Company registration number 03699727 (England and Wales)
FLAIR LEISURE PRODUCTS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FLAIR LEISURE PRODUCTS PLC
COMPANY INFORMATION
Directors
Mr E L Catchpole
(Appointed 15 September 2024)
M Lischetti
A Robaldo
Secretary
T Lai
Company number
03699727
Registered office
The Kirkgate
19-31 Church Street
Epsom
Surrey
KT17 4PF
Auditor
Richard Place Dobson Services Limited
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
FLAIR LEISURE PRODUCTS PLC
CONTENTS
Page
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
FLAIR LEISURE PRODUCTS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 1
The directors present the strategic report for the year ended 31 December 2023.
Business review and future developments
The Company made a pre-tax loss of £3,734,000 for the year (2022: £420,000) on a turnover of £6,385,000 (2022: £9,763,000). As at 31 December 2023, the Company had net liabilities of £103,000 (2022: Net assets of £3,631,000).
Key business risks
The key business risks to the company are as follows:
a) Reliance on performance of key product suppliers and the detrimental effect on our business of any failure to agree within agreed lead times or to agreed safety standards.
b) Timetables on new product development not being met.
c) Financial failure of key customers.
d) Reduced customer demand due to a downturn in the UK market.
With regard to [a], the directors monitor performance on a regular basis and liaise with our key vendors and undertake factory visits.
With regard to [b], this is largely controlled by the company and is reviewed on a regular basis with resources being allocated to meet the timetables set.
With regard to [c], the company takes out credit insurance on its customers. No individual customer represents more than 17% of the company's turnover.
With regard to [d], the nature of Flair's product portfolio is that our products traditionally are those that are less affected by the economic slowdown and changes in disposable income.
Key performance indicators
The key performance indicators include turnover and gross profit.
This performance is in line with the expectations of the directors.
2023 2022
£'000 £'000
Turnover 6,385 9,763
Gross Profit 580 2,264
Gross Profit % 9.1% 23.2%
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006
In discharging section 172 duties, the directors are required to have regard, among other matters, to the likely consequences of any decisions in the long-term; the interests of the company's employees; the need to foster the company's business relationships with suppliers, customers and others; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly between members of the company.
In addition to the above, the directors also have regarded other factors, which are considered relevant to the decisions being made. These factors include the interests and views of the company's stakeholders and the directors' relationship with regulators.
Mr E L Catchpole
Director
19 March 2025
FLAIR LEISURE PRODUCTS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 2
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be the sale and marketing of children's toys and associated products.
Results and dividends
The results for the year are set out on the Statement of Comprehensive Income.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Cake
(Resigned 15 September 2024)
Mr E L Catchpole
(Appointed 15 September 2024)
M Lischetti
A Robaldo
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to:
a) Settle the terms of payment with suppliers when agreeing the terms of each transaction;
b) Ensure that the suppliers are made aware of the terms of payment by inclusion of the relevant terms in the contracts;
c) Pay in accordance with the company's legal and contractual obligations;
d) As at 31 December 2023, Flair Leisure Products Plc had an average days payable outstanding of 30.7 days (2022: 25.6 days).
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a lower energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
Charitable contributions
During the year the company made charitable donations of £1,759 (2022: £1,915).
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr E L Catchpole
Director
19 March 2025
FLAIR LEISURE PRODUCTS PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
page 3
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) including FRS 102 The Financial Reporting standard applicable in the UK and Republic of Ireland.
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.
FLAIR LEISURE PRODUCTS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLAIR LEISURE PRODUCTS PLC
page 4
Opinion
We have audited the financial statements of Flair Leisure Products Plc (the 'company') for the year ended 31 December 2023 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 the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year 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.
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 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 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.
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.
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 our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
FLAIR LEISURE PRODUCTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLAIR LEISURE PRODUCTS PLC
page 5
Matters on which we are required to report by exception
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 directors' report. 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:
adequate accounting records have not been kept, or 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; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We have made enquiries of management, and directors, regarding the procedures relating to identifying, evaluating and
complying with:
1. laws and regulations and whether they were aware of any instances of non-compliance;
2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
We obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act, data protection regulations, employment legislation, the sale of goods act and taxation laws and regulations.
Discussion was had with management and the trustees and amongst the engagement team to gain an understanding of the entities current activities, authorisation procedures and effectiveness of the control environment. Our understanding was tested during the audit work and the systems and controls in place were found to be operating effectively.
The engagement partner has reviewed the team selected to undertake the engagement and ensure that they have sufficient competence and are capable of identifying and recognising non-compliance with laws and regulations. No non-compliance was identified.
FLAIR LEISURE PRODUCTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLAIR LEISURE PRODUCTS PLC
page 6
Risks identified
Audit response
Error or fraud in recognition of revenue
- Performing a walkthrough test of the sales system to ensure controls are in place, they are adequate and they are being followed.
- Agreeing sales to supporting documentation to ensure existence.
- Reviewing sales made prior and post year end to assess sales transactions are recognised in the correct account period.
Error or fraud in use of management override
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Error or fraud in recognition of foreign exchange profits or losses
- Analytical procedures to ensure results are in line with expectation of the entity's environment and what we know of the economic climate.
- Review of supporting documentation and recalculation of transactional foreign exchange profits/losses.
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.
Darren Harding ACA FCCA DChA
Senior Statutory Auditor
For and on behalf of Richard Place Dobson Services Limited
Chartered Accountants
Statutory Auditor
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
FLAIR LEISURE PRODUCTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
page 7
2023
2022
Notes
£'000
£'000
Turnover
3
6,385
9,763
Cost of sales
(5,805)
(7,499)
Gross profit
580
2,264
Distribution costs
(2,923)
(1,630)
Administrative expenses
(1,502)
(2,148)
Other operating income
50
15
Operating loss
4
(3,795)
(1,499)
Interest receivable and similar income
7
61
1,117
Interest payable and similar expenses
8
(38)
Loss before taxation
(3,734)
(420)
Tax on loss
9
Loss for the financial year
(3,734)
(420)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FLAIR LEISURE PRODUCTS PLC
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
page 8
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
10
128
128
Tangible assets
11
43
45
171
173
Current assets
Stocks
12
4,421
3,914
Debtors
13
2,220
2,430
Cash at bank and in hand
1,029
1,896
7,670
8,240
Creditors: amounts falling due within one year
14
(7,944)
(4,782)
Net current (liabilities)/assets
(274)
3,458
Net (liabilities)/assets
(103)
3,631
Capital and reserves
Called up share capital
16
351
351
Share premium account
1,918
1,918
Profit and loss reserves
(2,372)
1,362
Total equity
(103)
3,631
The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
Mr E L Catchpole
Director
Company registration number 03699727 (England and Wales)
FLAIR LEISURE PRODUCTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
page 9
Share capital
Share premium account
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2022
351
1,918
1,782
4,051
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(420)
(420)
Balance at 31 December 2022
351
1,918
1,362
3,631
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(3,734)
(3,734)
Balance at 31 December 2023
351
1,918
(2,372)
(103)
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
page 10
1
Accounting policies
Company information
Flair Leisure Products Plc is a public company limited by shares incorporated in England and Wales. The registered office is The Kirkgate, 19-31 Church Street, Epsom, Surrey, KT17 4PF.
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 £'000.
The financial statements have been prepared under the historical cost convention, except for the derivative financial instruments which are stated at fair value. 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 financial statements of the company are consolidated in the financial statements of Giochi Preziosi S.p.A. These consolidated financial statements are available from its registered office, Via delle Primule, 5 - 20020 Cogliate (MI), Italy.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have prepared cash flow forecasts in order to assess going concern, including taking account of reasonably possible downsides through a severe but plausible downside scenario. Those forecasts show that the company will have sufficient funds, through funding from its ultimate parent company, Giochi Preziosi S.p.A., to meet its liabilities as they fall due during the going concern period assessed.
Those forecasts are dependent on Giochi Preziosi S.p.A. providing additional financial support during the going concern period assessment period. Giochi Preziosi S.p.A has indicated its intention to continue to make available such funds as are needed by the company during the going concern assessment period, after the company has made efforts to obtain its own financing. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities, as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 11
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.
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 on dispatch of the goods), 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 other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
3 years
Patents & licences
20% Straight Line
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:
Fixtures and fittings
2-3 years
Computers and equipment
3 years
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Cost is calculated using the weighted average method.
1.7
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.
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 12
1.8
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, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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 value cannot be measured reliably are measured at cost less impairment.
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, that estimate 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 assets original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arsing 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 the 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.
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 13
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
1.11
Provisions
A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 14
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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.
1.15
Foreign exchange
Transactions in foreign currencies are translated to the Company’s functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.
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.
3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by geographical market
United Kingdom
5,135
8,219
Rest of Europe
1,250
1,540
Rest of the World
-
4
6,385
9,763
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
page 15
2023
2022
£'000
£'000
Other revenue
Interest income
50
1
Royalty income
-
13
Commissions received
1
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£'000
£'000
Auditor's remuneration - audit of the financial statements
15
15
Depreciation of owned tangible fixed assets
7
7
Amortisation of intangible assets
81
96
Operating lease charges
104
296
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
11
13
Sales and marketing
4
6
Total
15
19
Their aggregate remuneration comprised:
2023
2022
£'000
£'000
Wages and salaries
919
970
Social security costs
98
107
Pension costs
48
68
1,065
1,145
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 16
6
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
117
110
Company pension contributions to defined contribution schemes
5
4
122
114
7
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
1
Other income from investments
Exchange differences
61
1,116
Total income
61
1,117
8
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest on bank overdrafts and loans
-
37
9
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£'000
£'000
Loss before taxation
(3,734)
(420)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(877)
(80)
Change in unrecognised deferred tax assets
877
80
Taxation charge for the year
-
-
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 17
10
Intangible fixed assets
Software
Patents & licences
Total
£'000
£'000
£'000
Cost
At 1 January 2023
2,373
237
2,610
Additions
81
81
At 31 December 2023
2,454
237
2,691
Amortisation and impairment
At 1 January 2023
2,245
237
2,482
Amortisation charged for the year
81
81
At 31 December 2023
2,326
237
2,563
Carrying amount
At 31 December 2023
128
128
At 31 December 2022
128
128
More information on impairment movements in the year is given in note .
11
Tangible fixed assets
Fixtures and fittings
Computers and equipment
Total
£'000
£'000
£'000
Cost
At 1 January 2023
170
479
649
Additions
3
2
5
At 31 December 2023
173
481
654
Depreciation and impairment
At 1 January 2023
127
477
604
Depreciation charged in the year
6
1
7
At 31 December 2023
133
478
611
Carrying amount
At 31 December 2023
40
3
43
At 31 December 2022
43
2
45
12
Stocks
2023
2022
£'000
£'000
Finished goods and goods for resale
4,421
3,914
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 18
13
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
1,830
2,219
Amounts owed by group undertakings
226
105
Other debtors
3
3
Prepayments and accrued income
161
103
2,220
2,430
14
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Trade creditors
552
527
Amounts owed to group undertakings
6,256
2,341
Taxation and social security
46
235
Other creditors
16
Accruals and deferred income
1,074
1,679
7,944
4,782
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
48
68
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.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary A Shares of 10p each
1,473,684
1,473,684
147
147
Ordinary B Shares of 10p each
1,000,000
1,000,000
100
100
Ordinary C Shares of 10p each
789,470
789,470
79
79
Ordinary D Shares of 10p each
250,000
250,000
25
25
3,513,154
3,513,154
351
351
FLAIR LEISURE PRODUCTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 19
17
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:
2023
2022
£'000
£'000
Within one year
102
103
Between two and five years
403
381
In over five years
170
270
675
754
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Name of related party
Nature of relationship
Giochi Preziosi France SAS
Fellow Group Company
Giochi Preziosi Hellas SA
Fellow Group Company
Description of
Income
Expenditure
transaction
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Giochi Preziosi France SAS
57,939
150
Giochi Preziosi Hellas SA
86,829
Balances with related parties
The following amounts were outstanding at the reporting end date:
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Giochi Preziosi France SAS
57,939
150
Giochi Preziosi Hellas SA
86,829
In accordance with FRS 102.33 1A disclosure has not been given of transactions between wholly owned members of the group to which the company belongs.
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310J CakeMr E L CatchpoleM LischettiA RobaldoT Lai036997272023-01-012023-12-3103699727bus:Director22023-01-012023-12-3103699727bus:Director32023-01-012023-12-3103699727bus:Director42023-01-012023-12-3103699727bus:CompanySecretary12023-01-012023-12-3103699727bus:Director12023-01-012023-12-3103699727bus:RegisteredOffice2023-01-012023-12-31036997272023-12-31036997272022-01-012022-12-3103699727core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103699727core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103699727core:OtherResidualIntangibleAssets2023-12-3103699727core:OtherResidualIntangibleAssets2022-12-3103699727core:ComputerSoftware2023-12-3103699727core:PatentsTrademarksLicencesConcessionsSimilar2023-12-3103699727core:ComputerSoftware2022-12-3103699727core:PatentsTrademarksLicencesConcessionsSimilar2022-12-31036997272022-12-3103699727core:FurnitureFittings2023-12-3103699727core:ComputerEquipment2023-12-3103699727core:FurnitureFittings2022-12-3103699727core:ComputerEquipment2022-12-3103699727core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103699727core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103699727core:CurrentFinancialInstruments2023-12-3103699727core:CurrentFinancialInstruments2022-12-3103699727core:ShareCapital2023-12-3103699727core:ShareCapital2022-12-3103699727core:SharePremium2023-12-3103699727core:SharePremium2022-12-3103699727core:RetainedEarningsAccumulatedLosses2023-12-3103699727core:RetainedEarningsAccumulatedLosses2022-12-3103699727core:ShareCapital2021-12-3103699727core:SharePremium2021-12-3103699727core:RetainedEarningsAccumulatedLosses2021-12-3103699727core:ShareCapitalOrdinaryShares2023-12-3103699727core:ShareCapitalOrdinaryShares2022-12-3103699727core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3103699727core:ComputerSoftware2023-01-012023-12-3103699727core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3103699727core:FurnitureFittings2023-01-012023-12-3103699727core:ComputerEquipment2023-01-012023-12-3103699727core:UKTax2023-01-012023-12-3103699727core:UKTax2022-01-012022-12-3103699727core:ComputerSoftware2022-12-3103699727core:PatentsTrademarksLicencesConcessionsSimilar2022-12-31036997272022-12-3103699727core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3103699727core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3103699727core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3103699727core:FurnitureFittings2022-12-3103699727core:ComputerEquipment2022-12-3103699727core:WithinOneYear2023-12-3103699727core:WithinOneYear2022-12-3103699727core:BetweenTwoFiveYears2023-12-3103699727core:BetweenTwoFiveYears2022-12-3103699727core:MoreThanFiveYears2023-12-3103699727core:MoreThanFiveYears2022-12-3103699727bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103699727bus:FRS1022023-01-012023-12-3103699727bus:Audited2023-01-012023-12-3103699727bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP