SD Beauty Ltd |
Notes to the Accounts |
for the year ended 30 June 2023 |
|
|
1 |
Statutory information |
|
SD Beauty Ltd is a company limited by shares and registered in England and Wales under company number 07973019. The address of the registered office is 11 Beachley Road, Tutshill, Chepstow, Gwent, NP16 7EG. |
|
2 |
Summary of significant accounting policies |
|
|
Basis of preparation of financial statements |
|
The financial statements have been prepared in accordance with FRS 102 The financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities and under the historical cost convention. |
|
|
Going concern |
|
After reviewing the the company's forecasts and projections, the director has a reasonable expection that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing these financial statements. |
|
|
Tangible fixed assets |
|
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs which are directly attributable in bringing the asset to its location and condition so that it is capable of operating in the manner intended by the management. Depreciation is provided on all tangible fixed assets at rates which are calculated to write off the cost, less estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), of each asset on a systematic basis over its expected useful life as follows: |
|
|
Office and computer equipment |
33.33% straight line |
|
|
Profits and losses on the disposal of fixed assets are included in the calculation of profit for the period. The directors assess the company's tangible assets for evidence of impairment at each reporting date. Where there are indicators of impairment, the director calculates recoverable amount of the asset(s) and compare these with the carrying amount. If recoverable amount is lower than carrying amount, the asset is written down to recoverable amount by way of an impairment loss which is recognised in profit and loss for the period. Impairment losses are reversed when there is evidence that the reasons giving rise to the original impairment have ceased to apply. Impairment losses are reversed through profit and loss but only to the extent that the reversal does not increase the carrying amount of the asset to the amount which would have been stated, net of depreciation, had no impairment loss been recognised. |
|
2 |
Summary of significant accounting policies ( continued ) |
|
|
Stocks |
|
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, freight, irrecoverable taxes and other directly attributable costs which are incurred by the entity in bringing the stock to its present location and condition. The cost methodology employed by the entity is the first-in-first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit and loss. |
|
|
Provisions for liabilities |
|
Provisions for liabilities are recognised when the company has an obligation at the balance sheet date as a result of a past event; it is probable that there will be an outflow of economic benefit to discharge the obligation; and the amount of the obligation can be reliably estimated. Where these criteria are not met, a provision is not recognised in the financial statements but a contingent liability is disclosed if material. Amounts recoverable from third parties are only recognised as assets when the receipt is virtually certain. Provisions are measured at the best estimate of the amount required to settle the obligation at the balance sheet date. The best estimate is the amount which the company would rationally pay to settle the obligation at the balance sheet date. Provisions for liabilities are measured at the present value of the expenditures expected to be required in order to settle the obligation where the effects of time value of money are material using a pre-tax rate which reflects current market assessments. Increases in the provision at each balance sheet date arising due to the passage of time are recognised in profit and loss as an interest expense. |
|
|
Financial instruments |
|
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 instruments are initially recognised at transaction price and measured at amortised cost using the effective interest method. Where investments in non-derivative financial instruments are publicly traded, or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value through the profit and loss. All other investments are subsequently measured ar cost less impairment. Debtors and creditors that fall due within one year are recorded in the financial statements at transaction price and then subsequently measured at amortised cost. If the effects of the time value of money are immaterial, they are measured at cost (less impairment for trade debtors). Debtors are reviewed for impairment at each reporting date and any impairments are recorded within profit and loss and shown within administrative expenses when there is objective evidence that a debtor is impaired. Objective evidence that a debtor is impaired arises when the customer is unable to settle amounts owing to the company or the customer becomes bankrupt. Debtors do not carry interest and are stated at their nominal value. Trade creditors are not interest-bearing and are stated at their nominal value. Financial assets which are measured at cost or amortised cost are reviewed for objective evidence of impairment at each balance sheet date. If there is objective evidence of impairment , an impairment loss is recognised in profit and loss immediately. All equity instruments, regardless of significance, and other financial assets that are individually significant, are assesed individually for impairment. Other financial assets are either assessed individually or grouped on the similar basis of credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset which exceeds what the carrying amount would have been had the impairment loss not previously been recognised. |
|
2 |
Summary of significant accounting policies ( continued ) |
|
|
Taxation |
|
Current tax represents the amount of tax payable (receivable) in the respect profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws that have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable. |
|
|
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods and is recognised in respect of all timing differences; although with certain exceptions. Timing differences are differences between taxable profit and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred assets are only recognised to the extent that is probable that they will be recoverable against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. |
|
|
Turnover |
|
Turnover is measured at the fair value of the consideration received or receivable, net of VAT and discounts. Turnover is also measured net of the estimated value of customer returns and volume rebates. |
|
|
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
|
|
• the company has transferred all the significant risks and rewards of ownership of the goods to |
|
the buyer; |
|
• the company retains neither continuing managerial involvement, nor effective control, over the |
|
goods to the degree usually associated with ownership; |
|
• the amount of the revenue can be relaibly measured; |
|
• it is probable (ie, more likely than not) that the economic benefits associated with the sale will |
|
flow through to the entity; and |
|
• the costs (to be) incurred in respect of the transaction can be reliably measured. Turnover is |
|
recognised on despatch of goods which is the point at which the company transfers the |
|
significant risks and rewards of ownership of the goods to the customer. The company retains |
|
legal title of the goods until the customer pays, but this does not constitute a retention of the |
|
significant risks and rewards of ownership. Amounts received in advance of shipping goods to |
|
customers are recongised as deferred income and presented within creditors: amounts falling |
|
due within one year. |
|
|
3 |
Average number of employees |
|
The average number of employees, including the director employed under contracts of service, during the year was as follows: |
|
|
|
|
|
|
|
2023 |
|
2022 |
Number |
Number |
|
|
Employees |
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
4 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Office equipment |
£ |
|
Cost |
|
At 1 July 2022 |
3,294 |
|
At 30 June 2023 |
3,294 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 July 2022 |
2,734 |
|
Charge for the year |
560 |
|
At 30 June 2023 |
3,294 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 30 June 2023 |
- |
|
At 30 June 2022 |
560 |
|
|
5 |
Debtors |
2023 |
|
2022 |
£ |
£ |
|
|
Other debtors |
24,432 |
|
31,055 |
|
|
|
|
|
|
|
|
|
|
6 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
£ |
£ |
|
|
Bank loans and overdrafts |
3,333 |
|
3,333 |
|
Trade creditors |
3,007 |
|
1,941 |
|
Taxation and social security costs |
18,960 |
|
19,614 |
|
Other creditors |
1,100 |
|
700 |
|
|
|
|
|
|
26,400 |
|
25,588 |
|
|
|
|
|
|
|
|
|
|
7 |
Creditors: amounts falling due after one year |
2023 |
|
2022 |
£ |
£ |
|
|
Bank loans |
20,274 |
|
23,611 |
|
|
|
|
|
|
|
|
|
|
8 |
Loans to directors |
|
|
Included within other debtors is the following loan to the director: |
|
at 1 July |
Amount |
Amount |
at 30 June |
|
Description and conditions |
2022 |
advanced |
repaid |
|
2023 |
£ |
£ |
£ |
£ |
|
|
Director 1 |
- |
|
34,000 |
|
(11,000) |
|
23,000 |
|
|
|
- |
|
34,000 |
|
(11,000) |
|
23,000 |
|
|
|
|
|
|
|
|
|
|
|
The loan was interest-free and no loan terms were in existence. The director repaid this loan to the company in full on 18 September 2023 and no amounts were waived or written off. |