|
| Basis of 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 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 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. |
|
| 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 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. |
|
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on 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 strategic report or the directors’ report. |
| We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
| ● |
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. |
|
| 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. |
|
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the entity’s financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
|
- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view).
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
|
| 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 engagement partner 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the 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 company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, 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 company’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. |
|
| 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;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and the company’s legal advisors. |
|
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
|
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
|
| JHL Retail Limited |
|
| Notes to the Accounts |
|
| Year ended 28 February 2025 |
|
| 1 |
General information |
|
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Queens Arcade, Donegall Place, Belfast, Northern Ireland, BT1 5FE. |
|
| 2 |
Statement of compliance |
|
These financial statements have been prepared in compliance with FRS 102, "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
|
| 3 |
Summary of significant accounting policies |
|
|
Basis of preparation |
|
The financial statements have been prepared under the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the profit and loss. |
|
|
The financial statements are prepared in sterling, which is the functional currency of the entity. |
|
|
The accounting reference date of the company is 28 February. However, as the previous year ended 28 February 2024 was a leap year the comparative figures cover the period from 1 March 2023 to 29 February 2024. |
|
|
Judgements and key sources of estimation uncertainty |
|
The preparation of the financial statements requires management to make judgements, estimates and assumptions that reflect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
|
|
In preparing these financial statements, the directors have made the following judgements: |
|
|
- Assessing the useful economic lives of the various classes of fixed assets to determine appropriate depreciation rates |
|
|
- Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. |
|
|
Going concern |
|
The directors have prepared a detailed set of financial forecasts to assess the ability of the company to meet its obligations going forward. The directors have stress-tested the financial forecasts for reasonably possible alternative scenarios. |
|
|
The company has made an operating loss during the financial year, which can be attributed to the exit costs incurred when the Gucci store was closed. The company, with support from the parent company, has sufficient resources to pay all debts as they fall due for the next twelve months. As such, these financial statements have been prepared on a going concern basis. |
|
|
Revenue recognition |
|
Turnover is measured at the fair value of the consideration received or receivable for goods supplied or services rendered, net of discounts and Value Added Tax. |
|
|
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
|
|
Tangible assets |
|
|
Short leasehold property |
10% straight line |
|
Fixtures, fittings and computer equipment |
|
20% straight line |
|
|
Impairment of fixed assets |
|
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
|
|
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
|
|
Trade and other debtors |
|
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
|
|
Cash and cash equivalents |
|
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term high liquidity investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
|
|
Trade and other creditors |
|
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of the discounting would be immaterial, in which case they are stated at cost. |
|
|
Income tax |
|
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. |
|
|
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
|
|
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
|
|
Provisions |
|
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
|
|
Provisions are initially measured at the best estimate of the amount requires to settle the obligation at the reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the profit or loss in the period it arises. |
|
|
Financial instruments |
|
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. |
|
|
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
|
| 4 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Sale of goods |
228,980 |
|
262,505 |
|
Commissions |
57,184 |
|
78,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
286,164 |
|
341,150 |
|
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
286,164 |
|
341,150 |
|
|
| 5 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
11,092 |
|
11,052 |
|
Auditors' remuneration for audit services |
3,500 |
|
2,500 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Staff costs |
2025 |
|
2024 |
| £ |
£ |
|
|
Wages and salaries |
152,767 |
|
176,059 |
|
Social security costs |
12,589 |
|
15,435 |
|
Other pension costs |
6,832 |
|
8,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
172,188 |
|
199,723 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Sales |
6 |
|
7 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
- |
|
- |
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(1,839) |
|
(190) |
|
|
|
|
|
|
|
|
|
|
|
Tax on loss on ordinary activities |
(1,839) |
|
(190) |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
(Loss)/profit on ordinary activities before tax |
(21,312) |
|
435,498 |
|
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25.0% |
|
24.5% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
(5,328) |
|
106,697 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
- |
|
7 |
|
Capital allowances for period in excess of depreciation |
2,304 |
|
1,606 |
|
Utilisation of tax losses |
39,875 |
|
19,135 |
|
Adjustment re: intercompany write off |
(36,851) |
|
(127,445) |
|
|
|
|
|
|
|
|
|
|
|
Current tax charge for period |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
| 8 |
Tangible fixed assets |
|
|
Land and buildings |
|
Fixtures, fittings and computer equipment |
|
Motor vehicles |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
| £ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 March 2024 |
16,617 |
|
46,949 |
|
- |
|
63,566 |
|
Additions |
- |
|
199 |
|
- |
|
199 |
|
|
|
|
|
|
|
|
|
|
|
At 28 February 2025 |
16,617 |
|
47,148 |
|
- |
|
63,765 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 March 2024 |
3,324 |
|
24,216 |
|
- |
|
27,540 |
|
Charge for the year |
1,662 |
|
9,430 |
|
- |
|
11,092 |
|
|
|
|
|
|
|
|
|
|
|
At 28 February 2025 |
4,986 |
|
33,646 |
|
- |
|
38,632 |
|
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
|
At 28 February 2025 |
11,631 |
|
13,502 |
|
- |
|
25,133 |
|
|
At 29 February 2024 |
13,293 |
|
22,733 |
|
- |
|
36,026 |
|
|
|
|
|
|
|
|
|
|
|
|
The net book value of land and buildings may be further analysed as follows: |
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
Long leasehold |
- |
|
- |
|
Short leasehold |
13,293 |
|
14,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,293 |
|
14,955 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Stocks |
2025 |
|
2024 |
| £ |
£ |
|
|
Raw materials and consumables |
136,224 |
|
141,945 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
7,294 |
|
10,008 |
|
Other debtors |
28,558 |
|
22,971 |
|
Prepayments and accrued income |
10,980 |
|
16,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,832 |
|
49,948 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade creditors |
1,048 |
|
209 |
|
Other taxes and social security costs |
7,957 |
|
24,163 |
|
Other creditors |
3,673 |
|
3,735 |
|
Accruals and deferred income |
10,605 |
|
26,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,283 |
|
54,949 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Deferred taxation |
2025 |
|
2024 |
| £ |
£ |
|
|
Accelerated capital allowances |
1,239 |
|
3,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 March |
3,078 |
|
3,268 |
|
Credited to the profit and loss account |
(1,839) |
|
(190) |
|
|
|
|
|
|
|
|
|
|
|
At 28 February |
1,239 |
|
3,078 |
|
|
| 13 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
100 |
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
| 14 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 March |
207,209 |
|
(228,479) |
|
(Loss)/profit for the financial year |
(19,473) |
|
435,688 |
|
|
|
|
|
|
|
|
|
|
|
At 28 February |
187,736 |
|
207,209 |
|
|
|
|
|
|
|
|
|
|
|
|
| 15 |
Reconciliation of net debt |
|
|
1 March 2024 |
Cash flows |
|
Non-cash changes |
|
28 February 2025 |
| £ |
£ |
£ |
£ |
|
|
Cash and cash equivalents |
37,417 |
|
(33,248) |
|
- |
|
4,169 |
|
|
|
|
|
|
|
|
|
|
|
|
37,417 |
|
(33,248) |
|
- |
|
4,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 16 |
Related party transactions |
|
|
John H Lunn (Jewellers) Limited own 100% of the share capital of JHL Retail Limited. During the year John H Lunn (Jewellers) Limited made payments on behalf of JHL Retail Limited. During the year John H Lunn (Jewellers) Limited wrote off a balance of £147,404 (2024: £520,183) owed by JHL Retail Limited. As at the balance sheet JHL Retail Limited owed John H Lunn (Jewellers) Limited a total of £NIL (2024: £NIL). |
|
|
During the year John H Lunn (Jewellers) Limited charged JHL Retail Limited a total of £69,664 (2024: £76,632) in respect of rent and service charges. |
|
| 17 |
Controlling party |
|
|
John H Lunn (Jewellers) Limited own 100% of the share capital of the company. Mr P J Lunn (a director of and the majority shareholder of John H Lunn (Jewellers) Limited) is considered to the controlling party of John H Lunn (Jewellers) Limited. Mr P J Lunn is therefore considered to be the ultimate controlling party of JHL Retail Limited. |
|
| 18 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
| 19 |
Legal form of entity and country of incorporation |
|
|
JHL Retail Limited is a private company limited by shares and incorporated in Northern Ireland. |
|
| 20 |
Events after the reporting date |
|
|
On the 11th January 2025, the Gucci store was closed and ceased trading from this date. Payment of exit costs in relation to this closure contributed to the loss made in the year. |
|
| 21 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
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Queen's Arcade |
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Donegall Place |
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Belfast |
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Northern Ireland |
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BT1 5FE |