Chester Berry Limited
Financial Statements
For the period ended 30 March 2024
Pages for Filing with Registrar
Company Registration No. 14709445 (England and Wales)
Chester Berry Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
Chester Berry Limited
Balance Sheet
As at 30 March 2024
Page 1
2024
Notes
£
£
Fixed assets
Intangible assets
5
164,740
Current assets
Stock
316,833
Debtors
6
148,701
Cash at bank and in hand
51,701
517,235
Creditors: amounts falling due within one year
7
(429,642)
Net current assets
87,593
Net assets
252,333
Capital and reserves
Called up share capital
8
100
Profit and loss reserves
252,233
Total equity
252,333
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
S Kehl
Director
Company Registration No. 14709445
Chester Berry Limited
Statement of Changes in Equity
For the period ended 30 March 2024
Page 2
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 6 March 2023
-
Period ended 30 March 2024:
Profit and total comprehensive income for the period
-
252,233
252,233
Issue of share capital
8
100
-
100
Balance at 30 March 2024
100
252,233
252,333
Chester Berry Limited
Notes to the Financial Statements
For the period ended 30 March 2024
Page 3
1
Accounting policies
Company information
Chester Berry Limited is a private company limited by shares incorporated in England and Wales. The registered office is Woolovers House, Victoria Gardens, Burgess Hill, West Sussex, RH15 9NB.
1.1
Reporting period
The reporting period is from the date of incorporation on 6 March 2023 to the 30 March 2024.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
In assessing the Company's ability to continue as a going concern, the directors have made reference totrue the going concern note as disclosed in Wourth Group Limited as shown below:
"The Group is exposed to trading risk in a highly competitive retail sector. The Group is susceptible to a possible downturn in consumer spending, influenced by factors such as a reduction in disposable income and changing interest rates. The Directors have assessed, and stress tested the group’s financial position, budgets and cash flow forecasts for the period up to 31 December 2025. These forecasts include factoring in the cash outflow associated with the investment post year end as documented in note 28.
All forecasts have also factored in the seasonality around revenue and stock purchases. Cash levels are expected to be at their lowest in August and September each year when the group are purchasing seasonal stock which is then converted to cash in a strong October to December period. This is particularly pertinent in WoolOvers Limited and Pure Collection Cashmere Limited. Even when flexed for underperformance on revenue targets, the cash forecasts remain in a positive position.
The parent group has also confirmed it will provide financial support if required for a period of at least 12 months from the anticipated sign off date of the financial statements. Consequently, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for more than one year from the date of approval of these financial statements.”
Whilst the assessment for the Group was completed as at 31 December 2024 the group has continued to generate positive cash flows and the parent company has confirmed it will provide financial support if required for a period of at least 12 months from the sign off date of the financial statements.
Accordingly the directors continue to adopt the going concern basis of accounting in preparing the Company's financial statements.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
1
Accounting policies
(Continued)
Page 4
1.4
Turnover
Turnover represents amounts receivable, net of value added tax and trade discounts, in respect of the sale of goods to customers.
Sale of goods
For sale of goods to concession customers, revenue is recognised when control of the goods has transferred, being at the point the customer purchases the goods at the retail store. Payment of the transaction price is due immediately at the point the customer purchases the goods.
For internet and wholesale customers, revenue is recognised when the goods are despatched to customers, being at the point the goods are delivered to the customer. Delivery occurs when the goods have been shipped to the customer's specific location. When the customer initially purchases the goods, the transaction price receivable is recognised as a payment in advance in other creditors until the goods have been delivered to the customer.
Under the company's standard contract terms, customers have a right to return within 28 days. At the reporting date, a refund liability and a corresponding adjustment to revenue is recognised for those products expected to be returned. At the same time, the company has a right to recover the product when customers exercise their right of return so consequently recognises a right to returned goods and corresponding adjustment to cost of sales. The net value of the returns provision is recognised in other creditors based on the estimated returns after the reporting date of sales that occurred in the period. The company uses its accumulated historical experience to estimate the number of returns to be provided for.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of trade and assets over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 1 year.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
1
Accounting policies
(Continued)
Page 5
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website & Domain
3 years
Trademarks
3 years
Brand
3 years
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stock
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes expenditure incurred in acquiring the stocks, conversion costs and other costs in bringing them to their existing location and condition.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.10
Financial instruments
Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
1
Accounting policies
(Continued)
Page 6
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
Page 7
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant effect on amounts recognised in the financial statements.
Net realisable value of stock
The company makes an estimate of the net realisable values of stock which is based on assessments of future sales projections and prevailing market conditions. These are re-assessed annually and amended where necessary to reflect current estimates. Changes to these estimates could result in changes to the profit and loss for the period and to the carrying value of the stock.
Provision for sales returns
The company makes an estimate of the post year end sales returns which is based on assessments of the expected level of returns within the 28 day returns policy. The company uses its accumulated historical experience of actual return levels to estimate the number of returns to be provided for. These are re-assessed annually and amended where necessary to reflect current estimates. Changes to these estimates could result in changes to the profit and loss for the period and to the value of the accrual.
Provision for doubtful debts
The recoverability of trade debtors is regularly reviewed in the light of available economic information specific to each receivable and provisions are recognised for balances considered to be irrecoverable.
Impairment of goodwill
The value of goodwill is shown at cost less amortisation less provision for impairment. The amortisation policy is set at 1 year.
The carrying value of goodwill is reviewed for impairment when an event or changes in trading circumstances indicate the carrying value may not be fully recoverable.
Depreciation of tangible assets and amortisation of intangible assets
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives. The estimated useful life is determined by management based on their expectation for how long each class of asset is expected to benefit the business, making reference to historical trends of the lifetimes of each class of asset.
Amortisation is provided at rates calculated to write off the valuation of the intangible fixed assets over their expected useful lives. Management makes an estimate of the expected useful life of intangible assets based on the nature of each asset, and their expectations for how long each asset will generate future economic benefits for the entity.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 8
Gift cards
The company makes an estimate of the post year end usage of gift cards which is based on assessments of the expected level of usage within the 12 month usage policy. The company uses its accumulated historical experience of actual gift card usage to estimate the value of gift cards to be recognised as a future liability. These are re-assessed annually and amended where necessary to reflect current estimates. Changes to these estimates could result in changes to the profit and loss for the period and to the value of the liability.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
Number
Total
7
4
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
99,362
Deferred tax
Origination and reversal of timing differences
(4,795)
Total tax charge
94,567
The actual tax charge for the period can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:
2024
£
Profit before taxation
346,800
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
86,700
Tax effect of expenses that are not deductible in determining taxable profit
1,020
Amortisation on assets not qualifying for tax allowances
6,847
Taxation charge for the period
94,567
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
Page 9
5
Intangible fixed assets
Brand
Website & Domain
Trademarks
Goodwill
Total
£
£
£
£
£
Cost
At 6 March 2023
Additions
105,400
30,000
10,000
66,646
212,046
At 30 March 2024
105,400
30,000
10,000
66,646
212,046
Amortisation and impairment
At 6 March 2023
Amortisation charged for the period
14,438
4,109
1,370
27,389
47,306
At 30 March 2024
14,438
4,109
1,370
27,389
47,306
Carrying amount
At 30 March 2024
90,962
25,891
8,630
39,257
164,740
6
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
126,228
Amounts owed by group undertakings
21,782
Prepayments and accrued income
691
148,701
7
Creditors: amounts falling due within one year
2024
£
Trade creditors
90,318
Amounts owed to group undertakings
47,449
Corporation tax
94,567
Other taxation and social security
87,393
Other creditors
93,360
Accruals and deferred income
16,555
429,642
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
Page 10
8
Called up share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
100
100
On incorporation the company issued 100 Ordinary shares of £1 each at par.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
Disclaimer of opinion
We were engaged to audit the financial statements of Chester Berry Limited for the period ended 30 March 2024 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies.The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
We do not express an opinion on the financial statements of the company. Because of the significance of the matter described in the Basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
Basis for disclaimer of opinion on financial statements
With respect to stock of £316,833, the audit evidence available to us related to the quantities held at 30 March 2024 was limited. We did not observe the counting of physical stock at the end of the reporting period as we were not appointed auditors until after this date. We were unable to obtain sufficient, appropriate audit evidence by alternative means. Cost of sales of £654,030 is stated after removing the value of stock of £316,833. Consequently, we have been unable to obtain sufficient appropriate evidence on the accuracy of this item within the profit and loss account. As a result, we were unable to determine whether any adjustments might have been found necessary in respect of recorded and unrecorded stock.
Senior Statutory Auditor:
Jamie Sherman
Statutory Auditor:
Moore Kingston Smith LLP
10
Events after the reporting date
On 24 November 2024, all remaining Thought Fashion stock was transferred to Woolovers Limited, a fellow group company. As a result the carrying amount of goodwill and other intangibles were transferred to a fellow group company on the same date to reflect the transfer of the economic benefit of the brand that is now being traded by that company.
Chester Berry Limited
Notes to the Financial Statements (Continued)
For the period ended 30 March 2024
Page 11
11
Related party transactions
In accordance with FRS102 section 33 paragraph 33.1A, the company has not disclosed transactions with wholly owned subsidiaries or its parent company within the same group.
12
Parent company
The company is a subsidiary undertaking of Wourth Group Limited, registered office Woolovers House, Victoria Gardens, Burgess Hill, RH15 9NB.
The ultimate controlling party is a fund managed by Verdane Fund Manager AB, an investment management firm, by virtue of its majority shareholding in Aurora Holdco Limited, registered office 1 Chapel Street, Warwick, United Kingdom, CV34 4HL.
The results are included in the consolidated financial statements of Wourth Group Limited. The consolidated financial statements of Wourth Group Limited are prepared in accordance with FRS 102 and are available to the public and may be obtained from Woolovers House, Victoria Gardens, Burgess Hill, RH15 9NB.
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