REGISTERED NUMBER: 05541287 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
FOR |
BETTERYOU LIMITED |
REGISTERED NUMBER: 05541287 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
FOR |
BETTERYOU LIMITED |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 10 |
Report of the Independent Auditor | 12 |
Consolidated Income Statement | 17 |
Consolidated Other Comprehensive Income | 18 |
Consolidated Balance Sheet | 19 |
Company Balance Sheet | 21 |
Consolidated Statement of Changes in Equity | 23 |
Company Statement of Changes in Equity | 24 |
Consolidated Cash Flow Statement | 25 |
Notes to the Consolidated Cash Flow Statement | 27 |
Notes to the Consolidated Financial Statements | 29 |
BETTERYOU LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITOR: |
8th Floor, Beckett House |
36 Old Jewry |
London |
EC2R 8DD |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
The directors present their strategic report of the Company and the Group for the period 1 April 2023 to 30 September 2024. |
EXECUTIVE SUMMARY |
This Director's Report intends the cover the following: |
- | What we believe in and are experts in |
- | Our science - what makes us unique and what's coming |
- | B-Corp, Better Planet, People, Community |
- | Turnover growth headline |
- | GM% growth and overall profitability improvement |
- | Vit D focus, prescription status and performance |
- | Magnesium focus, demand growth and performance |
- | Working with Pioneers and Personalisation of nutrition |
- | Future development/outlook |
- | Risks are well managed |
PRINCIPAL ACTIVITIES |
BetterYou Limited ("the company") exists to offer everyone a better way to healthier, fuller lives. |
We are experts in providing fast, effective nutritional supplements; concentrating on those that are essential for our body to function at its best. |
We are committed to sourcing the most bioavailable form of each core ingredient and discovering the best mechanism of delivery: from pioneering oral spray technology to transdermal oils and lotions. Our products deliver nutrients right where you need them, providing fast effective absorption straight into the bloodstream. |
BetterYou believes in "food first" and then filling the nutritional gaps increasingly left by modern diet and lifestyle. Of the nutrients that the majority of population require elevating, the primary ones are magnesium and vitamin D3. Any health intervention not based upon a foundation of optimal magnesium and vitamin D3 levels will simply not deliver an effective and long-lasting solution. |
Through it's at-home blood-test service BetterYou is discovering additional nutrient deficiencies which are becoming increasingly responsible for common lifestyle health complaints. These are also entering the BetterYou product repertoire. |
When it comes to elevating nutrient levels it is essential to access the bloodstream as quickly as possible, enabling the body to utilise the active vitamin or mineral without potential loss. When a nutritional elevation requirement becomes an urgent matter of patient health, an HCP would administer a nutrient directly into the bloodstream. The potential of loss in the gut through malabsorption in an inefficient and over-worked gut is simply too great. BetterYou believes every nutritional elevation should access the bloodstream directly, with no loss.. and we have pioneered and perfected this in the most efficacious, convenient and non-invasive way. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
The pioneering delivery mechanisms that underpin BetterYou's uniqueness and efficacy are based upon ground-breaking absorption research (with IP fully owned by BetterYou Ltd) in conjunction with the universities of Cardiff, Sheffield and St Mark's Hospital, over almost two decades of product and clinical development. |
The principle of "faster delivery when you need it most" is based, simply and firmly, on good science. Our emphasis on science-led product development has seen us win the prestigious Queen's Award for Enterprise, for Innovation. |
Most recently our principles of Governance, People, Community, Environment and Customers has seen us achieve B Corp status, becoming one of only 2,500 businesses in the UK and 9,000 worldwide to be considered a true force for good. |
With our staff being at the very heart of our ability to excel in all our areas of importance it was with a tremendous sense of pride when, in 2024, we were awarded "Outstanding" by Best Companies and designated as one of the top 50 small businesses in the UK to work for. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
BUSINESS REVIEW |
BetterYou has performed exceptionally well in the period to September 2024 and has grown turnover by 16.5% and grown normalised operating profit by 373%. In addition to the growth in demand for the brand, the business has significantly improved both Product Margin and Gross Margin through a strong focus on operational efficiencies. |
From pre-COVID to October 2024 the % of adults taking supplements in the UK grew from 49% to 66%. Not only has there been a growth in purchasers of supplements, the need for effective alternatives to tablets and capsules has never been greater. Multiple research studies suggest that between 31% and 40% of the population cannot take, would not benefit from taking or simply would prefer not to take another tablet or capsule if provided with an alternative. It's important to note that, of the people currently taking traditional supplements, a large and growing number of them will not be benefitting to the extent claimed by the label. |
The major benefit offered by BetterYou to larger retailers is its incremental business. Shopper research evidence by Dunnhumby confirms that the brand is bringing new, younger and more affluent customers into the category area, with product choice being incremental to the basket size. |
A key point to note during the period is the 12 month, year on year growth of online purchases of +34% compared to offline growth of +11%. Online sales within the category have grown to 65% of all purchases. With BetterYou online sales at 40% of total sales this provides significant growth opportunity for BetterYou. |
Vitamin D and oral sprays |
BetterYou's vitamin D offer remains exceptionally strong and it's recent out of home campaign and social media activity has delivered a growth in market share from 7.1% to 8% for the last 6 months of the period. The latest product development, combining vitamin K2 with vitamin D3, reinforcing vitamin D's bone-health benefits as well as immune health, has provided the company with a new best-selling sku. |
Sales of all vitamin D oral sprays remain predominantly within bricks and mortar stores reinforcing product credibility and authority but online sales opportunities provide tremendous potential for future growth. During the period Holland & Barrett turned to BetterYou to help them create a virtual training programme for vitamin D which all 7,000 store staff will undertake. |
During the year we were delighted to establish the full range of vitamin D oral sprays onto the British National Formulary enabling the range to be offered on prescription to the two million patients who are prescribed vitamin D on a monthly basis. The only vitamin D oral spray delivery product range available for prescription. An awareness and education campaign aimed at healthcare practitioners and their patients is now being created and is planned to tested regionally in the Autumn of 2025. |
The development in Summer 2023 of the Health for All range created a focused collection of key oral sprays with the same product excellence but a shorter dose duration. This allowed the brand to leverage the growing opportunity instore of impulse purchase at till points. This has been met with enthusiasm from the larger discount multiples as well as community pharmacies and distribution continues at pace. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Magnesium |
Magnesium underpins the reason BetterYou was created and the company's excellence in this category remains of significant strategic and business importance. BetterYou has seen healthy growth in both offline and online sales within its range of transdermal magnesium products. |
Consumer interest in magnesium has grown and social media searches for the health benefits of magnesium have now over-taken those of both vitamin D and CBD. |
Notably, the last 12 months of the period has seen the greatest category growth in online sales with 75% of sales now digital. With much of the digital search terms relating to a request for benefit clarity or ingredient information BetterYou has leveraged its educational excellence and produced a range of informative and accessible 'science and benefit' videos which will be launched across social media platforms throughout 2025. |
To exploit the growth in both magnesium interest and product demand, BetterYou decided in 2023 to expand its delivery offer to include oral products, but still with an emphasis on pill-free convenience and optimal absorption. In December 2023 BetterYou launched MagnesiumWater, a range of functional drinks filling an under-served gap in the market for a high functioning, clean label magnesium-focused hydrating drink. Importantly it provides the highest amount of elemental magnesium currently available from a RTD (ready to drink) in the UK whilst adhering to BetterYou's customer promise of being free from any artificial ingredients. Launched initially on an exclusive basis with Holland & Barrett sales have been highly encouraging with the three skus quickly entering full distribution and establishing themselves in the top 2 best sellers in that category after only 8 weeks of launch. Importantly they have provided the brand with incremental customers, with 85% of MagnesiumWater purchasers new to the BetterYou brand. |
Finally we were delighted to see published the clinical study on MagnesiumOil undertaken by the gastroenterology team at St Mark's Hospital, Harrow. This unique and vitally influential peer-reviewed clinical study was the first magnesium study undertaken on patients in an NHS facility providing proof of the efficacy of transdermal magnesium. |
At-home testing kits |
Launched twelve years ago, BetterYou was the first UK supplement brand to offer at-home serum testing kits and to provide customers with a truly personalised supplementation programme. This period has seen the brand establish a new, state of the art, laboratory partnership providing an even faster result turnaround for customers and expanding the nutrient offer from vitamin D to include iron, vitamin B12 and a combination test for all three nutrients. |
ESG |
The Better Planet Project, launched in 2019, continues to embody our passionate belief that health shouldn't cost the earth. The project ensures our products and business practices make the smallest negative impact possible on our communities and environment and has been dramatically enhanced by the achievement of B-Corp status. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
During the period we saw the entirety of our plastic packaging production move from the Far East to the UK and Europe, removing an average of 17,000miles of transportation every delivery. Due to excellent negotiation and value-engineering this also saw a reduction in average unit product costs. All product packaging is now 100% recyclable and derived from plant-based plastic, utilising an ethanol base from sugarcane rather than fossil fuel which has been evaluated as carbon-negative through collaboration with the Carbon Trust. |
I am proud to confirm that we continue to maintain our absolute and unwavering commitment to producing products with are not only 100% Palm Oil but also Palm Oil Derivative free. |
Charitable partnerships continue to underpin much of our community agenda and our relationship with Baby Basics and The Nightingale Trust remained strong during the period. Baby Basics provides essential infant and child support to vulnerable mothers and families often fleeing domestic abuse or refugees from war. In 2024 BetterYou provided over 6000 Mother and Child nutritional packages as well as supporting the charity operation with BetterYou staff providing over 200 volunteer hours. The Nightingale Trust provides gold-standard nutritional training for nurses covering pre and post-operative patient support. The nutritional training is considered to be the finest of any health system, anywhere in the World, and I am delighted to confirm that two members of the BetterYou senior management team are now trustees. |
During the year BetterYou became one of the founding Gen-M partners. Gen-M is a collective of brands on a mission to help make the menopause a more positive experience, with relevant products carrying the "M-Tick" symbol and retail partners providing additional merchandising areas to display them. |
Pioneers programme |
As part of BetterYou's "Pioneers" programme and following the brand's nutritional support of the Antarctic Quest expedition in 2021 and the all-women trans-Atlantic Talisker Challenge rowing victory in 2022, BetterYou announced its partnership with Seas the Day, the intrepid female duo rowing team embarking on the world's first unsupported row across the Pacific Ocean. Following a 12 month period of serum analysis and dietary assessment BetterYou has developed the world's first truly personalised daily vitamin Oral Spray to compensate for the nutritional deficiencies in the crew's calorie-focused dry food programme. The team will expect to cover the 9000 miles over the course of 5 months, landing in Australia in the Summer of 2025. |
BetterYou USA |
The USA business continues to grow, most notably within CVS stores where both buyer and customer commitment to the brand remains positive and growing. The product offer in this market remains intentionally focused to transdermal magnesium only, with 5 skus available in close to 2000 retail outlets. |
During the period BetterYou continued to establish the distributor model (set up the prior year), better suiting the company's international experience, and this has dramatically improved both the margin performance and ease of in-country management. |
It is expected that the BetterYou USA will break-even within the next financial year. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Financial key performance Indicators |
The directors have assessed that the following key performance indicators (KPIs) are relevant in tracking the group and companies' performance and fulfilment of its long-term strategic objectives. |
2024 (18mth) |
2023 (18mth) |
£'000 | £'000 |
Turnover | 20,654 | 17,735 |
Gross Margin | 11,128 | 8,139 |
Gross Margin % | 53.9% | 45.9% |
Operating Profit excluding Exceptional Costs | 1,833 | 45 |
Normalised Operating Profit* | 2,012 | 425 |
Increase(decrease) in cash | 496 | (494) |
Gross Margins are monitored by sales channel, product and customer against targets on a monthly basis to ensure that we optimise product mix, identify product re-engineering opportunities and select promotional activities to build our rate of sale in the most profitable channels. Gross Margin % has grown YOY by 17% improving by 8 percentage points. |
The continuation of excellent relationships with long-term suppliers has ensured cost of goods strength with improvements seen in many areas. |
*Despite strong improvement operating profit in the 18month period to 30 Sept 2024 has been impacted by some non-recurring expenses that do not meet the criteria for exceptional costs but nevertheless have had a significant impact on profit. There were also some non-recurring costs in the PY 18mth period that are also outlined below; |
2024 (18mth) |
2023 (18mth) |
£'000 | £'000 |
Sales & Marketing team restructure | 179 | - |
Exceptional professional fees | - | 380 |
Other key performance Indicators |
Monthly business reports and dashboards are presented to the Board to support the company's performance and track it against key targets. Examples of non-financial KPI's that are tracked include trees planted (as part of our continued commitment to The Better Planet Project), CO2 emissions and employee volunteering hours. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's operations expose it to a variety of risks that include the effects of changes in inflation, foreign exchange rates, liquidity risk and credit risk. The company seeks to limit the adverse effects of its financial performance by keeping sufficient cash reserves to cover short term liabilities. |
The company must assess the impact of price increases on customer demand and balance this the need to maintain margins whilst absorbing possible raw material, componentry and manufacturing cost pressures. This risk, alongside potential disruption to our supply chain from changes in regulation, shortages of key ingredients etc. is mitigated by having alternative suppliers for key raw materials, components, and manufacture and close and strategic relationships with critical supply chain partners. |
The company undertakes appropriate checks of credit worthiness on potential customers before sales are made. In cases where a credit risk is deemed possible or likely then an advanced payment structure is put in place. The amount of exposure to any individual customer is subject to limit and is monitored to limit the risk as far as possible. |
The company is exposed to foreign exchange risk as it enters into sales transaction with overseas suppliers and customers. The Company manages its exposure to this risk by assessing and managing the net level of trade debtor balances, trade creditor balances and cash balances denominated in foreign currencies. The Company does not use derivative financial instruments to manage the exposure to foreign currencies at present. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
FUTURE DEVELOPMENTS |
We continue to forecast significant growth for BetterYou to the year ending 30th September 2025. The £1.5 billion supplement market in the UK is expected to grow +6.53% between 2024-2029. In particular, there are key sector dynamics which provide confidence in the growth of two primary areas for BetterYou. The vitamin D market growth is set to continue as we understand the magnitude of public insufficiency due to modern internal lifestyles and the health impact this is having. BetterYou will continue to grow its product range and authority in this area, both off and online. |
Magnesium supplementation has been at the heart of the BetterYou product offer since its very beginning but for many years it has been a relatively lone voice in the UK. This mineral's dramatic surge in interest is set to continue, particularly online, and BetterYou will increase its category presence as a source of information, education and product innovation. MagnesiumPowder, a range of high potency magnesium to be added to water or a base drink of choice, will represent our most recent launch into the magnesium market, continuing BetterYou excellence in bioavailability whilst joining MagnesiumWater in expanding the consumer choice in magnesium delivery options. |
Science remains one of our customer's most potent reason for loyalty and BetterYou continues to invest in efficacy proof points with our most ambitious absorption study to date. During 2025 Newcastle University will be undertaking a groundbreaking double-blinded placebo study of key groups for whom their vitamin D needs are currently largely unmet by the traditional tablet and capsule offer. This, together with our recent prescription status will fuel an awareness programme within Health Care Practitioners commencing in the Autumn of 2025. |
ON BEHALF OF THE BOARD: |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
The directors present their report with the financial statements of the Company and the Group for the period 1 April 2023 to 30 September 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the period under review was that of production of alternative health products. |
DIVIDENDS |
No dividends will be distributed for the period ended 30 September 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are 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. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditor is unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditor is aware of that information. |
AUDITOR |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
BETTERYOU LIMITED |
Opinion |
We have audited the financial statements of BetterYou Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the period ended 30 September 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 30 September 2024 and of the Group's profit for the period 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 responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
BETTERYOU LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditor thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
BETTERYOU LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages ten and eleven, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
BETTERYOU LIMITED |
Auditors' 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 a Report of the Auditor 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: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We design audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Report of the Auditor. |
REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
BETTERYOU LIMITED |
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 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in a Report of the Auditor 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. |
for and on behalf of |
8th Floor, Beckett House |
36 Old Jewry |
London |
EC2R 8DD |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED INCOME STATEMENT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Period | Period |
1.4.23 to 30.9.24 | 1.10.21 to 31.3.23 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 20,654,276 | 17,735,057 |
Cost of sales | 9,526,433 | 9,595,821 |
GROSS PROFIT | 11,127,843 | 8,139,236 |
Distribution costs | 919,142 | 1,064,371 |
Administrative expenses | 8,600,007 | 7,029,481 |
9,519,149 | 8,093,852 |
OPERATING PROFIT | 5 | 1,608,694 | 45,384 |
Interest receivable and similar income | 1,759 | 2,977 |
1,610,453 | 48,361 |
Amounts written off investments | 8 | 2 | - |
1,610,451 | 48,361 |
Interest payable and similar expenses | 9 | 161,953 | 190,568 |
PROFIT/(LOSS) BEFORE TAXATION | 1,448,498 | (142,207 | ) |
Tax on profit/(loss) | 10 | 576,273 | 121,651 |
PROFIT/(LOSS) FOR THE FINANCIAL PERIOD |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 872,225 | (221,069 | ) |
Non-controlling interests | - | (42,789 | ) |
872,225 | (263,858 | ) |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE PERIOD | 872,225 | (263,858 | ) |
OTHER COMPREHENSIVE INCOME |
Purchase of own shares | (65,705 | ) | - |
Capital redemption reserve | 5 | - |
Share options reserve | 14,672 | - |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX |
(51,028 |
) |
- |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
821,197 |
(263,858 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 821,197 | (221,069 | ) |
Non-controlling interests | - | (42,789 | ) |
821,197 | (263,858 | ) |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED BALANCE SHEET |
30 SEPTEMBER 2024 |
30.9.24 | 31.3.23 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 18,531 | 23,738 |
Tangible assets | 14 | 263,435 | 361,858 |
Investments | 15 | - | 2 |
281,966 | 385,598 |
CURRENT ASSETS |
Stocks | 16 | 1,993,283 | 1,329,024 |
Debtors | 17 | 2,716,832 | 2,357,094 |
Cash at bank and in hand | 633,403 | 137,420 |
5,343,518 | 3,823,538 |
CREDITORS |
Amounts falling due within one year | 18 | 3,831,175 | 2,936,747 |
NET CURRENT ASSETS | 1,512,343 | 886,791 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 1,794,309 | 1,272,389 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(175,742 |
) |
(484,889 |
) |
PROVISIONS FOR LIABILITIES | 23 | (46,883 | ) | (63,417 | ) |
NET ASSETS | 1,571,684 | 724,083 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED BALANCE SHEET - continued |
30 SEPTEMBER 2024 |
30.9.24 | 31.3.23 |
as restated |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 24 | 491 | 468 |
Share premium | 245,667 | 219,286 |
Capital redemption reserve | 32 | 27 |
Other reserves | 14,672 | - |
Retained earnings | 1,310,822 | 574,425 |
SHAREHOLDERS' FUNDS | 1,571,684 | 794,206 |
NON-CONTROLLING INTERESTS | - | (70,123 | ) |
TOTAL EQUITY | 1,571,684 | 724,083 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by: |
Mr A Thomas - Director |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
COMPANY BALANCE SHEET |
30 SEPTEMBER 2024 |
30.9.24 | 31.3.23 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
19 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
COMPANY BALANCE SHEET - continued |
30 SEPTEMBER 2024 |
30.9.24 | 31.3.23 |
as restated |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,430,081 | 591,932 |
The financial statements were approved by the Board of Directors and authorised for issue on |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Called up | Capital |
share | Retained | Share | redemption |
capital | earnings | premium | reserve |
£ | £ | £ | £ |
Balance at 1 October 2021 | 468 | 795,494 | 219,286 | 27 |
Changes in equity |
Total comprehensive income | - | (221,069 | ) | - | - |
Balance at 31 March 2023 | 468 | 574,425 | 219,286 | 27 |
Changes in equity |
Increase in share capital | - | (70,123 | ) | - | - |
Total comprehensive income | - | 806,520 | - | 5 |
Balance at 30 September 2024 | 468 | 1,310,822 | 219,286 | 32 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 October 2021 | - | 1,015,275 | (27,334 | ) | 987,941 |
Changes in equity |
Total comprehensive income | - | (221,069 | ) | (42,789 | ) | (263,858 | ) |
Balance at 31 March 2023 | - | 794,206 | (70,123 | ) | 724,083 |
Changes in equity |
Increase in share capital | - | (70,123 | ) | 70,123 | - |
Total comprehensive income | 14,672 | 821,197 | - | 821,197 |
Balance at 30 September 2024 | 14,672 | 1,545,280 | - | 1,545,280 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | - |
Balance at 30 September 2024 |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Total comprehensive income |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - | - |
Total comprehensive income |
Balance at 30 September 2024 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,792,329 | 1,597,751 |
Interest paid | (160,516 | ) | (184,794 | ) |
Interest element of hire purchase payments paid |
(1,437 |
) |
(5,774 |
) |
Tax paid | (199,821 | ) | (29,287 | ) |
Net cash from operating activities | 1,430,555 | 1,377,896 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (4,280 | ) |
Purchase of tangible fixed assets | (200,375 | ) | (121,185 | ) |
Sale of tangible fixed assets | 15,853 | 20,121 |
Sale of fixed asset investments | 2 | - |
Interest received | 1,759 | 2,977 |
Net cash from investing activities | (182,761 | ) | (102,367 | ) |
Cash flows from financing activities |
Loan repayments in year | (349,423 | ) | (552,979 | ) |
Capital repayments in year | (2,473 | ) | (15,048 | ) |
Amount introduced by directors | - | 55,449 |
Amount withdrawn by directors | (55,519 | ) | (74,126 | ) |
Share issue | 28 | - |
Share buyback | (5 | ) | - |
Invoice financing | (319,772 | ) | (1,183,324 | ) |
Premium on share issue | 26,381 | - |
Premium on redemption of shares | (65,700 | ) | - |
EMI share options granted | 14,672 | - |
Net cash from financing activities | (751,811 | ) | (1,770,028 | ) |
Increase/(decrease) in cash and cash equivalents | 495,983 | (494,499 | ) |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
Notes | £ | £ |
Cash and cash equivalents at beginning of period |
2 |
137,420 |
631,919 |
Cash and cash equivalents at end of period |
2 |
633,403 |
137,420 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Profit/(loss) before taxation | 1,448,498 | (142,207 | ) |
Depreciation charges | 279,431 | 361,267 |
Loss on disposal of fixed assets | 8,720 | 42,831 |
Finance costs | 161,953 | 190,568 |
Finance income | (1,759 | ) | (2,977 | ) |
1,896,843 | 449,482 |
(Increase)/decrease in stocks | (664,259 | ) | 1,098,417 |
(Increase)/decrease in trade and other debtors | (354,738 | ) | 138,789 |
Increase/(decrease) in trade and other creditors | 914,483 | (88,937 | ) |
Cash generated from operations | 1,792,329 | 1,597,751 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 30 September 2024 |
30.9.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 633,403 | 137,420 |
Period ended 31 March 2023 |
31.3.23 | 1.10.21 |
as restated |
£ | £ |
Cash and cash equivalents | 137,420 | 631,919 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.4.23 | Cash flow | At 30.9.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 137,420 | 495,983 | 633,403 |
137,420 | 495,983 | 633,403 |
Debt |
Finance leases | (2,473 | ) | 2,473 | - |
Debts falling due within 1 year | (248,340 | ) | 40,731 | (207,609 | ) |
Debts falling due after 1 year | (484,434 | ) | 308,692 | (175,742 | ) |
(735,247 | ) | 351,896 | (383,351 | ) |
Total | (597,827 | ) | 847,879 | 250,052 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
1. | STATUTORY INFORMATION |
BetterYou Limited is a |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements for the current period have been prepared for a period of 18 months, covering 1 April 2023 to 30 September 2024, in order to align the reporting cycle with that of a subsidiary. This is consistent with the prior reporting period, which also covered 18 months. However, due to the seasonal nature of the business, it is important to note that the two periods cover different time frames, each with distinct seasonal demand patterns. |
Basis of consolidation |
The consolidated financial statements comprise the results of the parent company; BetterYou Limited and its subsidiary; BetterYou USA Limited. |
Significant judgements and estimates |
No judgements have been made in the process of applying the below accounting policies that have had the most significant effect on amounts recognised in the financial statements. |
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, and is shown net of discounts, rebates and value added tax. |
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. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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 average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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. |
Research and development |
Research and development costs are expensed in the year in which they are incurred. |
Foreign currencies |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Share based payment transactions |
The cost and corresponding increase in equity in respect of equity-settled share-based payment transactions with employees in the prior year are measured by reference to the fair value of equity instruments issued at the date of grant. Amounts are expensed on a straight line basis over the vesting period based on the estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. |
3. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the Group. |
An analysis of turnover by geographical market is given below: |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
United Kingdom | 15,117,738 | 12,018,522 |
International | 5,536,538 | 5,716,535 |
20,654,276 | 17,735,057 |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
4. | EMPLOYEES AND DIRECTORS |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Wages and salaries | 3,939,831 | 2,884,665 |
Social security costs | 346,210 | 414,131 |
Other pension costs | 146,528 | 238,703 |
4,432,569 | 3,537,499 |
The average number of employees during the period was as follows: |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
Admin | 10 | 10 |
Logistics | 7 | 8 |
Directors | 5 | 4 |
Sales | 11 | 14 |
Marketing | 13 | 14 |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Directors' remuneration | 960,921 | 679,888 |
Directors' pension contributions to money purchase schemes | 35,969 | 25,565 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 3 |
Information regarding the highest paid director is as follows: |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Emoluments etc | 267,854 | 219,852 |
Pension contributions to money purchase schemes | 4,201 | 4,201 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Hire of plant and machinery | 15,010 | 9,654 |
Other operating leases | 172,376 | 152,793 |
Depreciation - owned assets | 274,225 | 341,645 |
Depreciation - assets on hire purchase contracts | - | 14,428 |
Loss on disposal of fixed assets | 8,720 | 42,831 |
Patents and licences amortisation | 5,207 | 5,194 |
Research and development expenditure | 568,000 | 242,107 |
Gain on foreign exchange differences | (5,045 | ) | 135,625 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
6. | AUDITORS' REMUNERATION |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Fees payable to the Company's auditor for the audit of the Company's financial statements |
25,000 |
19,000 |
7. | EXCEPTIONAL ITEMS |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Exceptional items | (224,629 | ) | - |
The exceptional item of £224,629 represents compensation paid by the Company of £200,000 as a full and final settlement of all claims related to a breach of exclusivity and associated legal costs of £24,629. This payment resolves any outstanding liabilities arising from the breach. |
8. | AMOUNTS WRITTEN OFF INVESTMENTS |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Amounts written off |
investments | 2 | - |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Bank interest | 93,269 | 48,092 |
Streamline and paypal charges | 41,942 | 36,530 |
Invoice financing charges | 23,296 | 100,057 |
Late payment interest | 2,009 | 115 |
Hire purchase interest | 1,437 | 5,774 |
161,953 | 190,568 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax | 566,118 | 173,455 |
Over-provision of corporation tax charge | 25,689 | (45,062 | ) |
US taxes | 1,000 | 9,520 |
Total current tax | 592,807 | 137,913 |
Deferred tax | (16,534 | ) | (16,262 | ) |
Tax on profit/(loss) | 576,273 | 121,651 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
1.4.23 | 1.10.21 |
to | to |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Profit/(loss) before tax | 1,448,498 | (142,207 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
362,125 |
(27,019 |
) |
Effects of: |
Expenses not deductible for tax purposes | 53,914 | 69,158 |
Depreciation in excess of capital allowances | 14,354 | 32,512 |
Adjustments to tax charge in respect of previous periods | 25,689 | (45,069 | ) |
Research and development enhanced deduction | - | (59,800 | ) |
Deferred tax movement | (16,534 | ) | (16,262 | ) |
Utilisation of trading charges | (3,489 | ) | (2,180 | ) |
BetterYou USA Limited losses not subject to corporation tax | 139,214 | 160,791 |
US taxes | 1,000 | 9,520 |
Total tax charge | 576,273 | 121,651 |
Tax effects relating to effects of other comprehensive income |
1.4.23 to 30.9.24 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | (65,705 | ) | - | (65,705 | ) |
Capital redemption reserve | 5 | - | 5 |
Share options reserve | 14,672 | - | 14,672 |
(51,028 | ) | - | (51,028 | ) |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
12. | PRIOR YEAR ADJUSTMENT |
In preparing the financial statements for the period ending 30 September 2024, it was identified that there was a misstatement in turnover for the comparative period ended 31 March 2023. The misstatement arose due to the classification of customer rebates to cost of sales, resulting in an overstatement of turnover by £867,050 and an overstatement of cost of sales by the same amount in the prior period. |
The impact of this correction has been reflected in the prior period adjustment. As a result, the comparative figures for the period ended 31 March 2023 have been restated as follows: |
Turnover for the period ended 31 March 2023 has been adjusted by £867,050, from £18,602,107 to £17,735,057. |
Cost of sales for the period ended 31 March 2023 has been adjusted by £867,050, from £10,462,871 to £9,595,821. |
There has been no effect on reported profit in the prior period and accordingly no balance sheet adjustment. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
licences |
£ |
COST |
At 1 April 2023 |
and 30 September 2024 | 34,708 |
AMORTISATION |
At 1 April 2023 | 10,970 |
Amortisation for period | 5,207 |
At 30 September 2024 | 16,177 |
NET BOOK VALUE |
At 30 September 2024 | 18,531 |
At 31 March 2023 | 23,738 |
Company |
Patents |
and |
licences |
£ |
COST |
At 1 April 2023 |
and 30 September 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for period |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 31 March 2023 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
14. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 | 478,479 | 397,775 | 78,444 | 279,157 | 1,233,855 |
Additions | 31,349 | 131,998 | - | 37,028 | 200,375 |
Disposals | - | - | (78,444 | ) | (14,573 | ) | (93,017 | ) |
At 30 September 2024 | 509,828 | 529,773 | - | 301,612 | 1,341,213 |
DEPRECIATION |
At 1 April 2023 | 273,718 | 354,858 | 43,823 | 199,598 | 871,997 |
Charge for period | 123,403 | 76,887 | 6,992 | 66,943 | 274,225 |
Eliminated on disposal | - | - | (50,815 | ) | (17,629 | ) | (68,444 | ) |
At 30 September 2024 | 397,121 | 431,745 | - | 248,912 | 1,077,778 |
NET BOOK VALUE |
At 30 September 2024 | 112,707 | 98,028 | - | 52,700 | 263,435 |
At 31 March 2023 | 204,761 | 42,917 | 34,621 | 79,559 | 361,858 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2023 | 23,740 |
Disposals | (23,740 | ) |
At 30 September 2024 | - |
DEPRECIATION |
At 1 April 2023 | 19,123 |
Eliminated on disposal | (19,123 | ) |
At 30 September 2024 | - |
NET BOOK VALUE |
At 30 September 2024 | - |
At 31 March 2023 | 4,617 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
to | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 September 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 31 March 2023 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 30 September 2024 |
DEPRECIATION |
At 1 April 2023 |
Eliminated on disposal | ( |
) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 31 March 2023 |
15. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakin |
£ |
COST |
At 1 April 2023 | 2 |
Disposals | (2 | ) |
At 30 September 2024 | - |
NET BOOK VALUE |
At 30 September 2024 | - |
At 31 March 2023 | 2 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakin |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 31 March 2023 |
The Group or the Company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 3500 S Dupont Hwy, Camden, DE 19934, USA |
Nature of business: |
% |
Class of shares: | holding |
30.9.24 | 31.3.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the period | ( |
) | ( |
) |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
16. | STOCKS |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Components and raw materials | 730,502 | 366,808 |
Finished goods | 1,262,781 | 962,216 |
1,993,283 | 1,329,024 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Trade debtors | 2,412,522 | 2,147,839 |
Amounts owed by group undertakings | - | - |
Other debtors | 45,793 | 19,385 |
Directors' current accounts | 5,000 | - | 5,000 | - |
Prepayments and accrued income | 253,517 | 189,870 |
2,716,832 | 2,357,094 |
Secured within trade debtors and amounts owed by group undertakings is £2,494,191 in relation to the invoice financing creditor. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 155,501 | 200,706 |
Other loans (see note 20) | 52,108 | 47,634 |
Hire purchase contracts (see note 21) | - | 2,018 |
Trade creditors | 1,774,382 | 1,115,488 |
Corporation tax | 566,118 | 173,132 |
Social security and other taxes | 66,120 | 56,966 |
VAT | 88,976 | 201,148 | 88,976 | 201,148 |
Invoice financing | 162,260 | 482,033 |
Other creditors | 22,316 | 64,377 | 22,316 | 64,377 |
Directors' current accounts | - | 50,519 | - | 50,519 |
Accruals and deferred income | 943,394 | 542,726 |
3,831,175 | 2,936,747 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Bank loans (see note 20) | 106,063 | 337,739 |
Other loans (see note 20) | 69,679 | 146,695 |
Hire purchase contracts (see note 21) | - | 455 |
175,742 | 484,889 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 155,501 | 200,706 |
Other loans | 52,108 | 47,634 |
207,609 | 248,340 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 106,063 | 153,369 |
Other loans - 1-2 years | 55,323 | 50,572 | 55,323 |
161,386 | 203,941 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 184,370 |
Other loans - 2-5 years | 14,356 | 96,123 |
14,356 | 280,493 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Net obligations repayable: |
Within one year | - | 2,018 |
Between one and five years | - | 455 |
- | 2,473 |
Company |
Hire purchase contracts |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Company |
Non-cancellable | operating leases |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Within one year |
Between one and five years |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Bank loans | 261,564 | 538,445 |
Hire purchase contracts | - | 2,473 | 162,260 | 482,033 |
Invoice financing | - | 482,033 | - | - |
261,564 | 1,022,951 |
Contract Monies charge dated 20 October 2014 and 25 April 2024. |
Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 20 June 2014. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.9.24 | 31.3.23 | 30.9.24 | 31.3.23 |
as restated |
as restated |
£ | £ | £ | £ |
Deferred tax | 46,883 | 63,417 | 46,883 | 63,417 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 63,417 |
Credit to Income Statement during period | (16,534 | ) |
Balance at 30 September 2024 | 46,883 |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
23. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Credit to Statement of Comprehensive Income during period | ( |
) |
Balance at 30 September 2024 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.24 | 31.3.23 |
value: | as restated |
£ | £ |
A Ordinary | £1 | 210 | 210 |
B Ordinary | £1 | 206 | 206 |
C Ordinary | £1 | 19 | 24 |
D Ordinary | £1 | 14 | 14 |
14 | E Ordinary | £1 | 14 | 14 |
28 | G Ordinary | £1 | 28 | - |
491 | 468 |
The following shares were issued during the period: |
28 G Ordinary shares of £1 for consideration of £26,409. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the periods ended 30 September 2024 and 31 March 2023: |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
A Thomas |
Balance outstanding at start of period | - | 13,146 |
Amounts advanced | - | 108,224 |
Amounts repaid | - | (121,370 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | - |
R Whitbread |
Balance outstanding at start of period | - | 42,303 |
Amounts advanced | - | 137,107 |
Amounts repaid | - | (179,410 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | - |
Mrs J Julian |
Balance outstanding at start of period | (50,519 | ) | - |
Amounts advanced | 50,519 | 45,021 |
Amounts repaid | - | (95,540 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | (50,519 | ) |
G Shenton |
Balance outstanding at start of period | - | - |
Amounts advanced | 5,000 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 5,000 | - |
Advances and credits to directors attract interest at a rate of 5% per annum. |
BETTERYOU LIMITED (REGISTERED NUMBER: 05541287) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2023 TO 30 SEPTEMBER 2024 |
26. | RELATED PARTY DISCLOSURES |
Entities over which the entity has control, joint control or significant influence |
30.9.24 | 31.3.23 |
as | restated |
£ | £ |
Sales | 314,249 | 260,018 |
Expenses paid on behalf of related party | 17,759 | 2,016 |
Interest received from related party | 60,443 | 27,182 |
Management charges received | 99,996 | 118,039 |
Loans and transfers to | 167,179 | 513,492 |
Loans and transfers from | 122,892 | 404,592 |
Amount due from related party | 2,007,472 | 1,624,195 |
27. | SHARE-BASED PAYMENT TRANSACTIONS |
During the period the company had share-based payment arrangements as follows: |
EMI share options: |
Date of grant | 19/08/2024 |
Number granted | 56 |
Maximum term | 10 years |
Settlement type |
Equity settled |
The total expense recognised during the period in respect of share based payments totalled £14,672 (2023: £nil). |