Freebrights Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Freebrights Limited is a private company, limited by shares, incorporated in England & Wales, registered number 03690946 . The registered office is 98 High Street, Burford, Gloucestershire, OX18 4QF.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

Presentation currency

The accounts are presented in and rounded to the nearest £1 sterling.

2.2. Going Concern Disclosure

The Company has reported a loss for the year, and has net liabilities. The Directors have prepared the accounts on a going concern basis, on the opinion that the Company has sufficient financing in place and expects to be able to pay its debts as they fall due.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Intangible fixed assets (including purchased goodwill and patents) are included at cost less accumulated amortisation.

Intangible fixed assets are amortised over their estimated useful lives of 10 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	straight line over lease term
Motor Vehicles	25% reducing balance
Fixtures & Fittings	15% reducing balance
Computer Equipment	33% striaght line

2.6. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Freebrights Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.8. Financial Instruments

The Company only enters into basic financial instrument 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.

2.9. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

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 timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing 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. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect 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 and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.10. Pensions

The company operates a defined pension contribution scheme. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. Once the contributions have been paid the Company has no further payment obligations. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.11. Interest income

Interest income is recognised in the statement of income and retained earnings using the effective interest method.

2.12. Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the statement of income and retained earnings on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

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Freebrights Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.13. Finance costs

Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.14. Borrowing costs

All borrowing costs are recognised in the statement of income and retained earnings in the year in which they are incurred.

2.15. Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.16. Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value

2.17. Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 124 (2023: 114)

4. Intangible Assets

	Other
	£
Cost
As at 1 January 2024	1,455
Additions	19,352

As at 31 December 2024	20,807

Amortisation
As at 1 January 2024	584
Provided during the period	1,011

As at 31 December 2024	1,595

Net Book Value
As at 31 December 2024	19,212

As at 1 January 2024	871

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Freebrights Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

5. Tangible Assets

	Land & Property
	Freehold	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 January 2024	1,119,957	10,445	3,033,576	6,476	4,170,454
Additions	-	-	54,612	3,075	57,687
Disposals	-	-	(8,255 )	-	(8,255 )

As at 31 December 2024	1,119,957	10,445	3,079,933	9,551	4,219,886

Depreciation
As at 1 January 2024	615,557	10,311	2,016,071	1,971	2,643,910
Provided during the period	36,900	34	173,626	2,965	213,525
Disposals	-	-	(1,013 )	-	(1,013 )

As at 31 December 2024	652,457	10,345	2,188,684	4,936	2,856,422

Net Book Value
As at 31 December 2024	467,500	100	891,249	4,615	1,363,464

As at 1 January 2024	504,400	134	1,017,505	4,505	1,526,544

6. Stocks

	2024	2023
	£	£
Finished goods	187,368	171,226

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	167,124	44,832
Prepayments and accrued income	169,122	146,301
Other debtors	47,479	119,475

	383,725	310,608

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	-	26,301
Trade creditors	365,254	255,597
Bank loans and overdrafts	519,401	438,174
Other taxes and social security	373,168	203,032
Other creditors	25,586	36,599
Accruals and deferred income	199,591	255,889

	1,483,000	1,215,592

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Freebrights Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

9. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Bank loans	220,482	496,737
Other creditors	308,894	285,930

	529,376	782,667

The bank loan is secured by a debenture with a fixed and floating charge held by HSBC Bank PLC over the assets of the

company.

HSBC Bank PLC also hold legal mortages over the following properties:

- 98 High Street, Burford (ON3058971)

- The Rose & Crown Cottage, 96 High Street, Burford (ON275083)

- The Old Curiositry Shop, The Square, Stow on the Wold, Cheltenham (GR341682)

- 25 Promenade, Cheltenham (GR314501)

- 35/35a High Street, Witney (ON305999)

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

10. Obligations Under Finance Leases and Hire Purchase

	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	-	26,301

11. Deferred Taxation

The provision for deferred tax is made up as follows:

	2024	2023
	£	£
Accelerated capital allowances	94,725	105,833

12. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
30 Ordinary A shares of £ 1.00 each	30	30
30 Ordinary B shares of £ 1.00 each	30	30
20 Ordinary C shares of £ 1.00 each	20	20
20 Ordinary D shares of £ 1.00 each	20	20

	100	100

13. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	610,251	596,017
Later than one year and not later than five years	1,495,741	1,345,521
Later than five years	1,899,416	2,169,551

	4,005,408	4,111,089

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		19,212		871
Tangible Assets	5		1,363,464		1,526,544

			1,382,676		1,527,415
CURRENT ASSETS
Stocks	6	187,368		171,226
Debtors	7	383,725		310,608
Cash at bank and in hand		3,508		8,612

		574,601		490,446
Creditors: Amounts Falling Due Within One Year	8	(1,483,000 )		(1,215,592 )

NET CURRENT ASSETS (LIABILITIES)			(908,399 )		(725,146 )

TOTAL ASSETS LESS CURRENT LIABILITIES			474,277		802,269

Creditors: Amounts Falling Due After More Than One Year	9		(529,376 )		(782,667 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	11		(94,725 )		(105,833 )

NET LIABILITIES			(149,824 )		(86,231 )

CAPITAL AND RESERVES
Called up share capital	12		100		100
Share premium account			129,950		129,950
Profit and Loss Account			(279,874 )		(216,281 )

SHAREHOLDERS' FUNDS			(149,824)		(86,231)