REGISTERED NUMBER:
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LESLIE WISE LIMITED |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30TH APRIL 2020 |
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REGISTERED NUMBER:
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LESLIE WISE LIMITED |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30TH APRIL 2020 |
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LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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LESLIE WISE LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
Forum House |
First Floor |
15-18 Lime Street |
London |
EC3M 7AN |
LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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BALANCE SHEET |
30TH APRIL 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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Investments | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 8 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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1. | STATUTORY INFORMATION |
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Leslie Wise Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements are presented in Pounds Sterling which is the functional currency of the company and rounded to the nearest Pound. |
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The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Going Concern |
The retail business environment has been difficult and as a consequence, the company has incurred a loss for the year. The directors consider that the current economic environment and the risks and uncertainties associated with the continuing threat of the Covid-19 pandemic present significant challenges in terms of the level of demand of the company's products. Whilst the directors have instituted measures to preserve cash and ensure that the company will have enough working capital, these circumstances create material uncertainties over future trading results and cash flows. |
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In the financial year 2019/20, the directors decided to diversify the company's business. The fabric business was reduced significantly and the company concentrating more on selling garments to supermarket chains. The early results have been encouraging and the directors and senior managers of the company believe that this will continue in the foreseeable future. |
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As part of the directors' assessment of going concern they have prepared detailed cash flow and profit and loss forecasts for the 12 months from the date of approval of these accounts. These forecasts have been prepared on an appropriate basis, taking into account the current difficult economic conditions and the current risks and uncertainties associated with Covid-19 pandemic. |
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Because of the events and conditions described above, there are material uncertainties which may cast significant doubt on the Company's ability to continue as a going concern and it may therefore be unable to realise assets and discharge liabilities in the ordinary course of business. |
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The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and to discharge its liabilities when due. They will also continue to provide the company with any kind of financial supports that it may require. For these reasons, the directors continue to adopt the going concern basis in preparing the annual report and financial statements. |
LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial years are addressed below. |
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(a) Useful economic lives of assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. |
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(b) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
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Turnover |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added tax. |
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The company recognises revenue when (a) the significant risk and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods and (c) the amount of revenue can be measured reliably. The company considers that those three conditions are fulfilled when the buyer takes delivery of the goods. |
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Tangible fixed assets |
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Plant and machinery etc | - |
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Government grants |
Government Grant receivable are in respect of UK Government's support to businesses under the Coronavirus Job Retention Scheme and is recognised in the period in which the wages cost was incurred. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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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. |
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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. |
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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. |
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Financial instruments |
Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and amount owed by group undertakings are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
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Financial assets are derecognised when (a) the contractual rights to the cash flows from the assets expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another part or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
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Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans, loans from related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price. |
LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Employee benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension scheme. |
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Short term benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
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Defined contribution pension |
The company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable to the company's pension scheme are charged to profit and loss in the period to which they relate. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1st May 2019 |
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Additions |
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At 30th April 2020 |
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DEPRECIATION |
At 1st May 2019 |
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Charge for year |
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At 30th April 2020 |
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NET BOOK VALUE |
At 30th April 2020 |
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At 30th April 2019 |
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5. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
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COST |
At 1st May 2019 |
and 30th April 2020 |
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NET BOOK VALUE |
At 30th April 2020 |
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At 30th April 2019 |
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LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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8. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
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Ordinary | £1 | 251,256 | 251,256 |
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9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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We draw attention to note 2 in the financial statements concerning the company's ability to continue as a going concern. The Company has incurred a loss of £224,265 in the year and is financially dependent on the continued support from its owners. As described in note 2, there are events and conditions which indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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for and on behalf of
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10. | CONTINGENT LIABILITIES |
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There is an unlimited debenture incorporating a fixed and floating charge given to the company's bank. |
LESLIE WISE LIMITED (REGISTERED NUMBER: 00885078) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2020 |
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11. | RELATED PARTY DISCLOSURES |
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During the year the company purchased goods of £2,164,034 (2019: £1,605,247) from Savcan Tekstil, a |
company under the common control of the directors Nedim and Nuvit Gundemir. At the Balance Sheet date, an amount of £1,216,580 (2019: £504,442) was owed to Savcan Tekstil. |
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At the Balance Sheet date, an amount of £Nil (2019:- £1,005,024) was owed to the directors. The amount owed is interest free and is included in other creditors. |
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Remuneration to key management personnel during the year was £100,000 (2019: £100,000). |
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12. | POST BALANCE SHEET EVENT |
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The emergence of Covid-19 towards the end of the financial year and the continuing pandemic during 2020 has created a significant risk for the company. |
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UK government lockdowns of non-essential retail has severely disrupted the company business with very few orders for fabric being received in the year from May. The company initially focused on preserving and boosting its cash reserves. It successfully recovered 97% of all debts outstanding from the beginning of the year and has received support from the landlord in the form of a rent holidays. In addition all but one employee were furloughed with government grants covering the majority of the cost. |
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During 2019 the company had started to develop a garment design division to supply retailers directly. Post year end the first orders were secured from a major non high street UK retailer resulting in significant sales. Additional business with retailers has subsequently been secured for 2021. With the failure of many high street retailers during the covid pandemic, the company has been reviewing its strategy and is in the process of restructuring to focus on the direct garment business and reduce dependence on its traditional fabric supply base. |