The UK market, though not extensive, serves as a strategic entry point to other regions. Activities in the UK focus on marketing and brand exposure, with this year seeing the brand successfully expand its retail presence to high-end department stores, generating significant visibility, particularly among tourists. This year’s retail acceleration also extended globally with other group companies, to prestigious locations such as Galeries Lafayette in France, La Rinascente in Italy, DFS and Lane Crawford in Hong Kong and Macau, SKP and CDF in China, and Hyundai in Korea.
Financial Performance and Key Performance Indicators (KPIs)
Financial Summary
- Sales of cosmetics totalled £202,968 (2022: £Nil) as the company established its retail presence.
- Gross margin was 10.55%, with the company generating a gross profit of £21,421.
- Administrative expenses rose significantly to £335,107 (2022: £40,836), reflecting increased operational and marketing activities.
- The company reported a net loss before tax of £333,255 (2022: profit of £4,084), attributable to the initial costs associated with UK market operations.
Key Ratios
- The quick ratio, indicating liquidity and cash availability, stood at 0.17x, although excluding the Amounts owed to group undertakings from current liabilities, the quick ratio stood at 2.8x.
Statement of Financial Position Highlights
- Cash balances decreased by £105,941 to £18,046 (2022: £123,987).
- Closing stock totalled £321,328: stock was returned to a group undertaking company following the reporting period.
- Amounts owed to group undertakings increased from £63,208 to £740,731.
Strategic Achievements
Key accomplishments for the year include securing distribution agreements with high-end department stores in the UK.
Ethical considerations
The Cellcosmet brand, renowned for its 100% Swiss-made and clinically tested products, operates with a vertically integrated structure. This includes an in-house R&D laboratory, manufacturing facilities, and filing processes. The company is committed to principles of efficacy, safety, and sustainability, adhering to the highest industry standards such as ISO 9001:2015 for quality management and ISO 22716:2007 for Good Manufacturing Practices (GMP).
The company employs cruelty-free practices and up to 90% natural ingredients, while actively pursuing ISO 14001 certification for environmental management.