Company registration number: 03108133
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Director presents the Strategic Report for the year ended 31 March 2025.
The Company’s principal activities are the import and distribution of hair extensions, wigs, and beauty products.
Since the first anniversary of the Ukraine Russian War in February 2023 (Russian forces invaded Ukraine on 24 February 2022) the UK and EU retail sectors have been challenged with soaring inflation which led to the cost-of-living crisis. Increasing and higher household costs for fuel and food has negatively affected consumer confidence and spending. From a high of 11.1% in October 2022, the UK inflation rate is currently at 4.2% (as at July 2025, source: ons.gov.uk).
In spite of inflationary challenges, UK business reported a 5% increase in sales in 2024-25 compared to the previous year. This is due to securing frequent bulk orders from our key customers. Our sales team fostering a strong positive relationship with our key customers helped us to achieve an increase in sales for the year 2024-25.
In spite of inflationary challenges, UK business reported a 5% increase in sales in 2024-25 compared to the previous year. This is due to securing frequent bulk orders from our key customers. Our sales team fostering a strong positive relationship with our key customers helped us to achieve an increase in sales for the year 2024-25.
Feme has a number of long-standing vendor relationships, some of which span over 30 years. With the strength and mutual confidence of these connections we were able to negotiate a more favourable price and terms with key suppliers. The increase in sales combined with favourable price from suppliers resulted in a healthy GP margin of 21.5% (2024: 20.5%).
Despite the improvement to Gross Profit the company faced the challenge of a gradual but consistent increase to operating cost throughout the past 12 months. This was mainly due to an increase in people costs, establishment costs and travel costs.
Net operating profit for year ending March 2025 decreased to £108,383 from £126,042 the previous year. This was due to the increase in establishment costs. Our Establishment costs have increased by £300k in 2024-25 compared to 2023-24. We have closed the Nelson unit & this should reduce our operating cost in 2025-26. In addition, interest income increased to £126,808 during this period (2024: £101,432).
The process of risk management is addressed through a framework of policies, procedures, and internal controls. All policies are subject to director and key management approval. Compliance with regulation, legal and ethical standards continue to be of high priority for the Company.
The Company’s principal risks and uncertainties arise from rapid changes in fashion trends, increased competition in the market and trade challenges due to lingering post-Brexit export challenges, securing sufficient supply of raw materials, increase in freight charges due to the current macroeconomic climate and possible falling consumer demand.
Economic risk
The biggest risk that the company faces, particularly in the short term are global economic risks. A combination of increase prices for stock and freight charges (which includes FX risk) along with a potential reduction in consumer demand due to the unstable economy.
The company is looking at different avenues to potentially mitigate against the FX risk it currently incurs. This includes purchasing key currency when exchange rates turn in our favour by hedging FX risk by purchasing forward products at favourable exchange rates instead of SPOT rates.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Liquidity risk
This is also a key risk to the business given the large value of stock held within the balance sheet, which exposes the Company to the risk of slow moving / obsolete stock. There is a provision in place and there has been a decrease of the in inventory turnover days from 247 days in 2023-24 to 231 days in 2024-25.
To mitigate this risk, management actively monitor fashions and trends to ensure that stock is well controlled, with discounts and promotions used to effectively clear out lines at risk of becoming obsolete. Further controls are in place for future stock purchases.
The director also actively monitors aged receivables days. Our receivable days reduced to 42 days in 2024-25 from 55 days in 2023-24. The team are focused on reducing the aged receivable days and were also requiring customers to pay upfront, if their payments were slow.
Competition risk
The director invests in maintaining positive relationships with key customers and suppliers and pays close attention to competitor’s pricing strategies to maintain market share. By maintaining high sales volumes, the Company can take advantage of bulk discounts from suppliers which it is able to pass on to customers in order to remain competitive in the marketplace.
The director utilises several key performance indicators to monitor and manage the business. They key performance indicators to the Company are Turnover, GP Margin, aged receivable days, and Inventory turnover days. Analysis of these is included above.
Future developments
Management will continue to focus on sales mix and inventory control with the aim of continued improvement in sales whilst maintaining margins in the face of competitive pressures and the uncertain economic climate.
The director believes that continued uncertainty surrounding current economy is strongly influencing future decisions relating to the importing of goods as well as the foreign exchange movement.
This report was approved by the board and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The director presents his report and the financial statements for the year ended 31 March 2025.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's Reports may differ from legislation in other jurisdictions.
The profit for the year, after taxation, amounted to £134,200 (2024: £136,161).
Charity Donations
During the year ended 31 December 2025, the Company made total donations of £Nil (2024: £10,295) to various registered charities.
During the year ended 31 December 2025, the Company made total donations of £Nil (2024: £10,295) to various registered charities.
The director who served during the year was:
The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED
We have audited the financial statements of Feme Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the director's 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 financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The director is responsible for the other information contained within the Annual Report. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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 Strategic Report or the Director's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
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.
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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations that were most significant included:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK employment legislation;
−UK health and safety legislation; and
−General Data Protection Regulations
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgments made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgements or estimation to manipulate the Company's financial position;
−Posting of unusual journals and complex transactions; and
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests;
−The risk that inventories may be susceptible to misappropriation by employees; and
−Management's use of judgement and estimation in determining the value of inventories at the year end, in order to manipulate the reported results.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 our Auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Surrey
KT22 8DY
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 23 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Feme Limited is a private company limited by shares incorporated in England within the United Kingdom. Details of the Company's registered office and principal place of business can be found on the Company Information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in sterling which is the functional currency of the Company rounded to the nearest pound (£).
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Land and buildings are stated at cost. Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated over their expected remaining useful lives, subject to a maximum of 50 years, on a straight-line basis.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The whole of the turnover is attributable to the sale of hair extensions, wigs and other beauty products.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Ordinary "A" Shares carry voting rights whereas Ordinary "B" Shares do not. In all other respects the shares rank equally.
Profit and loss account
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 fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £56,352 (2024: £53,167). Contributions totalling £7,194 (2024: £6,896) were payable to the fund at the reporting date and are included in creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
HSBC Bank Plc holds a guarantee for £70,000 (2024: £70,000) in favour of HM Revenue & Customs.
The ultimate controlling party is F R Pak.
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