Company registration number 05378073 (England and Wales)
CHARLIE BEARS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
CHARLIE BEARS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CHARLIE BEARS LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,482
5,002
Tangible assets
4
1,761,119
1,772,318
Investments
5
28,250
31,222
1,792,851
1,808,542
Current assets
Stocks
1,322,640
1,123,263
Debtors
6
1,666,100
2,084,409
Cash at bank and in hand
1,086,731
989,723
4,075,471
4,197,395
Creditors: amounts falling due within one year
7
(1,704,428)
(2,005,583)
Net current assets
2,371,043
2,191,812
Total assets less current liabilities
4,163,894
4,000,354
Creditors: amounts falling due after more than one year
8
(254,019)
(361,755)
Provisions for liabilities
9
(35,914)
(30,027)
Net assets
3,873,961
3,608,572
Capital and reserves
Called up share capital
10
2
2
Other reserves
11
16,364
Profit and loss reserves
3,857,595
3,608,570
Total equity
3,873,961
3,608,572
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 March 2024 and are signed on its behalf by:
Mr W R Morris
Director
Company registration number 05378073 (England and Wales)
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
1
Accounting policies
Company information
Charlie Bears Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Milford Park, Pennygillam Industrial Estate, Launceston, Cornwall, PL15 7PJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Intangible fixed assets
Website
20% straight line per annum
The website is valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in the year in which it is incurred.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings - freehold
0% on land 2% straight line per annum on buildings
Land and buildings - leasehold
Straight line over the length of the lease
Plant and machinery
20% straight line per annum
Fixtures, fittings & equipment
20% straight line per annum
Computer equipment
20% straight line per annum
Motor vehicles
25% per annum on written down value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value, using the prevailing exchange rate at the point of purchase. Provision is made where considered necessary for obsolete and slow moving items.
1.8
Equity instruments
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
42
42
3
Intangible fixed assets
Trademarks
Website
Total
£
£
£
Cost
At 1 July 2022 and 30 June 2023
31,650
7,600
39,250
Amortisation and impairment
At 1 July 2022
31,650
2,598
34,248
Amortisation charged for the year
1,520
1,520
At 30 June 2023
31,650
4,118
35,768
Carrying amount
At 30 June 2023
3,482
3,482
At 30 June 2022
5,002
5,002
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2022
2,119,729
576,505
2,696,234
Additions
18,961
32,735
51,696
Disposals
(7,272)
(7,272)
At 30 June 2023
2,138,690
601,968
2,740,658
Depreciation and impairment
At 1 July 2022
415,164
508,752
923,916
Depreciation charged in the year
34,662
27,777
62,439
Eliminated in respect of disposals
(6,816)
(6,816)
At 30 June 2023
449,826
529,713
979,539
Carrying amount
At 30 June 2023
1,688,864
72,255
1,761,119
At 30 June 2022
1,704,565
67,753
1,772,318
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
28,250
31,222
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
31,222
Foreign exchange adjustment
(2,972)
At 30 June 2023
28,250
Carrying amount
At 30 June 2023
28,250
At 30 June 2022
31,222
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
459,976
615,976
Amounts owed by group undertakings
474,926
548,079
Other debtors
731,198
920,354
1,666,100
2,084,409
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
836,319
937,175
Trade creditors
161,688
363,850
Amounts owed to group undertakings
52
53
Taxation and social security
240,042
314,761
Other creditors
466,327
389,744
1,704,428
2,005,583
Included within other creditors are balances totalling £246,346 (2022: £119,462) relating to debt factoring and discounting loans. These balances are secured upon the debts to which they relate.
The bank overdraft is secured upon the trade and assets of the company.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
254,019
361,755
The bank loans are secured by a fixed and floating charge over the assets of the company, with the exception of the Coronavirus Business Interruption Loan totaling £166,250 (2022: £223,250) at the balance sheet date.
9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
35,914
30,027
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully or partly paid
Ordinary £1 shares of £1 each
-
2
-
2
Ordinary £0.01 shares of 1p each
200
-
2
-
200
2
2
2
On 20 September 2022, the company subdivided its £1 shares into £0.01 shares.
On 20 September 2022, EMI share options were granted to two employees of the company. The agreed exercise price is £8,250 per share. The total number of shares involved is 20 ordinary shares of £0.01 each (10 per employee).
11
Share Option Reserve
2023
2022
£
£
At the beginning of the year
-
-
Additions
16,364
-
At the end of the year
16,364
-
On 20 September 2022, EMI share options were granted to 2 employees of the company. The agreed exercise price is £8,250. A fair value of the options of £16,634 has been recognised as employee remuneration within administrative expenses in these accounts. An equal amount has been credited to the Share Option Reserve.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
James Welton BA (Hons) ACA CTA
Statutory Auditor:
Simpkins Edwards Audit LLP
CHARLIE BEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
32,487
45,912
Between two and five years
2,425
30,597
34,912
76,509
14
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Two directors
2.00
413,497
259,577
9,133
(421,378)
260,829
413,497
259,577
9,133
(421,378)
260,829
The advances are unsecured and repayable upon demand.