Company registration number 05417432 (England and Wales)
SOAK & SLEEP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SOAK & SLEEP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
SOAK & SLEEP LIMITED
BALANCE SHEET
AS AT
24 DECEMBER 2023
24 December 2023
- 1 -
24 December 2023
25 December 2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
101,430
240,847
Tangible assets
4
29,449
34,769
130,879
275,616
Current assets
Stocks
1,865,654
1,280,412
Debtors
5
250,999
398,280
Cash at bank and in hand
796,388
239,733
2,913,041
1,918,425
Creditors: amounts falling due within one year
6
(5,853,947)
(3,785,305)
Net current liabilities
(2,940,906)
(1,866,880)
Net liabilities
(2,810,027)
(1,591,264)
Capital and reserves
Called up share capital
7
1,300
1,300
Share premium account
999,800
999,800
Profit and loss reserves
(3,811,127)
(2,592,364)
Total equity
(2,810,027)
(1,591,264)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
S A G Smith
Director
Company Registration No. 05417432
SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 24 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Soak & Sleep Limited is a private company limited by shares incorporated in England and Wales. The registered office is 78 York Street, London, United Kingdom, W1H 1DP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At true24 December 2023 the company has net liabilities of £2,810,027 (2022 - £1,591,264) and net current liabilities of £2,940,906 (2022 - £1,866,880). The company's ultimate controlling party has indicated they will continue to support the company for the foreseeable future.

 

The accounts are prepared on a going concern basis. The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

 

Performance in the financial year was still seeing the impact of economic factors which disrupted supplies sourced from China and India causing delays to stock. Alongside this Soak & Sleep Limited also suffered major disruption from a forced 3PL WH move. This resulted in a significant downturn in sales and delays to strategic plans. Nevertheless, the board is pleased to report a strong underlying trading result and continued long-term growth in 2024.

1.3
Reporting period

The financial statements for the previous period were prepared for the period from 2 August 2021 to 25 December 2022 to be in line with that of the Group. As a result the comparative amounts presented in the financial statements, including the related notes, are not entirely comparable.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue is recognised when goods are delivered to the customer.

1.5
Intangible fixed assets other than goodwill

Intangibles are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
Over the term of the licence
Website Development costs
4 years straight line
SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Plant and equipment
25% reducing balance with assets fully depreciated after 48 months

 

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

 

At each reporting date, property, plant and equipment are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

 

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of impairment is recognised immediately in the income statement.

1.7
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.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including 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. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using tax rates that have been enacted or substantively enacted by the reporting date.

    

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against future taxable profits or against the reversal of deferred tax liabilities.

 

Deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

 

1.11
Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

 

1.12
Leases

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

 

1.13
Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 5 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
30
31
3
Intangible fixed assets
Patents & licences
Website Development costs
Total
£
£
£
Cost
At 26 December 2022
39,500
1,241,541
1,281,041
Additions
20,917
487
21,404
Disposals
-
0
(37,500)
(37,500)
At 24 December 2023
60,417
1,204,528
1,264,945
Amortisation and impairment
At 26 December 2022
22,460
1,017,734
1,040,194
Amortisation charged for the year
34,388
101,693
136,081
Disposals
-
0
(12,760)
(12,760)
At 24 December 2023
56,848
1,106,667
1,163,515
Carrying amount
At 24 December 2023
3,569
97,861
101,430
At 25 December 2022
17,040
223,807
240,847
SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and equipment
£
Cost
At 26 December 2022
149,056
Additions
6,557
At 24 December 2023
155,613
Depreciation and impairment
At 26 December 2022
114,287
Depreciation charged in the year
11,877
At 24 December 2023
126,164
Carrying amount
At 24 December 2023
29,449
At 25 December 2022
34,769
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
451
Corporation tax recoverable
-
0
34,445
Amounts owed by group undertakings
66,503
65,503
Other debtors
184,496
297,881
250,999
398,280
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
1,024,947
1,433,578
Trade creditors
957,599
475,115
Amounts owed to group undertakings
2,927,552
1,104,998
Taxation and social security
501,388
443,369
Other creditors
442,461
328,245
5,853,947
3,785,305

The bank loan facility provided by HSBC Bank has been secured with a fixed and floating charge over the current and future assets of the company.

SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 7 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,300
1,300
1,300
1,300
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Mr James Leigh
Statutory Auditor:
Azets Audit Services
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
170,138
13,167
10
Financial commitments, guarantees and contingent liabilities

At 24 December 2023 the company had commitments to buy:

USD 600,000 for £481,510 (2022 - USD 1,178,877 for £1,003,526) and EUR £Nil for £Nil (2022 - EUR 32,200 for £28,515).

 

It also had commitments to sell £300,000 for USD 374,106 (2022 - £Nil).

11
Related party transactions

A company owning 99.9% of the share capital of the company, received £1,000 (2022 - £65,503) of services paid on its' behalf by Soak and Sleep Limited. This balance remains outstanding at the year end.

 

At the year end the company owed £908,860 (2022 - £474,824) to another group company. This balance accrues interest at a rate of 10% per annum. A further £1,544,810 (2022 - £Nil) was owed to another group company - this balance does not accrue interest.

SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 8 -
12
Parent company

The immediate parent undertaking is Soak & Sleep Holdings Limited, a company registered in England & Wales with the same registered office as the company.

 

The ultimate controlling party is CVB, INC, a Utah benefit corporation with a registered office of 1525 W 2960 S, Nibley, UT 84321, USA.

 

SOAK & SLEEP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 24 DECEMBER 2023
- 9 -
13
Prior period adjustment
Reconciliation of changes in equity
2 August
25 December
2021
2022
£
£
Adjustments to prior year
Write off of old balances
(494,410)
(847,179)
Equity as previously reported
287,248
(744,085)
Equity as adjusted
(207,162)
(1,591,264)
Analysis of the effect upon equity
Profit and loss reserves
(421,984)
(847,179)
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Write off of old balances
(352,769)
Loss as previously reported
(1,031,333)
Loss as adjusted
(1,384,102)
Notes to reconciliation
Write off of old balances

During the period a reconciliation was undertaken to tidy up a number of old creditor and debtor balances that were no longer payable or receivable. This resulted in a net debit to the profit and loss account as detailed above.

 

The effect of this adjustment has resulted in an increase in administration expenses for the period ended 25 December 2022 of £352,769, an increase in administration expenses of £494,410 in the year ended 2 August 2021 and a total decrease in reserves of £847,179.

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