Queensmith (Group) Ltd 07584738 false 2024-01-01 2024-12-31 2024-12-31 2024-12-31 The principal activity of the company is the manufacture and sale of fine jewellery Digita Accounts Production Advanced 6.30.9574.0 true true true false true false false true 07584738 2024-01-01 2024-12-31 07584738 2024-12-31 07584738 bus:Consolidated 2024-12-31 07584738 core:AcceleratedTaxDepreciationDeferredTax 2024-12-31 07584738 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2024-12-31 07584738 core:OtherDeferredTax 2024-12-31 07584738 core:OtherDeferredTax bus:Consolidated 2024-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2024-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-12-31 07584738 core:ShareCapital 2024-12-31 07584738 core:ShareCapital bus:Consolidated 2024-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2024-12-31 07584738 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 07584738 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2024-12-31 07584738 core:Non-currentFinancialInstruments core:AfterOneYear 2024-12-31 07584738 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2024-12-31 07584738 core:Goodwill 2024-12-31 07584738 core:Goodwill bus:Consolidated 2024-12-31 07584738 core:BetweenTwoFiveYears 2024-12-31 07584738 core:BetweenTwoFiveYears bus:Consolidated 2024-12-31 07584738 core:MoreThanFiveYears 2024-12-31 07584738 core:MoreThanFiveYears bus:Consolidated 2024-12-31 07584738 core:WithinOneYear 2024-12-31 07584738 core:WithinOneYear bus:Consolidated 2024-12-31 07584738 core:FurnitureFittings 2024-12-31 07584738 core:FurnitureFittings bus:Consolidated 2024-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets 2024-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets bus:Consolidated 2024-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets 2024-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2024-12-31 07584738 core:OfficeEquipment 2024-12-31 07584738 core:OfficeEquipment bus:Consolidated 2024-12-31 07584738 core:PlantMachinery 2024-12-31 07584738 core:PlantMachinery bus:Consolidated 2024-12-31 07584738 core:DeferredTaxation 2024-12-31 07584738 core:DeferredTaxation bus:Consolidated 2024-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2024-12-31 07584738 bus:FRS102 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Audited bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:FullAccounts bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:RegisteredOffice bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Director1 2024-01-01 2024-12-31 07584738 bus:Director1 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Director2 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Director3 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Director4 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Director5 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:HighestPaidDirector bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:OrdinaryShareClass1 2024-01-01 2024-12-31 07584738 bus:OrdinaryShareClass2 2024-01-01 2024-12-31 07584738 bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:Consolidated 1 2024-01-01 2024-12-31 07584738 bus:Consolidated 3 2024-01-01 2024-12-31 07584738 bus:Consolidated 1 2024-01-01 2024-12-31 07584738 bus:PrivateLimitedCompanyLtd bus:Consolidated 2024-01-01 2024-12-31 07584738 bus:ConsolidatedGroupCompanyAccounts 2024-01-01 2024-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-01-01 2024-12-31 07584738 core:ShareCapital 2024-01-01 2024-12-31 07584738 core:ShareCapital bus:Consolidated 2024-01-01 2024-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2024-01-01 2024-12-31 07584738 core:Goodwill bus:Consolidated 2024-01-01 2024-12-31 07584738 core:Buildings bus:Consolidated 2024-01-01 2024-12-31 07584738 core:FurnitureFittings 2024-01-01 2024-12-31 07584738 core:FurnitureFittings bus:Consolidated 2024-01-01 2024-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets 2024-01-01 2024-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets bus:Consolidated 2024-01-01 2024-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets 2024-01-01 2024-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2024-01-01 2024-12-31 07584738 core:OfficeEquipment 2024-01-01 2024-12-31 07584738 core:OfficeEquipment bus:Consolidated 2024-01-01 2024-12-31 07584738 core:PlantMachinery 2024-01-01 2024-12-31 07584738 core:PlantMachinery bus:Consolidated 2024-01-01 2024-12-31 07584738 core:DeferredTaxation 2024-01-01 2024-12-31 07584738 core:DeferredTaxation bus:Consolidated 2024-01-01 2024-12-31 07584738 core:KeyManagementPersonnel bus:Consolidated 2024-01-01 2024-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2024-01-01 2024-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl core:SaleOrPurchasePropertyOrOtherAssets bus:Consolidated 2024-01-01 2024-12-31 07584738 core:Subsidiary1 2024-01-01 2024-12-31 07584738 core:Subsidiary1 1 2024-01-01 2024-12-31 07584738 core:Subsidiary2 2024-01-01 2024-12-31 07584738 core:Subsidiary2 1 2024-01-01 2024-12-31 07584738 core:UKTax bus:Consolidated 2024-01-01 2024-12-31 07584738 countries:EnglandWales bus:Consolidated 2024-01-01 2024-12-31 07584738 2023-12-31 07584738 bus:Consolidated 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 07584738 core:ShareCapital 2023-12-31 07584738 core:ShareCapital bus:Consolidated 2023-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-12-31 07584738 core:Goodwill 2023-12-31 07584738 core:Goodwill bus:Consolidated 2023-12-31 07584738 core:FurnitureFittings 2023-12-31 07584738 core:FurnitureFittings bus:Consolidated 2023-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets 2023-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets bus:Consolidated 2023-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets 2023-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2023-12-31 07584738 core:OfficeEquipment 2023-12-31 07584738 core:OfficeEquipment bus:Consolidated 2023-12-31 07584738 core:PlantMachinery 2023-12-31 07584738 core:PlantMachinery bus:Consolidated 2023-12-31 07584738 core:DeferredTaxation 2023-12-31 07584738 core:DeferredTaxation bus:Consolidated 2023-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2023-12-31 07584738 2023-01-01 2023-12-31 07584738 2023-12-31 07584738 bus:Consolidated 2023-12-31 07584738 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 07584738 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 07584738 core:ShareCapital 2023-12-31 07584738 core:ShareCapital bus:Consolidated 2023-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-12-31 07584738 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 07584738 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-12-31 07584738 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 07584738 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2023-12-31 07584738 core:Goodwill bus:Consolidated 2023-12-31 07584738 core:BetweenTwoFiveYears 2023-12-31 07584738 core:BetweenTwoFiveYears bus:Consolidated 2023-12-31 07584738 core:MoreThanFiveYears 2023-12-31 07584738 core:MoreThanFiveYears bus:Consolidated 2023-12-31 07584738 core:WithinOneYear 2023-12-31 07584738 core:WithinOneYear bus:Consolidated 2023-12-31 07584738 core:FurnitureFittings 2023-12-31 07584738 core:FurnitureFittings bus:Consolidated 2023-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets 2023-12-31 07584738 core:LandBuildings core:LongLeaseholdAssets bus:Consolidated 2023-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets 2023-12-31 07584738 core:LandBuildings core:ShortLeaseholdAssets bus:Consolidated 2023-12-31 07584738 core:OfficeEquipment 2023-12-31 07584738 core:OfficeEquipment bus:Consolidated 2023-12-31 07584738 core:PlantMachinery 2023-12-31 07584738 core:PlantMachinery bus:Consolidated 2023-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2023-12-31 07584738 bus:HighestPaidDirector bus:Consolidated 2023-01-01 2023-12-31 07584738 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 07584738 bus:OrdinaryShareClass2 2023-01-01 2023-12-31 07584738 bus:Consolidated 2023-01-01 2023-12-31 07584738 bus:Consolidated 1 2023-01-01 2023-12-31 07584738 bus:Consolidated 3 2023-01-01 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-01-01 2023-12-31 07584738 core:ShareCapital 2023-01-01 2023-12-31 07584738 core:ShareCapital bus:Consolidated 2023-01-01 2023-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-01-01 2023-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2023-01-01 2023-12-31 07584738 core:Subsidiary1 1 2023-01-01 2023-12-31 07584738 core:Subsidiary2 1 2023-01-01 2023-12-31 07584738 core:UKTax bus:Consolidated 2023-01-01 2023-12-31 07584738 2022-12-31 07584738 bus:Consolidated 2022-12-31 07584738 bus:Consolidated core:PreviouslyStatedAmount 2022-12-31 07584738 core:RetainedEarningsAccumulatedLosses 2022-12-31 07584738 core:RetainedEarningsAccumulatedLosses bus:Consolidated core:PreviouslyStatedAmount 2022-12-31 07584738 core:ShareCapital 2022-12-31 07584738 core:ShareCapital bus:Consolidated core:PreviouslyStatedAmount 2022-12-31 07584738 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated core:PreviouslyStatedAmount 2022-12-31 07584738 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl bus:Consolidated 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07584738

Queensmith (Group) Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2024

 

Queensmith (Group) Ltd

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Consolidated Profit and Loss Account

12

Consolidated Balance Sheet

13

Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Notes to the Financial Statements

18 to 36

 

Queensmith (Group) Ltd

Company Information

Directors

B Afshar

N E Afshar

C Chrystal

E K Dixon

S Nobes

Registered office

98 Hatton Garden
London
EC1N 8NX

Auditors

ML Audit LLP
Statutory auditors
Freshford House
Redcliffe Way
Bristol
BS1 6NL

 

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 Board on 1 May 2025 and signed on its behalf by:
 

.........................................
B Afshar
Director

 

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:

B Afshar

N E Afshar

C Chrystal

E K Dixon

S Nobes

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 Board on 1 May 2025 and signed on its behalf by:

B Afshar
Director

   
     
 

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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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 were not appointed as auditor of the group until after 31 December 2023, as the previous year's statutory financial statements were not audited, and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £1,772,964 held at 31 December 2023 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount at 31 December 2023 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2024. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended.

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:

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

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:

we have not obtained all the information and explanations that we considered necessary for the purposes of our audit; and

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

returns adequate for our audit have not been received from locations not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

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:

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;

reviewed the basis and assumptions made in calculating key estimates made by management in respect of work in progress;

reviewed the group’s stock and control process over cash transactions generated as part of the revenue from sale of goods;

tested the appropriateness of journal entries to mitigate the risk of management override;

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;

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.

......................................
Guy Armitage-Norton (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor

Freshford House
Redcliffe Way
Bristol
BS1 6NL

28 May 2025

 

Queensmith (Group) Ltd

Consolidated Profit and Loss Account for the Year Ended 31 December 2024

Note

2024
£

Unaudited
2023
£

Turnover

3

13,966,349

12,647,171

Cost of sales

 

(7,228,730)

(7,043,447)

Gross profit

 

6,737,619

5,603,724

Administrative expenses

 

(4,523,588)

(3,210,158)

Operating profit

4

2,214,031

2,393,566

Other interest receivable and similar income

5

95,352

-

Interest payable and similar expenses

6

(459)

(26,730)

   

94,893

(26,730)

Profit before tax

 

2,308,924

2,366,836

Tax on profit

10

(666,621)

(646,101)

Profit for the financial year

 

1,642,303

1,720,735

Profit attributable to:

 

Owners of the company

 

1,642,303

1,720,735

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

Note

2024
£

Unaudited
2023
£

Fixed assets

 

Intangible assets

11

336,697

392,814

Tangible assets

12

3,044,703

2,758,607

 

3,381,400

3,151,421

Current assets

 

Stocks

14

1,612,377

1,772,964

Debtors

15

212,333

252,432

Cash at bank and in hand

16

3,629,007

2,461,083

 

5,453,717

4,486,479

Creditors: Amounts falling due within one year

17

(2,202,048)

(2,419,682)

Net current assets

 

3,251,669

2,066,797

Total assets less current liabilities

 

6,633,069

5,218,218

Creditors: Amounts falling due after more than one year

17

(8,000)

(77,500)

Provisions for liabilities

18

(568,371)

(459,183)

Net assets

 

6,056,698

4,681,535

Capital and reserves

 

Called up share capital

20

400

400

Profit and loss account

6,056,298

4,681,135

Equity attributable to owners of the company

 

6,056,698

4,681,535

Total equity

 

6,056,698

4,681,535

Approved and authorised by the Board on 1 May 2025 and signed on its behalf by:
 

B Afshar
Director

   
     
 

Queensmith (Group) Ltd

(Registration number: 07584738)
Balance Sheet as at 31 December 2024

Note

2024
£

Unaudited
2023
£

Fixed assets

 

Tangible assets

12

2,052,159

1,649,812

Investments

13

274,560

274,560

 

2,326,719

1,924,372

Current assets

 

Stocks

14

1,612,377

1,772,964

Debtors

15

262,347

455,308

Cash at bank and in hand

16

3,596,497

2,271,097

 

5,471,221

4,499,369

Creditors: Amounts falling due within one year

17

(2,097,395)

(2,090,662)

Net current assets

 

3,373,826

2,408,707

Total assets less current liabilities

 

5,700,545

4,333,079

Creditors: Amounts falling due after more than one year

17

(8,000)

(77,500)

Provisions for liabilities

18

(460,512)

(350,821)

Net assets

 

5,232,033

3,904,758

Capital and reserves

 

Called up share capital

20

400

400

Profit and loss account

5,231,633

3,904,358

Total equity

 

5,232,033

3,904,758

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 Board on 1 May 2025 and signed on its behalf by:
 

B Afshar
Director

   
     
 

Queensmith (Group) Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2024

400

4,681,135

4,681,535

4,681,535

Profit for the year

-

1,642,303

1,642,303

1,642,303

Dividends

-

(267,140)

(267,140)

(267,140)

At 31 December 2024

400

6,056,298

6,056,698

6,056,698


 

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

275

3,156,246

3,156,521

3,156,521

Profit for the year

-

1,720,735

1,720,735

1,720,735

Dividends

-

(195,846)

(195,846)

(195,846)

New share capital subscribed

125

-

125

125

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

Share capital
£

Retained earnings
£

Total
£

At 1 January 2024

400

3,904,358

3,904,758

Profit for the year

-

1,594,415

1,594,415

Dividends

-

(267,140)

(267,140)

At 31 December 2024

400

5,231,633

5,232,033


 

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

275

3,120,102

3,120,377

Profit for the year

-

980,102

980,102

Dividends

-

(195,846)

(195,846)

New share capital subscribed

125

-

125

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

Note

2024
£

Unaudited
2023
£

Cash flows from operating activities

Profit for the year

 

1,642,303

1,720,735

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

533,405

481,224

Loss on disposal of tangible assets

53,780

-

Finance income

5

(95,352)

-

Finance costs

6

459

26,730

Income tax expense

10

666,621

646,101

 

2,801,216

2,874,790

Working capital adjustments

 

Decrease/(increase) in stocks

14

160,587

(248,164)

Decrease/(increase) in trade debtors

15

40,099

(62,038)

(Decrease)/increase in trade creditors

17

(67,363)

192,751

Cash generated from operations

 

2,934,539

2,757,339

Income taxes paid

10

(707,704)

(12,390)

Net cash flow from operating activities

 

2,226,835

2,744,949

Cash flows from investing activities

 

Interest received

95,352

-

Acquisitions of tangible assets

(817,164)

(965,118)

Net cash flows from investing activities

 

(721,812)

(965,118)

Cash flows from financing activities

 

Interest paid

6

(459)

(26,730)

Proceeds from issue of ordinary shares, net of issue costs

 

-

125

Proceeds from bank borrowing draw downs

 

-

(182,675)

Repayment of other borrowing

 

(69,500)

(165,000)

Dividends paid

(267,140)

(195,846)

Net cash flows from financing activities

 

(337,099)

(570,126)

Net increase in cash and cash equivalents

 

1,167,924

1,209,705

Cash and cash equivalents at 1 January

 

2,461,083

1,251,378

Cash and cash equivalents at 31 December

 

3,629,007

2,461,083

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
98 Hatton Garden
London
EC1N 8NX

These financial statements were authorised for issue by the Board on 1 May 2025.

2

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

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

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.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

Unaudited
2023
£

Sale of goods

13,966,349

12,647,171

All sales are derived from the UK.

4

Operating profit

Arrived at after charging

2024
£

Unaudited
2023
£

Depreciation expense

477,288

425,107

Amortisation expense

56,117

56,117

Foreign exchange losses

7,564

1,075

Loss on disposal of property, plant and equipment

53,780

-

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

5

Other interest receivable and similar income

2024
£

Unaudited
2023
£

Interest income on bank deposits

94,160

-

Other finance income

1,192

-

95,352

-

6

Interest payable and similar expenses

2024
£

Unaudited
2023
£

Interest on bank overdrafts and borrowings

459

26,730

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

Unaudited
2023
£

Wages and salaries

2,846,375

2,373,415

Social security costs

295,692

239,812

Pension costs, defined contribution scheme

207,759

161,931

Other employee expense

47,405

34,504

3,397,231

2,809,662

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
No.

Unaudited
2023
No.

Production

48

38

Sales

16

12

Marketing

11

8

Other departments

10

6

85

64

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

Unaudited
2023
£

Remuneration

274,989

255,544

Contributions paid to money purchase schemes

115,944

83,620

390,933

339,164

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

Unaudited
2023
No.

Accruing benefits under defined contribution pension scheme

5

4

In respect of the highest paid director:

2024
£

Unaudited
2023
£

Remuneration

83,458

76,856

Company contributions to money purchase pension schemes

16,285

11,225

The key management of the company and group are considered to be its directors.

9

Auditors' remuneration

2024
£

Unaudited
2023
£

Audit of these financial statements

15,600

-


 

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

10

Taxation

Tax charged in the income statement:

2024
£

Unaudited
2023
£

Current taxation

UK corporation tax

557,433

382,652

Deferred taxation

Arising from origination and reversal of timing differences

109,188

263,449

Tax expense in the income statement

666,621

646,101

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 25% (2023 - 23.52%).

The differences are reconciled below:

2024
£

Unaudited
2023
£

Profit before tax

2,308,924

2,366,836

Corporation tax at standard rate

577,231

556,680

Effect of expense not deductible in determining taxable profit

56,996

73,209

Effect of tax losses

-

(57,214)

Deferred tax expense from unrecognised tax loss or credit

10,000

-

Effect of tax rate changes on deferred tax

22,394

73,426

Total tax charge

666,621

646,101

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

557,848

Other short term timing differences

-

10,523

-

568,371

2023

Asset
£

Liability
£

Accelerated capital allowances

-

459,183

-

459,183

 

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

-

449,989

Other short term timing differences

-

10,523

-

460,512

2023

Asset
£

Liability
£

Accelerated capital allowances

-

350,821

-

350,821

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2024

590,791

590,791

At 31 December 2024

590,791

590,791

Amortisation

At 1 January 2024

197,977

197,977

Amortisation charge

56,117

56,117

At 31 December 2024

254,094

254,094

Carrying amount

At 31 December 2024

336,697

336,697

At 31 December 2023

392,814

392,814

Company

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2024

29,626

29,626

At 31 December 2024

29,626

29,626

Amortisation

At 1 January 2024

29,626

29,626

At 31 December 2024

29,626

29,626

Carrying amount

At 31 December 2023 and 2024

-

-

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

12

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

1,344,296

1,502,461

248,790

1,211,133

337,265

4,643,945

Additions

-

417,883

36,601

300,864

61,816

817,164

Disposals

-

(33,332)

-

(72,301)

(39,706)

(145,339)

Transfers

(1,344,296)

1,344,296

-

-

-

-

At 31 December 2024

-

3,231,308

285,391

1,439,696

359,375

5,315,770

Depreciation

At 1 January 2024

754,183

427,532

125,301

357,513

220,809

1,885,338

Charge for the year

-

265,750

27,672

155,713

28,153

477,288

Eliminated on disposal

-

(29,512)

-

(26,063)

(35,984)

(91,559)

Transfers

(754,183)

754,183

-

-

-

-

At 31 December 2024

-

1,417,953

152,973

487,163

212,978

2,271,067

Carrying amount

At 31 December 2024

-

1,813,355

132,418

952,533

146,397

3,044,703

At 31 December 2023

590,113

1,074,929

123,489

853,620

116,456

2,758,607

 

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

1,344,296

-

248,790

1,211,133

278,352

3,082,571

Additions

-

417,883

36,601

300,864

61,816

817,164

Disposals

-

(33,332)

-

(72,301)

(39,706)

(145,339)

Transfers

(1,344,296)

1,344,296

-

-

-

-

At 31 December 2024

-

1,728,847

285,391

1,439,696

300,462

3,754,396

Depreciation

At 1 January 2024

754,183

-

125,301

357,513

195,762

1,432,759

Charge for the year

-

154,579

27,672

155,713

23,073

361,037

Eliminated on disposal

-

(29,512)

-

(26,063)

(35,984)

(91,559)

Transfers

(754,183)

754,183

-

-

-

-

At 31 December 2024

-

879,250

152,973

487,163

182,851

1,702,237

Carrying amount

At 31 December 2024

-

849,597

132,418

952,533

117,611

2,052,159

At 31 December 2023

590,113

-

123,489

853,620

82,590

1,649,812

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

13

Investments

Company

2024
£

Unaudited
2023
£

Investments in subsidiaries

274,560

274,560

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

Central Diamond Company Ltd

98 Hatton Garden
London
England
EC1N 8NX

Ordinary

100%

100%

Hearts Of London Ltd

98 Hatton Garden
London
England
EC1N 8NX

Ordinary A

100%

100%

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.
 

14

Stocks

 

Group

Company

2024
£

Unaudited
2023
£

2024
£

Unaudited
2023
£

Work in progress

667,579

862,373

667,579

862,373

Other inventories

944,798

910,591

944,798

910,591

1,612,377

1,772,964

1,612,377

1,772,964

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

15

Debtors

   

Group

Company

Current

Note

2024
£

Unaudited
2023
£

2024
£

Unaudited
2023
£

Trade debtors

 

3,553

10,668

3,553

10,668

Amounts owed by related parties

24

-

-

93,051

245,231

Other debtors

 

9,258

3,280

9,258

3,280

Prepayments

 

199,522

238,484

156,485

196,129

   

212,333

252,432

262,347

455,308

Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

16

Cash and cash equivalents

 

Group

Company

2024
£

Unaudited
2023
£

2024
£

Unaudited
2023
£

Cash on hand

12,904

3,958

12,904

3,958

Cash at bank

3,616,103

2,457,125

3,583,593

2,267,139

3,629,007

2,461,083

3,596,497

2,271,097

17

Creditors

   

Group

Company

Note

2024
£

Unaudited
2023
£

2024
£

Unaudited
2023
£

Due within one year

 

Trade creditors

 

423,187

351,064

422,380

348,792

Amounts due to related parties

24

3,034

1,662

3,034

1,662

Social security and other taxes

 

570,790

386,949

556,352

280,211

Outstanding defined contribution pension costs

 

59,199

55,589

59,199

55,589

Other creditors

 

790,007

1,128,626

790,007

1,128,626

Accruals

 

123,450

113,140

106,350

112,390

Corporation tax liability

10

232,381

382,652

160,073

163,392

 

2,202,048

2,419,682

2,097,395

2,090,662

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

   

Group

Company

Note

2024
£

Unaudited
2023
£

2024
£

Unaudited
2023
£

Due after one year

 

Amounts due to related parties

24

-

69,500

-

69,500

Other non-current financial liabilities

 

8,000

8,000

8,000

8,000

 

8,000

77,500

8,000

77,500

Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2024

459,183

459,183

Increase in existing provisions

109,188

109,188

At 31 December 2024

568,371

568,371

Company

Deferred tax
£

Total
£

At 1 January 2024

350,821

350,821

Increase in existing provisions

109,691

109,691

At 31 December 2024

460,512

460,512

19

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 £207,759 (2023 - £161,931).

Contributions for the group and company totalling £59,199 (2023 - £55,589) were payable to the scheme at the end of the year and are included in creditors.

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

20

Share capital

Allotted, called up and fully paid shares

2024

Unaudited
2023

No.

£

No.

£

Ordinary shares of £1 each

340

340

340

340

Ordinary A shares of £1 each

60

60

60

60

400

400

400

400

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2024
£

Unaudited
2023
£

Not later than one year

361,572

291,450

Later than one year and not later than five years

1,244,044

1,165,800

Later than five years

1,295,654

1,572,804

2,901,270

3,030,054

The amount of non-cancellable operating lease payments recognised as an expense during the year was £335,400 (2023 - £269,182).

Company

Operating leases

The total of future minimum lease payments is as follows:

2024
£

Unaudited
2023
£

Not later than one year

206,822

133,950

Later than one year and not later than five years

625,044

535,800

Later than five years

676,654

785,304

1,508,520

1,455,054

The amount of non-cancellable operating lease payments recognised as an expense during the year was £158,058 (2023 - £108,818).

 

Queensmith (Group) Ltd

Notes to the Financial Statements for the Year Ended 31 December 2024

22

Dividends

Interim dividends paid

2024
£

Unaudited
2023
£

Interim dividend of £ 675.41 (2023 - £357.35) per each Ordinary

229,640

121,500

Interim dividend of £ 625.00 (2023 - £1,239.10) per each Ordinary A

37,500

74,346

267,140

195,846

23

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)

 

2,383,583

1,237,424

3,621,007

24

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

750

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

71,062

71,062

Advanced

129,341

129,341

Repaid

(197,469)

(197,469)

At end of period

2,934

2,934

2023

Key management
£

Total
£

At start of period

248,053

248,053

Advanced

176,883

176,883

Repaid

(353,874)

(353,874)

At end of period

71,062

71,062

Terms of loans from related parties

Loans with key management are interest free and repayable on demand.
 

25

Parent and ultimate parent undertaking

The ultimate controlling party is Brett Afshar by virtue of his equity shareholding in Queensmith (Group) Ltd.