Registered number: 05914500
For the Year Ended 31 March 2025
Company Information
Contents
Group Strategic Report
For the Year Ended 31 March 2025
Gemporia Partnership Limited is the parent undertaking of the Gemporia group of companies. The Group’s principal activities include the retailing of jewellery, craft and related products through television and online channels.
The Partnership provides strategic oversight and support to the operating companies within the Group.
The Group operates its own broadcasting, ecommerce, customer service and fulfilment functions within the United Kingdom.
This integrated structure enables the Group to engage directly with its customers and to maintain control over product sourcing, content and brand presentation.
The Group is majority owned by an Employee Ownership Trust, with the founders retaining a significant shareholding and continuing to play an active role in the business. The Directors remain focused on supporting the operating companies, maintaining appropriate governance and financial discipline, and promoting the long-term success of the Group.
The Partnership provides strategic oversight and support to the operating companies within the Group.
The Group operates its own broadcasting, ecommerce, customer service and fulfilment functions within the United Kingdom.
This integrated structure enables the Group to engage directly with its customers and to maintain control over product sourcing, content and brand presentation.
The Group is majority owned by an Employee Ownership Trust, with the founders retaining a significant shareholding and continuing to play an active role in the business. The Directors remain focused on supporting the operating companies, maintaining appropriate governance and financial discipline, and promoting the long-term success of the Group.
The performance achieved during the year is set out in the Consolidated Profit and Loss Account on page 12.
At 31 March 2025, the Group has net assets of £1,585,735 (2024 - net liabilities of £1,584,808).
While the Group turnover increased modestly on last year, overall profitability declined to £3.4m (2024 - £4.7m). This reduction was primarilty driven by tighter margins and increased administrative costs, both reflecting the competitive and inflationery presures in the market.
Despite the downturn in profitability, the group made meaningful progress across its core businesses. Gemporia Limited continued to strengthen its position as a gemstone specialist, with its diamond strategy and ecommerce enhancements supporting long-term growth. The business remained agile in adapting to customer demand, expanding into new product catergoris and reinforcing its multichannel approach.
Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands. HobbyMaker and Sewing Street have seen particularly strong growth, while the launch of Arden Creative Studio marks an exciting step into B2B and international markets. The business continues to invest in platform scalability and content innovation, reinforcing its position as a leader in the craft and hobby sector.
At 31 March 2025, the Group has net assets of £1,585,735 (2024 - net liabilities of £1,584,808).
While the Group turnover increased modestly on last year, overall profitability declined to £3.4m (2024 - £4.7m). This reduction was primarilty driven by tighter margins and increased administrative costs, both reflecting the competitive and inflationery presures in the market.
Despite the downturn in profitability, the group made meaningful progress across its core businesses. Gemporia Limited continued to strengthen its position as a gemstone specialist, with its diamond strategy and ecommerce enhancements supporting long-term growth. The business remained agile in adapting to customer demand, expanding into new product catergoris and reinforcing its multichannel approach.
Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands. HobbyMaker and Sewing Street have seen particularly strong growth, while the launch of Arden Creative Studio marks an exciting step into B2B and international markets. The business continues to invest in platform scalability and content innovation, reinforcing its position as a leader in the craft and hobby sector.
Page 1
Group Strategic Report (continued)
For the Year Ended 31 March 2025
The Group is exposed to a range of financial and operational risks arising from its role as a holding and operating partnership supporting the activities of its subsidiary companies.
These risks are kept under regular review by the Directors and are managed through ongoing oversight of financial performance, cash flow and governance arrangements across the Group.
The principal financial risk continues to relate to cash flow and liquidity, reflecting the funding requirements of the operating companies and the timing of receipts and payments across the Group.
This risk is managed through regular cash flow forecasting, close monitoring of banking facilities and appropriate financial controls.
The Group is also exposed to changes in market conditions, including shifts in consumer demand within the discretionary retail sector and a changing competitive landscape.
Trading performance is monitored across the Group to support timely and proportionate responses to evolving market dynamics.
The Directors recognise the importance of effective governance and operational oversight in supporting the stability and performance of the Group, and appropriate reporting and control frameworks are maintained.
These risks are kept under regular review by the Directors and are managed through ongoing oversight of financial performance, cash flow and governance arrangements across the Group.
The principal financial risk continues to relate to cash flow and liquidity, reflecting the funding requirements of the operating companies and the timing of receipts and payments across the Group.
This risk is managed through regular cash flow forecasting, close monitoring of banking facilities and appropriate financial controls.
The Group is also exposed to changes in market conditions, including shifts in consumer demand within the discretionary retail sector and a changing competitive landscape.
Trading performance is monitored across the Group to support timely and proportionate responses to evolving market dynamics.
The Directors recognise the importance of effective governance and operational oversight in supporting the stability and performance of the Group, and appropriate reporting and control frameworks are maintained.
The Group employs a range of key performance indicators (KPIs) to enhance performance and improve forecasting accuracy. These KPIs are essential for evaluating operational efficiency and effectiveness.
Given the Group's involvement in retail, directors acknowledge that primary risks are linked to shifts in consumer purchasing behaviour and availability of stock. To monitor and adjust to these changes, the Group focuses on KPIs related to customer interactions and sales, including sales call volumes, new customer numbers, and sales turnover. These indicators are pivotal in understanding consumer trends, enabling timely and appropriate responses to market shifts.
This proactive stance assists the Group in minimizing risks associated with volatile customer preferences and market conditions. Quick adaptation to KPI-driven insights enables the Group to maintain its market position and operational performance.
The Group has implemented stringent controls for monitoring these elements, ensuring comprehensive analysis and prompt action on relevant data. This encompasses regular reviews of sales figures, customer feedback, and market trends, and adjusting business strategies and operations as needed. Continuous refinement of monitoring processes and agile response mechanisms are essential for mitigating risks and seizing market opportunities, thereby preserving the Group's competitive advantage and assuring its sustained prosperity.
The Group also places significant emphasis on the management and control of its stock levels. Efficient stock control is integral to the Group's operational effectiveness and financial health. Maintaining optimal stock levels is a balancing act that involves ensuring sufficient inventory to meet customer demand while avoiding excessive stock that can tie up capital.
Given the Group's involvement in retail, directors acknowledge that primary risks are linked to shifts in consumer purchasing behaviour and availability of stock. To monitor and adjust to these changes, the Group focuses on KPIs related to customer interactions and sales, including sales call volumes, new customer numbers, and sales turnover. These indicators are pivotal in understanding consumer trends, enabling timely and appropriate responses to market shifts.
This proactive stance assists the Group in minimizing risks associated with volatile customer preferences and market conditions. Quick adaptation to KPI-driven insights enables the Group to maintain its market position and operational performance.
The Group has implemented stringent controls for monitoring these elements, ensuring comprehensive analysis and prompt action on relevant data. This encompasses regular reviews of sales figures, customer feedback, and market trends, and adjusting business strategies and operations as needed. Continuous refinement of monitoring processes and agile response mechanisms are essential for mitigating risks and seizing market opportunities, thereby preserving the Group's competitive advantage and assuring its sustained prosperity.
The Group also places significant emphasis on the management and control of its stock levels. Efficient stock control is integral to the Group's operational effectiveness and financial health. Maintaining optimal stock levels is a balancing act that involves ensuring sufficient inventory to meet customer demand while avoiding excessive stock that can tie up capital.
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Group Strategic Report (continued)
For the Year Ended 31 March 2025
The directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
“A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and in doing so, have regard to the likely consequences of any decisions in the long term on; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly as between shareholders and the company”.
The directors are aware of their duty under section 172 of the Companies Act 2006 and aim to always uphold the highest standard of governance to ensure that they maintain high standards of business conduct. The directors work closely together and meet on a regular basis to ensure that decisions taken are for the long term, acknowledging that the future success of the Company and Group relies on them understanding and respecting the views of its employees, customers, suppliers and other stakeholders as well as the environment in which the Group operates.
Consideration of employee engagement and engagement with suppliers, customers and other stakeholders is made in the Directors' Report.
“A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and in doing so, have regard to the likely consequences of any decisions in the long term on; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly as between shareholders and the company”.
The directors are aware of their duty under section 172 of the Companies Act 2006 and aim to always uphold the highest standard of governance to ensure that they maintain high standards of business conduct. The directors work closely together and meet on a regular basis to ensure that decisions taken are for the long term, acknowledging that the future success of the Company and Group relies on them understanding and respecting the views of its employees, customers, suppliers and other stakeholders as well as the environment in which the Group operates.
Consideration of employee engagement and engagement with suppliers, customers and other stakeholders is made in the Directors' Report.
This report was approved by the board on 22 December 2025 and signed on its behalf.
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Directors' Report
For the Year Ended 31 March 2025
The Directors present their report and the financial statements for the year ended 31 March 2025 .
The profit for the year, after taxation, amounted to £3,415,224 (2024 - £4,729,783).
The directors do not propose the payment of an interim dividend (2024 - £Nil).
The Directors who served during the year were:
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting 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 statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Directors' Report (continued)
For the Year Ended 31 March 2025
The Directors are confident of the continued good performance of the Group. The Group continues to promote its product range and seeks to increase its market share.
Going concern
As detailed in the Business Review, the group made meaningful progress across its core businesses during the year. Gemporia Limited continued to strengthen its position as a gemstone specialist, and Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands.
The directors have prepared consolidated forecasts to 31 March 2027, making certain assumptions regarding prudent possible changes in trading performance, level of demand for the Group’s products and the efficiency measures continuing to be being implemented.
The forecasts demonstrate that the Group can continue to trade within its finance facilities for a period of at least 12 months from the date of approval of the financial statements and therefore the directors have concluded that it is reasonable to continue to adopt the going concern basis in preparing the Group’s financial statements.
Going concern
As detailed in the Business Review, the group made meaningful progress across its core businesses during the year. Gemporia Limited continued to strengthen its position as a gemstone specialist, and Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands.
The directors have prepared consolidated forecasts to 31 March 2027, making certain assumptions regarding prudent possible changes in trading performance, level of demand for the Group’s products and the efficiency measures continuing to be being implemented.
The forecasts demonstrate that the Group can continue to trade within its finance facilities for a period of at least 12 months from the date of approval of the financial statements and therefore the directors have concluded that it is reasonable to continue to adopt the going concern basis in preparing the Group’s financial statements.
Our employees are also partners in the business and their retention, involvement and engagement is key to our success.
The Directors of the Group constantly review engagement amongst the Group's stakeholders, including customers and suppliers, to achieve sustained performance for the business;
∙Our customers’ support is vital to the business. Our role is to exceed their expectations with compelling content, great value products and excellent customer service;
∙Our suppliers – we believe in sustainable relationships and treating our suppliers fairly.
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Directors' Report (continued)
For the Year Ended 31 March 2025
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.
The chosen intensity measurement is total gross emissions in metric tonnes CO2e per employee. For the year ended 31 March 2025, this totalled 0.65 (2024 - 0.69) CO2e per individual.
Details of the Group's principal risks and uncertainties are contained in the Strategic Report.
Page 6
Directors' Report (continued)
For the Year Ended 31 March 2025
There have been no significant events affecting the Group since the year end.
The auditors, Dains Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 22 December 2025 and signed on its behalf.
Page 7
Independent Auditors' Report to the Members of Gemporia Partnership Limited
We have audited the financial statements of Gemporia Partnership Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows, the Consolidated and Company Statement of Changes in Equity 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).
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent 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 Directors with respect to going concern are described in the relevant sections of this report.
Page 8
Independent Auditors' Report to the Members of Gemporia Partnership Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Independent Auditors' Report to the Members of Gemporia Partnership 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 Auditors' 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 Group 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience of the retail sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group, including the financial reporting legislation, Companies Act 2006, taxation legislation, anti-bribery, employment, and environmental and health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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Independent Auditors' Report to the Members of Gemporia Partnership Limited (continued)
Auditors' responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
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 Auditors' 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.
for and on behalf of
Statutory Auditor
Chartered Accountants
Chartered Accountants
Birmingham
Page 11
Consolidated Profit and Loss Account
For the Year Ended 31 March 2025
Page 12
Consolidated Statement of Comprehensive Income
For the Year Ended 31 March 2025
Page 13
Consolidated Balance Sheet
As at 31 March 2025
Page 14
Consolidated Balance Sheet (continued)
As at 31 March 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 December 2025.
The notes on pages 22 to 46 form part of these financial statements.
Page 15
Company Balance Sheet
As at 31 March 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 December 2025 .
The notes on pages 22 to 46 form part of these financial statements.
Page 16
Consolidated Statement of Changes in Equity
For the Year Ended 31 March 2025
Page 17
Company Statement of Changes in Equity
For the Year Ended 31 March 2025
Page 18
Consolidated Statement of Cash Flows
For the Year Ended 31 March 2025
Page 19
Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 March 2025
Page 20
Consolidated Analysis of Net Debt
For the Year Ended 31 March 2025
Page 21
Notes to the Financial Statements
For the Year Ended 31 March 2025
Gemporia Partnership Limited is a private company, limited by shares and incorporated in England and Wales. The address of the registered office is Eagle Road Studios, Unit 2D Eagle Road, Moons Moat North Industrial Estate, Redditch, Worcestershire, B98 9HF. The Company and Group's principal activities are included within the Strategic Report.
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.
Page 22
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
The Group has recorded a profit for the year of £3,415,224 (2024 - £4,729,783) and at the balance sheet date has net assets of £1,585,735 (2024 - net liabilities of £1,584,808).
As detailed in the Business Review, the group made meaningful progress across its core businesses during the year. Gemporia Limited continued to strengthen its position as a gemstone specialist, and Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands.
The directors have prepared consolidated forecasts to 31 March 2027, making certain assumptions regarding prudent possible changes in trading performance, level of demand for the Group’s products and the efficiency measures continuing to be being implemented.
The forecasts demonstrate that the Group can continue to trade within its finance facilities for a period of at least 12 months from the date of approval of the financial statements and therefore the directors have concluded that it is reasonable to continue to adopt the going concern basis in preparing the Group’s financial statements.
As detailed in the Business Review, the group made meaningful progress across its core businesses during the year. Gemporia Limited continued to strengthen its position as a gemstone specialist, and Gemporia Craft Limited delivered its strongest trading year to date, achieving record sales across its portfolio of specialist brands.
The directors have prepared consolidated forecasts to 31 March 2027, making certain assumptions regarding prudent possible changes in trading performance, level of demand for the Group’s products and the efficiency measures continuing to be being implemented.
The forecasts demonstrate that the Group can continue to trade within its finance facilities for a period of at least 12 months from the date of approval of the financial statements and therefore the directors have concluded that it is reasonable to continue to adopt the going concern basis in preparing the Group’s financial statements.
Page 23
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Page 24
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.
Negative goodwill
Negative goodwill is calculated as the amount by which the fair value of assets acquired exceeds the cost of investment and is being amortised in line with the use of the assets to which it relates.
Other intangible assets
Other intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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.
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.
Negative goodwill
Negative goodwill is calculated as the amount by which the fair value of assets acquired exceeds the cost of investment and is being amortised in line with the use of the assets to which it relates.
Other intangible assets
Other intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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:
Page 25
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.
Depreciation is provided on the following bases:
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.
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Page 26
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.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.
Page 27
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Page 28
Notes to the Financial Statements
For the Year Ended 31 March 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
Defined benefit pension plan
One of the Group's subsidiary undertakings, Coloured Rocks Trading Private Limited, operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as 'interest payable and similar expenses'.
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
Defined benefit pension plan
One of the Group's subsidiary undertakings, Coloured Rocks Trading Private Limited, operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as 'interest payable and similar expenses'.
Page 29
Notes to the Financial Statements
For the Year Ended 31 March 2025
Depreciation
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.
Sales returns
Management is required to exercise significant judgement in estimating the expected level of sales returns, and hence the required provision, which is based on analysis of historical sales data, market conditions, and other relevant factors, to estimate the percentage of sales that are likely to be returned.
Stock impairment
Management is required to exercise significant judgement in estimating the slow-moving stock impairment, which takes into account the ageing of stock, its likelihood of being sold and its likely scrap value.
Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Analysis of turnover by country of destination:
Page 30
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 31
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 32
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 33
Notes to the Financial Statements
For the Year Ended 31 March 2025
11.Taxation (continued)
There were no factors that may affect future tax charges.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The loss after tax of the parent Company for the year was £449,975 (2024 - £712,388 ).
Page 34
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Page 35
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Page 36
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Page 37
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 38
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 39
Notes to the Financial Statements
For the Year Ended 31 March 2025
Bank loans are secured by a fixed and floating charge over the Group's assets, and a cross guarantee and debenture between Gemporia Limited, Gemporia Craft Limited and Gemporia Partnership Limited. Interest is charged on this loan daily at 3.5% above the Daily Non-Cumulative Compounded RFR Rate per annum.
Page 40
Notes to the Financial Statements
For the Year Ended 31 March 2025
Page 41
Notes to the Financial Statements
For the Year Ended 31 March 2025
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Page 42
Notes to the Financial Statements
For the Year Ended 31 March 2025
Foreign exchange reserve
Other reserve
Profit and loss account
Page 43
Notes to the Financial Statements
For the Year Ended 31 March 2025
The Group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £294,854 (2024 - £273,972). Contributions totalling £64,604 (2024 - £54,654) were payable to the fund at the balance sheet date and are included in creditors.
Coloured Rocks Trading Private Limited, a subsidiary in India, operates a Defined Benefit Pension Scheme.
Page 44
Notes to the Financial Statements
For the Year Ended 31 March 2025
26.Pension commitments (continued)
Page 45
Notes to the Financial Statements
For the Year Ended 31 March 2025
At the year end, loan balances owed from directors totalled £Nil (2024 - £455). Loans are interest free.
Page 46