REGISTERED NUMBER: |
Strategic Report, Report of the Director and |
Financial Statements for the Year Ended 31 December 2022 |
for |
Easylife Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Director and |
Financial Statements for the Year Ended 31 December 2022 |
for |
Easylife Limited |
Easylife Limited (Registered number: 05221840) |
Contents of the Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Easylife Limited |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants & |
Statutory Auditors |
26 Station Road |
New Barnet |
Herts |
EN5 1QW |
Easylife Limited (Registered number: 05221840) |
Strategic Report |
for the Year Ended 31 December 2022 |
The director presents his strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The UK economic outlook and consumer confidence has deteriorated, in the wake of various factors such as, the rising costs of living, the war in Ukraine and the impact of Brexit. These factors has contributed in the fall in turnover from last year which in turn has been reflected in a fall in profitability. |
Increased investment in media activity and streamlining of our costs will generate growth in into 2023. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Risks are accepted as part of the company's business. The director and key employees review the company's risks regularly, and take actions to monitor and mitigate them. |
The company's main financial risk is in the exposure to foreign currency fluctuations on the imports of goods from overseas suppliers. |
The company also has market risks as it trades in a highly competitive online platform. To mitigate this risk the company regularly monitors market prices. |
The company is fastidious about quality control and carries out regular reviews and tests on their products. Product safety is of a paramount importance to the company's business ethos. |
The company has liquidity and interest rate risks on all its overdraft facilities. |
Political & Economic Environment |
Global economic volatility may remain high due to Covid-19, with clear geopolitical uncertainties relating to the pandemic response and recovery. Brexit continues to drive uncertainty and has the potential to impact core business activities including logistics and workforce management. |
Brexit could create potential risks, including foreign exchange movements, adverse impacts from changes in import taxes/tariffs and consumer confidence. |
Consumer confidence continues to fall as a result of the rising costs of living driven by energy and fuel prices, as well as inflation being at a 30-year high. The war in Ukraine has led to significant deterioration in the global economic outlook and the Company will continue to monitor key macroeconomic indicators and geopolitical uncertainties including but not limited to those regarding the war, Brexit, COVID-19 and the cost of living crisis. |
Supply chain disruption |
A material interruption to the product supply chain could reduce the level of retail trading. Management mitigates this risk by reviewing supplier performance regularly. |
KEY PERFORMANCE INDICATORS |
Turnover in 2022 shows an decrease by 33.9% from £37.8m in 2021 to £24.95m. |
Gross profit percentages shows a decrease from 7.46% in 2021 to 2.81% for 2022 |
Pre tax results shows a decrease in profit from £0.62M for 2021 to a loss of £0.7M for 2022. |
Easylife Limited (Registered number: 05221840) |
Strategic Report |
for the Year Ended 31 December 2022 |
FUTURE DEVELOPMENTS |
Trading in the current economic environment continues to be challenging with strong competitions from both high street and online retailers, and in terms of disruption and increased costs as a result of the UK's departure from the EU and the war in Ukraine. We believe through our strong management team and systems in place we will grow the business by continuing to provide ethical products and services to our customers. |
ON BEHALF OF THE BOARD: |
Director |
7 December 2023 |
Easylife Limited (Registered number: 05221840) |
Report of the Director |
for the Year Ended 31 December 2022 |
The director presents his report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of an importer, distributor and wholesaler of general mail order merchandise, and publisher of mail order catalogues. |
DIVIDENDS |
An interim dividend of |
The total distribution of dividends for the year ended 31 December 2022 will be £ |
FUTURE DEVELOPMENTS |
The financial management objectives and future developments of the business are detailed in the strategic report. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
POLITICAL DONATIONS AND EXPENDITURE |
A £5,000 charitable donation to Kabbalah Centre. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he 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. |
Easylife Limited (Registered number: 05221840) |
Report of the Director |
for the Year Ended 31 December 2022 |
AUDITORS |
The auditors, Christopher Michael Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Easylife Limited |
Opinion |
We have audited the financial statements of Easylife Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Easylife 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 Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Easylife Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide the opportunity to commit fraud. |
Our risk assessment procedures included: |
- Enquiring with directors and inspection of policy documentation as to Easylife Limited's policies and procedures to prevent fraud and detect fraud that apply to this company as well as enquiring whether the directors have knowledge of any actual , suspected or alleged fraud; |
- Reading the board minutes; and |
- Using analytical procedures to identify unusual or unexpected relationships |
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. |
As required by auditing standards, and taking into account possible pressures to meet profit targets, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, including: the risk that revenue is recorded in the wrong period and the risk that management may be in a position to make inappropriate accounting entries. |
We did not identify any additional fraud risks. |
In determining the audit procedures, we have taken into account the results of our evaluation and testing of the operating effectiveness of some of the Company wide fraud risk management controls and we performed procedures including: |
- Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included posted to unusual accounts involving revenue and cash. |
- For a sample of revenue transactions around the period end, vouching to supporting external documentation to corroborate whether those items were recorded in the correct accounting period. |
-identifying and responding to risks of material misstatement due to non-compliance with laws and regulations |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. |
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
Report of the Independent Auditors to the Members of |
Easylife Limited |
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, general data protection, employment law, and certain aspects of company legislation, recognising the nature of the company's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. |
Context of the ability of the audit to detect fraud or breaches of law or regulation |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants & |
Statutory Auditors |
26 Station Road |
New Barnet |
Herts |
EN5 1QW |
Easylife Limited (Registered number: 05221840) |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(956,361 | ) | 624,386 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Easylife Limited (Registered number: 05221840) |
Other Comprehensive Income |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Prior year adjustment | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
Easylife Limited (Registered number: 05221840) |
Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
Easylife Limited (Registered number: 05221840) |
Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Prior year adjustment | - | ( |
) | ( |
) |
As restated |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Easylife Limited (Registered number: 05221840) |
Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of intangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 5,706 |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,508,639 |
Cash and cash equivalents at end of year | 2 | 415,507 | 1,757,060 |
Easylife Limited (Registered number: 05221840) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Intercompany | (163,457 | ) | (2 | ) |
Finance costs | 5,774 | 5 |
Finance income | (479 | ) | - |
(2,033,294 | ) | 710,184 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 415,507 | 1,757,060 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,757,060 | 2,508,639 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,757,060 | (1,341,553 | ) | 415,507 |
1,757,060 | ( |
) | 415,507 |
Total | 1,757,060 | (1,341,553 | ) | 415,507 |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Easylife Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
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. |
Revenue recognition |
Sale of Goods |
Turnover is recognised on goods dispatched, excluding discounts, rebates , returns, value added tax and other sales taxes. |
Services rendered |
Turnover is measured at a fair value of the consideration received or receivable and represents the amounts receivable for the services rendered, stated net of discounts and value added tax. |
When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the services transaction at the end of the reporting period. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are measured at the lower of costs and estimated selling price less costs to complete and sell. Costs includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of section 11 "Basic Financial Instruments" of FRS 102. |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial assets and liabilities are initially measured at transactional costs and are subsequently carried at amortised cost. |
If any such assets or liabilities are receivable within one year they are not amortised. |
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. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate at the reporting date, with any gains or losses being taken to the profit and loss account. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents comprise of cash balances and call deposits. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exists. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. One such judgment relates to the valuation and recoverable amount with respect to stock valuation. Assumptions about future market trends and demand have been made. |
3. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
Management and administration | 4 | 4 |
Sales, Marketing and operations | 59 | 66 |
Customer services | 3 | 5 |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Director's remuneration |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Domain Names amortisation |
Foreign exchange differences |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Bank interest |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Overprovision tax Prior years | ( |
) | ( |
) |
Total current tax | ( |
) | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/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 | ( |
) | ( |
) |
overprovision | ( |
) |
Total tax credit | (173,906 | ) | (107,587 | ) |
8. | DIVIDENDS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Ordinary share of 1 |
Interim |
9. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment was required in the 31 December 2021 year to adjust the brought forward reserves. This adjustment was required to decrease the marketing prepayment in the year ended 31 December 2020 in the balance sheet and decrease the marketing costs in Income statement by £502,617.04 |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
10. | TRANSACTIONS DURING THE YEAR |
On the 21st of July 2022 an agreement was reached to settle the ongoing legal dispute with EasyGroup Limited. EasyGroup Limited purchased 10% of the shares in Easylife limited as part of the agreement. |
11. | INTANGIBLE FIXED ASSETS |
Domain |
Goodwill | Names | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Amortisation for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
13. | STOCKS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Stocks |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Trade creditors |
Tax | ( |
) |
Social security and other taxes |
Other creditors |
Credit Card | 5,706 | 6,660 |
Accrued expenses |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Within one year |
Between one and five years |
17. | PROVISIONS FOR LIABILITIES |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Deferred tax | 12,239 | 20,368 |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Deferred tax | (8,129 | ) |
Balance at 31 December 2022 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | as restated |
£ | £ |
Ordinary | 1 | 1 | 1 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 31 December 2022 |
20. | ULTIMATE PARENT COMPANY |
Easylife Group Limited Employee Benefit Trust is regarded by the director as being the company's ultimate parent company. |
The consolidated accounts of Easylife Holdings Limited can be obtained from 94 Orchard Gate, Greenford, England UB6 0QP |
21. | CONTINGENT LIABILITIES |
During the year Easylife Limited was fined by the ICO for breaching GDPR rules. The company appealed the decision during the post year end period and the ICO reduced the original fine to £250,000 and £104,000 respectively. |
Easylife Limited (Registered number: 05221840) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2022 |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2022 and 31 December 2021: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Balance outstanding at start of year |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The loan to the director is repayable on demand. |
23. | RELATED PARTY DISCLOSURES |
The company occupies premises owned by the director, G Caplan, and rent was paid in the sum of£72,000, (2021: £72,000). In addition property is also occupied by the company and rent of £nil, (2021: £74,226), was paid to Kterrace Limited a company which is wholly owned by G Caplan who is also a director of this company. The rent is considered to be at market rent. |
As at the 31 December 2022 a balance of £209,243, (2021: £185,186), was owed by Easylife Australia PTY Limited a company incorporated in Australia. Easylife Limited (as of 4th August 2023), owns 50% of the share capital of the company. |
During the year an amount of £nil, (2021: £153,058), was paid to the Employee benefits scheme, EBT. The EBT owns the share capital of Easylife Holdings Limited. |
24. | POST BALANCE SHEET EVENTS |
The company lease for the warehouse facility at 2 & 5 Dolphin park Sittingbourne has expired and the company will vacate the property in the post year end period. As part of the lease a dilapidation settlement of £127,900 was agreed in April 2023. The company will lease a new warehouse facility during the post year end period. |
Easylife Australia PTY Limited, a company incorporated in Australia, joined Easylife Limited on 4th August 2023 by virtue of 50% shareholding being allotted to Easylife Limited. |