Eco Vape Limited Cover |
Company No. 09287568 | |||||||||
Eco Vape Limited Contents |
Pages | |||||||||
Company Information | 2 | ||||||||
Strategic Report | 4 to 5 | ||||||||
Directors' Report | 6 to 7 | ||||||||
Auditor's Report | 8 to 11 | ||||||||
Statement of Comprehensive Income | 12 | ||||||||
Statement of Financial Position | 13 | ||||||||
Statement of Changes in Equity | 14 | ||||||||
Statement of Cash Flows | 15 | ||||||||
Notes to the Financial Statements | 16 to 33 | ||||||||
Eco Vape Limited Company Information |
Directors | |||||||||
Registered Office | |||||||||
Independent Auditors | |||||||||
Barnett & Turner Accountants Ltd | |||||||||
Chartered Accountants and Registered Auditors | |||||||||
Cromwell House | |||||||||
68 West Gate | |||||||||
Mansfield | |||||||||
NG18 1RR | |||||||||
Accountants | |||||||||
Self Assessment House | |||||||||
85 - 87 Saltergate | |||||||||
Chesterfield | |||||||||
Derbyshire | |||||||||
S40 1JS | |||||||||
Eco Vape Limited Strategic Report |
The Directors present their strategic report for the year ended 31 October 2024. | |||||||
Business review | |||||||
Eco Vape Limited experienced a year of significant transformation, adapting to evolving market dynamics while maintaining its core commitment to innovation, quality, and sustainability. Although the financial performance reflected a reduction in turnover and a net loss for the year, the company took decisive steps to realign its cost structure and strategic priorities for long-term resilience and growth. | |||||||
In response to the loss, a comprehensive cost-saving review was undertaken. This included the downsizing of excess warehousing space to reduce rent overheads and redirect resources toward core growth areas. One such initiative was the development of a new on-site cash and carry, which is now trading successfully and offering a diverse product range designed to attract a broader base of customers — particularly those who already retail vape products. | |||||||
The company also acquired and integrated several B2B e-commerce platforms to increase customer reach and extend its product offering. These acquisitions enable faster onboarding of trade clients and provide access to new wholesale sectors beyond the traditional vape market. | |||||||
Eco Vape continues to diversify through substantial investment in smoking accessories and related retail verticals. This has led to the launch of a new store group, High Rollers, which aims to attract new footfall into retail spaces whilst cross-promoting Eco Vape’s full product range. The group serves as both a retail outlet and a brand engagement hub. Eco Vape remains committed to developing premium, British-made vaping products that meet regulatory standards while delivering excellent value to customers. | |||||||
Financial and other key performance indicators: | |||||||
The decline in revenue during the year was primarily due to the loss of a major disposable vape client following regulatory changes and growing uncertainty around the future of disposable products in the UK. This resulted in a significant short-term impact on sales volume and overall turnover. In response, the business has shifted its strategic focus toward more stable, independent trade customers and diversified sales channels. By restructuring underperforming divisions and reinvesting in higher-yield, sustainable opportunities — such as the on-site cash and carry, B2B platform acquisitions, and retail expansion via the High Rollers store group — Eco Vape is building a more resilient foundation for future growth. | |||||||
The company's key performance indicators during the year were as follows: | |||||||
Key financial performance indicators: | Unit | 2024 | 2023 | ||||
1 | Turnover | £ 000s | 8,198 | 17,261 | |||
2 | Gross Profit | £ 000s | 1,688 | 2,662 | |||
3 | Operating (Loss) / Profit | £ 000s | (456) | 177 | |||
4 | Net Profit / (Loss) | £ 000s | (378) | 29 | |||
Principal risks and uncertainties | |||||||
The vaping industry continues to evolve under heightened regulatory scrutiny, particularly around disposable devices and nicotine content. The company closely monitors legislative developments and is proactively adjusting its product portfolio to maintain compliance and relevance. Key risks include: | |||||||
1 | Market risk: Mitigated through diversification into hardware, nicotine salt ranges, and smoking accessories, with growing emphasis on reusable systems. | ||||||
2 | Regulatory risk: Addressed by maintaining a robust compliance framework and engaging with legal advisors and trade associations. | ||||||
3 | Operational risk: Managed via investment in automation, supply chain resilience, and the optimisation of premises and inventory systems. | ||||||
Signed on behalf of the board | |||||||
Jane Dainty | |||||||
Director | |||||||
28 July 2025 | |||||||
Eco Vape Limited Directors Report |
The Directors present their report and the financial statements for the year ended 31 October 2024. | |||||||||
Principal activities | |||||||||
Directors | |||||||||
The Directors who served at any time during the year were as follows: | |||||||||
Future developments | |||||||||
Eco Vape Limited is actively repositioning itself to align with the future direction of the industry, particularly with the UK’s upcoming disposable vape restrictions. Moving forward, the company will: * Focus on developing compliant refillable and hybrid vaping systems. * Scale up its cash and carry and High Rollers store network. * Expand product lines in smoking accessories, CBD, and general convenience categories. * Leverage recent B2B platform acquisitions to grow its wholesale customer base and digital visibility. These combined actions are designed to stabilise profitability, reduce overhead exposure, and build a more diverse and sustainable growth engine for the years ahead. | |||||||||
Statement of directors' responsibilities | |||||||||
The Directors are responsible for preparing the Directors' report and the accounts in accordance with applicable law and regulations. | |||||||||
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts 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 accounts, the directors are required to: | |||||||||
* | select suitable accounting policies and then apply them consistently; | ||||||||
* | make judgements and estimates that are reasonable and prudent; | ||||||||
* | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statments; 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. | |||||||||
Statement of disclosure of information to auditor | |||||||||
Signed on behalf of the board | |||||||||
Jane Dainty | |||||||||
Director | |||||||||
28 July 2025 | |||||||||
Eco Vape Limited Audit Report Unqualified |
Independent Auditor's Report to the members of Eco Vape Limited | |||||||||
Opinion | |||||||||
We have audited the financial statements of Eco Vape Limited (the 'company') for the year ended 31 October 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the 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). | |||||||||
In our opinion the financial statements: | |||||||||
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’s 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 accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts 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 accounts are authorised for issue. | |||||||||
Our responsibilities and the responsibillities of the directors with respect to going concern are described in the relevant sections of this report. | |||||||||
Other information | |||||||||
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. 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 matters prescribed by the Companies Act 2006 | |||||||||
In our opinion, based upon the work undertaken in the course of the audit: | |||||||||
• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. | |||||||||
Matters on which we are required to report by exception | |||||||||
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. | |||||||||
• 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 | |||||||||
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 accounts 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. | |||||||||
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: | |||||||||
As part of our planning process: · We enquired of management regarding the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud. · We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and current tax legislation. · We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. · Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. The key procedures we undertook to detect irregularities including fraud during the course of the audit included: · Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. · Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. · Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the valuation of stock. · Testing key revenue lines, in particular cut-off, for evidence of management bias. · Performing a physical verification of key assets and stock items (including testing of the stock system). · Obtaining third-party confirmation of material bank and loan balances. · Documenting and verifying all significant related party balances and transactions. · Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. · Testing all material consolidation adjustments. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. | |||||||||
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of the auditors 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 auditors' 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. | |||||||||
Senior Statutory Auditor | |||||||||
For and on behalf of | |||||||||
Chartered Accountants and Registered Auditors | |||||||||
Cromwell House | |||||||||
68 West Gate | |||||||||
Mansfield | |||||||||
NG18 1RR | |||||||||
Eco Vape Limited Statement of Comprehensive Income |
for the year ended 31 October 2024 | |||||||||||
Notes | 2024 | 2023 | |||||||||
£ | £ | ||||||||||
Revenue | 4 | ||||||||||
Cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Distribution costs and selling expenses | ( | ( | |||||||||
Administrative expenses | ( | ( | |||||||||
Other operating income | |||||||||||
Operating (loss)/profit | 5 | ( | |||||||||
Other interest receivable | 8 | ||||||||||
Interest payable and similar charges | 9 | ( | ( | ||||||||
(Loss)/Profit on ordinary activities before taxation | ( | ||||||||||
Taxation | 10 | ( | |||||||||
(Loss)/Profit for the financial year after taxation | ( | ||||||||||
Other comprehensive income | - | - | |||||||||
Total comprehensive income/(loss) | ( | ||||||||||
Eco Vape Limited Statement of Financial Position |
at | ||||||||||
Company No. | Notes | 2024 | 2023 | |||||||
£ | £ | |||||||||
Fixed assets | ||||||||||
Intangible assets | 11 | |||||||||
Tangible assets | 12 | |||||||||
Current assets | ||||||||||
Stocks | 13 | |||||||||
Debtors | 14 | |||||||||
Cash at bank and in hand | ||||||||||
Creditors: Amount falling due within one year | 15 | ( | ( | |||||||
Net current assets | ||||||||||
Total assets less current liabilities | ||||||||||
Creditors: Amounts falling due after more than one year | 16 | ( | ( | |||||||
Provisions for liabilities | ||||||||||
Deferred taxation | 17 | ( | ||||||||
Net assets | ||||||||||
Capital and reserves | ||||||||||
Called up share capital | 18 | |||||||||
Profit and loss account | 19 | |||||||||
Total equity | ||||||||||
Approved by the board on 28 July 2025 and signed on its behalf by: | ||||||||||
Jane Dainty | ||||||||||
Director | ||||||||||
28 July 2025 | ||||||||||
Eco Vape Limited Statement of Changes in Equity |
for the year ended 31 October 2024 | ||||||||||||
Share Capital | Retained earnings | Total equity | ||||||||||
£ | £ | £ | ||||||||||
At 1 November 2022 | 100 | 2,617,910 | 2,618,010 | |||||||||
Profit for the period | 28,982 | |||||||||||
Dividends | ( | ( | ||||||||||
At 31 October 2023 and 1 November 2023 | ||||||||||||
Loss for the period | ( | ( | ||||||||||
Dividends | ( | ( | ||||||||||
At 31 October 2024 | ||||||||||||
Eco Vape Limited Statement of Cash Flows |
for the year ended 31 October 2024 | ||||||
2024 | 2023 | |||||
£ | £ | |||||
Cash flows from operating activities | ||||||
Operating (loss)/profit | (456,550) | 177,396 | ||||
Adjustments for: | ||||||
Depreciation of property, plant and equipment | 176,409 | 189,589 | ||||
Amortisation of intangible assets | 237,512 | - | ||||
Profit on disposal of tangible fixed assets | - | (49,853) | ||||
Increase in stocks | (1,826) | (709,004) | ||||
Decrease in trade and other receivables | 1,840,129 | 810,701 | ||||
(Decrease)/Increase in trade and other payables | (1,468,918) | 328,951 | ||||
Net cash generated from operations | 326,756 | 747,780 | ||||
Interest paid | ( | ( | ||||
Income taxes paid | ( | ( | ||||
Net cash generated from operating activities | ||||||
Cash flows from investing activities | ||||||
Proceeds from sales of property, plant and equipment | ||||||
Payments for property, plant and equipment | ( | ( | ||||
Proceeds from sale of intangible assets | ||||||
Interest received | ||||||
Net cash used in investing activities | ( | ( | ||||
Cash flows from financing activities | ||||||
Repayment of borrowings | ( | |||||
Repayments of obligations under finance lease and hire purchase contracts | ( | ( | ||||
Proceeds from new finance lease and hire purchase contracts | ||||||
Equity dividends paid | ( | ( | ||||
Net cash (used in)/from financing activities | ( | |||||
Net (decrease)/increase in cash and cash equivalents | ( | |||||
Cash and cash equivalents at the beginning of the year | 335,226 | 175,580 | ||||
Cash and cash equivalents at the end of the year | 234,466 | 335,226 | ||||
Components of cash and cash equivalents | ||||||
Cash and bank balances | ||||||
234,466 | 335,226 | |||||
Eco Vape Limited Notes to the Financial Statements |
for the year ended 31 October 2024 | ||||||||||||||||
1 | General information | |||||||||||||||
Eco Vape Limited is a private company limited by shares and incorporated in England and Wales. | ||||||||||||||||
Its registered number is: 09287568 | ||||||||||||||||
Its registered office is: | ||||||||||||||||
The functional and presentational currency of the company is Sterling. The accounts are rounded to the nearest pound. | ||||||||||||||||
1 | ||||||||||||||||
2 | Accounting policies | |||||||||||||||
Going concern | ||||||||||||||||
The company’s business activities, together with the factors likely to affect its future development and financial position, are set out in the strategic report and directors' report. The company’s forecasts and projections, taking account of reasonably possible changes in operational performance as a result of general economic conditions, show that the company is expected to generate positive cash flows for the foreseeable future. On the basis of their assessment of the company’s financial position, the directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Hence, the directors believe it is appropriate to adopt the going concern basis of preparation of the financial statements. | ||||||||||||||||
Revenue recognition | ||||||||||||||||
Revenue from the sale of goods is recognised when all the following conditions are satisfied: • the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; • the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the Company; and • the costs incurred or to be incurred in respect of the transaction can be measured reliably. Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. | ||||||||||||||||
Borrowing costs | ||||||||||||||||
Taxation | ||||||||||||||||
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period. Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. | ||||||||||||||||
Intangible assets | ||||||||||||||||
Development expenditure | ||||||||||||||||
Development of products is capitalised when it meets the following conditions: • It is technically feasible to complete the research or development so that the product will be available for use or sale. • It is intended to use or sell the product being developed. • The Company is able to use or sell the product. • It can be demonstrated that the product will generate probable future economic benefits. • Adequate technical, financial and other resources exist so that product development can be completed and subsequently used or sold. • Expenditure attributable to the research and development work can be reliably measured. Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses and amortised over its useful economic life. Assessments of useful economic life range from 5 to 15 years. Amortisation expenses for the year and last year are included in administrative expenses. All other research and development expenditure is recognised as an expense in the period in which it is incurred. | ||||||||||||||||
Tangible fixed assets and depreciation | ||||||||||||||||
Any revaluation increase or decrease on land and buildings is credited to the property revaluation reserve. Depreciation on revalued buildings is charged to profit or loss so as to write off their value, less residual value, over their estimated useful lives, using the straight-line method. Once a revalued property is sold or retired any attributable revaluation surplus that is remaining in the property revaluation reserve is transferred to retained earnings. No transfer is made from the revaluation reserve to retained earnings unless an asset is derecognised. | ||||||||||||||||
losses. Depreciation on plant and equipment is charged to profit or loss so as to write off their value, over their estimated useful lives, using the straight-line method. Assets held under finance leases are depreciated in the same manner as owned assets. At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. | ||||||||||||||||
Plant and machinery | ||||||||||||||||
Motor vehicles | ||||||||||||||||
Furniture, fittings and equipment | ||||||||||||||||
Freehold investment property | ||||||||||||||||
No depreciation is provided in respect of investment properties. | ||||||||||||||||
Stocks | ||||||||||||||||
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. | ||||||||||||||||
Financial instruments | ||||||||||||||||
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments. | ||||||||||||||||
Financial Instruments (Continued) | ||||||||||||||||
Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. | ||||||||||||||||
Related parties | ||||||||||||||||
For the purposes of these financial statements, a party is considered to be related to the Company if: • the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company; • the Company and the party are subject to common control; • the party is an associate of the Company or a joint venture in which the Company is a venturer; • the party is a member of key management personnel of the Company or the Company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; • the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or • the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company. Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. | ||||||||||||||||
Foreign currencies | ||||||||||||||||
Leased assets | ||||||||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. | ||||||||||||||||
Defined contribution pensions | ||||||||||||||||
The contributions are recognised as an expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. | ||||||||||||||||
3 | Critical accounting judgements and key sources of estimation uncertainty | |||||||||||||||
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: | ||||||||||||||||
Depreciation of tangible fixed assets: Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful economic life and ultimate net realisable value. The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company. | ||||||||||||||||
Stock Valuation: Stock is valued at the lower of cost and net realisable value. Cost is determined on a first-in, first-out basis. The shelf life of some stock lines is limited. Stock levels are continuously monitored to ensure stock obsolescence is kept to a minimum. | ||||||||||||||||
4 | Revenue Analysis | |||||||||||||||
Revenue, analysed geographically between markets, was as follows: | 2024 | 2023 | ||||||||||||||
£ | £ | |||||||||||||||
United Kingdom | ||||||||||||||||
Europe | ||||||||||||||||
Rest of the World | ||||||||||||||||
5 | Operating (Loss)/Profit | |||||||||||||||
2024 | 2023 | |||||||||||||||
This is stated after charging: | £ | £ | ||||||||||||||
Depreciation of owned fixed assets | ||||||||||||||||
Amortisation of intangible fixed assets | ||||||||||||||||
Auditors' remuneration for: | ||||||||||||||||
Audit of the company's annual accounts | ||||||||||||||||
6 | Staff costs | |||||||||||||||
2024 | 2023 | |||||||||||||||
Staff costs during the year (including directors) were as follows: | £ | £ | ||||||||||||||
Wages and salaries | ||||||||||||||||
Social security costs | ||||||||||||||||
Other pension costs | ||||||||||||||||
Total in company | 1,173,462 | 1 | 1,255,186 | |||||||||||||
2024 | 2023 | |||||||||||||||
The average monthly number of employees (including directors) during the year was: | Number | Number | ||||||||||||||
Administration | ||||||||||||||||
Production | ||||||||||||||||
Sales and marketing | ||||||||||||||||
Total in company | ||||||||||||||||
7 | Directors' remuneration | |||||||||||||||
2024 | 2023 | |||||||||||||||
Remuneration included within staff costs - Note 6 - in respect of directors was as follows: | £ | £ | ||||||||||||||
Aggregate remuneration in respect of qualifying services | ||||||||||||||||
Total remuneration | 1 | |||||||||||||||
8 | Interest receivable | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Other interest receivable | ||||||||||||||||
9 | Interest payable and similar charges | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loan and overdraft interest payable | ||||||||||||||||
Other interest payable | ||||||||||||||||
HP interest | 729 | 1,377 | ||||||||||||||
10 | Taxation | |||||||||||||||
(a) Tax on profit on ordinary activities | 2024 | 2023 | ||||||||||||||
The tax charge is made up as follows: | £ | £ | ||||||||||||||
UK corporation tax | ||||||||||||||||
Charge for the period | ||||||||||||||||
Credit for prior periods | ( | |||||||||||||||
Total corporation tax | ( | |||||||||||||||
Origination and reversal of timing differences | ( | |||||||||||||||
Total deferred tax | ( | |||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
(b) Factors affecting the total tax charge for the period | ||||||||||||||||
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The differences are reconciled below: | ||||||||||||||||
Lower | 2024 | 2023 | ||||||||||||||
-2788 | £ | £ | ||||||||||||||
Profit on ordinary activities before tax | ( | |||||||||||||||
Standard rate of corporation tax in the United Kingdom | ||||||||||||||||
Profit on ordinary activities multiplied by standard rate of corporation tax in the United Kingdom | ( | |||||||||||||||
Expenses not deductible for tax purposes | ||||||||||||||||
Adjustments to charge in respect of prior periods | 3,607 | - | ||||||||||||||
Book profits on chargeable assets | ( | |||||||||||||||
Other short term timing differences | ( | ( | ||||||||||||||
Capital Allowances in excess of depreciation | ||||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
11 | Intangible fixed assets | |||||||||||||||
Develop- ment costs | Total | |||||||||||||||
£ | £ | |||||||||||||||
Cost | ||||||||||||||||
At 1 November 2023 | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
Amortisation and impairment | ||||||||||||||||
Charge for the year | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
Net book values | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
At 31 October 2023 | ||||||||||||||||
12 | Tangible fixed assets | |||||||||||||||
Land and buildings | Plant and machinery | Motor vehicles | Fixtures, fittings and equipment | Total | ||||||||||||
£ | £ | £ | £ | £ | ||||||||||||
Cost or revaluation | ||||||||||||||||
At 1 November 2023 | ||||||||||||||||
Additions | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
Depreciation and impairment | ||||||||||||||||
At 1 November 2023 | ||||||||||||||||
Charge for the year | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
Net book values | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
At 31 October 2023 | ||||||||||||||||
Net book values of assets held under finance leases and hire purchase contracts and included above | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
At 31 October 2023 | ||||||||||||||||
13 | Stocks | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Finished goods | ||||||||||||||||
14 | Debtors | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Trade debtors | ||||||||||||||||
Amounts owed by group undertakings | ||||||||||||||||
Corporation tax recoverable | ||||||||||||||||
Deferred tax asset | ||||||||||||||||
Loans to directors | ||||||||||||||||
Other debtors | ||||||||||||||||
Prepayments and accrued income | ||||||||||||||||
15 | Creditors: | |||||||||||||||
amounts falling due within one year | ||||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loans and overdrafts | ||||||||||||||||
Other loans | ||||||||||||||||
Obligations under finance lease and hire purchase contracts | ||||||||||||||||
Trade creditors | ||||||||||||||||
Corporation tax | ||||||||||||||||
Other taxes and social security | ||||||||||||||||
Loans from directors | ||||||||||||||||
Other creditors | ||||||||||||||||
Accruals and deferred income | ||||||||||||||||
16 | Creditors: | |||||||||||||||
amounts falling due after more than one year | ||||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loans and overdrafts | ||||||||||||||||
Other loans | ||||||||||||||||
Obligations under finance lease and hire purchase contracts | ||||||||||||||||
Amounts owed to group undertakings | ||||||||||||||||
Obligations under finance leases and HP contracts | ||||||||||||||||
Amounts due within one year | 4,280 | 4,280 | ||||||||||||||
Amounts due between 1 and 5 years | 4,281 | 8,561 | ||||||||||||||
17 | Provisions for liabilities | |||||||||||||||
Deferred taxation | ||||||||||||||||
Accelerated capital allowances, losses and other timing differences | Total | |||||||||||||||
£ | £ | |||||||||||||||
At 1 November 2023 | 83,543 | |||||||||||||||
Credit to the profit and loss account for the period | (96,905) | ( | ||||||||||||||
At 31 October 2024 | (13,362) | ( | ||||||||||||||
18 | Share Capital | |||||||||||||||
Called-up share capital represents the nominal value of shares that have been issued. | Nominal value | 2024 | 2024 | 2023 | ||||||||||||
£ | Number | £ | £ | |||||||||||||
Allotted, called up and fully paid: | ||||||||||||||||
19 | Reserves | |||||||||||||||
20 | Reconciliation of net debt | |||||||||||||||
At 1 November 2023 | Cash flows | New HP/Finance leases | At 31 October 2024 | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Cash and cash equivalents | ( | |||||||||||||||
335,226 | (100,760) | - | 234,466 | |||||||||||||
Borrowings | (113,769) | 7,975 | (105,794) | |||||||||||||
Bank loans | (229,763) | 120,911 | (108,852) | |||||||||||||
Obligations under HP/Finance Leases | (12,841) | 4,280 | - | (8,561) | ||||||||||||
(356,373) | 133,166 | - | (223,207) | |||||||||||||
Net debt | ( | 32,406 | - | |||||||||||||
21 | Commitments | |||||||||||||||
Operating lease commitments | ||||||||||||||||
Annual commitments under non-cancellable operating leases are as follows: | ||||||||||||||||
2024 | 2024 | 2023 | 2023 | |||||||||||||
Land and buildings | Other | Land and buildings | Other | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Operating leases with expiry date: | ||||||||||||||||
Within one year | - | 19,023 | - | 3,558 | ||||||||||||
In the second to fifth years inclusive | - | 38,387 | - | 96,902 | ||||||||||||
- | 57,410 | - | 100,460 | |||||||||||||
Pension commitments | ||||||||||||||||
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered funds. The pension cost charge represents contributions payable by the company to the fund and amounted to £22,450 (2023 - £21,637). Contributions totalling £5,404 (2023 - £5,383) were payable to the fund at the balance sheet date. | ||||||||||||||||
22 | Dividends | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Dividends for the period: | ||||||||||||||||
Dividends by type: | ||||||||||||||||
Equity dividends | ||||||||||||||||
22,846 | 74,712 | |||||||||||||||
23 | Advances and credits to directors | |||||||||||||||
2024 | ||||||||||||||||
£ | ||||||||||||||||
At 1 November 2023 | ||||||||||||||||
At 31 October 2024 | ||||||||||||||||
24 | Related party disclosures | |||||||||||||||
During the year the company traded with other companies controlled by the directors of this company. Sales amounted to £1,775,724 (2023 - £2,473,724), with £404,873 (2023 - £581,708) outstanding at the balance sheet date in respect of these sales. Purchases amounted to £231,138 (2023 - £151,984), with £270,874 (2023 - £22,862) outstanding at the balance sheet date in respect of these purchases. Extended credit is available to and from these companies. The company occupies premises owned by a company controlled by the directors of this company. Rent paid in the year amounted to £119,047 (2023 - £76,396). The related companies support each other financially in the form of interest-free loans. £320,051 (2023 - £45,222) was owed to the company at the balance sheet date. £80,660 (2023 - £200,109) was owed by the company at the balance sheet date. These loans have no fixed repayment terms. | ||||||||||||||||
Controlling party | ||||||||||||||||
Immediate controlling party: | ||||||||||||||||