Company registration number 11251889 (England and Wales)
COLORLITES HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
COLORLITES HOLDINGS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
COLORLITES HOLDINGS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
-
0
663,529
Current assets
Debtors
2,709
-
0
Cash at bank and in hand
96
5,500
2,805
5,500
Creditors: amounts falling due within one year
5
(737,746)
(697,382)
Net current liabilities
(734,941)
(691,882)
Total assets less current liabilities
(734,941)
(28,353)
Creditors: amounts falling due after more than one year
6
(18,450)
(54,611)
Net liabilities
(753,391)
(82,964)
Capital and reserves
Called up share capital
10,000
10,000
Profit and loss reserves
(763,391)
(92,964)
Total equity
(753,391)
(82,964)

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 3 April 2025 and are signed on its behalf by:
R Grieveson
Director
Company Registration No. 11251889
COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Colorlites Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 McMillan Close, Saltwell Business Park, Low Fell, Gateshead, Tyne & Wear, United Kingdom, NE9 5BF.

1.1
Accounting convention

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

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

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

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.

 

Colorlites Holdings Limited is a wholly owned subsidiary of THF Holdings Ltd and the results of Colorlites Holdings Limited are included in the consolidated financial statements of THF Holdings Ltd which are available from 1 Mcmillan Close, Saltwell Business Park, Low Fell, Gateshead, NE9 5BF.

COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern

The financial statements have been prepared on a going concern basis.true

The company meets its day to day working capital requirements through cash generated from operations and external/group borrowings.

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

The ultimate parent company, THF Holdings Ltd, has confirmed its intention to support the company for a period of at least twelve months from the date of approval of these financial statements. The directors are confident in the ability of THF Holdings Ltd to support the company on the basis that the parent company has itself obtained the support of its majority shareholder to provide short term working capital should this be necessary for a minimum period of 12 months from the date of approval of the financial statements.

The company relies on the support of is parent company, THF Holdings Ltd. The group was in breach of the financial covenants agreed with its bankers as at 31 December 2023 and thereafter. The bank has acknowledged the breaches but have not waived the breaches and have reserved any right or remedy that they have now, or in the future, in connection with, or arising from, a covenant breach.

The group is in regular communication with the group’s bankers and following a review of forecasts the bank has agreed additional finance to the group through to June 2025. Following on from the discussions with the bank, the directors have at present no reason to believe the bank would take any action to demand immediate repayment of any of the loans within 12 months of the approval of these financial statements nor withdraw their support of future funding.

In the assessment of going concern the directors have made the assumption that the bank will continue to be supportive, not recall the debt in advance of the original repayment terms and provide finance to the group should there be a need.

With this continued support, the company expects to retain sufficient financial resources to continue meeting its liabilities as they fall due.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, as the group have not had a formal waiver of the loan covenant breaches and are forecasting to rely on bank and shareholder support, this represents a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern and therefore to continue realising its assets and discharging its liabilities in the normal course of business. These financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

1.3
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.4
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.

1.5
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 statement of financial position 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.6
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.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

1.8
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.

2
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,550
1,750
3
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
-
0
663,529
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 & 31 December 2023
663,529
Impairment
At 1 January 2023
-
Impairment losses
663,529
At 31 December 2023
663,529
Carrying amount
At 31 December 2023
-
At 31 December 2022
663,529
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
34,856
53,713
Trade creditors
6,195
2,130
Amounts owed to group undertakings
694,945
639,369
Taxation and social security
-
0
420
Other creditors
1,750
1,750
737,746
697,382
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,450
54,611
COLORLITES HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Audit report information

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

The auditor's report was unqualified.

Material uncertainty relating to going concern

We draw attention to note 1 in the financial statements which indicates that the directors have prepared forecasts based on their assessment of current and predicted operating conditions. The assumptions used in forecasting are extremely judgmental and difficult to predict and could be subject to significant variations. These factors 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.

Senior Statutory Auditor:
Claire Hinshaw ACCA
Statutory Auditor:
Azets Audit Services
8
Parent company

The company's immediate parent is THF Holdings Ltd, incorporated in England and Wales.

 

The most senior parent entity producing publicly available financial statements is THF Holdings Ltd. These financial statements are available upon request from 1 Mcmillan Close, Saltwall Business Park, Low Fell, Gateshead, NE9 5BF.

 

The ultimate controlling party is Mr A Thompson and Mrs A L Thompson, the majority shareholders of THF Holdings Ltd.

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