Registration number:
for the
Year Ended
iCandy World Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
iCandy World Limited
Company Information
Directors |
B M Appel W A Appel N Appel M B Boyle D S Appel |
Registered office |
|
Auditors |
|
iCandy World Limited
Strategic Report for the Year Ended 30 September 2020
The directors present their strategic report for the year ended 30 September 2020.
Fair review of the business
The company sells a range of pushchairs and other baby products through a variety of outlets including major UK retailers, independent retailers of children's products, overseas distributors and on the internet.
Over the last year we have been working closely with retailers as the UK has been working its way through the Covid-19 pandemic. This has resulted in us maintaining a healthy sales performance.
The company continued with its ambitious investment into the brands, products and brand awareness. New products have come to market with success and there are more expected into the future.
More recently, the focus has been on being more efficient with expenditure and this has proved very successful in both improved profits and reduced overheads.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2020 |
2019 |
|
Turnover |
£'000 |
14,958 |
13,889 |
Gross margin |
% |
46 |
50 |
Gross assets |
£'000 |
13,682 |
10,787 |
Net assets |
£'000 |
8,315 |
7,843 |
Key performance indicators
Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve development, performance and the position of the business. Indicators are reviewed and altered to meet changes in both the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators beyond those set out above to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company.
Future developments
At the time of signing these financial statements, the UK and the rest of the world are facing the challenges of the COVID-19 pandemic.
During the initial stages of lockdown, it became clear very quickly that there was a continued demand for the company’s products and while following the government recommended precautions, the business has been able to continue trading positively.
The company is continuing to invest in design and innovation to ensure all its products remain desirable and maintain a high level of quality and, in light of the current conditions associated with the pandemic, that the company’s products are accessible by its customers.
Financial instruments
The company uses financial instruments as part of its financial risk management. Although not considered a significant risk, the nature of its financial instruments means that they are subject to normal trading risk and liquidity risk.
iCandy World Limited
Strategic Report for the Year Ended 30 September 2020
Principal risks and uncertainties
Credit risk - The company offers credit to certain of its customers. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken. Credit limits are set accordingly.
Price risk - The company is subject to price risk and foreign exchange rate risk as a high proportion of its purchases are made in US Dollars and Chinese Yuan Renminbi. However, the company reduces this risk by entering into forward contracts.
Liquidity risk - The company minimises liquidity risk through careful management of payables, cash and receivables.
Cash flow risk - Cash flows are carefully managed and the company continues to trade within facilities. Operating cash flows remained strong and are expected to continue in this manner.
Approved by the
.........................................
Director
iCandy World Limited
Directors' Report for the Year Ended 30 September 2020
The directors present their report and the financial statements for the year ended 30 September 2020.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The total distribution of dividends for the year ended 30 September 2020 was £1,473,499 (2019 - £1,098,810).
Going concern
In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009' the directors of all companies are required to provide disclosures regarding the going concern basis of accounting.
The company has financial resources available and continues to generate cash from operating activities. The directors have prepared forecasts for the next 12 months that indicate that this trend will continue. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Disclosure of information to the auditors
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
.........................................
Director
iCandy World Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors Report 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards has 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 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.
iCandy World Limited
Independent Auditor's Report to the Members of iCandy World Limited
Opinion
We have audited the financial statements of iCandy World Limited (the 'company') for the year ended 30 September 2020, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 30 September 2020 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 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
iCandy World Limited
Independent Auditor's Report to the Members of iCandy World Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
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 5, 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 is 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.
Auditor’s 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 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.
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.
iCandy World Limited
Independent Auditor's Report to the Members of iCandy World Limited
Use of this 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
Windsor House
Bayshill Road
GL50 3AT
iCandy World Limited
Profit and Loss Account for the Year Ended 30 September 2020
Note |
2020 |
2019 |
|
Turnover |
|
|
|
Cost of sales |
(8,012,321) |
(6,938,479) |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
239,189 |
- |
|
Fair value gain on financial instruments |
|
- |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(9,974) |
(21,034) |
||
Profit before tax |
|
|
|
Taxation |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
iCandy World Limited
(Registration number: 00282792)
Balance Sheet as at 30 September 2020
Note |
2019 |
2018 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Retained earnings |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
iCandy World Limited
Statement of Changes in Equity for the Year Ended 30 September 2020
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 October 2018 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 September 2019 |
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 October 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 September 2020 |
|
|
|
|
iCandy World Limited
Statement of Cash Flows for the Year Ended 30 September 2020
Note |
2020 |
2019 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of intangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Corporation tax expense |
499,952 |
(34,988) |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in inventories |
|
( |
|
Increase in trade and other receivables |
( |
( |
|
Increase/(decrease) in trade and other payables |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of property plant and equipment |
( |
( |
|
Proceeds from sale of intangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Advance (repayment) of other borrowing |
895,744 |
329,138 |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 October |
|
|
|
Cash and cash equivalents at 30 September |
6,045,302 |
2,114,752 |
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Judgements and estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal actual results. There are not considered to be any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
The warranty provision recognised in these financial statements is considered to be a significant judgement that has been made by management in preparing these financial statements. |
Going concern
At the time of signing these financial statements, the UK and the rest of the world are facing the challenges of the COVID-19 pandemic. During this time, the company has not seen any significant decrease in trading activity and the Director’s have no reason to presume that the current activity levels will reduce in the foreseeable future.
After considering the recent company performance and reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold buildings |
2% of cost per annum |
Plant and machinery |
25% of cost per annum |
Fixtures and fittings |
25% - 50% of cost per annum |
Motor vehicles |
25% of cost per annum |
Group accounts
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a medium sized group. Although the Companies Act 2006 requires medium sized groups to prepare consolidated accounts, the company has not prepared them on the basis that the results and the net assets of the subsidiary undertaking are not material to the group.
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the undiscounted amount of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared by the shareholders in general meetings.
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Financial instruments (continued)
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Derivative financial instruments and hedging
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
Hedging
At the inception of the hedge relationship, the entity documents the economic relationship between the hedging instrument and the hedged item, along with its risk management objectives and clear identification of the risk in the hedged item that is being hedged by the hedging instrument. Furthermore, at the inception of the hedge the Group determines and documents causes for hedge ineffectiveness.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods in which the hedged item affects profit or loss or when the hedging relationship ends.
Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time is reclassified to profit or loss when the hedged item is recognised in profit or loss. When a forecast transaction is no longer expected to occur, any gain or loss that was recognised in other comprehensive income is reclassified immediately to profit or loss.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Sale of goods |
|
|
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
The analysis of the company's revenue for the year by geographical location is as follows:
2020 |
2019 |
|
United Kingdom |
|
|
Europe |
1,622,426 |
1,617,179 |
Australia |
|
|
Asia |
|
|
Rest of World |
73 |
5,805 |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2020 |
2019 |
|
Government grants |
|
- |
Coronavirus Job Retention Scheme grant
The Coronavirus Job Retention Scheme grant is a government grant relating to a wage subsidy programme introduced in the United Kingdom in response to the COVID-19 coronavirus pandemic. The Company was entitled to the wage subsidy because it had reduced operations in the United Kingdom as a result of the pandemic. The accounting policy adopted is set out in Note 2 to the financial statements; the grant was recognised in the profit and loss in 'other income' as the related wages and salaries for furloughed employees were recognised.
Operating profit |
Arrived at after charging/(crediting):
2020 |
2019 |
|
Depreciation expense |
|
|
Foreign exchange gains |
( |
( |
Operating lease expense - vehicles |
74,337 |
76,326 |
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2020 |
2019 |
|
Warehouse and distribution |
|
|
Sales and administration |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
Contributions paid to defined contribution pension schemes |
|
|
386,205 |
231,877 |
During the year the number of directors who were receiving benefits from contributions to defined contribution pension scheme was as follows:
2020 |
2019 |
|
Accruing benefits under money purchase pension scheme |
|
|
Key management remuneration (including directors)
2020 |
2019 |
|
Salaries and other short term employee benefits |
|
|
Post-employment benefits |
|
|
Social security costs |
|
|
|
|
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Auditors' remuneration |
2020 |
2019 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged in the profit and loss account
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
( |
499,952 |
(34,988) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense (credit) relating to changes in tax rates or laws |
( |
- |
Tax increase from effect of depreciation ineligible for capital allowances |
|
|
UK corporation tax adjustment to prior period |
|
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax charge/(credit) |
|
( |
The adjustment in relation to prior periods above has arisen due to the corporation tax returns and final liabilities in previous years being adjusted for Research and Development enhanced tax relief after the financial statements were finalised.
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Deferred tax
Deferred tax assets and (liabilities):
2020 |
Asset |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Capital gains rolled over |
( |
Other timing differences |
|
|
2019 |
Asset |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Capital gains rolled over |
( |
Other timing differences |
|
85,329 |
Tangible assets |
Freehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 October 2019 |
|
|
|
|
Additions |
- |
|
|
|
Disposals |
- |
( |
( |
( |
At 30 September 2020 |
|
|
|
|
Depreciation |
||||
At 1 October 2019 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 30 September 2020 |
|
|
|
|
Carrying amount |
||||
At 30 September 2020 |
|
|
|
|
At 30 September 2019 |
|
|
|
|
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Investments in subsidiaries, joint ventures and associates |
2020 |
2019 |
|
Investments in subsidiaries |
|
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
2020 |
2019 |
Subsidiary undertakings |
||||
|
China |
Ordinary |
|
|
Its financial period end is 31 December.
The profit for the financial period of Dongguan iCandy Children's Products Co., China Limited was £47,930 (2019 - £22,666) and the aggregate amount of capital and reserves at the end of the period was £235,106 (2019 - £187,176).
Stocks |
2019 |
2018 |
|
Goods for resale |
|
|
Debtors |
Note |
2019 |
2018 |
|
Trade debtors |
|
|
|
Other debtors |
|
- |
|
Prepayments |
|
|
|
Derivative financial instrument asset |
|
- |
|
Deferred tax assets |
|
|
|
Total current trade and other debtors |
|
|
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Creditors |
Note |
2019 |
2018 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
Corporation tax liability |
490,717 |
212,899 |
|
|
|
Loans and borrowings |
2020 |
2019 |
|
Current loans and borrowings |
||
Other borrowings - directors |
|
|
Other borrowings
Directors loans with a carrying amount of £1,777,464 (2019 - £881,720) are denominated in £ Sterling with a nominal interest rate of 5%.
There are no formal requirements in place to repay these loans.
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
701 |
|
701 |
|
|
1,034 |
|
1,034 |
|
|
70 |
|
70 |
|
|
300 |
|
300 |
|
|
|
|
All shares in issue rank pari passu in all respects except that each class has separate dividend rights.
Dividends |
2020 |
2019 |
|
Dividends paid |
1,473,499 |
1,098,810 |
iCandy World Limited
Notes to the Financial Statements for the Year Ended 30 September 2020
Pension and other schemes |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £38,073 (2019 -
£
44,408).
Contributions totalling £
Obligations under operating leases |
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Financial instruments |
2020 |
2019 |
|
Forward foreign currency contracts |
|
- |
The company's forward foreign currency contracts have been valued on a match to market basis at the year end. The movement between the position at 1 October 2019 and 31 September 2020 of £52,936 has been credited to the profit and loss account.
Related party transactions |
At 30 September 2020 the company owed the company directors £1,777,464 (2019 - £881,720). Interest of £20,849 (2019 - £28,396) has been accrued on these loans. During the current financial year the company credited dividends of £1,400,000 (2019 - £1,044,000) to directors loan accounts.
During the year, the company was charged £523,756 (2019 - £501,686) for services provided by Dongguan iCandy Children's Products Co., Ltd.
Summary of transactions with key management