REGISTERED NUMBER: |
SUPPLIES FOR CANDLES LIMITED |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
REGISTERED NUMBER: |
SUPPLIES FOR CANDLES LIMITED |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
Page |
Report of the Director | 1 | to | 2 |
Balance Sheet | 3 |
Notes to the Financial Statements | 4 | to | 10 |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
The director presents his report with the financial statements of the company for the year ended 31st August 2024. |
REVIEW OF BUSINESS |
Turnover was £8.4m in the year ended 31st August 2024 (2023: £6.1m). The improvement in revenue was supported by the market returning to growth, as witnessed in the final quarter of the prior year. Increased sales to major trade customers were seen. A key area of growth was in soap related products, as the business absorbed the previous activities of The Soap Kitchen Ltd, further to a hive-up of that business in the previous financial year. The true prior year comparable sales, including prior year turnover of The Soap Kitchen Ltd £7.7m. |
The effective merger with The Soap Kitchen Ltd ensured that the increased sales activity could be serviced with little change to operating costs. This allowed the business to improve operating profit which improved to £350k in the year compared to £194k in the previous year. |
The group uses key performance indicators to monitor performance. These includes sales, gross profit and profit/(loss) before tax as key measures of financial performance and stock and cash at bank as key measures of financial position (as detailed on the balance sheet). |
DIRECTORS |
Other changes in directors holding office are as follows: |
FUTURE OUTLOOK |
The business continues to gain market share with new product offerings and good product availability. Modest growth is anticipated in the coming year. |
KEY PERFORMANCE INDICATORS |
The directors consider revenue, gross profit margin and EBITDA margins as well as Cash Flow to be the core KPIs for the business. Thus, the business monitors key metrics for revenue, margin and cost ratios throughout the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key business risks and uncertainties effecting the group are considered to include. |
a) the overall uncertain economic environment driven by "cost of living crisis" and geo-political factors; and |
b) inflationary pressures on product costs, labour and overheads |
The management team has a close working relationship with key suppliers and its workforce, and this contributes to a reliable supply of materials and labour. |
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and the stability to take advantage of opportunities should they arise. For this reason, it continues to adopt the going concern basis in preparing the financial statements. |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Report of the Director 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 company and of the profit or loss of the company 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
BALANCE SHEET |
31ST AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 9 | ( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
1. | STATUTORY INFORMATION |
Supplies For Candles Limited is a |
Registered number: |
Registered office: |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Accordingly at the time of signing these accounts, having considered the economic climate, the directors expectations and intentions for the next 12 months, and the availability of working capital, the directors are of the opinion that the company will remain viable for the foreseeable future and accordingly these financial statements have been prepared on a going concern basis. |
Preparation of consolidated financial statements |
The financial statements contain information about Supplies For Candles Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Nicky Story Holdings Limited, Unit E, Swinton Bridge Industrial Estate Whitelee Road, Swinton, Mexborough, South Yorkshire, England, S64 8BH. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the dispatch of goods. |
Goodwill |
Goodwill, being the amount paid in connection of a business acquisition, is being amortised evenly over its estimated useful life of ten years. |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on business combinations are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition. |
Intangible assets are amortised on a straight line basis over their useful lives. The useful lives of intangible assets are as follows: |
Computer software | 20% straight line |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows |
Leasehold property | 10% straight line |
Plant and machinery | 25% reducing balance |
Fixtures and fittings | 15% reducing balance |
Motor vehicles | 15% reducing balance |
Website | 10% straight line |
Computer equipment | 33% straight line |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
The company only enters into transactions in ‘basic’ financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties. These are recognised in the company’s balance sheet when it becomes party to the contractual provisions of the instrument. |
Basic financial assets (other than those classified as payable within one year) are initially measured at cost and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classed as receivable within one year are not amortised. |
Basic financial liabilities (other than those classified as payable within one year) are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Basic financial liabilities classed as payable within one year are not amortised. |
Financial assets and liabilities are offset, with the net amount reported 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. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
4. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1st September 2023 |
Additions |
At 31st August 2024 |
AMORTISATION |
At 1st September 2023 |
Amortisation for year |
At 31st August 2024 |
NET BOOK VALUE |
At 31st August 2024 |
At 31st August 2023 |
The net book value of assets purchased on hire purchase total £66,255 as at 31st August 2024 (2023: £89,640). |
5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1st September 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to group undertaking | (52,775 | ) | (271,573 | ) | (324,348 | ) |
At 31st August 2024 |
DEPRECIATION |
At 1st September 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to group undertaking | (26,388 | ) | (141,426 | ) | (167,814 | ) |
At 31st August 2024 |
NET BOOK VALUE |
At 31st August 2024 |
At 31st August 2023 |
The net book value of the assets purchased on hire purchase total £1,158 as at 31st August 2024 (2023:£7,490). |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
6. | STOCKS |
2024 | 2023 |
£ | £ |
Product for resale |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Other debtors |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 10) |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 10) |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 25,643 | 60,334 |
The hire purchase balances are secured against the assets to which they relate. |
On 3rd February 2023 the company created a fixed and floating charge against all the assets of the company of £500,000. The balance on the related finance facility as at 31st August 2024 totalled £88,341. |
The ultimate parent undertaking, Nicky Story Holdings Limited, held a loan of £2,205,291 at 31st August 2024 (2023: £2,476,339) of which the security is in the form a fixed and floating charge over the assets of of all group undertakings. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Ordinary B | £1 | 1 | 1 |
101 | 101 |
Ordinary shares rank pari passu except that different rates of dividend can be declared on different classes of share. |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
14. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31st August 2024 and 31st August 2023: |
N Story | 2024 | 2023 |
£ | £ |
Balance outstanding at start of year | (456 | ) | (893 | ) |
Amounts advanced | 682,167 | 297,437 |
Amounts repaid | (689,783 | ) | (297,000 | ) |
Balance outstanding at end of year | (8,072 | ) | (456 | ) |
Interest of £1,082 was charged, at the HMRC beneficial loan rate. The loan is repayable on demand. |
SUPPLIES FOR CANDLES LIMITED (REGISTERED NUMBER: 08069896) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST AUGUST 2024 |
15. | RELATED PARTY DISCLOSURES |
Fixtures and fittings with a net book value of £130,147, long leasehold assets with a net book value of £26,387 was transferred from Supplies for Candles Limited to Nicky Story Holdings Limited, its parent company during the year. |
At 31st August 2024 there was a balance owing to Supplies For Candles Limited from companies in which Nicky Story is a director of totalling £530,184 (2023: £325,799). |
16. | ULTIMATE CONTROLLING PARTY |
The immediate and ultimate parent undertaking is Nicky Story Holdings Limited and the controlling party is Nicky Story. |
The company is exempt from preparing consolidated financial statements under Section 400 of the Companies Act 2006. Nicky Story Holdings Limited consolidates the financial statements. Copies of the Nicky Story Holdings Limited financial statements are publicly available and can be obtained from Companies House or from the Nicky Story Holdings Limited registered office Unit E, Swinton Bridge Industrial Estate Whitelee Road, Swinton, Mexborough, South Yorkshire, England, S64 8BH. |