REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 3 SEPTEMBER 2022 TO 30 JUNE 2023 |
FOR |
SPECIALIST CRAFTS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 3 SEPTEMBER 2022 TO 30 JUNE 2023 |
FOR |
SPECIALIST CRAFTS LIMITED |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Period 3 September 2022 to 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Statement of Directors' Responsibilities | 6 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
SPECIALIST CRAFTS LIMITED |
COMPANY INFORMATION |
For The Period 3 September 2022 to 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
31 High View Close |
Hamilton Office Park |
Leicester |
Leicestershire |
LE4 9LJ |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
STRATEGIC REPORT |
For The Period 3 September 2022 to 30 June 2023 |
The directors present their strategic report for the period 3 September 2022 to 30 June 2023. |
REVIEW OF BUSINESS |
The company delivered strong revenue growth for the 10 months to 30 June 2023, which was primarily driven by increased market share in international markets. |
Inflationary driven headwinds continued in the 10 months to 30 June 2023, however strong procurement effectiveness, operational efficiency gains and robust cost control delivered improved margins and increased profitability from continued operations. |
One off restructuring costs in the period equated to £137,000, which included the closure of Galway Art Shop that was a loss-making section of the Ireland operation. |
Enhanced cashflow growth for the period was also achieved through strong Trade Debtor results and increased profitability. |
Whilst the economic climate remains a challenge, the board of directors continue to invest in marketing, technology developments and optimising operational processes to advance and preserve the continued business prosperity. |
KEY PERFORMANCE INDICATORS |
The company's performance during the period was as follows: |
2023 (10 months | ) | 2022 (10 months | ) | 2022 (12 months | ) |
Turnover | 11,389,249 | 11,201,504 | 15,190,596 |
EBITDA | 887,314 | 819,816 | 1,331,580 |
Restructuring Costs | (137,000 | ) | - | - |
EBT | 590,883 | 695,602 | 1,169,453 |
Headcount | 68 | 70 | 70 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the business continue to be the competitive nature of the market place in which the company operates and the impact of Government spending cuts on the customer base. |
Financial risk management objectives and policies |
The Company uses financial instruments comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations. The main risks arising from the financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods. |
Interest rate risk |
The company finances its operations through a mixture of retained profits, bank borrowings and other borrowings. The company's exposure to interest fluctuations on its borrowings is managed by the use of both fixed and floating facilities. |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
STRATEGIC REPORT |
For The Period 3 September 2022 to 30 June 2023 |
Liquidity risk |
The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities. |
Currency risk |
The company is exposed to transaction foreign exchange risk. Transaction exposures are hedges when known, mainly using the forward hedge market. |
ON BEHALF OF THE BOARD: |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
DIRECTORS' REPORT |
For The Period 3 September 2022 to 30 June 2023 |
The directors present their report with the financial statements of the company for the period 3 September 2022 to 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of wholesaling of arts and crafts materials, by mail order and via the internet. |
DIVIDENDS |
The total distribution of dividends for the period ended 30 June 2023 will be £ |
DIRECTORS |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
Financial risk management objectives and policies |
The company uses financial instruments comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods. |
Price risk, credit risk, liquidity risk and cash flow risk |
Interest rate risk |
The company finances its operations through a mixture of retained profits, bank borrowings and other borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities. |
Liquidity risk |
The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities. |
Currency risk |
The company is exposed to transaction foreign exchange risk. Transaction exposures are hedged when known, mainly using the forward hedge market. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
DIRECTORS' REPORT |
For The Period 3 September 2022 to 30 June 2023 |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, the auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
For The Period 3 September 2022 to 30 June 2023 |
The directors are responsible for preparing the Strategic Report, the 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SPECIALIST CRAFTS LIMITED |
Opinion |
We have audited the financial statements of Specialist Crafts Limited (the 'company') for the period ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 June 2023 and of its profit for the period 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, the Directors' Report and the Statement of Directors' Responsibilities, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SPECIALIST CRAFTS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters 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 six, 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. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the company is complying with those frameworks by making enquiries of |
management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws |
and regulations identified in the paragraphs above. |
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SPECIALIST CRAFTS LIMITED |
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. |
for and on behalf of |
31 High View Close |
Hamilton Office Park |
Leicester |
Leicestershire |
LE4 9LJ |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Period 3 September 2022 to 30 June 2023 |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 7 |
Interest receivable and similar income | 9 |
682,495 | 1,262,783 |
Interest payable and similar expenses | 10 |
PROFIT BEFORE TAXATION |
Tax on profit | 11 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
BALANCE SHEET |
30 June 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
STATEMENT OF CHANGES IN EQUITY |
For The Period 3 September 2022 to 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 4 September 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 2 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Period 3 September 2022 to 30 June 2023 |
1. | STATUTORY INFORMATION |
Specialist Crafts Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Specialist Crafts Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Significant judgements and 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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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. |
Goodwill |
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made. |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where the fair value cannot be measured reliably are measured at cost less impairment. |
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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 (FIFO) method. |
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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. |
Taxation |
Taxation for the period 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 reporting date in the countries where the company operates and generates taxable income. |
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 period 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. |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
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 |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. |
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. |
Lease Payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability. |
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. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. |
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. |
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the 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 initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Trade debtors - The directors carefully consider the recoverability of trade debtors based on their experience of customers' payment history and the likelihood of recovery. |
Determining net realisable values of stocks - In determining the net realisable value of stocks, management takes into account the most reliable evidence available at the dates the estimates are made. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 2,657,156 | 4,078,497 |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
5. | EMPLOYEES AND DIRECTORS |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
Directors | 1 | 2 |
Other departments | 67 | 68 |
6. | DIRECTORS' EMOLUMENTS |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Computer software amortisation |
Foreign exchange differences |
Operating lease expense - Vehicles |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
8. | AUDITORS' REMUNERATION |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
14,653 |
13,500 |
The above auditors' remuneration includes fees in relation to the audit of the parent company, Dryad Creative Limited. |
9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Deposit account interest |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Bank loan interest |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
11. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax movement | (541 | ) | 18,783 |
Group relief | (57,680 | ) | (53,539 | ) |
Adjustment in respect of PY Deferred Tax | 11,204 | - |
Total tax charge | 91,577 | 164,463 |
12. | DIVIDENDS |
Period | Period |
3.9.22 | 4.9.21 |
to | to |
30.6.23 | 2.9.22 |
£ | £ |
A Ordinary shares of £1 each |
Final |
13. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 3 September 2022 |
Additions |
At 30 June 2023 |
AMORTISATION |
At 3 September 2022 |
Amortisation for period |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 2 September 2022 |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
14. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 3 September 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 3 September 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 2 September 2022 |
15. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 3 September 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 2 September 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
16. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Goods In Transit | 1,045,538 | 746,095 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Debt Factoring facility (CID) (see note 20) |
Other loans (see note 20) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 20) |
Loans totalling £1,500,000 are secured on all the property and undertaking of the company. |
20. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Debt Factoring facility (CID) |
Other loans |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
20. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 300,000 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
21. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
22. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 3 September 2022 |
Charge to Statement of Comprehensive Income during period |
Balance at 30 June 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 479,999 | 479,999 |
B Ordinary | £1 | 1,040,001 | 1,040,001 |
C Ordinary | £1 | 479,999 | 479,999 |
D Ordinary | £1 | 1 | 1 |
2,000,000 | 2,000,000 |
SPECIALIST CRAFTS LIMITED (REGISTERED NUMBER: 04094887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Period 3 September 2022 to 30 June 2023 |
24. | RESERVES |
Retained |
earnings |
£ |
At 3 September 2022 |
Profit for the period |
Dividends | ( |
) |
At 30 June 2023 |
25. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £24,478 (2022 - £32,252). |
No contributions were payable to the fund at either the current or prior balance sheet dates. |
26. | ULTIMATE PARENT COMPANY |
Dryad Creative Limited is regarded by the directors as being the company's ultimate parent company. |
Dryad Creative Limited is owned and controlled by the directors of Specialist Crafts Limited. |
27. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
During the period, a total of key management personnel compensation of £ |