REGISTERED NUMBER: 03018632 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Salons Direct Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

S Hill

G M Jones

G Langman

D G Roberts

V M Roberts

D L Jones

SECRETARY:

V M Roberts

REGISTERED OFFICE:

Unit 8, Bassendale Road

Croft Business Park

Bromborough

CH62 3QL

REGISTERED NUMBER:

03018632 (England and Wales)

SENIOR STATUTORY AUDITOR:

Timothy Cherry FCCA

AUDITORS:

DJH Audit Limited

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The directors are pleased with the results for the year.

During the year to 31 March 2025, the company experienced an 1.4% decrease in turnover (2024 - 8.2% increase) due to increased pressure on disposable income as cost of living impacted sales growth.

Gross profit margin remains stable at 28.2% (2024 - 28.2%) despite pressure from the falling value of Sterling and strong competition in the market. The company has continued to remain competitive and also cover its staff and overhead expenses.

During the year the company reported a profit before tax of £577,955 (2024 - £803,682), details of which are set out in the profit and loss account on page 10.

The profit levels are in line with the directors expectations as the company invested in its people, brand and products. The company is always evolving, adding new products to its offering and devising new strategies to grow with both existing and new customers.

The directors believe this investment will allow the company to exceed the profits levels achieved this year and are committed to growing the company.

Competition remains strong from other hair and beauty suppliers however the directors are committed to providing great value for money and customer service.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors work closely with management and continue to anticipate risks from economic and global factors and devise and implement strategies to mitigate impacts on the company.

The directors have assessed the key risks to the business as increased costs of purchases through exposure to foreign currency exchange risk, employee risk from key members of staff leaving and staff shortages and competition risk as the company remains in a highly competitive market.

The company regularly reviews its key risks and continues to develop strategies to minimize its exposure.

Risk arising from business interruption are insured up to an economically reasonable level.

The company continues to trade strongly and the directors believe that the company has adequate reserves in place to meet all financial commitments as they fall due.

STRATEGY

The company aims to continue its strategy to become the UK's leading and most trusted supplier of hair and beauty products.

The company will do this by developing its product range and offering as well as providing first class service to its customers. The company will continue to improve its online proposition and distribution channels using the latest technology in order to maximize profitability.

KEY PERFORMANCE INDICATORS

The directors monitor the following key performance indicators (KPI's) of the company on a regular basis:

2025

2024

Turnover growth

(1.4%

)

8.2%

Gross profit margin

28.2%

28.2%

Operating profit margin

2.6%

3.4%

Profit before tax percentage

2.3%

3.1%

The KPI's show a decrease in turnover, a maintained gross profit margin and a decrease in the operating profit margin and profit before tax percentage.

ON BEHALF OF THE BOARD:

D G Roberts - Director

23 December 2025

The directors present their report and financial statements for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year was the sales of hair and beauty equipment and supplies.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 is £454,466.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

S Hill

G M Jones

G Langman

D G Roberts

V M Roberts

D L Jones

DONATIONS AND EXPENDITURE

Donations totalling £1,850 (2024 - £3,300) were made to charitable causes in the year.

DISCLOSURE IN THE STRATEGIC REPORT

The strategic report covers a fair review of the business, the principal risks and uncertainties facing the company and an analysis of the development and performance of the company through the use of financial key performance indicators.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, DJH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D G Roberts - Director

23 December 2025

Opinion

We have audited the financial statements of Salons Direct Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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:

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to inflated revenue and profit.

Audit procedures performed included:

-

review of the financial statement disclosures to underlying supporting documentation.

-

review of any correspondence with legal advisors, and enquiries of management and those charged with

governance around actual and potential litigation and claims

-

enquiries with company's staff to identify any instances with non-compliance with laws and regulations

-

enquiries of management and review of monthly management accounts and reports in so far as they related to

the financial statements

-

testing of journals and evaluating, whether there was evidence of bias by the Directors that represented a risk

of material misstatement due to fraud, and evaluating the business rationale of significant transactions outside

the normal course of business

-

undertaking detailed substantive testing of material items and a sample of other items

-

consideration of the reasonableness of the figures and analytical review, including comparison with previous

years and expected trends

-

review of the compliance with and effectiveness of internal controls

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Timothy Cherry FCCA (Senior Statutory Auditor)

for and on behalf of DJH Audit Limited

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

23 December 2025

TURNOVER

3

25,352,287

25,716,524

Cost of sales

18,209,227

18,461,361

GROSS PROFIT

7,143,060

7,255,163

Administrative expenses

6,490,157

6,662,488

652,903

592,675

Other operating income

55

290,413

OPERATING PROFIT

5

652,958

883,088

Interest receivable and similar income

2,914

8,237

655,872

891,325

Interest payable and similar expenses

6

77,916

87,643

PROFIT BEFORE TAXATION

577,956

803,682

Tax on profit

7

149,562

208,205

PROFIT FOR THE FINANCIAL YEAR

428,394

595,477

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

428,394

595,477

FIXED ASSETS

Intangible assets

9

185,683

66,481

Tangible assets

10

2,651,258

2,682,251

2,836,941

2,748,732

CURRENT ASSETS

Stocks

11

2,686,118

2,581,621

Debtors

12

3,567,856

3,529,193

Cash at bank

847,175

955,868

7,101,149

7,066,682

CREDITORS

Amounts falling due within one year

13

5,068,803

4,078,464

NET CURRENT ASSETS

2,032,346

2,988,218

TOTAL ASSETS LESS CURRENT LIABILITIES

4,869,287

5,736,950

CREDITORS

Amounts falling due after more than one year

14

-

(870,515

)

PROVISIONS FOR LIABILITIES

19

(222,681

)

(193,756

)

NET ASSETS

4,646,606

4,672,679

CAPITAL AND RESERVES

Called up share capital

20

5,150

5,150

Retained earnings

21

4,641,456

4,667,529

SHAREHOLDERS' FUNDS

4,646,606

4,672,679

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

D G Roberts - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

5,150

4,585,713

4,590,863

Changes in equity

Dividends

-

(513,661

)

(513,661

)

Total comprehensive income

-

595,477

595,477

Balance at 31 March 2024

5,150

4,667,529

4,672,679

Changes in equity

Dividends

-

(454,467

)

(454,467

)

Total comprehensive income

-

428,394

428,394

Balance at 31 March 2025

5,150

4,641,456

4,646,606

Cash flows from operating activities

Cash generated from operations

1

1,035,226

951,269

Interest paid

(77,916

)

(87,643

)

Tax paid

(227,187

)

(503,670

)

Net cash from operating activities

730,123

359,956

Cash flows from investing activities

Purchase of intangible fixed assets

(169,479

)

(77,682

)

Purchase of tangible fixed assets

(81,040

)

(132,983

)

Interest received

2,914

8,237

Net cash from investing activities

(247,605

)

(202,428

)

Cash flows from financing activities

Loan repayments in year

(26,108

)

(59,150

)

Amount withdrawn by directors

(110,636

)

(129,453

)

Equity dividends paid

(454,467

)

(513,661

)

Net cash from financing activities

(591,211

)

(702,264

)

Decrease in cash and cash equivalents

(108,693

)

(544,736

)

Cash and cash equivalents at beginning of year

2

955,868

1,500,604

Cash and cash equivalents at end of year

2

847,175

955,868

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.25

31.3.24

£

£

Profit before taxation

577,956

803,682

Depreciation charges

162,310

98,786

Government grants

-

(199,300

)

Finance costs

77,916

87,643

Finance income

(2,914

)

(8,237

)

815,268

782,574

(Increase)/decrease in stocks

(104,497

)

298,719

Decrease/(increase) in trade and other debtors

72,251

(199,020

)

Increase in trade and other creditors

252,204

68,996

Cash generated from operations

1,035,226

951,269

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

847,175

955,868

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

955,868

1,500,604

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

955,868

(108,693

)

847,175

955,868

(108,693

)

847,175

Debt

Debts falling due within 1 year

(101,377

)

101,377

-

Debts falling due after 1 year

(870,515

)

870,515

-

(971,892

)

971,892

-

Total

(16,024

)

863,199

847,175

1.	STATUTORY INFORMATION

Salons Direct Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

- The expected lives of property, plant and equipment.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding value added tax and other sales taxes. All sales are in relation to the sole activity of providing hairdressing and beauty supplies and equipment.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life.

Freehold property

2% on cost for buildings, nil for land

Improvements to property

2% on cost

Plant and machinery

15% on reducing balance

Fixtures and fittings

10-20% on cost

Freehold property is held under the historical cost model as permitted by FRS 102.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment.

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.

Creditors

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

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 and directors loan accounts (being repayable on demand).

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.25

31.3.24

£

£

Hair

15,749,232

17,757,610

Beauty

6,644,143

6,037,244

Furniture

4,238,080

3,816,385

Discounts

(2,045,631

)

(2,508,181

)

Other

766,463

613,466

25,352,287

25,716,524

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

3,114,296

3,242,388

Social security costs

299,726

315,680

Other pension costs

57,305

68,755

3,471,327

3,626,823

The average number of employees during the year was as follows:

31.3.25

31.3.24

Administration

50

50

Warehouse and Call Centre

50

50

100

100

31.3.25

31.3.24

£

£

Directors' remuneration

112,910

108,500

Directors' pension contributions to money purchase schemes

1,750

1,750

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6

6

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.25

31.3.24

£

£

Other operating leases

17,652

27,168

Depreciation - owned assets

112,033

87,585

Computer software amortisation

50,277

11,201

Auditors' remuneration

17,500

14,000

Foreign exchange differences

35,110

7,871

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank interest

77,916

87,643

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

120,637

170,947

Deferred tax

28,925

37,258

Tax on profit

149,562

208,205