Company Registration No. 10535110 (England and Wales)
THE CONRAN SHOP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
THE CONRAN SHOP LIMITED
COMPANY INFORMATION
Directors
E Lax Banon
L Hall
Company number
10535110
Registered office
16-22 Baltic Street West
London
EC1Y 0UL
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
THE CONRAN SHOP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28
THE CONRAN SHOP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the period ended 31 March 2024.
Review of the business
The principal activity of the company is that of the retail of premium, design-led furniture and home furnishings through The Conran Shop brand in stores, concessions, online, via franchise partners in Japan and Korea, and through The Conran Shop Professional, a division which sells principally to corporate customers.
The brand retains its iconic appeal and the management team aim to build on the legacy created by Sir Terence Conran in order to drive growth for the business.
The company made a loss for the year and has continued to make losses after the year end. The company is not expected to return to profitability within the next 12 months. Whilst the performance of the company has been disappointing in recent years, with the backing of the shareholder, the restructuring of the company and the group is now in progress. The company's store in Chelsea closed in the prior year and after the year end the Marylebone store has closed. The company's subsidiary, The Conran Shop SAS, in France, has been placed into voluntary liquidation during the period.
During the period, the company acquired a controlling interest in a company incorporated in Kuwait and this company commenced trading towards the end of the period.
With the company's new flagship store in Sloane Street, its new subsidairy and the plan to re-focus the product offering along with continuing to streamline the business operations, the directors are very optimistic about the future.
THE CONRAN SHOP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
The business is subject to a number of risks which could adversely affect the company's future development. The principal risks and uncertainties are as follows:
Marketplace
The luxury homewares and furnishings business continues to be competitive. In addition to this, the current economic outlook remains uncertain and therefore trading conditions remain challenging.
The company seeks to stand out in this environment by offering a highly distinctive range of products at attractive luxury price points, aiming to build iconic own brand products that are readily recognisable as being from The Conran Shop, in complement to ensuring the range also includes premium, design-led branded products, as well as offering a digital, direct to customer model, with our customers and employees at the heart of the business.
Credit risk
The principal credit risk for the company and the group arises from its trade debtors, predominantly in relation to its Professional channel and Franchise partners. In order to manage this risk, the company performs credit checks on all customers offered credit, and subsequently sets appropriate limits.
Third party production risk
The company produces and purchases its product through a network of third-party suppliers whose performance in terms of quality, compliance with local laws and regulations, and adherence to delivery deadlines is important to ensure the timely availability of stock in stores, online and for delivery to wholesale and franchise partners, as well as customer-specific orders. The company is in regular contact with suppliers to monitor adherence to the terms of supply.
Liquidity risk
The directors seek to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable seasonal operational needs. The group monitors budgets and cash flows on a weekly basis and works closely with its shareholders to ensure the company and the group has the appropriate resources available to fund all working capital cycles.
Foreign exchange risk
The company and the group continue to routinely carry out business denominated in foreign currencies. It remains the company's policy to mitigate exchange risks by operating a multi-currency system which allows more timely control over gains and losses.
Environmental issues
The company is committed to the promotion of environmental initiatives and minimising the environmental impact of its business. Our industry is energy intensive and to satisfy the requirements of our customers requires a high level of transport usage. The focusing on creating an efficient and sustainable business the company is taking steps to reduce its on-going carbon footprint. The company's objective is to recycle as much of its waste as possible.
Employee involvement
The flow of information to employees has been maintained by our company meetings. Members of the management team regularly visit stores and discuss matters of current interest and concern to the business with members of employees.
THE CONRAN SHOP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
Key performance indicators
The directors consider the financial key performance indicators to be as follows:
2024 2023
Sales 10,728,193 25,550,716
EBITDA* (4,109,980) (5,090,175)
Operating loss (9,989,537) (9,909,742)
* Earnings before interest, tax, depreciation, amortisation and exceptional items.
E Lax Banon
Director
26 March 2025
THE CONRAN SHOP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the period ended 31 March 2024.
Results and dividends
The results for the period are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
E Lax Banon
L Hall
Post reporting date events
Since the period end, the company has issued a further 5 Ordinary shares to the parent company, Barle Holdings Limited, which has raised a further £3m.
Auditor
In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
THE CONRAN SHOP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
E Lax Banon
Director
26 March 2025
THE CONRAN SHOP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CONRAN SHOP LIMITED
- 6 -
We have audited the financial statements of The Conran Shop Limited (the 'company') for the period ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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, except for the possible effects on the current and corresponding figures of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss 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 qualified opinion
We were unable to obtain sufficient appropriate audit evidence of the stock accruals included within creditors amounts falling due within one year totalling £712,524. Consequently we were unable to determine whether any adjustment to this amount was necessary.
In the prior period, we were unable to obtain sufficient appropriate audit evidence of the customer deposits and stock accruals including within creditors amounts falling due within one year totalling £3,006,473. Consequently we were unable to determine whether any adjustment to this amount was necessary. Our audit opinion on the financial statements for the period ended 2 April 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 qualified opinion.
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements, which indicates that the company incurred a net loss of £10,009,230 during the period ended 31 March 2024. As stated in note 1.2, these events or conditions, along with other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
THE CONRAN SHOP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CONRAN SHOP LIMITED (CONTINUED)
- 7 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the basis for qualified opinion section or our report, we were unable to obtain sufficient appropriate audit evidence of the stock accruals included within creditors amounts falling due within one year totalling £712,524. We have concluded that where the other information refers to creditors or related balances in the profit and loss account, it may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
We were unable to obtain sufficient appropriate audit evidence of the stock accruals included within creditors amounts falling due within one year totalling £712,524.
Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustments to the creditors balance to be required, the strategic report would also need to be amended.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Arising solely from the limitation on the scope of our work relating to stock accruals included within creditors amounts falling due within one year, referred to above:
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
THE CONRAN SHOP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CONRAN SHOP LIMITED (CONTINUED)
- 8 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Capability of the audit in detecting irregularity, including fraud
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; and anti-bribery and anti-corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular: depreciation, redundancy provisions, dilapidation provisions and impairment provisions;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis; and
Discussions with management.
THE CONRAN SHOP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CONRAN SHOP LIMITED (CONTINUED)
- 9 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Amit Popat
Senior Statutory Auditor
For and on behalf of Rickard Luckin Limited
26 March 2025
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
THE CONRAN SHOP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
52 week period
52 week period
ended
ended
31 March
02 April
2024
2023
as restated
Notes
£
£
Turnover
3
10,728,193
25,550,716
Cost of sales
(7,557,669)
(17,684,974)
Gross profit
3,170,524
7,865,742
Administrative expenses
(9,569,160)
(15,859,456)
Other operating income
1,056,097
2,089,640
Exceptional item
4
(4,646,998)
(4,005,668)
Operating loss
5
(9,989,537)
(9,909,742)
Interest receivable and similar income
7
17,938
Interest payable and similar expenses
8
(19,693)
Loss before taxation
(10,009,230)
(9,891,804)
Tax on loss
9
Loss for the financial period
(10,009,230)
(9,891,804)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE CONRAN SHOP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
31 March 2024
02 April 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,297,897
2,268,158
Investments
13
127,792
2,425,689
2,268,158
Current assets
Stocks
15
2,069,387
2,965,335
Debtors
16
1,745,044
2,884,786
Cash at bank and in hand
760,034
2,081,993
4,574,465
7,932,114
Creditors: amounts falling due within one year
17
(4,220,819)
(9,314,355)
Net current assets/(liabilities)
353,646
(1,382,241)
Total assets less current liabilities
2,779,335
885,917
Creditors: amounts falling due after more than one year
18
(65,031)
Provisions for liabilities
Provisions
21
734,038
766,359
(734,038)
(766,359)
Net assets
2,045,297
54,527
Capital and reserves
Called up share capital
23
470
475
Share premium account
24,099,500
21,099,500
Capital redemption reserve
165
160
Profit and loss reserves
(22,054,838)
(21,045,608)
Total equity
2,045,297
54,527
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
E Lax Banon
Director
Company registration number 10535110 (England and Wales)
THE CONRAN SHOP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 28 March 2022
490
11,499,500
160
(11,153,804)
346,346
Period ended 2 April 2023:
Loss and total comprehensive income
-
-
-
(9,891,804)
(9,891,804)
Issue of share capital
23
5
9,600,000
-
-
9,600,005
Other movements
(20)
-
-
-
(20)
Balance at 2 April 2023
475
21,099,500
160
(21,045,608)
54,527
Period ended 31 March 2024:
Loss and total comprehensive income
-
-
-
(10,009,230)
(10,009,230)
Issue of share capital
23
12,000,000
-
-
12,000,000
Redemption of shares
23
(5)
5
Other movements
-
(9,000,000)
-
9,000,000
-
Balance at 31 March 2024
470
24,099,500
165
(22,054,838)
2,045,297
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
The Conran Shop Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16-22 Baltic Street West, London, EC1Y 0UL.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The Conran Shop Limited is a wholly owned subsidiary of Barle Holdings Limited and the results of The Conran Shop Limited are included in the consolidated financial statements of Barle Holdings Limited which are available from Companies House.
1.2
Going concern
The financial statements have been prepared on a going concern basis.true
The company made a loss for the period of £10,009,230. The company meets its day to day working capital requirements through financial support provided by the ultimate shareholder. A further £3m of funding has been received from the issue of share capital to the parent company, Barle Holdings Limited after the period end. Should that support be withdrawn then a material uncertainty would exist as to whether the company could continue as a going concern.
The directors have a reasonable expectation that the company has sufficient resources to continue to trade for at least the next 12 months from the date these financial statements are signed.
It is on this basis that the directors consider it appropriate to prepare the financial statements on the going concern basis.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually when the retail goods are physically delivered to the customer), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets - goodwill
Negative goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, negative goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.
Negative goodwill is recognised in the profit and loss account in the periods in which the nonmonetary assets of the acquired business are recovered.
1.5
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.
Depreciation 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:
Leasehold land and buildings
5 - 25 years straight line
Plant and equipment
3 - 10 years straight line
Fixtures and fittings
3 - 10 years straight line
I.T. and equipment
3 - 5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
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.
1.10
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.
Other financial assets
Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, loans and loans from fellow group companies 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Dilapidation costs are capitalised and amortised over the length of the lease.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
Restatement of profit and loss account
The comparative results in the profit and loss account have been restated to more accurately reflect the split of wages and salaries between cost of sales and administrative expenses. The directors feel that this is necessary in order for the financial statements to show a true and fair view. The effect of this adjustment has been to increase cost of sales by £2,297,436 and decrease administrative expenses by the same amount, for the period ended 2 April 2023.
1.19
Income and expenses classified as exceptional are shown seperately on the face of the profit and loss account. Income and expenses are treated as exceptional in nature if they are significant one off income or expenses and are not expected to reoccur.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, and experience of recoverability to conclude as to whether any assets are impaired or not.
There has been an impairment of £4,114,943 (2023: £3,403,989) relating to the amounts owed by The Conran Shop SAS to the company, as the balance is unlikely to be recovered.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The deprecation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.
Stock provisions
Judgement is made on the level of the stock provision required to ensure that stock is held at the lower of cost and net realisable value. When assessing the provision the directors have considered factors such as the ageing of the stock and movements in customer preferences.
Dilapidation provision
The directors have made a provision for dilapidations that represent their best estimate of the liability at the time of the balance sheet date. The actual liability will be dependent on a number of factors including any future agreement that may be reached with the landlord in settling any potential liability at that time.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,728,193
25,550,716
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
UK sales
9,385,336
24,109,143
EU sales
176,533
464,042
Rest of world sales
1,166,324
977,531
10,728,193
25,550,716
2024
2023
£
£
Other revenue
Interest income
-
17,938
Royalty income
980,003
982,989
Management fees receivable
-
1,079,169
Sundry income
75,381
24,889
4
Exceptional item
2024
2023
£
£
Expenditure
Acquisition related and restructure costs
219,444
-
Redundancy costs
312,611
758,842
Dilapidation provision
-
(157,163)
Impairment of amounts owed by group undertakings
4,114,943
3,403,989
4,646,998
4,005,668
The £312,611 (2023: £758,842) relates to redundancy costs committed to in the period and provided for at the period end.
During the current period, the impairment of £4,114,943 (2023: £3,403,989) was incurred in relation to the amounts owed by The Conran Shop SAS, which is no longer recoverable.
The £219,444 acquisition related and restructure costs are as a result of shop closures and moving premises in the year.
In the prior period, the £157,163 dilapidation provision related to the release of the unutilised provision for dilapidations made in the prior period.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 21 -
5
Operating loss
2024
2023
Operating loss for the period is stated after charging/(crediting):
£
£
Exchange gains
(63,659)
(395)
Fees payable to the company's auditor for the audit of the company's financial statements
45,000
44,000
Depreciation of owned tangible fixed assets
750,793
884,254
Depreciation of tangible fixed assets held under finance leases
173,801
111,334
Impairment of owned tangible fixed assets
307,965
Loss on disposal of tangible fixed assets
371,769
351,396
Amortisation of intangible assets
-
(181,689)
Operating lease charges
789,528
1,921,271
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Employees
109
221
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,136,752
7,306,110
Social security costs
503,116
711,828
Pension costs
186,603
254,969
4,826,471
8,272,907
The company has incurred and provided for redundancy costs during the period totalling £275,000 (2023: £758,842) and this is included within exceptional expenses.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
17,938
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
5,412
-
Other interest on financial liabilities
14,281
19,693
9
Taxation
The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(10,009,230)
(9,891,804)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(2,502,308)
(1,879,443)
Tax effect of expenses that are not deductible in determining taxable profit
1,084,961
681,700
Change in unrecognised deferred tax assets
1,417,312
1,575,978
Effect of change in corporation tax rate
(378,235)
Depreciation on assets not qualifying for tax allowances
35
Taxation charge for the period
-
-
The company had trading losses carried forward of £22,900,000 (2023: £17,600,000). The company had an unrecognised deferred tax asset of £5,440,000 (2023: £3,880,000) at the period end.
The Corporation Tax rate has been increased to 25% following a change to Corporation Tax legislation by HM Revenue & Customs.
10
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
12
307,965
Recognised in:
Administrative expenses
307,965
-
The impairment losses have arisen in relation to the fixed assets at the Marlyebone store which was closed after the period end. The directors concluded these assets had no value at the period end.
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
11
Intangible fixed assets
Negative goodwill
£
Cost
At 3 April 2023 and 31 March 2024
(1,667,805)
Amortisation and impairment
At 3 April 2023 and 31 March 2024
(1,667,805)
Carrying amount
At 31 March 2024
At 2 April 2023
Negative goodwill arose on the acquisition of trade and assets from Retail Shops 2020 Limited and Retail Holdings 2020 Limited. Goodwill was fully amortised in the 2 April 2023 period end.
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
I.T. and equipment
Total
£
£
£
£
£
Cost
At 3 April 2023
2,318,202
239,739
1,083,297
3,924,560
7,565,798
Additions
1,251,881
26,898
55,924
299,362
1,634,065
Disposals
(40,537)
(63,085)
(269,720)
(2,678,213)
(3,051,555)
At 31 March 2024
3,529,546
203,552
869,501
1,545,709
6,148,308
Depreciation and impairment
At 3 April 2023
1,824,467
215,224
901,669
2,356,280
5,297,640
Depreciation charged in the period
144,460
13,171
118,174
648,789
924,594
Impairment losses
276,439
9,586
21,940
307,965
Eliminated in respect of disposals
(16,782)
(62,264)
(254,324)
(2,346,418)
(2,679,788)
At 31 March 2024
2,228,584
175,717
787,459
658,651
3,850,411
Carrying amount
At 31 March 2024
1,300,962
27,835
82,042
887,058
2,297,897
At 2 April 2023
493,735
24,515
181,628
1,568,280
2,268,158
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
I.T. and equipment
300,782
530,950
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 24 -
More information on impairment movements in the period is given in note 10.
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
127,792
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 3 April 2023
-
Additions
127,792
At 31 March 2024
127,792
Carrying amount
At 31 March 2024
127,792
At 2 April 2023
-
14
Subsidiaries
During the period, the company's French subsidiary, The Conran Shop SAS, was placed into voluntary liquidation.
On 15 November 2023, The Conran Shop Limited entered into an agreement with a Kuwait company, Al Dhow Engineering General Trading and Contracting Company W.L.L, to incorporate The Conran Shop For Wholesale and Retail Trade Co. W.L.L. 1% of the shareholding held by Al Dhow is held on trust on behalf of The Conran Shop due to legislation in Kuwait preventing foreign entities owning any more than 49% of a company. Despite the equal shareholding, The Conran Shop Limited controls the board of the Kuwait company and therefore, this investment has been treated as a subsidiary.
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
The Conran Shop SAS
117 rue du Bac, 75007, Paris, France
Ordinary
100.00
The Conran Shop For Wholesales and Retail Trade Co. W.L.L
Al Rai, Block 001 Street 2, The Avenues Mall Building No.001873, 1st floor F168,AI Farwaniya, Kuwait
Ordinary
50.00
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 25 -
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,069,387
2,965,335
At the period end, the directors made a provision for old and damaged stock including discontinued stock lines. During the period, there was a net decrease in the provision of £53,542 (2023: Net reduction of £246,826) which was credited to the profit and loss account.
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
131,840
1,363,823
Amounts owed by group undertakings
103,955
4,100
Other debtors
925,434
929,593
Prepayments and accrued income
583,815
587,270
1,745,044
2,884,786
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
14,451
Obligations under finance leases
20
141,398
406,646
Trade creditors
1,199,025
2,303,181
Taxation and social security
104,103
738,155
Other creditors
171,085
63,162
Accruals and deferred income
2,590,757
5,803,211
4,220,819
9,314,355
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
20
65,031
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 26 -
19
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
14,451
Payable within one year
14,451
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
141,398
406,646
In two to five years
65,031
141,398
471,677
Finance lease payments represent rentals payable by the company for certain items of I.T. and equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Provisions for liabilities
2024
2023
£
£
Dilapidation provision
452,754
140,000
Redundancy provision
281,284
626,359
734,038
766,359
Movements on provisions:
Dilapidation provision
Redundancy provision
Total
£
£
£
At 3 April 2023
140,000
626,359
766,359
Additional provisions in the year
312,754
275,000
587,754
Utilisation of provision
-
(620,075)
(620,075)
At 31 March 2024
452,754
281,284
734,038
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 27 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
186,603
254,969
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £24,545 (2023: £42,433) were payable to the fund at the balance sheet date and are included in creditors.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
44,024
44,013
440
441
Performance shares of 1p each
1,500
1,750
15
17
Growth shares of 1p each
1,500
1,750
15
17
47,024
47,513
470
475
Ordinary shares carry full voting rights, but no right to fixed income.
Growth shares will rank pari passu with the ordinary shares as to voting rights, dividends and capital distribution, subject to the company's financial performance meeting certain thresholds. Until such time and subject thereto, the performance shares have no voting, dividend or capital distribution rights.
Performance shares will rank pari passu with the ordinary shares as to voting rights, dividends and capital distribution, subject to the company's financial performance meeting certain thresholds. Until such time and subject thereto, the performance shares have no voting, dividend or capital distribution rights.
During the period, the company cancelled 250 Ordinary £0.01 Growth shares and 250 Ordinary £0.01 Performance shares.
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
721,078
1,009,797
Between two and five years
2,040,000
4,607,090
In over five years
1,537,500
2,761,078
7,154,387
THE CONRAN SHOP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 28 -
25
Events after the reporting date
Since the period end, the company has issued a further 5 Ordinary shares to the parent company, Barle Holdings Limited, which has raised a further £3m.
26
Related party transactions
During the period the Company received and accrued for invoices of £212,500 (2023: £100,000) due to White & Blue Capital relating to the remuneration of Enrique Lax Banon, a director of the Company.
At the period end, the company was owed £103,955 by The Conran Shop For Wholesale and Retail Trade W.L.L, a subsidiary of the company by virtue of control, which is considered fully recoverable at the year end. Sales made in the year to this subsidiary total £606,810 (2023: £nil). During the year, the company paid expenses on behalf of the subsidiary amounting to £11,917 (2023: £nil).
27
Ultimate controlling party
Barle Holdings Limited is the ultimate controlling parent company of The Conran Shop Limited. The registered address for Barle Holdings Limited, a company registered in England and Wales is 16-22 Baltic Street West, London, England, EC1Y 0UL.
Barle Holdings Limited is the parent undertaking of the smallest and largest group which consolidates the financial information of the Company. Copies of the group financial statements may be obtained from Companies House.
Mr J Marandi is the sole owner of Barle Holdings Limited by virtue of his ownership of 100% of the share capital.
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