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Registration number: 00282792

iCandy World Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

iCandy World Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Financial Statements

13 to 22

 

iCandy World Limited

Company Information

Directors

B M Appel

W A Appel

N Appel

D S Appel

Registered office

Montgomery Way
Biggleswade
SG18 8UB

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

iCandy World Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is that of the design, import and wholesale of pushchairs, car safety seats and similar children's products

Fair review of the business

The company sells a range of pushchairs and other baby products through a variety of outlets including major UK retailers, independent retailers of children's products, overseas distributors and on the internet.

The company continued with its ambitious investment into the brands, products and brand awareness. New products have come to market with success and there are more expected into the future.

More recently, the focus has been on being more efficient with expenditure and this has proved very successful in both improved profits and reduced overheads.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£'000

20,093

18,358

Gross margin

%

48

45

Gross assets

£'000

16,882

15,072

Net assets

£'000

8,492

8,419

Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve development, performance and the position of the business. Indicators are reviewed and altered to meet changes in both the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators beyond those set out above to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company.

Principal risks and uncertainties

Credit risk - The company offers credit to certain of its customers. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken. Credit limits are set accordingly.

Price risk - The company is subject to price risk and foreign exchange rate risk as a high proportion of its purchases are made in US Dollars and Chinese Yuan Renminbi. However, the company reduces this risk by entering into forward contracts.

Liquidity risk - The company minimises liquidity risk through careful management of payables, cash and receivables.

Cash flow risk - Cash flows are carefully managed and the company continues to trade within facilities. Operating cash flows remained strong and are expected to continue in this manner.

Approved by the Board on 6 June 2025 and signed on its behalf by:


B M Appel
Director

 

iCandy World Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

The directors who held office during the year were as follows:

B M Appel

W A Appel

N Appel

M B Boyle (ceased 11 June 2024)

D S Appel

Dividends

The total distribution of dividends for the year ended 30 September 2024 was £2,105,262 (2023 - £2,105,262).

Financial instruments

The company uses financial instruments as part of its financial risk management. Although not considered a significant risk, the nature of its financial instruments means that they are subject to normal trading risk and liquidity risk.

Future developments

The demand for the company's products and its trading results remain positive following the year end. The company continues to invest in design and innovation to ensure all its products remain desirable and maintain a high level of quality.

Going concern

In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the directors of all companies are required to provide disclosures regarding the going concern basis of accounting.

The company has financial resources available and continues to generate cash from operating activities. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 6 June 2025 and signed on its behalf by:


B M Appel
Director

 

iCandy World Limited

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

iCandy World Limited

Independent Auditor's Report to the Members of iCandy World Limited

Opinion

We have audited the financial statements of iCandy World Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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.

 

iCandy World Limited

Independent Auditor's Report to the Members of iCandy World Limited

Matters on which we are required to report by exception

In the 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.

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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

 

iCandy World Limited

Independent Auditor's Report to the Members of iCandy World Limited

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this 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.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

6 June 2025

 

iCandy World Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

20,093,844

18,358,433

Cost of sales

 

(10,475,691)

(10,099,800)

Gross profit

 

9,618,153

8,258,633

Administrative expenses

 

(6,576,322)

(5,302,532)

Operating profit

4

3,041,831

2,956,101

Other interest receivable and similar income

154,548

37,990

Interest payable and similar expenses

(133,125)

(97,891)

   

21,423

(59,901)

Profit before tax

 

3,063,254

2,896,200

Tax on profit

8

(884,236)

(660,490)

Profit for the financial year

 

2,179,018

2,235,710

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

iCandy World Limited

(Registration number: 00282792)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

9

151,442

248,999

Tangible assets

10

2,921,223

2,516,428

Investments

11

120,517

120,517

 

3,193,182

2,885,944

Current assets

 

Stocks

12

5,938,175

4,721,590

Debtors

13

2,975,461

3,607,628

Cash at bank and in hand

 

4,775,221

3,857,142

 

13,688,857

12,186,360

Creditors: Amounts falling due within one year

14

(8,128,545)

(6,554,795)

Net current assets

 

5,560,312

5,631,565

Total assets less current liabilities

 

8,753,494

8,517,509

Provisions for liabilities

(261,160)

(98,931)

Net assets

 

8,492,334

8,418,578

Capital and reserves

 

Called up share capital

2,105

2,105

Capital redemption reserve

895

895

Retained earnings

8,489,334

8,415,578

Shareholders' funds

 

8,492,334

8,418,578

Approved and authorised by the Board on 6 June 2025 and signed on its behalf by:
 


B M Appel
Director

 

iCandy World Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2023

2,105

895

8,415,578

8,418,578

Profit for the year

-

-

2,179,018

2,179,018

Dividends

-

-

(2,105,262)

(2,105,262)

At 30 September 2024

2,105

895

8,489,334

8,492,334

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2022

2,105

895

8,285,130

8,288,130

Profit for the year

-

-

2,235,710

2,235,710

Dividends

-

-

(2,105,262)

(2,105,262)

At 30 September 2023

2,105

895

8,415,578

8,418,578

 

iCandy World Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,179,018

2,235,710

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

679,110

528,429

Finance income

(154,548)

(37,990)

Finance costs

133,125

97,891

Income tax expense

8

884,236

660,490

 

3,720,941

3,484,530

Working capital adjustments

 

(Increase)/decrease in stocks

12

(1,216,585)

1,633,920

Decrease/(increase) in trade debtors

13

663,031

(1,409,210)

Increase in trade creditors

14

1,258,664

257,445

Cash generated from operations

 

4,426,051

3,966,685

Income taxes paid

8

(1,225,153)

(221,077)

Net cash flow from operating activities

 

3,200,898

3,745,608

Cash flows from investing activities

 

Interest received

154,548

37,990

Acquisitions of tangible assets

(986,348)

(608,675)

Acquisition of intangible assets

9

-

(35,785)

Net cash flows from investing activities

 

(831,800)

(606,470)

Cash flows from financing activities

 

Interest paid

(133,125)

(97,891)

Repayment (advances) of other borrowings

 

787,368

942,934

Dividends paid

19

(2,105,262)

(2,105,262)

Net cash flows from financing activities

 

(1,451,019)

(1,260,219)

Net increase in cash and cash equivalents

 

918,079

1,878,919

Cash and cash equivalents at 1 October

 

3,857,142

1,978,223

Cash and cash equivalents at 30 September

 

4,775,221

3,857,142

 

iCandy World Limited

 

Analysis of changes in net debt

At 1 October 2023
£

Financing cash flows
£

At 30 September 2024
£

Cash and cash equivalents

Cash

3,857,142

918,079

4,775,221

Borrowings

Short term borrowings

(3,350,081)

(787,368)

(4,137,449)

 

507,061

130,711

637,772

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 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:
Montgomery Way
Biggleswade
SG18 8UB

 

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 except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a medium sized group. Although the Companies Act 2006 requires medium sized groups to prepare consolidated accounts, the company has not prepared them on the basis that the results and the net assets of the subsidiary are not material to the group.

Going concern

After considering the recent company performance and reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.
 

Judgements

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal actual results. There are not considered to be any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The warranty provision of £125,200 (2023: £125,000) recognised in these financial statements is considered to be a significant judgement that has been made by management in preparing these financial statements.

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company 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 company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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 corporation 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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 statement of financial position 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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold buildings

2% of cost per annum

Plant and machinery

25% of cost per annum

Fixtures and fittings

25% - 50% of cost per annum

Motor vehicles

25% of cost per annum

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Intangible assets

Intangible assets are initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Development

over 4 years

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

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. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company 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 method.

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. Accounts payable are classified as current liabilities if the company 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 at the transaction price.

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 company 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 profit or loss on a straight-line basis over the period of the lease.

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 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 company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared by the shareholders in general meetings.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.


 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

20,093,844

18,358,433

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

17,234,281

16,653,854

Europe

1,372,226

982,490

Rest of world

1,487,337

722,089

20,093,844

18,358,433

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

581,553

431,050

Amortisation expense

97,557

97,379

Foreign exchange gains

(488,816)

(368,081)

Operating lease expense - other

84,442

63,488

 

5

Staff costs

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

2024
£

2023
£

Wages and salaries

2,716,449

2,329,205

Social security costs

321,710

252,672

Pension costs, defined contribution scheme

87,328

54,957

3,125,487

2,636,834

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Sales and administration

42

40

Warehouse and distribution

14

12

56

52

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

416,599

476,892

Contributions paid to money purchase schemes

200

6,252

Compensation for loss of office

206,797

-

623,596

483,144

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

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

5

In respect of the highest paid director:

2024
£

2023
£

Remuneration

574,305

312,857

Company contributions to money purchase pension schemes

-

5,611

 

7

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

25,000

24,250

Other fees to auditors

All other non-audit services

15,748

28,064


 

 

8

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

632,444

586,482

UK corporation tax adjustment to prior periods

89,563

(5,964)

722,007

580,518

Deferred taxation

Arising from origination and reversal of timing differences

162,229

79,972

Tax expense in the income statement

884,236

660,490

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

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 - 22%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

3,063,254

2,896,200

Corporation tax at standard rate

765,814

637,164

Increase/(decrease) in UK and foreign current tax from adjustment for prior periods

89,563

(5,964)

Increase from effect of different UK tax rates on some earnings

-

22,549

Effect of expense not deductible in determining taxable profit (tax loss)

28,859

6,741

Total tax charge

884,236

660,490

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

209,574

Capital gains rolled over

52,941

Other timing difference

(1,355)

261,160

2023

Liability
£

Accelerated capital allowances

46,904

Capital gains rolled over

52,942

Other timing difference

(915)

98,931

 

9

Intangible assets

Development costs
 £

Cost or valuation

At 1 October 2023

390,227

At 30 September 2024

390,227

Amortisation

At 1 October 2023

141,228

Amortisation charge

97,557

At 30 September 2024

238,785

Carrying amount

At 30 September 2024

151,442

At 30 September 2023

248,999

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

10

Tangible assets

Land and buildings
£

Fixtures and fittings
 £

Plant and machinery
 £

Total
£

Cost

At 1 October 2023

1,999,294

2,901,055

4,196,231

9,096,580

Additions

-

493,132

493,216

986,348

At 30 September 2024

1,999,294

3,394,187

4,689,447

10,082,928

Depreciation

At 1 October 2023

538,989

2,460,177

3,580,986

6,580,152

Charge for the year

39,984

220,331

321,238

581,553

At 30 September 2024

578,973

2,680,508

3,902,224

7,161,705

Carrying amount

At 30 September 2024

1,420,321

713,679

787,223

2,921,223

At 30 September 2023

1,460,305

440,878

615,245

2,516,428

 

11

Investments

2024
£

2023
£

Investments in subsidiaries

120,517

120,517

Details of undertakings

Details of the investments 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

Dongguan iCandy Children's Products Co., Limited

China

Ordinary

100%

100%

The accounting period end for Dongguan iCandy Children's Products Co. Ltd, is 31 December each year. The profit for the financial year ended 31 December 2024 was £24,088 (2023 - £24,693) and the aggregate amount of capital and reserves at the end of the period was £272,528 (2023 - £262,433).

 

12

Stocks

2024
£

2023
£

Finished goods and goods for resale

5,938,175

4,721,590

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

13

Debtors

Note

2024
£

2023
£

Trade debtors

 

2,568,006

3,361,808

Other debtors

 

64,763

-

Prepayments

 

311,828

245,820

Corporation tax asset

8

30,864

-

 

2,975,461

3,607,628

 

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

15

4,137,449

3,350,081

Trade creditors

 

2,739,885

1,100,715

Social security and other taxes

 

466,861

1,040,113

Outstanding defined contribution pension costs

 

10,618

8,026

Other payables

 

203,978

123,928

Accruals

 

569,754

459,650

Corporation tax liability

8

-

472,282

 

8,128,545

6,554,795

 

15

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Other borrowings

4,137,449

3,350,081

Other borrowings

These comprise of directors' loans and are denominated in £ Sterling with a nominal interest rate of 5%. The carrying amount at year end is £4,137,449 (2023 - £3,350,081).

There are no formal requirements in place to repay these loans.

 

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £87,328 (2023 - £54,957).

Contributions totalling £10,618 (2023 - £8,026) were payable to the scheme at the end of the year and are included in creditors.

 

iCandy World Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

 

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary 'A' shares of £1 each

701

701

701

701

Ordinary 'B' shares of £1 each

1,034

1,034

1,034

1,034

Ordinary 'C' shares of £1 each

70

70

70

70

Ordinary 'D' shares of £1 each

300

300

300

300

2,105

2,105

2,105

2,105

All shares in issue rank pari passu in all respects except that each class has separate dividend rights.

 

18

Obligations under operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

60,047

42,351

Later than one year and not later than five years

69,306

27,187

129,353

69,538

The amount of non-cancellable operating lease payments recognised as an expense during the year was £52,018 (2023 - £63,488).

 

19

Dividends

2024
 £

2023
 £

Dividends paid

2,105,262

2,105,262

 

20

Related party transactions

At 30 September 2024 the company owed the company directors £4,137,449 (2023: £3,350,081). Interest of £133,125 (2023: £97,891) has been accrued on the loans. During the current financial year the company credited dividends of £2,000,000 (2023: £2,000,000) to the directors' loan accounts.

During the year the company was charged £623.619 (2023: £588,415) for services provided by Dongguan iCandy Children's Products Co. Ltd.