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REGISTERED NUMBER: 02294820 (England and Wales)


















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 April 2024

for

Temptation (Gifts) Limited

Temptation (Gifts) Limited (Registered number: 02294820)






Contents of the Financial Statements
for the Year Ended 30 April 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14


Temptation (Gifts) Limited

Company Information
for the Year Ended 30 April 2024







DIRECTORS: Mr M G Adams
Mrs S Sinclair Adams
Mr C Adams





SECRETARY: Mrs S Sinclair Adams





REGISTERED OFFICE: 2e Woodlands Farm
The Vale
Chesham
HP5 3NS





REGISTERED NUMBER: 02294820 (England and Wales)





AUDITORS: George Hay Partnership LLP
Chartered Accountants
and Statutory Auditor
Unit 1B
Focus 4
Fourth Avenue
Letchworth
Hertfordshire
SG6 2TU

Temptation (Gifts) Limited (Registered number: 02294820)

Strategic Report
for the Year Ended 30 April 2024

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

REVIEW OF BUSINESS
The long term aim of the company is to continue to sell gifts to the general public through retail outlets, our own websites and through third party websites when appropriate.

Financial KPI's comprise turnover, expenditure, operating profit and cash balance

KPI Variances 2024 2023
Turnover £12,612,136 £9,664,683
Operating Profit £ 2,020,078 £1,350,570

Non-financial KPI's include customer services, employee satisfaction and health and safety.

Our online reviews continue to return 5 stars and feedback from our High Street customers continues to be first rate.

The company has a low turnover of permanent staff and benefits from a mature and knowledgeable senior management team.

The health and safety of the workforce is monitored regularly and steps taken to deal with issues if they occur.

The company is committed to sourcing the highest quality products from a range of reputable suppliers and operating in a transparent and open manner.

PRINCIPAL RISKS AND UNCERTAINTIES
General economy - the cost of living crisis has continued to affect trade generally. Our increase in turnover is due to a) adding a new branch to the retail side and b) being able to take advantage of increased stock holding through our warehouse expansion thereby ensuring continuity of supply for our most successful brands.

Staffing costs -although the company pays above the level of the national wage set by government the increases set by policy in April 22 raised the level by 7% , 10% in April 23 and a further 10% in April 24. In order to match these increases and indeed to maintain differentials the company has raised its basic wage level considerably over this period.

Tax and Employment Reforms by the new Labour government.

FINANCE
The company is self-financing in that it has no Bank Loans or overdrafts. No credit is offered to customers and therefore all items are paid for completely at the time of purchase. The company settles all invoices within 30 days (or slightly longer if specific agreements are in place)

It remains the policy of the company that all future growth will continue to be self financed although there is an option in place for an overdraft facility if required.

Directors Loan Account
The Directors Loan at the end of the last financial year was repaid in May 2023.

MAJOR DEVELOPMENTS IN FINANCIAL YEAR 2023-24
We exchanged contracts on a site in Windsor - purchasing a 990 year lease on 29/30 Peascod Street out of existing company funds in March 2023. Following a full renovation of the basement and fitting out the shop trading commenced early in June 2023. To date trade has been above expectations.


Temptation (Gifts) Limited (Registered number: 02294820)

Strategic Report
for the Year Ended 30 April 2024

FUTURE DEVELOPMENTS
The company continues to take steps to reduce its impact on the environment and is continuing to work with suppliers to further reduce its carbon footprint.

Temptation (Gifts) Ltd operates only from the UK although obviously supplies gifts through its Websites to the rest of the world when ordered.

Technical
The company was advised by the supplier of their epos system that support for said system would be withdrawn in December 2024. To that end the Directors and Senior Managers set about sourcing a new company. This has entailed a huge amount of work but the new system will be operational in September 2024

Personnel
Following a review of the structure the company has strengthened the retail side of the business by employing a new senior manager. Her title is Retail Operations Manager, she is field based and reports to the Head of Retail.

Etail
The company opened a third web site in September 2023 aimed at supplying British gifts to the American market. To date trade has been in line with expectations.

ON BEHALF OF THE BOARD:





Mrs S Sinclair Adams - Director


8 November 2024

Temptation (Gifts) Limited (Registered number: 02294820)

Report of the Directors
for the Year Ended 30 April 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Gift Retailers.

DIVIDENDS
Interim Dividends were paid during the year totalling £311,000.

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

Mr M G Adams
Mrs S Sinclair Adams
Mr C Adams

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, George Hay Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs S Sinclair Adams - Director


8 November 2024

Report of the Independent Auditors to the Members of
Temptation (Gifts) Limited

Opinion
We have audited the financial statements of Temptation (Gifts) Limited (the 'company') for the year ended 30 April 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Temptation (Gifts) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

Report of the Independent Auditors to the Members of
Temptation (Gifts) 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:

We obtained an understanding of the legal and regulatory framework applicable to the Company, and the industry in which it operates by making enquiries of management. We also enquired as to whether there were any instances of non compliance with laws and regulations or whether there were any instances of fraud detected or suspected. The key laws and regulations considered include the UK Companies Act and UK Tax Legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate as a going concern, These include compliance with Health & Safety regulations.

We obtained an understanding of the company's operations, including the nature of the company, its control environment, business performance and its key performance indicators.

We considered the extent to which non-compliance would have a material impact on the financial statements, We also evaluated the managements incentives and opportunities for fraudulent manipulation of the financial statements (including the management override of controls) and determined that the principal risks were related to:
- Management bias in accounting estimates;
- Stock valuation; and
- Completeness of Income

We assessed the susceptibility of the Company's financial statements to material misstatement. Audit procedures performed by the engagement team include:
- Enquiries of management about their own identification and assessment of risk of irregularities
- Evaluation of the processes and controls established to address the risk of irregularities and fraud
- Physical testing of stock quantities and substantive testing over valuation
- Substantive and analytical procedures performed in relation to completeness of revenue
- Testing manual journals, specifically those relating to large or unusual entries or entries relating to management estimates
-Testing the assumptions and judgements made by management in its significant accounting estimates, including reviewing historical data to assess the appropriateness of previous assessments

We assessed the appropriateness of the competence and capabilities of the engagement team, including the teams knowledge of the industry and the appropriateness of their practical experience through training and participation with audit engagements of a similar nature.

We also communicated the relevant laws and regulations and fraud risk indicators to the engagement team and remained vigilant throughout the audit process for indications of fraud or non-compliance.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
Temptation (Gifts) 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.




Martin Williams ACA (Senior Statutory Auditor)
for and on behalf of George Hay Partnership LLP
Chartered Accountants
and Statutory Auditor
Unit 1B
Focus 4
Fourth Avenue
Letchworth
Hertfordshire
SG6 2TU

11 November 2024

Temptation (Gifts) Limited (Registered number: 02294820)

Statement of Comprehensive
Income
for the Year Ended 30 April 2024

2024 2023
Notes £    £   

TURNOVER 3 12,612,136 9,664,683

Cost of sales 6,742,253 5,075,673
GROSS PROFIT 5,869,883 4,589,010

Administrative expenses 3,937,711 3,258,824
1,932,172 1,330,186

Other operating income 87,906 20,384
OPERATING PROFIT 5 2,020,078 1,350,570

Interest receivable and similar income 78,657 47,446
PROFIT BEFORE TAXATION 2,098,735 1,398,016

Tax on profit 6 511,689 261,290
PROFIT FOR THE FINANCIAL YEAR 1,587,046 1,136,726

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,587,046

1,136,726

Temptation (Gifts) Limited (Registered number: 02294820)

Statement of Financial Position
30 April 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 2,285,242 2,227,254
Investment property 9 1,143,263 1,143,263
3,428,505 3,370,517

CURRENT ASSETS
Stocks 10 2,904,897 2,268,595
Debtors 11 90,559 185,475
Cash at bank and in hand 2,584,152 1,561,445
5,579,608 4,015,515
CREDITORS
Amounts falling due within one year 12 1,174,000 910,782
NET CURRENT ASSETS 4,405,608 3,104,733
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,834,113

6,475,250

PROVISIONS FOR LIABILITIES 14 139,106 56,289
NET ASSETS 7,695,007 6,418,961

CAPITAL AND RESERVES
Called up share capital 15 1,005 1,005
Revaluation reserve 16 337,827 337,827
Retained earnings 16 7,356,175 6,080,129
7,695,007 6,418,961

The financial statements were approved by the Board of Directors and authorised for issue on 8 November 2024 and were signed on its behalf by:





Mrs S Sinclair Adams - Director


Temptation (Gifts) Limited (Registered number: 02294820)

Statement of Changes in Equity
for the Year Ended 30 April 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 May 2022 1,005 5,249,403 337,827 5,588,235

Changes in equity
Dividends - (306,000 ) - (306,000 )
Total comprehensive income - 1,136,726 - 1,136,726
Balance at 30 April 2023 1,005 6,080,129 337,827 6,418,961

Changes in equity
Dividends - (311,000 ) - (311,000 )
Total comprehensive income - 1,587,046 - 1,587,046
Balance at 30 April 2024 1,005 7,356,175 337,827 7,695,007

Temptation (Gifts) Limited (Registered number: 02294820)

Statement of Cash Flows
for the Year Ended 30 April 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,522,955 1,111,272
Tax paid (253,942 ) (333,055 )
Net cash from operating activities 1,269,013 778,217

Cash flows from investing activities
Purchase of tangible fixed assets (118,239 ) (1,470,640 )
Purchase of investment property - (903,263 )
Interest received 78,657 47,446
Net cash from investing activities (39,582 ) (2,326,457 )

Cash flows from financing activities
Amount introduced by directors 104,276 112,760
Equity dividends paid (311,000 ) (306,000 )
Net cash from financing activities (206,724 ) (193,240 )

Increase/(decrease) in cash and cash equivalents 1,022,707 (1,741,480 )
Cash and cash equivalents at
beginning of year

2

1,561,445

3,302,925

Cash and cash equivalents at end of
year

2

2,584,152

1,561,445

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Statement of Cash Flows
for the Year Ended 30 April 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 2,098,735 1,398,016
Depreciation charges 60,251 40,312
Finance income (78,657 ) (47,446 )
2,080,329 1,390,882
Increase in stocks (636,302 ) (448,114 )
(Increase)/decrease in trade and other debtors (9,360 ) 1,413
Increase in trade and other creditors 88,288 167,091
Cash generated from operations 1,522,955 1,111,272

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 2,584,152 1,561,445
Year ended 30 April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 1,561,445 3,302,925


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.23 Cash flow At 30.4.24
£    £    £   
Net cash
Cash at bank and in hand 1,561,445 1,022,707 2,584,152
1,561,445 1,022,707 2,584,152
Total 1,561,445 1,022,707 2,584,152

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements
for the Year Ended 30 April 2024

1. STATUTORY INFORMATION

Temptation (Gifts) 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 as modified by the revaluation of certain assets.

Significant judgements and estimates
Investment Property
The investment properties owned by the company have been revalued by the directors after taking into account all relevant market information.

The company owns one property which is split into two retail units, one used by the trade with the other being rented out to a third party. The split of this property between freehold property for own use and investment property has been calculated by the directors based on the square footage of the building.

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

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of goods for online sales and at the point of sale for retail.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - in accordance with the property
Long leasehold - in accordance with the property
Improvements to property - in accordance with the property
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 15% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Freehold property is included at either cost or deemed cost being the revalued amount on transition to FRS 102.

No depreciation has been provided for on the Freehold Property or Long Leasehold Property as the Directors are of the opinion that the charge is not material, that the current value exceeds the value shown in the accounts and that the properties are fully maintained.

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

2. ACCOUNTING POLICIES - continued

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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

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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of goods 12,612,136 9,664,683
12,612,136 9,664,683

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,063,151 1,625,892
Social security costs 133,451 108,455
Other pension costs 45,775 33,461
2,242,377 1,767,808

The average number of employees during the year was as follows:
2024 2023

Sales 62 54
Warehouse 8 9
Web Marketing 7 7
Web Distribution 14 12
Web Admin 2 2
Head Office 7 7
100 91

2024 2023
£    £   
Directors' remuneration 42,500 42,500

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 4,014 4,240
Depreciation - owned assets 60,251 40,312
Auditors remuneration 7,600 7,243
Auditors' remuneration for non audit work 6,213 5,900
Rent paid under operating leases 457,662 455,893

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 522,122 254,151

Deferred tax (10,433 ) 7,139
Tax on profit 511,689 261,290

UK corporation tax has been charged at 25% (2023 - 19%).

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

6. TAXATION - continued

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:

2024 2023
£    £   
Profit before tax 2,098,735 1,398,016
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

524,684

265,623

Effects of:
Capital allowances in excess of depreciation (2,114 ) (18,373 )
Deferred tax movement (10,433 ) 7,139
Effect of increased tax rate - 6,901
Other reconciling items (448 ) -
Total tax charge 511,689 261,290

The full rate of Corporation Tax increased to 25% on 1 April 2023.

7. DIVIDENDS

During the year ended 30 April 2023, the company paid interim dividends totalling £311,000 (2023 - £306,000).

8. TANGIBLE FIXED ASSETS
Improvements
Freehold Short Long to
property leasehold leasehold property
£    £    £    £   
COST
At 1 May 2023 605,294 274,111 1,354,895 52,537
Additions - - - 79,868
At 30 April 2024 605,294 274,111 1,354,895 132,405
DEPRECIATION
At 1 May 2023 - 267,709 - 3,886
Charge for year - 4,149 - 18,081
At 30 April 2024 - 271,858 - 21,967
NET BOOK VALUE
At 30 April 2024 605,294 2,253 1,354,895 110,438
At 30 April 2023 605,294 6,402 1,354,895 48,651

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

8. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 May 2023 912,088 92,586 37,320 3,328,831
Additions 38,371 - - 118,239
At 30 April 2024 950,459 92,586 37,320 3,447,070
DEPRECIATION
At 1 May 2023 718,723 79,025 32,234 1,101,577
Charge for year 33,868 3,390 763 60,251
At 30 April 2024 752,591 82,415 32,997 1,161,828
NET BOOK VALUE
At 30 April 2024 197,868 10,171 4,323 2,285,242
At 30 April 2023 193,365 13,561 5,086 2,227,254

9. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 May 2023
and 30 April 2024 1,143,263
NET BOOK VALUE
At 30 April 2024 1,143,263
At 30 April 2023 1,143,263

Fair value at 30 April 2024 is represented by:
£   
Valuation in 2022 58,150
Cost 1,085,113
1,143,263

The properties have been revalued at the balance sheet date by the directors after taking into account all relevant market information.

10. STOCKS
2024 2023
£    £   
Stocks 2,904,897 2,268,595

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Directors' current accounts - 104,276
Tax 36,125 36,125
Prepayments 54,434 45,074
90,559 185,475

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 312,213 393,459
Tax 522,570 254,390
Social security and other taxes 45,883 40,157
VAT 115,774 54,272
Other creditors 6,574 10,227
Sundry Creditors and Accruals 87,164 87,164
Directors' current accounts 312 312
Accrued expenses 83,510 70,801
1,174,000 910,782

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 446,102 382,106
Between one and five years 1,084,461 577,275
In more than five years 371,250 294,027
1,901,813 1,253,408

14. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 45,856 56,289
Other provisions 93,250 -
139,106 56,289

Deferred
tax
£   
Balance at 1 May 2023 56,289
Provided during year (10,433 )
Balance at 30 April 2024 45,856

15. CALLED UP SHARE CAPITAL

The company's issued share capital comprises - 1,000 Ordinary A Shares of £1 each, 2 Ordinary B Shares of £1 each, 1 Ordinary C Share of £1, 1 Ordinary D share of £1 and 1 Ordinary E share of £1. Total issued share capital is £1,005 (2023 - £1,005).

Temptation (Gifts) Limited (Registered number: 02294820)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024

16. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 May 2023 6,080,129 337,827 6,417,956
Profit for the year 1,587,046 1,587,046
Dividends (311,000 ) (311,000 )
At 30 April 2024 7,356,175 337,827 7,694,002

Revaluation reserve - the revaluation reserve represents the cumulate effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted, net of deferred tax.

Profit and loss account - the profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

17. PENSION COMMITMENTS

The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £223,775 (2023 - £151,361).

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 April 2024 and 30 April 2023:

2024 2023
£    £   
Mr M G Adams
Balance outstanding at start of year 52,138 108,518
Amounts repaid (52,138 ) (56,380 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 52,138

Mrs S Sinclair Adams
Balance outstanding at start of year 52,138 108,518
Amounts repaid (52,138 ) (56,380 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 52,138

Interest at the Official Rate set by HMRC has been charged on any loans made to directors.

19. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 830,421 (2023 - £ 741,753 ) was paid.