15 false false false false false false false false false false true false false false false false false No description of principal activity 2023-07-01 Sage Accounts Production Advanced 2023 - FRS102_2023 8,080 8,080 xbrli:pure xbrli:shares iso4217:GBP NI047255 2023-07-01 2024-06-30 NI047255 2024-06-30 NI047255 2023-06-30 NI047255 2022-07-01 2023-06-30 NI047255 2023-06-30 NI047255 2022-06-30 NI047255 core:FurnitureFittings 2023-07-01 2024-06-30 NI047255 core:MotorVehicles 2023-07-01 2024-06-30 NI047255 bus:Director1 2023-07-01 2024-06-30 NI047255 bus:Director2 2023-07-01 2024-06-30 NI047255 core:LandBuildings core:LongLeaseholdAssets 2023-06-30 NI047255 core:FurnitureFittings 2023-06-30 NI047255 core:MotorVehicles 2023-06-30 NI047255 core:LandBuildings core:LongLeaseholdAssets 2024-06-30 NI047255 core:FurnitureFittings 2024-06-30 NI047255 core:MotorVehicles 2024-06-30 NI047255 core:WithinOneYear 2024-06-30 NI047255 core:WithinOneYear 2023-06-30 NI047255 core:ShareCapital 2024-06-30 NI047255 core:ShareCapital 2023-06-30 NI047255 core:RetainedEarningsAccumulatedLosses 2024-06-30 NI047255 core:RetainedEarningsAccumulatedLosses 2023-06-30 NI047255 core:LandBuildings core:LongLeaseholdAssets 2023-06-30 NI047255 core:FurnitureFittings 2023-06-30 NI047255 core:MotorVehicles 2023-06-30 NI047255 bus:SmallEntities 2023-07-01 2024-06-30 NI047255 bus:AuditExempt-NoAccountantsReport 2023-07-01 2024-06-30 NI047255 bus:SmallCompaniesRegimeForAccounts 2023-07-01 2024-06-30 NI047255 bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 NI047255 bus:FullAccounts 2023-07-01 2024-06-30 NI047255 core:ComputerSoftware 2023-07-01 2024-06-30 NI047255 core:ComputerSoftware 2024-06-30 NI047255 core:KeyManagementPersonnel 2023-07-01 2024-06-30
COMPANY REGISTRATION NUMBER: NI047255
Enchante Ltd
Filleted Unaudited Financial Statements
30 June 2024
Enchante Ltd
Statement of Financial Position
30 June 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
6
80,130
67,126
Current assets
Stocks
504,420
432,304
Debtors
7
254,612
405,859
Cash at bank and in hand
1,094,543
911,560
------------
------------
1,853,575
1,749,723
Creditors: amounts falling due within one year
8
333,026
379,548
------------
------------
Net current assets
1,520,549
1,370,175
------------
------------
Total assets less current liabilities
1,600,679
1,437,301
Provisions
5,947
10,206
------------
------------
Net assets
1,594,732
1,427,095
------------
------------
Capital and reserves
Called up share capital
10
10
Profit and loss account
1,594,722
1,427,085
------------
------------
Shareholders funds
1,594,732
1,427,095
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Enchante Ltd
Statement of Financial Position (continued)
30 June 2024
These financial statements were approved by the board of directors and authorised for issue on 3 February 2025 , and are signed on behalf of the board by:
Mr. A. Singer
Mrs. L. Singer
Director
Director
Company registration number: NI047255
Enchante Ltd
Notes to the Financial Statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 6 Ballydown Road, Banbridge, Co. Down, BT32 4JB.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
Enchante Ltd is a market leader supplying an extensive collection of dried flowers, sourced from around the world, as well as related products such as basketware, artificial floral décor and country style giftware. We design most of our own collections and specialise in Christmas giftware. We also design and manufacture a unique collection of handmade scented products and seasonal floral décor. These financial statements are prepared on a going concern basis, under the historical cost convention, as modified, where appropriate, by the revaluation of land and buildings and certain financial assets and liabilities measured at fair value through profit or loss. The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below.
Going concern
During the period under review, the directors refocused the company's activities which increased profitability and improved cash flow. Whilst geopolitical events and inflationary cost pressures continue to impact the economic environment in which the company operates, after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant Judgements To be a key judgement, the subject matter must relate to something other than assumptions about the future or making estimates and typically relate to significant issues in applying accounting standards where management applied judgement in situations where a different judgement might have led to a materially different accounting treatment. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Going concern In order to assess whether it is appropriate for the company to be reported as a going concern, the directors apply judgement, having undertaken appropriate enquiries and having considered the business activities and the company's principal risks and uncertainties. During the period under review the company refocused its activities which improved profitability and cash flow. Nonetheless, the general economic environment remains difficult. In arriving at this judgement, there are a large number of assumptions and estimates involved. This includes management's expectations of revenue, EBITDA, timing and quantum of future capital expenditure and estimates and cost of future funding. Key accounting estimates and assumptions The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Websites At the period end, the company had capitalised website development expenditure which has no net book value. The website is operational and customers can use the website to make purchases. The most critical estimate is considered to be the future economic benefits that will be generated by the website. Depreciation The company's balance sheet reflects tangible fixed assets which are subject to depreciation. Depreciation rates are based upon the expected economic lives of the related tangible fixed assets. Any variation in the useful economic lives of the asset class will have an impact on the balance sheet and financial position of the company. The useful economic lives of tangible fixed assets are uncertain and, therefore, the actual economic life of an asset may be shorter or longer than expected. There have been no significant revisions to the estimated lives during the current financial year. Stocks In calculating the net realisable value of stocks, management has made judgements in respect of the durability and general high quality of the company’s products. Bad debts The company assesses whether there is objective evidence of impairment of any financial assets that are measured at cost or amortised cost - these include trade debtors. If there is objective evidence of impairment, the company recognises a bad debt in its statement of income immediately. However, it in making that assessment, events may subsequently occur which could indicate that a trade debtor has become impaired, or a previously impaired debt has become recoverable.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity; and (e) when the specific criteria relating to the each of company’s sales channels have been met, as described below. i. Sale of goods The company manufactures and sells a range of products to its customers. Sales of goods are recognised on delivery to the customer, when the customer has full discretion over the channel and price to sell the product and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. Delivery occurs when the goods have been shipped to the location specified by the customer, the risks of obsolescence or loss have been transferred to the customer, the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied. Goods may be sold with the provision for the customer to return faulty goods. Sales are measured at the prices specified in the sale contract, net of any estimated volume rebates, discounts and returns. Accumulated experience is used to estimate and provide for the discounts and returns. Sales are normally made on credit terms. The element of financing is deemed immaterial and is disregarded in the measurement of revenue. ii Sale of goods – internet based transactions The company sells goods via its website for delivery to the customer. Revenue is recognised when the risks and rewards of the inventory is passed to the customer. For deliveries to the customer this is the point of acceptance of the goods by the customer. Transactions are settled by credit or payment card. Provision is made for credit notes based on the expected level of returns which is based on the historical experience of returns
Income tax
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively. Current or deferred taxation assets and liabilities are not discounted. i. Current tax Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. ii. Deferred tax Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
Foreign currencies
i . Functional and presentation currency The company’s functional and presentation currency is the pound sterling. ii 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 the profit and loss account except where deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings are presented in the profit and loss account within ‘finance (expense)/ income’. All other foreign exchange gains and losses are presented in the profit and loss account within ‘other operating (losses)/gains’.
Intangible assets
Website development costs are capitalised if they meet the recognition criteria of an asset. The website must allow customers to place orders for goods - in other words, the website must generate an economic benefit for the company. Websites are stated at cost less accumulated amortisation and accumulated impairment losses. Websites are amortised over its estimated useful life, of two years, on a straight line basis. Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Websites
-
50% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised. Fixtures, fittings, and motor vehicles are stated at cost less accumulated depreciation and accumulated impairment losses. The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss and included in ‘other operating (losses)/gains’.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
20% reducing balance
Motor vehicles
-
20% reducing balance
Assets in the course of construction are stated at cost and are not depreciated until they are transferred to the completed asset class when ready for use.
Impairment of fixed assets
At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset’s cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset’s cash generating unit) is compared to the carrying amount of the asset (or asset’s cash generating unit). The recoverable amount of the asset (or asset’s cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset’s (or asset’s cash generating unit’s) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset. If the recoverable amount of the asset (or asset’s cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter, any excess is recognised in profit or loss. If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset’s cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the profit and loss account.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing stock to its present location and condition. The cost of manufactured finished goods and work in progress includes design costs, raw materials, direct labour and other direct costs and related production overheads (based on normal operating capacity). At the end of each reporting period stocks are assessed for impairment. If an item of inventory is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised, the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
Provisions and contingencies
i Provisions Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. ii Contingencies Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.
Financial instruments
i. Financial assets Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 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. 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) 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. ii Financial liabilities Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. iii. Offsetting 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.
Defined contribution plans
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 when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Distributions to equity holders
The directors can propose final dividends to be approved by members. Dividends become a legally binding liability when the company’s members’ pass a written resolution, regardless of the date on which the dividend is to be paid. Dividends and other distributions to company’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company’s shareholders. These amounts are recognised in the statement of of changes in equity.
A proposed unapproved final dividend is not a legal obligation to shareholders and is not recognised as a liability at the balance sheet date.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 15 (2023: 17 ).
5. Intangible assets
Websites
£
Cost
At 1 July 2023 and 30 June 2024
8,080
-------
Amortisation
At 1 July 2023 and 30 June 2024
8,080
-------
Carrying amount
At 30 June 2024
-------
At 30 June 2023
-------
6. Tangible assets
Assets in the course of construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
4,416
131,629
100,052
236,097
Additions
4,599
34,995
39,594
Disposals
( 22,250)
( 22,250)
-------
---------
---------
---------
At 30 June 2024
4,416
136,228
112,797
253,441
-------
---------
---------
---------
Depreciation
At 1 July 2023
92,324
76,647
168,971
Charge for the year
8,927
10,397
19,324
Disposals
( 14,984)
( 14,984)
-------
---------
---------
---------
At 30 June 2024
101,251
72,060
173,311
-------
---------
---------
---------
Carrying amount
At 30 June 2024
4,416
34,977
40,737
80,130
-------
---------
---------
---------
At 30 June 2023
4,416
39,305
23,405
67,126
-------
---------
---------
---------
7. Debtors
2024
2023
£
£
Trade debtors
41,349
38,090
Other debtors
213,263
367,769
---------
---------
254,612
405,859
---------
---------
8. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
170,505
332,118
Corporation tax
114,647
Social security and other taxes
4,658
3,602
Other creditors
43,216
43,828
---------
---------
333,026
379,548
---------
---------
9. Related party transactions
During the period the directors introduced net funds of £9,954 to the company (2023 - £639). At the balance sheet date, the company owed the directors £10,782 (2023 - £828). All amounts are repayable upon demand.