Registration number:
Queensmith (Group) Ltd
for the Year Ended 31 December 2024
Queensmith (Group) Ltd
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Queensmith (Group) Ltd
Company Information
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Directors |
B Afshar N E Afshar C Chrystal E K Dixon S Nobes |
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Registered office |
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Auditors |
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Queensmith (Group) Ltd
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the group is the manufacture and sale of fine jewellery. The business operates an omnichannel and direct consumer model and focuses on lab-grown diamond and bridal jewellery categories (principally diamond engagement rings and wedding bands).
Fair review of the business
Market Leadership in Lab-Grown Diamonds
2024 marks a defining year for Queensmith as we continue to transform the fine jewellery market. As the first UK retailer to champion lab-grown diamonds, our commitment to innovation, vertical integration and brand excellence has cemented our position as a market leader in this rapidly expanding category.
Since our founding, we have built a multi-award-winning, high-growth business with a proven model that consistently delivers. With net sales of approximately £14m (2023 - £13m) and an EBITDA margin of 20% (2023 - 21%), we have demonstrated strong profitability and operational scalability. Our vertically integrated, direct-to-consumer model - anchored by craftsmanship, quality and customer experience - ensures we remain at the forefront of a highly competitive industry.
Our expansion strategy continues to gather momentum. Following 12 years of brand development and model refinement, we will open a new flagship store in Birmingham in Q1 2026, as part of a wider retail rollout. This will be a first step in strengthening our physical presence in major cities and enhance customer access to our bespoke fine jewellery offering.
Strategic Growth Through Vertical Integration
Queensmith’s continued success is underpinned by our fully in-house, end-to-end manufacturing model, which allows complete control over design, production and client engagement. This vertical integration supports our commitment to quality and consistency while delivering operational efficiency and a differentiated product.
In 2024, we expanded our team to 87 skilled professionals across design, production and operations, including graduates from our in-house training academy - created to develop the next generation of master craftspeople. This has allowed us to maintain quality standards while meeting rising demand in a talent-constrained market.
Technology remains central to our growth strategy. Our advanced CAD/CAM capabilities, investment in robotics and integrated supply chain allow us to deliver highly customised jewellery at speed and scale. This technical foundation supports high gross margins, agile operations and a personalised customer experience that aligns with modern retail expectations.
Queensmith (Group) Ltd
Strategic Report for the Year Ended 31 December 2024
Market Conditions & Competitive Positioning
Demand for lab-grown diamonds continues to rise, driven by shifting consumer values and a focus on ethical, sustainable sourcing. Queensmith was an early driver of lab-grown diamonds and has positioned them as a premium product, not a budget alternative. This approach has proven successful in building brand equity and customer loyalty, particularly in the high-value/high-spend bridal segment.
We continue to outperform through a blend of strong branding, exceptional product quality and a Gen-Z-ready, omnichannel retail experience. Our immersive showrooms offer tailored consultations powered by technology, reinforcing our reputation as a leading destination for bespoke jewellery.
Our self-funded, cash-generative model - with no external debt or investment - enhances our agility and positions us to take advantage of opportunities with confidence and independence.
Future Outlook & Expansion Plans
We look to 2025 and beyond with optimism. Continued investment in manufacturing, talent and technology will support the rollout of new stores in strategically chosen locations, beginning with Birmingham. Our goal is to bring our differentiated retail experience closer to customers while maintaining the core elements that set us apart: quality, transparency and craft.
With a strong financial foundation and a proven ability to scale, Queensmith remains well-positioned for long-term growth. We will continue to evolve our operations while staying true to the brand values that have earned us our market-leading position.
Principal risks and uncertainties
The directors recognise several external and internal factors affecting business performance in the coming years. While Queensmith continues to operate from a position of strength, the following risks and mitigations are noted:
1: Price Sensitivity and Market Perception of Lab-Grown Diamonds
Recent media coverage has highlighted a decline in the wholesale price of lab-grown diamonds, raising concerns that increasing affordability may erode the perceived value or emotional significance of diamonds for special occasions. The directors acknowledge this risk but note that low-priced lab-grown diamonds have been available in the broader market for some time. Despite falling prices, our gross margins are improving and remain resilient.
Queensmith’s positioning as a premium, design-led brand focused on quality, craftsmanship and customer experience offers insulation from race-to-the-bottom operators. Our focus is on “best-of-best.” We carry the world's finest lab-grown diamonds (Queensmith rejects 97% of diamonds based on growth methodology and quality parameters), catering to customers who prioritise beauty and value over the lowest price. This demand remains strong for special, one-off purchases. We also anticipate that the commoditisation of entry-level lab-grown diamonds and falling prices may lead to a resurgence in demand for natural diamonds, which are becoming more price-accessible. This is an area where we already have an established presence.
Queensmith (Group) Ltd
Strategic Report for the Year Ended 31 December 2024
2: Rising Operational Costs and Supply Chain Challenges
We are investing heavily in our manufacturing capabilities and vertical integration strategy, which may affect short-term profitability. However, we believe this positions us well for long-term resilience and provides the platform for future expansion. As the business grows, we are addressing potential risks related to rising metal prices, skills shortages, trade tariffs and broader geopolitical uncertainty affecting manufacturing and the wider jewellery sector. Our focus is on selling more profitable lines, adding value through the sale of more intricate designs and promoting bespoke services that are charged at a premium.
To further mitigate against price-based competition and diamond commoditisation, Queensmith is pursuing several innovative initiatives - including investment in robotics, direct metal platinum printing and parametric design systems to facilitate consumer desire for customisation and personalisation - aiming to increase production efficiency and reduce dependency on traditional labour models and expensive artisanal craftsmanship. While some cost increases are anticipated in the short term, these efforts are designed to maintain and improve transaction values, increase long-term profitability and ensure sustainable cost management over time.
3: Expansion Risk
While expanding into new locations introduces some risk, all growth is driven by clear business cases and is supported by strong financial discipline and data-led insights. Our planned store openings are phased, ensuring we scale in a controlled and measured way. Birmingham will be a test bed for subsequent retail rollout.
Conclusion
The directors are confident in Queensmith’s strategic direction, operational model and financial position. While mindful of the broader economic and competitive landscape, we believe that the company is well placed to navigate future challenges and capitalise on ongoing demand for both lab-grown diamonds, personalisation and high-quality, sustainable fine jewellery.
Approved and authorised by the
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Queensmith (Group) Ltd
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
Results and dividends
The results for the year are set out on page 11.
Interim dividends totalling £267,140 (2023 - £195,846) were issued during the year, no final dividend is proposed at the year-end.
Financial instruments
Objectives and policies
The group makes limited use of any complex financial instruments to mitigate its risks. However, short term foreign currency forward contracts are used to help protect the group from large adverse movements in exchange rates. There were no such instruments outstanding at the year end.
Price risk, credit risk, liquidity risk and cash flow risk
As the group ordinarily requires payment before collection of its products, it is fully protected from any credit risk.
The group has now external debt and has strong cash reserves, and is therefore exposed to limited liquidity or cash flow risk.
The group protects itself from risk associated with the purchasing of goods in foreign currencies by holding bank accounts denominated in foreign currency, and the limited use of forward contracts.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors ML Audit LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Queensmith (Group) Ltd
Directors' Report for the Year Ended 31 December 2024
Approved by the
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Queensmith (Group) Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Queensmith (Group) Ltd
Independent Auditor's Report to the Members of Queensmith (Group) Ltd
Qualified opinion
We have audited the financial statements of Queensmith (Group) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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. |
Basis for qualified opinion on financial statements
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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Queensmith (Group) Ltd
Independent Auditor's Report to the Members of Queensmith (Group) Ltd
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 of our report, we were unable to satisfy ourselves concerning the inventory quantities of £1,772,964 held at 31 December 2023. We have concluded that where the other information refers to the inventory balances or related balances such as cost of sales, it may be materially missated for the same reason.
Opinion on other matter prescribed by the Companies Act 2006
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 the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 light of our 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 and the Directors' Report.
Arising solely from the limitation on the scope of our work relating to stock, referred to above:
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we have not obtained all the information and explanations that we considered necessary for the purposes of our audit; and |
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we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
Queensmith (Group) Ltd
Independent Auditor's Report to the Members of Queensmith (Group) Ltd
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returns adequate for our audit have not been received from locations not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Other matter
The group was not required to have a statutory audit for the year ended 31 December 2023 as the group was deemed to be small in size. Accordingly, the corresponding figures for the year ended 31 December 2023 were unaudited.
Auditor 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
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obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group operates in and how the company is complying with the legal and regulatory framework; |
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reviewed the basis and assumptions made in calculating key estimates made by management in respect of work in progress; |
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reviewed the group’s stock and control process over cash transactions generated as part of the revenue from sale of goods; |
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tested the appropriateness of journal entries to mitigate the risk of management override; |
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inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
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discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the group’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Queensmith (Group) Ltd
Independent Auditor's Report to the Members of Queensmith (Group) Ltd
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
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For and on behalf of
Freshford House
Redcliffe Way
BS1 6NL
Queensmith (Group) Ltd
Consolidated Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
Unaudited |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
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Other interest receivable and similar income |
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- |
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Interest payable and similar expenses |
( |
( |
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94,893 |
(26,730) |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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Profit attributable to: |
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Owners of the company |
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The group has no recognised gains or losses for the year other than the results above.
Queensmith (Group) Ltd
(Registration number: 07584738)
Consolidated Balance Sheet as at 31 December 2024
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Note |
2024 |
Unaudited |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Equity attributable to owners of the company |
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Total equity |
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Approved and authorised by the
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Queensmith (Group) Ltd
(Registration number: 07584738)
Balance Sheet as at 31 December 2024
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Note |
2024 |
Unaudited |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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The company made a profit after tax for the financial year of £1,594,415 (2023 - profit of £980,102).
Approved and authorised by the
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Queensmith (Group) Ltd
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company
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Share capital |
Retained earnings |
Total |
Total equity |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
( |
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At 31 December 2024 |
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Share capital |
Retained earnings |
Total |
Total equity |
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At 1 January 2023 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
( |
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New share capital subscribed |
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- |
|
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At 31 December 2023 |
400 |
4,681,135 |
4,681,535 |
4,681,535 |
Queensmith (Group) Ltd
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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New share capital subscribed |
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- |
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At 31 December 2023 |
400 |
3,904,358 |
3,904,758 |
Queensmith (Group) Ltd
Consolidated Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
Unaudited |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Loss on disposal of tangible assets |
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- |
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Finance income |
( |
- |
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Finance costs |
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Income tax expense |
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Working capital adjustments |
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Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade debtors |
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( |
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(Decrease)/increase in trade creditors |
( |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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- |
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Acquisitions of tangible assets |
( |
( |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Proceeds from issue of ordinary shares, net of issue costs |
- |
|
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Proceeds from bank borrowing draw downs |
- |
( |
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Repayment of other borrowing |
( |
( |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase in cash and cash equivalents |
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|
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Cash and cash equivalents at 1 January |
|
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Cash and cash equivalents at 31 December |
3,629,007 |
2,461,083 |
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Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Summary of disclosure exemptions
Queensmith (Group) Limited as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company only statement of cash flows as the consolidated statement of cash flows, included in these financial statements, includes the company's cash flows.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
A subsidiary is an entity controlled by the group. Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. The directors have not identified any material uncertainties they are aware of and reasonable allowances for unforeseen events are covered in the cash reserves, budgets and projections for the next twelve months. On this basis the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Key sources of estimation uncertainty
In the application of the group'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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The carrying value of stock and work in progress contains an element of labour and directly attributable overheads. The amount carried forward is based on estimates made by the directors of the level of such costs which are deemed to have been incurred in bring the stock and work in progress to its year end condition.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
- The amount of revenue can be reliably measured;
- It is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the group's activities.
Revenue can also be recognised if the jewellery remains with the seller, provided:
- The customer requests deferred delivery terms.
- Ownership transfers to the customer upon payment.
- The jewellery is stored securely and available for delivery upon request.
Finance income and costs policy
Interest income and expenses are recognised using the effective interest rate method.
Foreign currency transactions and balances
Exchange differences arising on translation are recognised within the profit and loss.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Short leasehold property |
6.66-20% straight line |
|
Plant and machinery |
15%-25% reducing balance |
|
Fixtures and fittings |
20% reducing balance |
|
Office equipment |
25% reducing balance |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Investment income
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit or loss on a straight-line basis over the period of the lease.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
|
2024 |
Unaudited |
|
|
Sale of goods |
|
|
All sales are derived from the UK.
|
Operating profit |
Arrived at after charging
|
2024 |
Unaudited |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange losses |
|
|
|
Loss on disposal of property, plant and equipment |
|
- |
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Other interest receivable and similar income |
|
2024 |
Unaudited |
|
|
Interest income on bank deposits |
|
- |
|
Other finance income |
|
- |
|
|
- |
|
Interest payable and similar expenses |
|
2024 |
Unaudited |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
Unaudited |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
All of the above payroll costs were incurred in the payroll company, except £13,072 of costs incurred in the subsidiary company.
The average number of persons employed by the company and group (including directors) during the year, analysed by category was as follows:
|
2024 |
Unaudited |
|
|
Production |
|
|
|
Sales |
|
|
|
Marketing |
|
|
|
Other departments |
|
|
|
|
|
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
Unaudited |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
390,933 |
339,164 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
Unaudited |
|
|
Accruing benefits under defined contribution pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
Unaudited |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
The key management of the company and group are considered to be its directors.
|
Auditors' remuneration |
|
2024 |
Unaudited |
|
|
Audit of these financial statements |
15,600 |
- |
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Taxation |
Tax charged in the income statement:
|
2024 |
Unaudited |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
Unaudited |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit |
|
|
|
Effect of tax losses |
- |
( |
|
Deferred tax expense from unrecognised tax loss or credit |
|
- |
|
Effect of tax rate changes on deferred tax |
|
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other short term timing differences |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other short term timing differences |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Company
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2023 and 2024 |
- |
- |
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
Group
|
Long leasehold land and buildings |
Short leasehold land and buildings |
Furniture, fittings and equipment |
Plant and machinery |
Office equipment |
Total |
|
|
Cost or valuation |
||||||
|
At 1 January 2024 |
|
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
|
Disposals |
- |
( |
- |
( |
( |
( |
|
Transfers |
( |
|
- |
- |
- |
- |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 January 2024 |
|
|
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
( |
|
Transfers |
( |
|
- |
- |
- |
- |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 December 2024 |
- |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
|
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
|
Long leasehold land and buildings |
Short leasehold land and buildings |
Furniture, fittings and equipment |
Plant and machinery |
Office equipment |
Total |
|
|
Cost or valuation |
||||||
|
At 1 January 2024 |
|
- |
|
|
|
|
|
Additions |
- |
|
|
|
|
|
|
Disposals |
- |
( |
- |
( |
( |
( |
|
Transfers |
( |
|
- |
- |
- |
- |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 January 2024 |
|
- |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
( |
|
Transfers |
( |
|
- |
- |
- |
- |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 December 2024 |
- |
|
|
|
|
|
|
At 31 December 2023 |
|
- |
|
|
|
|
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Investments |
Company
|
2024 |
Unaudited |
|
|
Investments in subsidiaries |
|
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
98 Hatton Garden
|
|
|
|
|
|
98 Hatton Garden
|
|
|
|
For the year ending 31 December 2024 the subsidiary Hearts Of London Ltd (company number: 08967062) is exempt from consolidation under FRS102 paragraph 9.9A.
For the year ending 31 December 2024 Hearts of London Ltd is exempt from audit under section 394A of the Companies Act 2006 relating to dormant companies.
For the year ending 31 December 2024 Central Diamond Company Ltd (company number: 11600581) is exempt from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
|
Stocks |
|
Group |
Company |
|||
|
2024 |
Unaudited |
2024 |
Unaudited |
|
|
Work in progress |
|
|
|
|
|
Other inventories |
|
|
|
|
|
|
|
|
|
|
Stocks are stated after a provision for impairment of £Nil (2023 - £Nil).
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2024 |
Unaudited |
2024 |
Unaudited |
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
|
||
Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
Unaudited |
2024 |
Unaudited |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
Unaudited |
2024 |
Unaudited |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax liability |
232,381 |
382,652 |
160,073 |
163,392 |
|
|
|
|
|
|
||
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Group |
Company |
||||
|
Note |
2024 |
Unaudited |
2024 |
Unaudited |
|
|
Due after one year |
|||||
|
Amounts due to related parties |
- |
|
- |
|
|
|
Other non-current financial liabilities |
|
|
|
|
|
|
|
|
|
|
||
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Company
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The group and company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group and company to the scheme and amounted to £
Contributions for the group and company totalling £
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
Unaudited |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary shares of £1 each |
340 |
340 |
340 |
340 |
|
Ordinary A shares of £1 each |
60 |
60 |
60 |
60 |
|
|
|
|
|
|
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
Unaudited |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Company
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
Unaudited |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Dividends |
Interim dividends paid
|
2024 |
Unaudited |
|||
|
Interim dividend of
£
|
|
|
||
|
Interim dividend of
£
|
|
|
||
|
|
|
|
Analysis of changes in net debt |
Group
|
At 1 January 2024 |
Financing cash flows |
At 31 December 2024 |
|
|
Cash and cash equivalents |
|||
|
Cash |
2,461,083 |
1,167,924 |
3,629,007 |
|
Borrowings |
|||
|
Long term borrowings |
(77,500) |
69,500 |
(8,000) |
|
|
|||
|
|
|
|
|
|
Related party transactions |
Group and company
The company have taken advantage of the exemption provided under section 33 of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Income and receivables from related parties
|
2024 |
Key management |
|
Accountancy fees charged by key mangement |
|
|
|
|
During the year, the company incurred national insurance contributions amounting to £32,161 in respect of directors.
Queensmith (Group) Ltd
Notes to the Financial Statements for the Year Ended 31 December 2024
Loans from related parties
|
2024 |
Key management |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
|
2023 |
Key management |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
Terms of loans from related parties
|
Parent and ultimate parent undertaking |
The ultimate controlling party is