Registered number: 03108133
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The Director presents the Strategic Report for the year ended 31 March 2026.
The Company's principal activities continue to be the import and distribution of hair extensions, wigs and beauty products.
During the year ended 31 March 2026, the business continued to operate against a backdrop of economic and geopolitical uncertainty. While inflationary pressures moderated compared with previous years, global markets remained affected by ongoing geopolitical tensions, trade policy uncertainty, shipping disruptions and increased volatility across foreign exchange and commodity markets.
International supply chains continued to face challenges arising from regional conflicts, changing trade regulations, higher compliance requirements and periodic disruption to key shipping routes. These factors contributed to fluctuations in freight costs, supplier lead times and currency exchange rates, all of which required active management by the Company.
Despite these challenges, the Company continued to focus on strengthening relationships with key customers and suppliers while maintaining its commitment to service, product quality and availability. The director believes that long-standing supplier partnerships, disciplined inventory management and a diversified sourcing strategy have helped the business maintain resilience in an increasingly complex trading environment.
The Company continued to focus on profitable growth, operational efficiency and working capital management. Regular reviews of product performance, inventory levels and customer demand enabled management to adapt quickly to changing market conditions.
The businesses reported a 6% increase in sales in 2025-26 compared to the previous year. This is due to securing frequent bulk orders from our key customers. Our sales team fostered a strong positive relationship with our key customers and helped us to achieve increase in sales for the year 2025-26.
Feme has a number of long-standing vendor relationships, some of which span over 30 years. With the strength and mutual confidence of these connections we were able to negotiate a more favorable price and terms with key suppliers. Increase in sales combined with favorable price from suppliers resulted in a healthy GP margin of 18.9%.
Profit after tax for the year ending 31 March 2026 increased to £158,719 from £134,200 the previous year. This improvement was achieved despite gross profit decreasing from £3,823,331 in 2025 to £3,564,577 in 2026. The reduction in gross profit was more than offset by lower costs across the business. Establishment costs decreased by £350,000 compared with the previous year, with the closure of the Nelson unit contributing to the reduction in administrative expenses. The Company also benefited from higher interest income during the year, which increased to £180,141 from £126,808 in 2025. Overall, these cost savings and increased interest income resulted in an improvement in profit after tax for the year.
During the year ended 31 March 2026, the business continued to operate against a backdrop of economic and geopolitical uncertainty. While inflationary pressures moderated compared with previous years, global markets remained affected by ongoing geopolitical tensions, trade policy uncertainty, shipping disruptions and increased volatility across foreign exchange and commodity markets.
International supply chains continued to face challenges arising from regional conflicts, changing trade regulations, higher compliance requirements and periodic disruption to key shipping routes. These factors contributed to fluctuations in freight costs, supplier lead times and currency exchange rates, all of which required active management by the Company.
Despite these challenges, the Company continued to focus on strengthening relationships with key customers and suppliers while maintaining its commitment to service, product quality and availability. The director believes that long-standing supplier partnerships, disciplined inventory management and a diversified sourcing strategy have helped the business maintain resilience in an increasingly complex trading environment.
The Company continued to focus on profitable growth, operational efficiency and working capital management. Regular reviews of product performance, inventory levels and customer demand enabled management to adapt quickly to changing market conditions.
The businesses reported a 6% increase in sales in 2025-26 compared to the previous year. This is due to securing frequent bulk orders from our key customers. Our sales team fostered a strong positive relationship with our key customers and helped us to achieve increase in sales for the year 2025-26.
Feme has a number of long-standing vendor relationships, some of which span over 30 years. With the strength and mutual confidence of these connections we were able to negotiate a more favorable price and terms with key suppliers. Increase in sales combined with favorable price from suppliers resulted in a healthy GP margin of 18.9%.
Profit after tax for the year ending 31 March 2026 increased to £158,719 from £134,200 the previous year. This improvement was achieved despite gross profit decreasing from £3,823,331 in 2025 to £3,564,577 in 2026. The reduction in gross profit was more than offset by lower costs across the business. Establishment costs decreased by £350,000 compared with the previous year, with the closure of the Nelson unit contributing to the reduction in administrative expenses. The Company also benefited from higher interest income during the year, which increased to £180,141 from £126,808 in 2025. Overall, these cost savings and increased interest income resulted in an improvement in profit after tax for the year.
The process of risk management is addressed through a framework of policies, procedures and internal controls. All policies remain subject to director and key management approval. Compliance with regulatory, legal and ethical standards continues to be a high priority for the Company.
The Company's principal risks and uncertainties arise from changing consumer preferences, increased competition, global economic uncertainty, supply chain disruption, foreign exchange volatility, inflationary pressures, cyber security threats and the availability of suitable inventory from key suppliers.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Company continues to monitor global economic and geopolitical developments which may impact trading performance. Risks include changes in international trade policies, sanctions regimes, tariffs, transportation disruptions, energy price fluctuations and adverse currency movements.
A significant proportion of the Company's inventory is sourced internationally, exposing the business to fluctuations in supplier pricing, freight costs and foreign exchange rates. The Company actively reviews supplier relationships and procurement strategies to mitigate these risks.
Management continues to evaluate foreign exchange exposure and may utilise forward foreign exchange contracts and other treasury management tools where appropriate to reduce the impact of adverse currency movements.
A significant proportion of the Company's inventory is sourced internationally, exposing the business to fluctuations in supplier pricing, freight costs and foreign exchange rates. The Company actively reviews supplier relationships and procurement strategies to mitigate these risks.
Management continues to evaluate foreign exchange exposure and may utilise forward foreign exchange contracts and other treasury management tools where appropriate to reduce the impact of adverse currency movements.
Supply chain and procurement risk
Global supply chains remain vulnerable to disruption arising from geopolitical events, transportation constraints, labour shortages and changing regulatory requirements.
To mitigate these risks, the Company continues to maintain strong supplier relationships, diversify sourcing where practical, hold appropriate inventory levels and review purchasing strategies regularly to ensure continuity of supply.
To mitigate these risks, the Company continues to maintain strong supplier relationships, diversify sourcing where practical, hold appropriate inventory levels and review purchasing strategies regularly to ensure continuity of supply.
Liquidity risk
This remains a key risk to the business due to the value of inventory held on the balance sheet and the potential for slow-moving or obsolete stock. There is a provision in place and there has been a decrease in inventory turnover days from 231 days in 2024-25 to 219 days in 2025-26. This is mainly due to the additional procurement of key items to obtain a supplier discount.
Management actively monitors inventory turnover, purchasing patterns and customer demand to ensure stock levels remain aligned to commercial requirements. Promotional activities and targeted discounting are utilised where appropriate to reduce exposure to obsolete inventory.
The directors also actively monitor aged receivables days. Our receivable days remained 42 days in 2024-25 & in 2025-26. This is positive news to maintain the same debtor days in spite of growing 7.9%. The team are focused on reducing the aged receivable days and we are also requiring customers to pay upfront, if their payments were slow.
Management actively monitors inventory turnover, purchasing patterns and customer demand to ensure stock levels remain aligned to commercial requirements. Promotional activities and targeted discounting are utilised where appropriate to reduce exposure to obsolete inventory.
The directors also actively monitor aged receivables days. Our receivable days remained 42 days in 2024-25 & in 2025-26. This is positive news to maintain the same debtor days in spite of growing 7.9%. The team are focused on reducing the aged receivable days and we are also requiring customers to pay upfront, if their payments were slow.
Competition risk
The beauty and hair products market remains highly competitive. Competitive pressures arise from online retailers, international brands, changing consumer behaviours and the increasing availability of alternative products. The director continues to focus on maintaining strong customer relationships, competitive pricing, reliable service and product innovation in order to protect and enhance market share.
The Company increasingly relies on digital systems and technology to support its operations. The risk of cyber attacks, data breaches and system outages continues to evolve.
Management maintains appropriate controls, security procedures and external technology support arrangements to help safeguard business-critical systems and customer data.
Management maintains appropriate controls, security procedures and external technology support arrangements to help safeguard business-critical systems and customer data.
Analysis using key performance indicators ("KPI")
The director utilises several KPIs to monitor and manage the business. The KPIs monitored are turnover, gross profit margin and aged receivable days. Analysis of these have been documented above.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
This report was approved by the board and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The director presents his report and the financial statements for the year ended 31 March 2026.
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's reports may differ from legislation in other jurisdictions.
The profit for the year, after taxation, amounted to £158,719 (2025: £134,200).
Charity Donations
During the year ended 31 March 2026, the Company made total donations of £788 (2025: £Nil) to various registered charities.
During the year ended 31 March 2026, the Company made total donations of £788 (2025: £Nil) to various registered charities.
The director who served during the year was:
The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED
We have audited the financial statements of Feme Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations that were most significant included:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK employment legislation;
−UK health and safety legislation; and
−General Data Protection Regulations
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgments made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgements or estimation to manipulate the Company's financial position;
−Posting of unusual journals and complex transactions; and
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests;
−The risk that inventories may be susceptible to misappropriation by employees; and
−Management's use of judgement and estimation in determining the value of inventories at the year end, in order to manipulate the reported results.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FEME LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditor
2nd Floor, Origin One
108 High Street
RH10 1BD
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2026
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STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 24 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2026
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Feme Limited is a private company limited by shares incorporated in England within the United Kingdom. Details of the Company's registered office and principal place of business can be found on the Company Information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in sterling which is the functional currency of the Company rounded to the nearest pound (£).
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Land and buildings are stated at cost. Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated over their expected remaining useful lives, subject to a maximum of 50 years, on a straight-line basis.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The whole of the turnover is attributable to the sale of hair extensions, wigs and other beauty products.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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