Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-01-313698366034design and manufacture of clothing2023-02-01falsefalsefalse33false 06797166 2023-02-01 2024-01-31 06797166 2022-02-01 2023-01-31 06797166 2024-01-31 06797166 2023-01-31 06797166 2022-02-01 06797166 5 2023-02-01 2024-01-31 06797166 5 2022-02-01 2023-01-31 06797166 d:CompanySecretary1 2023-02-01 2024-01-31 06797166 d:Director1 2023-02-01 2024-01-31 06797166 d:Director2 2023-02-01 2024-01-31 06797166 d:RegisteredOffice 2023-02-01 2024-01-31 06797166 e:Buildings e:ShortLeaseholdAssets 2023-02-01 2024-01-31 06797166 e:Buildings e:ShortLeaseholdAssets 2024-01-31 06797166 e:Buildings e:ShortLeaseholdAssets 2023-01-31 06797166 e:MotorVehicles 2023-02-01 2024-01-31 06797166 e:MotorVehicles 2024-01-31 06797166 e:MotorVehicles 2023-01-31 06797166 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 06797166 e:FurnitureFittings 2023-02-01 2024-01-31 06797166 e:FurnitureFittings 2024-01-31 06797166 e:FurnitureFittings 2023-01-31 06797166 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 06797166 e:ComputerEquipment 2023-02-01 2024-01-31 06797166 e:ComputerEquipment 2024-01-31 06797166 e:ComputerEquipment 2023-01-31 06797166 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 06797166 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 06797166 e:CurrentFinancialInstruments 2024-01-31 06797166 e:CurrentFinancialInstruments 2023-01-31 06797166 e:Non-currentFinancialInstruments 2024-01-31 06797166 e:Non-currentFinancialInstruments 2023-01-31 06797166 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 06797166 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 06797166 e:Non-currentFinancialInstruments e:AfterOneYear 2024-01-31 06797166 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 06797166 e:ReportableOperatingSegment1 2023-02-01 2024-01-31 06797166 e:ReportableOperatingSegment1 2022-02-01 2023-01-31 06797166 f:UnitedKingdom 2023-02-01 2024-01-31 06797166 f:UnitedKingdom 2022-02-01 2023-01-31 06797166 f:RestWorldOutsideUK 2023-02-01 2024-01-31 06797166 f:RestWorldOutsideUK 2022-02-01 2023-01-31 06797166 e:UKTax 2023-02-01 2024-01-31 06797166 e:UKTax 2022-02-01 2023-01-31 06797166 e:ShareCapital 2024-01-31 06797166 e:ShareCapital 2023-01-31 06797166 e:ShareCapital 2022-02-01 06797166 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 06797166 e:RetainedEarningsAccumulatedLosses 2024-01-31 06797166 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 06797166 e:RetainedEarningsAccumulatedLosses 2023-01-31 06797166 e:RetainedEarningsAccumulatedLosses 2022-02-01 06797166 d:OrdinaryShareClass1 2023-02-01 2024-01-31 06797166 d:OrdinaryShareClass1 2024-01-31 06797166 d:OrdinaryShareClass1 2023-01-31 06797166 d:FRS102 2023-02-01 2024-01-31 06797166 d:Audited 2023-02-01 2024-01-31 06797166 d:FullAccounts 2023-02-01 2024-01-31 06797166 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 06797166 e:WithinOneYear 2024-01-31 06797166 e:WithinOneYear 2023-01-31 06797166 e:BetweenOneFiveYears 2024-01-31 06797166 e:BetweenOneFiveYears 2023-01-31 06797166 e:MoreThanFiveYears 2024-01-31 06797166 e:MoreThanFiveYears 2023-01-31 06797166 e:HirePurchaseContracts e:WithinOneYear 2024-01-31 06797166 e:HirePurchaseContracts e:WithinOneYear 2023-01-31 06797166 e:HirePurchaseContracts e:BetweenOneFiveYears 2024-01-31 06797166 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-01-31 06797166 2 2023-02-01 2024-01-31 06797166 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-01-31 06797166 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-01-31 06797166 g:PoundSterling 2023-02-01 2024-01-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 06797166












CUPCAKE CLOTHING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

 

CUPCAKE CLOTHING LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 3
Directors' report
 
4
Directors' responsibilities statement
 
5
Independent auditor's report
 
6 - 9
Profit and loss account
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Statement of cash flows
 
13
Notes to the financial statements
 
14 - 28


 

CUPCAKE CLOTHING LIMITED
 
COMPANY INFORMATION


Directors
G Mathers 
J Johnson-Mathers 




Company secretary
J Johnson-Mathers



Registered number
06797166



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

CUPCAKE CLOTHING LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The directors present their strategic report for the year ended 31 January 2024.
The principal activity of the company continued to be the supply of knitted products for babies, children, men’s and ladieswear.

Business review
 
Overall the results for the year were in line with the directors’ expectations and the decrease in turnover of £25.7m to £20.6m reflecting one customer going into administration as well as a decrease in volume sold to other customers.
The company's gross profit margin increased during the year from 15.3% to 17.4%.
Administrative expenses decreased by £0.5m as a result of decreased salary costs in the current year, and a higher level of bad debt expense recognised in the prior year.
The company made a profit before tax of £1.9m compared to £1.6m in the prior year, due to the decrease in overheads.
The company generated £1,218k net cash in its underlying operating activities during the year (2023 as restated: generated £2,506k). The overall cash position remained healthy at 31 January 2024 at £1.43m (2023: £1.99m).
The directors have developed even closer relationships with their key customers and suppliers during the past years and strong revenues are expected in the future.
There have been no changes to the company's business strategy and there is very low staff turnover predicted going forwards, minimising the risk of losing key staff.
The company is performing well and in line with expectations for the year ended 31 January 2025.

Page 2

 

CUPCAKE CLOTHING LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Principal risks and uncertainties
 
Market risk
Market risk is the risk of loss from adverse market movements. The company receives orders from large retailers which can vary depending on market trends. The company monitors such trends by utilising sales representatives to attend trade shows both in the UK and abroad. The company produces samples of their products to display to customers with no orders placed with suppliers until a sales order is received.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. Credit terms are negotiated with suppliers to ensure the company is able to meet its working capital requirements.
Foreign currency risk
The company's principal foreign currency exposure arises from trading with overseas companies with both purchases and sales made in US Dollars (USD). This exposure is therefore mitigated through natural hedging.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and due to the customer base of the company being large, established retailers, the risk of doubtful debts is mostly mitigated.

Financial key performance indicators
 
Turnover has decreased on the prior year, from £25.7m to £20.6m in 2024 and continues to be closely monitored by the company.
The gross profit margin has increased on the previous year from 15.3% to 17.4%. The company closely monitors its sales margins to ensure these remain competitive yet stable.
Administrative expenses decreased from £2.4m to £1.9m. The company continues to maintain close control on overheads.
The current ratio remains positive at 3.05 (2023: 2.95) and the directors are satisfied that the company has sufficient liquid reserves to continue trading for the foreseeable future.


This report was approved by the board and signed on its behalf.



J Johnson-Mathers
Director

Date: 31 January 2025

Page 3

 

CUPCAKE CLOTHING LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the year ended 31 January 2024.

Results and dividends

The profit for the year, after taxation, amounted to £1,399,079 (2023 - £1,258,715).

Dividends totalling £nil (2023: £248,000) were paid during the year.

Directors

The directors who served during the year were:

G Mathers 
J Johnson-Mathers 

Matters covered in the Strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', namely an indication of the financial risk management objectives and policies of the company, in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





J Johnson-Mathers
Director

Date: 31 January 2025

Page 4

 

CUPCAKE CLOTHING LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5

 

CUPCAKE CLOTHING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUPCAKE CLOTHING LIMITED
 FOR THE YEAR ENDED 31 JANUARY 2024

Opinion


We have audited the financial statements of Cupcake Clothing Limited (the 'company') for the year ended 31 January 2024, which comprise the profit and loss account, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 January 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 

CUPCAKE CLOTHING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUPCAKE CLOTHING LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 7

 

CUPCAKE CLOTHING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUPCAKE CLOTHING LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

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. 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:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.



Page 8

 

CUPCAKE CLOTHING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUPCAKE CLOTHING LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations
to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if
any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.


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 auditor's report.


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 2006Our 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.





Thomas Dickinson (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
31 January 2025
Page 9

 

CUPCAKE CLOTHING LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 3 
20,636,624
25,740,739

Cost of sales
  
(17,047,610)
(21,795,151)

Gross profit
  
3,589,014
3,945,588

Administrative expenses
  
(1,933,457)
(2,406,466)

Operating profit
 4 
1,655,557
1,539,122

Interest receivable and similar income
 7 
223,411
89,264

Interest payable and similar expenses
 8 
(3,698)
(3,660)

Profit before taxation
  
1,875,270
1,624,726

Tax on profit
 9 
(476,191)
(366,011)

Profit for the financial year
  
1,399,079
1,258,715

There are no items of other comprehensive income for ither the year or the prior year other than the profit for the year. As a result, no statement of other comprehensive income has been presented.

Page 10


 
REGISTERED NUMBER:06797166
CUPCAKE CLOTHING LIMITED

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
874,977
978,596

Current assets
  

Stocks
 12 
41,484
41,484

Debtors: amounts falling due within one year
 13 
8,774,126
6,165,400

Cash at bank and in hand
  
1,428,452
1,992,376

  
10,244,062
8,199,260

Creditors: amounts falling due within one year
 15 
(3,363,224)
(2,777,328)

Net current assets
  
 
 
6,880,838
 
 
5,421,932

Total assets less current liabilities
  
7,755,815
6,400,528

Creditors: amounts falling due after more than one year
 16 
-
(43,792)

  

Net assets
  
7,755,815
6,356,736


Capital and reserves
  

Called up share capital 
 18 
1,000
1,000

Profit and loss account
 19 
7,754,815
6,355,736

Total equity
  
7,755,815
6,356,736


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Johnson-Mathers
Director

Date: 31 January 2025

The notes on pages 14 to 28 form part of these financial statements.

Page 11

 

CUPCAKE CLOTHING LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
1,000
5,345,021
5,346,021



Profit for the year
-
1,258,715
1,258,715

Dividends
-
(248,000)
(248,000)



At 31 January 2022 and 1 February 2022
1,000
6,355,736
6,356,736



Profit for the year
-
1,399,079
1,399,079


At 31 January 2024
1,000
7,754,815
7,755,815


Page 12

 

CUPCAKE CLOTHING LIMITED

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,399,079
1,258,715

Adjustments for:

Depreciation of tangible assets
110,955
114,886

Interest paid
3,698
3,660

Interest received
(223,411)
(89,264)

Taxation charge
476,191
366,011

Decrease/(increase) in stocks
-
(33,870)

(Increase)/decrease in debtors
(626,045)
927,187

Increase in creditors
443,341
94,490

Corporation tax (paid)
(366,011)
(135,494)

Net cash generated from operating activities

1,217,797
2,506,321


Cash flows from investing activities

Purchase of tangible fixed assets
(7,336)
(2,599)

Interest received
-
89,264

Increase in other loans receivable
(1,759,270)
(1,632,226)

Net cash from investing activities

(1,766,606)
(1,545,561)

Cash flows from financing activities

Repayment of finance leases
(11,417)
(11,417)

Dividends paid
-
(248,000)

Interest paid
(38)
-

HP interest paid
(3,660)
(3,660)

Net cash used in financing activities
(15,115)
(263,077)

Net (decrease)/increase in cash and cash equivalents
(563,924)
697,683

Cash and cash equivalents at beginning of year
1,992,376
1,294,693

Cash and cash equivalents at the end of year
1,428,452
1,992,376


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,428,452
1,992,376


Page 13

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Cupcake Clothing Limited supplies knitted products for babies, children, menswear and ladieswear. All products are designed in the UK and sourced from overseas.
The company is a private company limited by shares and is incorporated in England. The address of its registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH and its principal place of business is Ayres End House, Ayres End Lane, Harpenden, Hertfordshire, AL5 1AL.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 14

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'interest receivable and similar income' or 'interest payable and similar expenses'. All other foreign exchange gains and losses are presented in the profit and loss account within 'administrative expenses'.

 
2.5

Operating leases: the company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 15

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.10

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 16

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
15 years
Motor vehicles
-
4 years
Fixtures and fittings
-
3 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

  
2.14

Share capital

Ordinary shares are classified as equity.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.16

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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 company after deducting all of its liabilities. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Page 18

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)





Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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.

Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Page 19

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sales of clothing
20,636,624
25,740,739


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
27,108
27,819

Rest of the world
20,609,516
25,712,920

20,636,624
25,740,739



4.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
110,955
114,886

Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
21,275
21,275

Fees payable to the company's auditor and its associates for non-audit services
46,132
30,795

Exchange differences
6,414
(26,369)

Other operating lease rentals
215,548
218,050

Defined contribution pension cost
16,149
17,609

Page 20

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,011,151
1,071,231

Social security costs
82,432
88,518

Cost of defined contribution scheme
16,149
17,609

1,109,732
1,177,358


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







General and administration
3
3



Operations
30
31

33
34


6.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
138,817
132,600

Company contributions to defined contribution pension schemes
2,620
2,624

141,437
135,224


During the year retirement benefits were accruing to 2 directors (2023 -  2) in respect of defined contribution pension schemes.


7.


Interest receivable and similar income

2024
2023
£
£


Other interest received
223,411
89,264

Page 21

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
38
-

Finance leases and hire purchase contracts
3,660
3,660

3,698
3,660


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
476,191
366,011


Total current tax
476,191
366,011

Deferred tax

Total deferred tax
-
-


Tax on profit
476,191
366,011
Page 22

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 24.03% (2023 - 19%). From 1 April 2023 the corporation tax rate increased to 25% for companies with profits of over £250,000. A small profits rate was also introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,875,270
1,624,726


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.03% (2023 - 19%)
450,627
308,698

Effects of:


Disallowable expenditure
1,733
38,080

Capital allowances for year in excess of depreciation
23,863
19,230

Short-term timing difference leading to an increase (decrease) in taxation
(32)
3

Total tax charge for the year
476,191
366,011


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2024
2023
£
£


Dividends declared and paid
-
248,000

Page 23

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

11.


Tangible fixed assets





Short-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost


At 1 February 2023
1,268,420
82,783
164,288
117,670
1,633,161


Additions
-
-
6,519
817
7,336



At 31 January 2024

1,268,420
82,783
170,807
118,487
1,640,497



Depreciation


At 1 February 2023
349,341
48,290
146,491
110,443
654,565


Charge for the year
82,784
20,696
2,569
4,906
110,955



At 31 January 2024

432,125
68,986
149,060
115,349
765,520



Net book value



At 31 January 2024
836,295
13,797
21,747
3,138
874,977



At 31 January 2023
919,079
34,493
17,797
7,227
978,596

Page 24

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

           11.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
13,797
34,493


12.


Stocks

2024
2023
£
£

Finished goods and goods for resale
41,484
41,484


There is no significant difference between the replacement costs of the stock and its carrying amount.


13.


Debtors

2024
2023
£
£


Trade debtors
2,834,088
2,402,458

Other debtors
4,648
4,490

Other loans receivable
5,727,371
3,744,690

Prepayments and accrued income
208,019
13,762

8,774,126
6,165,400


Included in other loans receivable shown above is a loan to a company under common control totalling £5,727,371 (2023: £3,744,690). The loan is repayable on demand and bears interest at the Bank of England base rate +0.5%.


14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,428,452
1,992,376


Page 25

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Creditors: amounts falling due within one year

2024
2023
£
£

Trade creditors
2,324,841
2,260,314

Corporation tax
476,191
366,011

Other taxation and social security
22,568
24,153

Obligations under finance lease and hire purchase contracts
43,792
11,417

Other creditors
9,160
11,462

Accruals and deferred income
486,672
103,971

3,363,224
2,777,328



16.


Creditors: amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
-
43,792



17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
46,232
15,076

Between 1-5 years
-
46,232

46,232
61,308

The hire purchase arrangements relate to motor vehicles. The remaining lease term is 9 months.

Page 26

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1,000
1,000


There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.



19.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


20.


Analysis of net debt

At 1 February 2023
Cash flows
At 31 January 2024
        £
        £
        £

Cash at bank and in hand

1,992,376

(563,924)

1,428,452
 
Finance leases

(55,209)

11,417

(43,792)
 

1,937,167

(552,507)

1,384,660
 


21.


Prior year adjustment

The comparative figures in the Statement of Cash Flows have been restated in order to correct the presentation of movements on other loans receivable within debtors amounting to a cash outflow of £1,632,226 which have been reclassified from 'cash flows from operating activities' to 'cash flows from investing activities' to more accurately reflect the nature of these cash flows as separate from the day to day operations of the company. Following this restatement 'cash flows from operating activities' has increased by £1,632,226 to £2,506,321. The reclassification has no impact on the profit or loss or on the net assets of the company as presented at 31 January 2023.


22.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £16,149 (2023: £17,609). Contributions totalling £4,032 (2023: £3,976) were payable to the fund at the balance sheet date.

Page 27

 

CUPCAKE CLOTHING LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

23.


Commitments under operating leases

At 31 January 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
226,038
215,059

Later than 1 year and not later than 5 years
671,047
800,219

Later than 5 years
232,500
294,500

1,129,585
1,309,778


24.


Related party transactions

During the year dividends of £nil (2023: £248,000) were declared to the directors, who are the shareholders of the company. The directors paid expenses on behalf of the company totalling £7,643 (2023: £23,516) and were repaid £nil (2023: £28,269). The company paid expenses on behalf of the directors totalling £110 (2023: £28,269) and was repaid £nil (2023: £28,269). At the reporting date, the company owed £2,572 to (2023: the company was owed £4,961 by) the directors.
During the year the company made payments for services totalling £1,500 (2023: £nil) from close family members of the directors. At the reporting date, the company owed £nil (2023: £nil) to close family members of the directors.
During the year, rent of £62,000 (2023: £62,000) was charged to the company by the directors at a normal market rate. During the year, rent of £146,000 (2023: £146,000) was paid by the company to a pension fund of which the directors are beneficiaries at a normal market rate.
During the year, the company paid expenses on behalf of a company under common control totalling £nil (2023: £30,178) and was repaid £nil (2023: £5,001). The bad debt write off amounted to £nil (2023: £197,713). At the reporting date, the company was owed £nil (2023: £nil) by the company under common control.
During the year, the company advanced amounts totalling £1,835,101 (2023: £1,542,962) to a company under common control. Interest of £236,844 (2023: £89,264) was accrued at the balance sheet date and the company received interest during the year totalling £89,264 (2023: £28,419). At the reporting date, the company was owed  £5,727,371 (2023: £3,744,690) by the company under common control.
The directors are the only key management personnel, hence amounts disclosed as directors' remuneration in note 7 correspond to total remuneration in respect of the key management personnel for the year.


25.


Controlling party

The ultimate controlling party of the company continued to be J Johnson-Mathers by virtue of her majority shareholding.

 
Page 28