Company registration number 08484829 (England and Wales)
VIEN DONG HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
VIEN DONG HOLDINGS LIMITED
COMPANY INFORMATION
Director
L Huynh
Secretary
K T Do
Company number
08484829
Registered office
4 Estate Way
Leyton
London
E10 7JN
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
VIEN DONG HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 37
VIEN DONG HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The director presents the strategic report for the year ended 30 April 2024.
Review of the business
The company has continued to expand in 2023/24, opening two new stores in Staines and Maidstone, which have contributed to a 20.7% increase in revenue. Our expanded product offering from Far East Asia has been well-received by customers, driving higher sales and improving our market position.
Our Longdan Plus Loyalty Program has grown significantly over the last year.
New benefits, such as exclusive discounts and personalized offers, which have strengthened customer loyalty and provided valuable insights into purchasing behaviour.
Strategic partnerships with new suppliers have given us a larger more diverse range of products for our customers.
Despite challenges such as inflationary pressures and global supply chain disruptions, we have successfully managed costs and maintained profitability.
Principal risks and uncertainties
The business landscape in the UK continues to be very challenging. Although energy prices have come down slightly, they remain at a high level, putting pressure on operational costs. Freight costs have not come down and continue to be affected by adverse global events, such as geopolitical tensions and supply chain disruptions. These factors have contributed to increased costs across the supply chain.
There have also new entrants to the market. While this indicates that the market is expanding and presents growth opportunities, it also signals that there will be more competition in the future.
Despite these challenges, we are well-positioned to navigate the evolving landscape. Increased turnover and improved gross profit margin, provides a solid foundation for growth. Additionally, our strategic investments in supply chain and store expansion have strengthened our position in the market.
Liquidity risk
The company aims to mitigate financial risks by managing liquidity to cover anticipated operational requirements and by investing its cash assets safely and profitably.
Credit Risk
The primary credit risk is associated with trade debtors. To assess customer performance, the company employs a combination of credit checks, defined credit limits, and analysis of payment history. The company conducts periodic reviews of credit limits and monitors debt aging through reports.
Employment risk
In this challenging labour market, we will look to invest in our training and recruitment processes to support our expansion strategy and provide a competitive long-term working environment for staff.
Key performance indicators
Revenue increased from £17 million in 2023 to £20.5 million in 2024, representing a 20.7% increase. Gross profit also increased from approximately £7 million in 2023 to approximately £8.9 million in 2024, representing an increase of 27.3% compared to 2023. The gross profit margin also increased from 41.1% to 43.4%. Profit before taxation decreased slightly from £271k in 2023 to £251k in 2024.
VIEN DONG HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
L Huynh
Director
30 January 2025
VIEN DONG HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The director presents his annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the group continued to be that of wholesaling and retailing of food and other non-food products, selling oriental street food and drinks and property investment.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £19,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
L Huynh
Auditor
The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VIEN DONG HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
L Huynh
Director
30 January 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VIEN DONG HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of Vien Dong Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 30 April 2024 and of the group's 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.
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 financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VIEN DONG HOLDINGS LIMITED
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VIEN DONG HOLDINGS LIMITED
- 7 -
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 are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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.
Based on our understanding of the Company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).
Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, enquiries of management and testing of journals and evaluating whether there was evidence of bias by the Directors 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. Also, 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VIEN DONG HOLDINGS LIMITED
- 8 -
Vinodkumar Vadgama (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
31 January 2025
Chartered Accountants
Statutory Auditor
VIEN DONG HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,529,552
17,004,915
Cost of sales
(11,624,316)
(10,011,931)
Gross profit
8,905,236
6,992,984
Administrative expenses
(7,920,787)
(6,343,318)
Other operating income
56,042
-
Operating profit
4
1,040,491
649,666
Interest receivable and similar income
7
778
Interest payable and similar expenses
8
(790,762)
(378,177)
Profit before taxation
250,507
271,489
Tax on profit
9
(203,169)
11,423
Profit for the financial year
47,338
282,912
Profit for the financial year is all attributable to the owners of the parent company.
VIEN DONG HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
£
£
Profit for the year
47,338
282,912
Other comprehensive income
Revaluation of tangible fixed assets
2,206,762
Cash flow hedges gain arising in the year
Total comprehensive income for the year
47,338
2,489,674
Total comprehensive income for the year is all attributable to the owners of the parent company.
VIEN DONG HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
8,433
9,199
Tangible assets
12
14,122,720
11,585,796
14,131,153
11,594,995
Current assets
Stocks
16
7,567,987
5,852,059
Debtors
17
4,057,061
3,325,297
Cash at bank and in hand
758,955
436,337
12,384,003
9,613,693
Creditors: amounts falling due within one year
18
(10,543,390)
(7,841,562)
Net current assets
1,840,613
1,772,131
Total assets less current liabilities
15,971,766
13,367,126
Creditors: amounts falling due after more than one year
19
(8,115,903)
(5,645,104)
Provisions for liabilities
Deferred tax liability
22
1,190,970
1,085,467
(1,190,970)
(1,085,467)
Net assets
6,664,893
6,636,555
Capital and reserves
Called up share capital
24
10
10
Share premium account
95,903
95,903
Revaluation reserve
2,206,762
2,206,762
Profit and loss reserves
4,362,218
4,333,880
Total equity
6,664,893
6,636,555
VIEN DONG HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 12 -
The financial statements were approved and signed by the director and authorised for issue on 30 January 2025
30 January 2025
L Huynh
Director
Company registration number 08484829 (England and Wales)
VIEN DONG HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
97,004
97,004
Current assets
Debtors
17
2,804,100
2,784,100
Cash at bank and in hand
14,145
3,327
2,818,245
2,787,427
Creditors: amounts falling due within one year
18
(20,090)
(20,092)
Net current assets
2,798,155
2,767,335
Net assets
2,895,159
2,864,339
Capital and reserves
Called up share capital
24
10
10
Share premium account
95,903
95,903
Profit and loss reserves
2,799,246
2,768,426
Total equity
2,895,159
2,864,339
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £49,820 (2023 - £49,817 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 30 January 2025
30 January 2025
L Huynh
Director
Company registration number 08484829 (England and Wales)
VIEN DONG HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
10
95,903
-
4,069,968
4,165,881
Year ended 30 April 2023:
Profit for the year
-
-
-
282,912
282,912
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
2,206,762
-
2,206,762
Total comprehensive income
-
-
2,206,762
282,912
2,489,674
Dividends
10
-
-
-
(19,000)
(19,000)
Net of deferred tax
-
-
2,206,762
-
2,206,762
Other movements
-
-
(2,206,762)
-
(2,206,762)
Balance at 30 April 2023
10
95,903
2,206,762
4,333,880
6,636,555
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
47,338
47,338
Dividends
10
-
-
-
(19,000)
(19,000)
Balance at 30 April 2024
10
95,903
2,206,762
4,362,218
6,664,893
VIEN DONG HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
10
95,903
2,737,609
2,833,522
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
49,817
49,817
Dividends
10
-
-
(19,000)
(19,000)
Balance at 30 April 2023
10
95,903
2,768,426
2,864,339
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
49,820
49,820
Dividends
10
-
-
(19,000)
(19,000)
Balance at 30 April 2024
10
95,903
2,799,246
2,895,159
VIEN DONG HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
464,567
(582,989)
Interest paid
(790,762)
(378,177)
Income taxes paid
(184,313)
-
Net cash outflow from operating activities
(510,508)
(961,166)
Investing activities
Purchase of tangible fixed assets
(2,637,240)
(211,197)
Proceeds from disposal of tangible fixed assets
198
358
Interest received
778
Net cash used in investing activities
(2,636,264)
(210,839)
Financing activities
Proceeds from borrowings
-
239,500
Repayment of borrowings
(29,000)
-
Proceeds from new bank loans
3,496,343
1,157,790
Payment of finance leases obligations
(286,388)
(381,307)
Dividends paid to equity shareholders
(19,000)
(19,000)
Net cash generated from financing activities
3,161,955
996,983
Net increase/(decrease) in cash and cash equivalents
15,183
(175,022)
Cash and cash equivalents at beginning of year
436,337
611,359
Cash and cash equivalents at end of year
451,520
436,337
Relating to:
Cash at bank and in hand
758,955
436,337
Bank overdrafts included in creditors payable within one year
(307,435)
-
VIEN DONG HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(182)
(2,702,182)
Investing activities
Proceeds from disposal of investments
1
Dividends received
30,000
2,703,000
Net cash generated from investing activities
30,000
2,703,001
Financing activities
Dividends paid to equity shareholders
(19,000)
(19,000)
Net cash used in financing activities
(19,000)
(19,000)
Net increase/(decrease) in cash and cash equivalents
10,818
(18,181)
Cash and cash equivalents at beginning of year
3,327
21,508
Cash and cash equivalents at end of year
14,145
3,327
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
1
Accounting policies
Company information
Vien Dong Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4 Estate Way, Leyton, London, E10 7JN.
The group consists of Vien Dong Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention (modified to include the revaluation of freehold and long leasehold properties). The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Vien Dong Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts, as well as gross rents receivable.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
20 years
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Leasehold land and buildings
Over the length of the lease - 10 years and 15 years
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 23 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Wholesale and retail of food and other non-food products
20,098,802
16,773,321
Sale of oriental street food and drinks
183,809
15,451
Rental income
158,060
158,060
Miscellaneous income
88,881
58,083
20,529,552
17,004,915
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,529,552
17,004,915
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 25 -
2024
2023
£
£
Other revenue
Interest income
778
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(85,547)
7,318
Depreciation of owned tangible fixed assets
604,162
479,533
(Profit)/loss on disposal of tangible fixed assets
-
10,823
Amortisation of intangible assets
766
767
Operating lease charges
1,541,107
1,298,352
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
52,756
56,290
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
3
3
2
2
Administration
9
8
-
-
Sales, retail & warehouse
149
103
-
-
Total
161
114
2
2
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 26 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,776,368
1,915,896
Social security costs
204,141
131,543
-
-
Pension costs
60,124
38,773
3,040,633
2,086,212
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
778
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
778
-
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
732,084
344,731
Other interest on financial liabilities
2,626
603
734,710
345,334
Other finance costs:
Interest on finance leases and hire purchase contracts
56,052
32,843
Total finance costs
790,762
378,177
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
97,665
(77,906)
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
2024
2023
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
105,504
66,483
Total tax charge/(credit)
203,169
(11,423)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
250,507
271,489
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
62,627
52,913
Tax effect of expenses that are not deductible in determining taxable profit
142
Adjustments in respect of prior years
97,665
(77,906)
Depreciation on assets not qualifying for tax allowances
14,423
24,974
Deferred tax adjustments in respect of prior years
(6,583)
Other adjustments
34,895
(11,404)
Taxation charge/(credit)
203,169
(11,423)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
19,000
19,000
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
11
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 May 2023 and 30 April 2024
15,332
Amortisation and impairment
At 1 May 2023
6,133
Amortisation charged for the year
766
At 30 April 2024
6,899
Carrying amount
At 30 April 2024
8,433
At 30 April 2023
9,199
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
7,550,000
2,175,916
1,761,497
1,171,318
284,650
241,516
13,184,897
Additions
2,150,821
91,207
590,290
235,283
53,683
20,000
3,141,284
Disposals
(200)
(200)
At 30 April 2024
9,700,821
2,267,123
2,351,787
1,406,601
338,133
261,516
16,325,981
Depreciation and impairment
At 1 May 2023
170,000
189,610
509,668
509,149
153,405
67,269
1,599,101
Depreciation charged in the year
128,000
67,617
224,875
103,073
36,573
44,024
604,162
Eliminated in respect of disposals
(2)
(2)
At 30 April 2024
298,000
257,227
734,543
612,222
189,976
111,293
2,203,261
Carrying amount
At 30 April 2024
9,402,821
2,009,896
1,617,244
794,379
148,157
150,223
14,122,720
At 30 April 2023
7,380,000
1,986,306
1,251,829
662,169
131,245
174,247
11,585,796
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 30 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,090,403
741,731
Fixtures and fittings
189,159
297,771
Motor vehicles
149,253
28,817
1,428,815
1,068,319
-
-
Freehold property comprises of a portfolio of rental properties used within the group. A valuation was undertaken by Glenny LLP, a firm of professional valuers on 30 December 2022.
The directors consider the market value of the properties to be that of the professional report as there were no material changes to the condition of the properties between the valuation date and the company year end.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
97,004
97,004
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 May 2023 and 30 April 2024
97,004
Carrying amount
At 30 April 2024
97,004
At 30 April 2023
97,004
14
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Subsidiaries
(Continued)
- 31 -
Name of undertaking
Address
Class of
% Held
shares held
Direct
Longdan Limited
United Kingdom
Ordinary shares
100.00
Longdan Capital Limited
United Kingdom
Ordinary shares
100.00
Aobaba Limited
United Kingdom
Ordinary shares
100.00
All entities registered office address is 4 Estate Way, Leyton, London, E10 7JN.
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,814,147
2,383,674
2,804,100
2,784,100
Equity instruments measured at cost less impairment
-
-
97,004
97,004
Instruments measured at fair value through profit or loss
-
436,337
-
3,327
Carrying amount of financial liabilities
Measured at amortised cost
18,537,356
13,334,652
20,090
20,092
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
7,567,987
5,852,059
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
557,323
377,893
Corporation tax recoverable
14,191
Other debtors
2,262,872
2,011,769
121,100
101,100
Prepayments and accrued income
1,222,675
935,635
4,057,061
3,325,297
121,100
101,100
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
2,683,000
2,683,000
Total debtors
4,057,061
3,325,297
2,804,100
2,784,100
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
5,427,415
3,978,137
Obligations under finance leases
21
394,341
292,984
Other borrowings
20
333,000
362,000
Trade creditors
2,474,419
1,673,886
Amounts owed to group undertakings
1,100
1,100
Corporation tax payable
72,456
Other taxation and social security
121,937
79,558
-
-
Other creditors
549,834
577,106
18,990
18,992
Accruals and deferred income
1,242,444
805,435
10,543,390
7,841,562
20,090
20,092
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
6,765,961
4,411,461
Obligations under finance leases
21
898,442
782,143
Other borrowings
20
239,500
239,500
Other creditors
212,000
212,000
8,115,903
5,645,104
-
-
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
11,885,941
8,389,598
Bank overdrafts
307,435
Other loans
572,500
601,500
12,765,876
8,991,098
-
-
Payable within one year
5,760,415
4,340,137
Payable after one year
7,005,461
4,650,961
One of the loans is repayable in July 2024 and attracts interest of 6.9%.
The other loan, which is secured, is repayable in February 2031 and attracts interest of 2.5% + Bank of England Base Rate.
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
394,341
292,984
In two to five years
898,442
782,143
1,292,783
1,075,127
-
-
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Finance lease obligations
(Continued)
- 34 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. Each lease term varies. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
614,811
496,195
Tax losses
(160,907)
(147,794)
Revaluations
737,066
737,066
1,190,970
1,085,467
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
1,085,467
-
Charge to profit or loss
105,503
-
Liability at 30 April 2024
1,190,970
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,124
38,773
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
100
100
10
10
25
Financial commitments, guarantees and contingent liabilities
The company is party to a unlimited multilateral guarantee dated 28 March 2019 given to HSBC together with Longdan Capital Limited, Longdan Limited, Kim Son Limited and Aobaba Limited.
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,439,066
1,144,066
-
-
Between two and five years
6,092,370
5,194,985
-
-
In over five years
12,138,676
8,737,627
-
-
19,670,112
15,076,678
-
-
27
Related party transactions
During the year, the group had rent receivable of £158,060 (2023: £158,060) from Kim Son Limited.
During the period, the company made purchases from Kim Son Limited of £2,029,250 (2023: £1,571,994) and sales to Kim Son Limited of £1,032,582 (2023: £1,930,523). During the year, Kim Son recharged insurance expenses of £136,893 (2023: £89,218) and business rates of £35,318 (2023: £52,881) to the group. During the year, the group recharged expenses to Kim Son of £142,468 (2023: £nil).
At the year end, the amount due from Kim Son Limited was £2,125,764 (2023: £1,855,530).
L Huynh, the director of this group, is also a director of Kim Son Limited.
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 36 -
28
Directors' transactions
L Huynh, the director, made an unsecured and interest-free loan to the company. The balance outstanding at the year end was £475,649 (2023: £427,122).
K T Do, the secretary, made an unsecured and interest-free loan to the group. The balance outstanding at the year end was £572,500 (2023: £601,500). K T Do is a director of Longdan Capital Limited, one of the subsidiaries.
29
Controlling party
The ultimate controlling party is L Huynh.
30
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
47,338
282,912
Adjustments for:
Taxation charged/(credited)
203,169
(11,423)
Finance costs
790,762
378,177
Investment income
(778)
(Gain)/loss on disposal of tangible fixed assets
-
10,823
Amortisation and impairment of intangible assets
766
767
Depreciation and impairment of tangible fixed assets
604,162
479,533
Movements in working capital:
Increase in stocks
(1,715,928)
(611,836)
Increase in debtors
(717,573)
(1,359,509)
Increase in creditors
1,252,649
247,567
Cash generated from/(absorbed by) operations
464,567
(582,989)
VIEN DONG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 37 -
31
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
49,820
49,817
Adjustments for:
Investment income
(50,000)
(50,000)
Movements in working capital:
Increase in debtors
-
(2,683,000)
Decrease in creditors
(2)
(18,999)
Cash absorbed by operations
(182)
(2,702,182)
32
Analysis of changes in net debt - group
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
436,337
322,618
-
758,955
Bank overdrafts
(307,435)
-
(307,435)
436,337
15,183
-
451,520
Borrowings excluding overdrafts
(8,991,098)
(3,467,343)
-
(12,458,441)
Obligations under finance leases
(1,075,127)
286,388
(504,044)
(1,292,783)
(9,629,888)
(3,165,772)
(504,044)
(13,299,704)
33
Analysis of changes in net funds - company
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
3,327
10,818
14,145
2024-04-302023-05-01falsefalseCCH SoftwareCCH Accounts Production 2024.301L HuynhK T 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