LS

16 January 2025

GRENSON LTD.

PROFIT AND LOSS ACCOUNT

For the financial year ended 31 March 2024
GRENSON LTD.

PROFIT AND LOSS ACCOUNT (continued)

For the financial year ended 31 March 2024
Note 2024 2023
£ £
Turnover 2 5,738,274 6,964,858
Cost of sales ( 2,681,840) ( 3,238,653)
Gross profit 3,056,434 3,726,205
Distribution costs ( 530,139) ( 571,362)
Administrative expenses ( 3,641,171) ( 3,517,609)
Other operating income 3 3,650 4,275
Operating loss ( 1,111,226) ( 358,491)
Interest receivable and similar income 4 63,326 29,953
Loss before taxation 5 ( 1,047,900) ( 328,538)
Tax on loss 9 56,454 19,412
Loss for the financial year ( 991,446) ( 309,126)
GRENSON LTD.

BALANCE SHEET

As at 31 March 2024
GRENSON LTD.

BALANCE SHEET (continued)

As at 31 March 2024
Note 2024 2023
£ £
Fixed assets
Intangible assets 11 0 273,000
Tangible assets 12 84,030 134,105
84,030 407,105
Current assets
Stocks 13 2,572,043 2,159,309
Debtors 14 290,373 591,162
Cash at bank and in hand 15 1,212,360 2,045,539
4,074,776 4,796,010
Creditors: amounts falling due within one year 16 ( 577,654) ( 558,285)
Net current assets 3,497,122 4,237,725
Total assets less current liabilities 3,581,152 4,644,830
Provision for liabilities 17 ( 136,250) ( 38,482)
Net assets 3,444,902 4,606,348
Capital and reserves 19
Called-up share capital 700,000 700,000
Profit and loss account 2,744,902 3,906,348
Total shareholders' funds 3,444,902 4,606,348

The financial statements of GRENSON LTD. (registered number: 07188320) were approved and authorised for issue by the Board of Directors on 16 January 2025. They were signed on its behalf by:

Timothy C Little
Director
GRENSON LTD.

STATEMENT OF CHANGES IN EQUITY

For the financial year ended 31 March 2024
GRENSON LTD.

STATEMENT OF CHANGES IN EQUITY (continued)

For the financial year ended 31 March 2024
Called-up share capital Profit and loss account Total
£ £ £
At 01 April 2022 700,000 4,495,474 5,195,474
Loss for the financial year 0 ( 309,126) ( 309,126)
Total comprehensive loss 0 ( 309,126) ( 309,126)
Dividends paid on equity shares (note 10) 0 ( 280,000) ( 280,000)
At 31 March 2023 700,000 3,906,348 4,606,348
At 01 April 2023 700,000 3,906,348 4,606,348
Loss for the financial year 0 ( 991,446) ( 991,446)
Total comprehensive loss 0 ( 991,446) ( 991,446)
Dividends paid on equity shares (note 10) 0 ( 170,000) ( 170,000)
At 31 March 2024 700,000 2,744,902 3,444,902
GRENSON LTD.

STATEMENT OF CASH FLOWS

For the financial year ended 31 March 2024
GRENSON LTD.

STATEMENT OF CASH FLOWS (continued)

For the financial year ended 31 March 2024
2024 2023
£ £
Net cash flows from operating activities (note 21) ( 706,226) ( 459,972)
Cash flows from investing activities
Purchase of plant and machinery ( 20,279) ( 11,157)
Interest received 63,326 29,953
Net cash flows from investing activities 43,047 18,796
Cash flows from financing activities
Interest paid 0 0
Dividends paid (170,000) (280,000)
Net cash flows from financing activities ( 170,000) ( 280,000)
Net (decrease) in cash and cash equivalents ( 833,179) ( 721,176)
Cash and cash equivalents at beginning of year 2,045,539 2,766,715
Cash and cash equivalents at end of year 1,212,360 2,045,539
Reconciliation to cash at bank and in hand:
Cash at bank and in hand at end of year 1,212,360 2,045,539
Cash and cash equivalents at end of year 1,212,360 2,045,539
GRENSON LTD.

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 March 2024
GRENSON LTD.

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 March 2024
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Grenson Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Grenson House, C2, Crown Way, Rushden, NN10 6BS, United Kingdom.

The principal activities are set out in the Directors Report.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council.

The functional currency of Grenson Ltd is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

Going concern

The financial statements have been prepared on a going concern basis.

The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risk, including an assessment of uncertainty on future trading projections for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on this assessment, the directors consider that the company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external debt liabilities. In additions, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decisions to adopt a going concern basis.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Turnover

Turnover represents amounts invoiced, excluding value added tax and trade discounts, in respect of the sale of goods to customers. Turnover is recognised when the risks and rewards of ownership are transferred to customers. The risks and rewards of ownership are generally transferred at the time the goods are dispatched to the customers.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current period. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or subsequently enacted at the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of the current period. It is recognised in respect of all timing differences, with certain exceptions. Timing differences between taxable goods and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Intangible assets

Goodwill 10 years straight line
Goodwill

Goodwill arising on the acquisition of a business or business segment 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 business or business segment 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 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

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery 5 years straight line
Fixtures and fittings 10 years straight line
Computer equipment 5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

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

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stocks to its present location and conditions. Work in progress and finished goods include labour and attributable overheads. Cost is calculated using a standard cost system. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Trade and other debtors

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

Trade debtors are initially recognised 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 debtors.

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 insignificant risk of change in value.

Trade and other creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company has no unconditional right, at the end of the reporting period, to defer the settlement of the creditor for at least 12 months after the reporting date. If there is an unconditional right to defer settlement for at least 12 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.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary 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.

Dividends

Dividend distributions to the company's shareholders are recognised as a liability in the financial statements in the reporting period in which the interim dividends are paid and final dividends approved.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund. 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.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution for service, the excess is recognised as a prepayment.

2. Turnover

Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.

Breakdown by geographical market:

An analysis of the company's turnover by geographical market is set out below.

2024 2023
£ £
United Kingdom 4,055,186 4,622,302
Europe 600,175 704,460
Rest of the world 1,082,913 1,638,096
5,738,274 6,964,858

3. Other operating income

2024 2023
£ £
Loss on disposal of fixed assets 0 (4,982)
Other income 3,650 9,257
3,650 4,275

4. Finance income

2024 2023
£ £
Interest receivable and similar income 63,326 29,953

5. Loss before taxation

Loss before taxation is stated after charging/(crediting):

2024 2023
£ £
Depreciation of tangible fixed assets (note 12) 70,354 96,881
Amortisation of intangible assets (note 11) 0 91,000
Impairment of intangible assets (note 11) 273,000 0
Operating lease rentals 355,358 0
Foreign exchange losses 42,180 838
Loss on disposal of fixed assets 0 4,982

6. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

2024 2023
£ £
Fees payable to the company’s auditor and its associates for the audit of the company's annual financial statements: 16,500 15,750
Total audit fees 16,500 15,750

7. Staff number and costs

2024 2023
Number Number
The average monthly number of employees (including directors) was:
Production 22 22
Administration and support 6 6
Sales 19 23
Marketing 1 1
Distribution 4 5
52 57

Their aggregate remuneration comprised:

2024 2023
£ £
Wages and salaries 1,225,284 1,400,516
Other retirement benefit costs 22,808 24,506
1,248,092 1,425,022

8. Directors' remuneration

2024 2023
£ £
Directors' emoluments 259,148 278,924

Remuneration of the highest paid director

2024 2023
£ £
Remuneration 168,096 183,200
Employer contributions paid into the pension scheme 4,622 4,896
172,718 188,096

9. Tax on loss

2024 2023
£ £
Current tax on loss
UK corporation tax 0 0
Deferred taxation - arising from accelerated capital allowances ( 9,488) ( 19,412)
Adjustments in respect of the claiming of carried back loss relief ( 46,966) 0
Total current tax ( 56,454) ( 19,412)
Total tax on loss ( 56,454) ( 19,412)

10. Dividends on equity shares

2024 2023
£ £
Amounts recognised as distributions to equity holders in the financial year:
Interim dividend of £0.24 (2023 - £0.40) per ordinary share 170,000 280,000

11. Intangible assets

Goodwill Total
£ £
Cost
At 01 April 2023 1,300,000 1,300,000
At 31 March 2024 1,300,000 1,300,000
Accumulated amortisation
At 01 April 2023 1,027,000 1,027,000
Impairment losses 273,000 273,000
At 31 March 2024 1,300,000 1,300,000
Net book value
At 31 March 2024 0 0
At 31 March 2023 273,000 273,000

Amortisation of intangible fixed assets is included in administrative expenses.

12. Tangible assets

Plant and machinery Fixtures and fittings Computer equipment Total
£ £ £ £
Cost
At 01 April 2023 122,544 559,628 96,959 779,131
Additions 7,335 0 12,944 20,279
Disposals ( 15,119) ( 9,524) ( 3,966) ( 28,609)
At 31 March 2024 114,760 550,104 105,937 770,801
Accumulated depreciation
At 01 April 2023 76,893 509,382 58,751 645,026
Charge for the financial year 21,794 30,277 18,283 70,354
Disposals ( 15,119) ( 9,524) ( 3,966) ( 28,609)
At 31 March 2024 83,568 530,135 73,068 686,771
Net book value
At 31 March 2024 31,192 19,969 32,869 84,030
At 31 March 2023 45,651 50,246 38,208 134,105

13. Stocks

2024 2023
£ £
Raw materials 280,668 285,612
Work in progress 21,620 27,679
Finished goods 2,269,755 1,846,018
2,572,043 2,159,309

14. Debtors

2024 2023
£ £
Trade debtors 39,709 333,405
Other debtors 28,060 25,100
Prepayments 222,604 232,657
290,373 591,162

15. Cash and cash equivalents

2024 2023
£ £
Cash at bank and in hand 1,212,360 2,045,539

16. Creditors: amounts falling due within one year

2024 2023
£ £
Trade creditors 310,723 269,934
Taxation and social security 53,660 53,658
VAT 84,114 113,820
Accruals 56,768 46,193
Other creditors 72,389 74,680
577,654 558,285

17. Provision for liabilities

2024 2023
£ £
Deferred tax 4,750 14,238
Other provisions 131,500 24,244
136,250 38,482

18. Deferred tax

2024 2023
£ £
At the beginning of financial year ( 14,238) ( 33,650)
Decrease/(increase) in existing provision 9,488 19,412
At the end of financial year ( 4,750) ( 14,238)

Deferred tax has arisen on accelerated capital allowances.

19. Called-up share capital and reserves

2024 2023
£ £
Allotted, called-up and fully-paid
700,000 'A' Ordinary Shares shares of £ 1.00 each 700,000 700,000
Presented as follows:
Called-up share capital presented as equity 700,000 700,000

The Company's other reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

20. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2024 2023
£ £
within one year 275,159 233,204
between one and five years 636,875 328,644
after five years 0 95,836
912,034 657,684

The amount of non-cancellable operating lease payments recognised as an expense during the year was £333,355 (2023 - £385,664).

21. Statement of Cash Flows

2024 2023
£ £
Operating loss ( 1,111,226) ( 358,491)
Adjustment for:
Depreciation and amortisation 343,354 187,882
Loss on sale of plant and equipment 0 4,982
Increase/(decrease) in provisions 97,768 ( 38,289)
Tax expense 0 19,412
Operating cash flows before movement in working capital ( 670,104) ( 184,504)
Increase in stocks ( 412,734) ( 202,468)
Decrease in debtors 300,789 59,207
Increase/(decrease) in creditors 19,369 ( 132,207)
Cash generated by operations ( 762,680) ( 459,972)
Income taxes received 56,454 0
Net cash flows from operating activities ( 706,226) ( 459,972)

22. Related party transactions

Transactions with the entity’s directors (or members of its governing body)

Amounts owed by directors

The company paid rent on an arm's length basis of £22,081 (2023 - £39,000) to a trust of which one of the directors is a beneficiary. At the year end there was £nil (2023 - £nil) due to the trust.

The company also paid rent on an arm's length basis of £70,000 (2023 - £70,000) to one of the directors directly. At the year end there was £nil (2023 - £nil) due to the director.

23. Controlling party

The ultimate controlling parties are T C Little and J A Little, both directors and shareholders.