Company Registration No. 08290656 (England and Wales)
AROMATIZE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
AROMATIZE LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
AROMATIZE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,629
5,911
Current assets
Stocks
1,108,037
1,288,736
Debtors
4
1,116,203
754,993
Cash at bank and in hand
27,482
58,796
2,251,722
2,102,525
Creditors: amounts falling due within one year
5
(874,522)
(699,145)
Net current assets
1,377,200
1,403,380
Net assets
1,380,829
1,409,291
Capital and reserves
Called up share capital
100
100
Hedging reserve
6
44,223
(12,315)
Profit and loss reserves
1,336,506
1,421,506
Total equity
1,380,829
1,409,291
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 15 April 2025 and are signed on its behalf by:
P Aspin
Director
Company registration number 08290656 (England and Wales)
AROMATIZE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Share capital
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
100
90,988
1,524,480
1,615,568
Year ended 31 December 2023:
Profit for the year
-
-
172,026
172,026
Other comprehensive income:
Cash flow hedge loss
-
(103,303)
-
(103,303)
Total comprehensive income for the year
(103,303)
172,026
68,723
Dividends
-
-
(275,000)
(275,000)
Balance at 31 December 2023
100
(12,315)
1,421,506
1,409,291
Year ended 31 December 2024:
Profit for the year
-
-
140,000
140,000
Other comprehensive income:
Cash flow hedge gain
-
56,538
-
56,538
Total comprehensive income for the year
56,538
140,000
196,538
Dividends
-
-
(225,000)
(225,000)
Balance at 31 December 2024
100
44,223
1,336,506
1,380,829
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
Accounting policies
Company information
Aromatize Limited is a private company limited by shares incorporated in England and Wales. The registered office is East Wing Offices, Junction 7 Business Park, Clayton-le-Moors, Accrington, Lancashire, BB5 5JW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
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.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% - 33% 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.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials that have been incurred in bringing the stocks to their present location and condition.
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.
1.5
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
1.6
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. 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 and loans from fellow group companies, 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.
1.7
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.
1.8
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.
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
The Company uses foreign currency forward contracts to hedge its exposure to variability in cashflow and fair values on stock purchases in foreign currencies. These purchases are either firm commitments or highly probable forecast transactions in the currency of the forward contract. These derivatives are measured at fair value at each balance sheet date.
Fair value gains or losses on the derivatives at the balance sheet date are recognised as an asset or liability with a corresponding gain or loss in other comprehensive income and are recorded in a specific cashflow hedging reserve. On completion of the hedged stock purchase transaction; the cumulative hedging gain is recognised in the initial cost of the stock.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
27
27
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2024 and 31 December 2024
102,607
Depreciation and impairment
At 1 January 2024
96,696
Depreciation charged in the year
2,282
At 31 December 2024
98,978
Carrying amount
At 31 December 2024
3,629
At 31 December 2023
5,911
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
586,126
555,899
Other debtors
432,250
112,347
Prepayments and accrued income
91,431
81,254
1,109,807
749,500
Deferred tax asset
6,396
5,493
1,116,203
754,993
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
97,144
281,150
Trade creditors
141,504
137,202
Corporation tax
47,569
46,914
Other taxation and social security
192,253
142,008
Other creditors
396,052
91,871
874,522
699,145
AROMATIZE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Creditors: amounts falling due within one year
(Continued)
- 7 -
Bank liabilities included above are secured by way of a debenture comprising a fixed and floating charge over all the assets and undertakings of the company
An unlimited composite guarantee is in place with Aslo Holding Company Limited and Straits Trading Co Limited.
A trade import facility has been arranged and is renewed annually. Any loans are subject to interest of 2.3% above base rate and are repayable within 6 months of their start date
6
Hedging reserve
Included within hedging reserve is a foreign currency adjustment amounting to a credit of £44,223 (2023 - debit £12,315). This amount relates to foreign currency derivative contract gains arising at the year end on the revaluation of the contracts at the forward contract rate. The contracts exist in order for the company to hedge the risk associated with future foreign currency purchases in connection with the acquisition of stock.
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 is unqualified and includes the following:
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.
Senior Statutory Auditor:
Daniel Bowles FCCA
Statutory Auditor:
PM+M Solutions for Business LLP
Date of audit report:
15 April 2025