Company Registration No. 03150196 (England and Wales)
INTERNATIONAL HAIR COSMETICS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2022
10 Bridge Street
Christchurch
Dorset
BH23 1EF
INTERNATIONAL HAIR COSMETICS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15 - 16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 42
INTERNATIONAL HAIR COSMETICS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. E Bailey
Mr. N Summer
Mr. D Bailey
Mr. T Pattison
Ms. C Bailey
Secretary
Mr. E Bailey
Company number
03150196
Registered office
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
United Kingdom
PO6 3TH
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
Business address
The Quadrangle
Premier Way
Abbey Park
Romsey
Hampshire
United Kingdom
SO51 9DL
INTERNATIONAL HAIR COSMETICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
The directors present the strategic report for the year ended 31 March 2022.
Review of the business
International Hair Cosmetics Limited's (IHCL) headline performance in 2021-22 shows a decrease in turnover of 7.8% for the group, representing the impact of several factors and underlying performance remains robust across the board despite the unprecedented situation during the year. The business remains well-positioned to manage the significant market and environmental risks going forward.
At company level, management focus is on turnover and margin generated in each market segment and business unit. On this basis, IHCL’s performance in 2021-22 was broadly in line with expectations. However, this masks strong performance in home and export branded sales and weaker sales in non-branded market. Operating Profit has increased significantly as a result of strong cost control, the impact of significant investments in automation, and prior-year provisions not being repeated.
IHCL considers four main business segments: The three salon-professional-branded segments of the Home market (UK & Ireland), Export market, and intercompany sales; and non-IHCL branded private-label, regardless of geography. The three professional markets rebounded well after being impacted significantly by COVID, where lockdowns shut salons across the world at different times. The home market rebounded by 58% and the export market by 24%, reflecting reopening and softer COVID restrictions. Conversely, private label is focussed mainly on the retail market and the end-user, and saw very little activity due to customer inventory levels and slower sell-through.
Taken together, distribution costs and administrative expenses have reduced by 6% driven primarily by the end of COVID support schemes, restrictions on discretionary spend remaining in place, and the long-term effects of prior investment in staff, systems, and processes. IHCL has also seen continued strong balance-sheet growth and is well placed to address future risks and uncertainties.
Commentary on principal risks and uncertainties affecting the business
The impact of COVID19 has been significant, and IHCL maintains a close watch on developing infection levels and future virus threats. IHCL is well-positioned to adapt to challenges as they arrive and to thrive in the post-COVID19 environment.
Continuing challenges exist around the post-Brexit landscape, particularly regarding moving goods across borders from our UK and Italian logistics bases. Supply chain disruption continues around the world with raw-material shortages, price increase, lengthening lead-times, and international shipping difficulties.
Low-priced competitors continue to enter the market and offer a substitute to consumers. IHCL defends its position through regular product launches and developments, industry-leading technical support for the Salon professional and high-quality customer services and operations.
The War in Ukraine continues to impact on prices, inflation, interest rate, and consumer sentiment across the board. IHCL continually monitors these factors to ensure it can react to its environment in a timely and effective manner.
INTERNATIONAL HAIR COSMETICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
Commentary on future developments affecting the business
Future impacts of COVID19 remain unclear, but risks appear to be receding with less virulent strains and global resistance levels increasing.
The post-Brexit landscape means that the Italian logistics warehouse has become more important to the business and handles a greater proportion of IHCL’s sales than in prior years, through the vehicle of an Italian limited company.
The War in Ukraine and its macro-economic, social, and political impacts is of significant concern. It is not clear for how long the War or it’s impacts will continue but price inflation of fuel in particular is being felt throughout the supply chain, and we expect to see this represented in a challenging consumer sentiment environment over the coming year.
IHCL expects a strong recovery from its private label business this year and next as inventory levels in the market place normalise and demand for home colouring comes back online.
Performance of overseas associates and subsidiaries
ASPI continues to grow turnover and profitability. ASPI has taken on extra revenue streams which underpin the future development of the business.
ASPP has had another challenging year with strong low-price substitute competition increasing in that market, alongside a longer and slower recovery from COVID19 lockdowns than in the UK.
ASPA is no longer operational and is being closed.
Mr. E Bailey
Director
20 December 2022
INTERNATIONAL HAIR COSMETICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £367,438. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. E Bailey
Mr. N Summer
Mr. D Bailey
Mr. T Pattison
Ms. C Bailey
Strategic report
In accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, the Directors have set out in the company's Strategic Report, such information as required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
true
Auditor
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr. E Bailey
Director
20 December 2022
INTERNATIONAL HAIR COSMETICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
INTERNATIONAL HAIR COSMETICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTERNATIONAL HAIR COSMETICS LIMITED
- 6 -
Opinion
We have audited the financial statements of International Hair Cosmetics Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows
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 FRS 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 group's and the parent company's affairs as at 31 March 2022 and of the group's profit 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.
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
Auditor's
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
group's and
parent
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.
INTERNATIONAL HAIR COSMETICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL HAIR COSMETICS LIMITED
- 7 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit
:
-
the information given in the strategic report and the directors'
r
eport 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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 directors'
r
esponsibilities
s
tatement, 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
is 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
parent
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.
INTERNATIONAL HAIR COSMETICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL HAIR COSMETICS LIMITED
- 8 -
Auditor's 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 an
auditor's
report 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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
-
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 and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
-
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
-
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
-
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
-
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
INTERNATIONAL HAIR COSMETICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL HAIR COSMETICS LIMITED
- 9 -
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
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 (irregularities) 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx
. This description forms part of our auditor’s 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 an auditor's report 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.
Lucy Filer FCA (Senior Statutory Auditor)
for and on behalf of TC Group
Statutory Auditor
21 December 2022
Office: Christchurch
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
9,774,151
10,601,340
Cost of sales
(4,961,763)
(6,988,509)
Gross profit
4,812,388
3,612,831
Distribution costs
(2,251,057)
(1,644,477)
Administrative expenses
(1,559,567)
(2,122,305)
Other operating income
142,461
546,210
Operating profit
5
1,144,225
392,259
Share of results of associates and joint ventures
-
108,059
Interest receivable and similar income
8
2,013
6,343
Interest payable and similar expenses
9
(8,465)
(19,612)
Profit/(loss) on investments
10
399,454
Profit before taxation
1,137,773
886,503
Taxation
11
(180,664)
45,400
Profit for the financial year
957,109
931,903
Profit for the financial year is attributable to:
- Owners of the parent company
952,497
858,074
- Non-controlling interests
4,612
73,829
957,109
931,903
The profit and loss account has been prepared on the basis that all operations are continuing operations.
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
2022
2021
£
£
Profit for the year
957,109
931,903
Other comprehensive income
Currency translation differences
(21,127)
(61,102)
Total comprehensive income for the year
935,982
870,801
Total comprehensive income for the year is attributable to:
- Owners of the parent company
931,370
796,972
- Non-controlling interests
4,612
73,829
935,982
870,801
The notes on pages 19 to 42 form part of these financial statements
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
31 March 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
12
244,969
232,541
Tangible assets
14
145,460
69,156
390,429
301,697
Current assets
Stocks
18
2,586,630
2,326,448
Debtors
19
2,216,334
1,880,497
Cash at bank and in hand
344,678
362,588
5,147,642
4,569,533
Creditors: amounts falling due within one year
20
(2,341,905)
(2,100,691)
Net current assets
2,805,737
2,468,842
Total assets less current liabilities
3,196,166
2,770,539
Creditors: amounts falling due after more than one year
21
(76,167)
(66,516)
Provisions for liabilities
23
(49,345)
(59,501)
Net assets
3,070,654
2,644,522
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
31 March 2022
2022
2021
Notes
£
£
£
£
- 13 -
Capital and reserves
Called up share capital
27
94
97
Share premium account
6,556
5,238
Other reserves
(16,941)
4,186
Capital redemption reserve
46,752
46,748
Profit and loss reserves
2,802,248
2,360,920
Equity attributable to owners of the parent company
2,838,709
2,417,189
Non-controlling interests
231,945
227,333
3,070,654
2,644,522
The financial statements were approved by the board of directors and authorised for issue on 20 December 2022 and are signed on its behalf by:
20 December 2022
Mr. E Bailey
Director
INTERNATIONAL HAIR COSMETICS LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
31 March 2022
- 14 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
12
244,969
232,541
Tangible assets
14
145,460
69,156
Investments
16
16,465
8,073
406,894
309,770
Current assets
Stocks
18
1,859,040
1,753,918
Debtors
19
2,213,359
1,846,479
Cash at bank and in hand
144,564
158,962
4,216,963
3,759,359
Creditors: amounts falling due within one year
20
(2,280,364)
(2,045,486)
Net current assets
1,936,599
1,713,873
Total assets less current liabilities
2,343,493
2,023,643
Creditors: amounts falling due after more than one year
21
(76,167)
(66,516)
Net assets
2,267,326
1,957,127
Capital and reserves
Called up share capital
27
94
97
Share premium account
6,556
5,238
Capital redemption reserve
46,752
46,748
Profit and loss reserves
2,213,924
1,905,044
Total equity
2,267,326
1,957,127
The financial statements were approved by the board of directors and authorised for issue on 20 December 2022 and are signed on its behalf by:
20 December 2022
Mr. E Bailey
Director
Company Registration No. 03150196
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
Balance at 1 April 2020
97
5,238
46,748
65,288
1,989,605
2,106,976
153,503
2,260,479
Year ended 31 March 2021:
Profit for the year
-
-
-
-
858,073
858,073
73,829
931,902
Other comprehensive income:
-
Currency translation differences
-
-
-
(61,102)
-
(61,102)
-
(61,102)
Total comprehensive income for the year
-
-
-
(61,102)
858,073
796,971
73,829
870,800
Issue of share capital
-
-
-
(20)
-
(20)
Dividends
13
-
-
-
-
(486,759)
(486,759)
-
(486,759)
Balance at 31 March 2021
97
5,238
46,748
4,186
2,360,920
2,417,189
227,333
2,644,522
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
- 16 -
Year ended 31 March 2022:
Profit for the year
-
-
-
-
952,496
952,496
4,612
957,108
Other comprehensive income:
Currency translation differences on overseas subsidiaries
-
-
-
(21,127)
-
(21,127)
-
(21,127)
Total comprehensive income for the year
-
-
-
(21,127)
952,496
931,369
4,612
935,981
Dividends
13
-
-
-
-
(367,438)
(367,438)
-
(367,438)
Redemption of shares
27
(4)
-
-
-
(200,000)
(200,004)
-
(200,004)
Other movements
1
1,318
4
-
-
1,323
-
1,323
Balance at 31 March 2022
94
6,556
46,752
(16,941)
2,802,248
2,838,709
231,945
3,070,654
INTERNATIONAL HAIR COSMETICS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2020
97
5,238
46,748
1,546,120
1,598,203
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
-
845,683
845,683
Issue of share capital
-
-
(20)
Dividends
13
-
-
-
(486,759)
(486,759)
Balance at 31 March 2021
98
5,237
46,748
1,905,044
1,957,127
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
876,318
876,318
Dividends
13
-
-
-
(367,438)
(367,438)
Redemption of shares
27
(4)
-
-
(200,000)
(200,004)
Other movements
1
1,318
4
-
1,323
Balance at 31 March 2022
94
6,556
46,752
2,213,924
2,267,326
INTERNATIONAL HAIR COSMETICS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
613,566
24,292
Interest paid
(8,465)
(19,612)
Income taxes (paid)/refunded
(40,084)
19,839
Net cash inflow from operating activities
565,017
24,519
Investing activities
Purchase of intangible assets
(36,374)
(35,973)
Purchase of tangible fixed assets
(131,424)
(15,178)
Proceeds on disposal of tangible fixed assets
50,482
51,800
Proceeds on disposal of fixed asset investments
-
259,134
Decrease/(Increase) in other investments and loans
96,145
181,838
Interest received
2,013
6,343
Net cash (used in)/generated from investing activities
(19,158)
447,964
Financing activities
Proceeds from issue of shares
1,318
-
Redemption of shares
(200,004)
Repayment of bank loans
(75,364)
(94,931)
Payment of finance leases obligations
42,573
(64,039)
Dividends paid to equity shareholders
(367,438)
(486,759)
Net cash used in financing activities
(598,915)
(645,729)
Net decrease in cash and cash equivalents
(53,056)
(173,246)
Cash and cash equivalents at beginning of year
362,588
596,936
Effect of foreign exchange rates
35,146
(61,102)
Cash and cash equivalents at end of year
344,678
362,588
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
1
Accounting policies
Company information
International Hair Cosmetics Limited
(“the company”)
is a
private
company
limited by shares
domiciled and incorporated in
England and Wales
.
The registered office is
3 Acorn Business Centre, Northarbour Road, Cosham, Portsmouth, PO6 3TH. The business address is The Quadrangle, Premier Way, Abbey Road, Romsey, SO51 9DL.
The group consists of International Hair Cosmetics Limited and all of its subsidiaries.
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest
pound
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
For the purposes of its individual financial statements, the company is a qualifying entity under the FRS 102 Reduced Disclosure Framework and has taken advantage of the exemption from the following disclosure requirement.
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £876,318 (2021 - £845,683 profit).
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 20 -
1.2
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings, together with the group's share of the net assets and results of associated undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents amounts receivable for goods provided in the normal course of business, net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods
).
1.5
Intangible fixed assets other than goodwill
Intangible assets are stated at cost less amortisation. Intangibles are amortised to the profit and loss account over their estimated useful economic life. In the event that the trademark application represented by the asset is unsuccessful, the costs that have already been capitalised are treated as a disposal. Amortisation begins when the trademark has been accepted.
Research expenditure is written off against profits in the year in which it is incurred.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks and patents
7% straight line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
15% straight line
Fixtures and fittings
15% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line
Equipment
25% straight line
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 21 -
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 recognised in the
profit and loss account
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
group
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). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes all directly attributable costs incurred in getting the stock to its current location and condition. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 22 -
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans,
and
loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 23 -
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
group’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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transaction or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Timing differences are differences between the group's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.13
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 24 -
1.15
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the
Black-Scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 lease
d
asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset receive
d
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.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 25 -
1.18
Foreign exchange
Transactions in foreign currencies are translated at the exchange rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are taken to the profit and loss account.
For the purposes of preparing consolidated financial statements, the assets and liabilities of foreign subsidiary undertakings are translated at the exchange rates for the year, unless exchange rates fluctuated significantly in the year, in which case the exchange rates ruling at the dates of the transactions are used. Exchange differences arising are taken to the Group's foreign currency translation reserve.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows
:
Calculation of stock provisions
The group maintains a stock provision in order to maintain stock at the lower of cost and net realisable value. The provision is reviewed on a regular basis. The group uses specific criteria to calculate stock provisions, but establishing the criteria requires significant judgement. The group estimates the required provision using two methods:
(a) by reviewing the sales data in the accounting system and comparing the expected annual consumption of the product lines against the stock holding of the product. Where slow-moving products are identified proportional provisions are made based on management judgement
(b) by providing in full for specific product lines that management assess to be obsolete.
Share-based payments
In accordance with FRS 102 Section 26, the Directors have considered the fair value of the share options granted under the company's Equity Incentive Plan's with reference to the Black-Scholes pricing model, in calculating the expense to be recognised within the financial statements on a straight-line basis over the vesting period. The Directors have judged that the resulting expense is not significant to these financial statements and accordingly have not provided for this expense within these financial statements.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 26 -
3
Turnover and other revenue
Turnover analysed by geographical market
2022
2021
£'000
£'000
UK
5,093
3,491
Europe
2,361
1,860
USA
2,135
4,929
Rest of world
185
321
9,774
10,601
4
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
10,000
5
Operating profit/(loss)
2022
2021
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses
83,602
129,554
Government grants - Coronavirus Job Retention Scheme
(142,461)
(485,096)
Government grants - Other
-
(61,114)
Depreciation of owned tangible fixed assets
23,009
39,421
Depreciation of tangible fixed assets held under finance leases and hire purchase agreements
11,917
37,562
Profit on disposal of tangible fixed assets
(30,288)
9,132
Amortisation of intangible assets
23,946
23,867
Operating lease charges
256,631
247,053
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 27 -
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
270,867
213,304
Company pension contributions to defined contribution schemes
20,708
15,324
291,575
228,628
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2021 - 3).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
88,260
101,164
Company pension contributions to defined contribution schemes
6,942
6,942
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Administrative
22
18
18
14
Export
1
1
1
1
Marketing
5
5
5
5
Procurement
2
3
2
3
Sales
5
5
5
5
Technical
6
6
6
6
Warehouse
25
26
21
22
66
64
58
56
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
7
Employees
(Continued)
- 28 -
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,033,309
1,747,168
1,655,515
1,401,683
Social security costs
201,144
176,620
137,056
120,209
Pension costs
109,819
111,290
109,819
111,290
2,344,272
2,035,078
1,902,390
1,633,182
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
2,013
6,343
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
2,293
14,563
Interest on finance leases and hire purchase contracts
2,708
1,647
Other interest
3,464
3,402
Total finance costs
8,465
19,612
10
Profit/(loss) on investments
2022
2021
£
£
Gain on disposal of associated undertaking
-
399,454
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
130,934
11,896
Foreign current tax on profits for the current period
30,728
(26,859)
Total current tax
161,662
(14,963)
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11
Taxation
(Continued)
- 29 -
Deferred tax
Origination and reversal of timing differences
19,002
(30,437)
Total tax charge
180,664
(45,400)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
1,137,773
886,503
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
216,177
168,436
Tax effect of expenses that are not deductible in determining taxable profit
2,832
1,283
Gains not taxable
(75,896)
Change in unrecognised deferred tax assets
(3,898)
Effect of change in corporation tax rate
-
(1,206)
Amortisation on assets not qualifying for tax allowances
297
417
Research and development tax credit
(38,575)
(34,515)
Effect of overseas tax rates
(45)
(37,250)
Share issues
(4,252)
Fixed asset tax adjustment
4,230
Movement on bad debt provisions
(20,531)
Utilisation of trading losses
(7,765)
Utilisation of trading losses - overseas
-
(34,475)
Tax expense for the year
180,664
(45,400)
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 30 -
12
Intangible fixed assets
Group and Company
Trademarks and patents
£
Cost
At 1 April 2021
458,741
Additions - internally developed
36,374
At 31 March 2022
495,115
Amortisation and impairment
At 1 April 2021
226,200
Amortisation charged for the year
23,946
At 31 March 2022
250,146
Carrying amount
At 31 March 2022
244,969
At 31 March 2021
232,541
13
Dividends
2022
2021
£
£
Dividends paid to the company's shareholders
367,438
486,759
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 31 -
14
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 April 2021
71,014
60,726
149,506
91,410
52,284
424,940
Additions
25,276
106,148
131,424
Disposals
(860)
(77,410)
(78,270)
At 31 March 2022
71,014
60,726
173,922
120,148
52,284
478,094
Depreciation and impairment
At 1 April 2021
54,124
44,052
136,337
68,987
52,284
355,784
Depreciation charged in the year
10,314
5,851
6,844
11,917
34,926
Eliminated in respect of disposals
(18)
(58,058)
(58,076)
At 31 March 2022
64,438
49,903
143,163
22,846
52,284
332,634
Carrying amount
At 31 March 2022
6,576
10,823
30,759
97,302
145,460
At 31 March 2021
16,890
16,673
13,169
22,424
69,156
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
14
Tangible fixed assets
(Continued)
- 32 -
Company
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 April 2021
71,014
41,565
149,506
91,410
52,284
405,779
Additions
25,276
106,148
131,424
Disposals
(860)
(77,410)
(78,270)
At 31 March 2022
71,014
41,565
173,922
120,148
52,284
458,933
Depreciation and impairment
At 1 April 2021
54,124
24,891
136,337
68,987
52,284
336,623
Depreciation charged in the year
10,314
5,851
6,844
11,917
34,926
Eliminated in respect of disposals
(18)
(58,058)
(58,076)
At 31 March 2022
64,438
30,742
143,163
22,846
52,284
313,473
Carrying amount
At 31 March 2022
6,576
10,823
30,759
97,302
145,460
At 31 March 2021
16,890
16,673
13,169
22,424
69,156
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
14
Tangible fixed assets
(Continued)
- 33 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
97,302
22,423
97,302
22,423
Depreciation charge for the year in respect of leased assets
11,917
37,562
11,917
37,562
15
Subsidiaries
Details of the company's subsidiary at 31 March 2022 is as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Affinage Salon Professional Inc
USA
Ordinary
70
ASP Hair Limited
Ireland
Ordinary
100
International Hair Cosmetics Italia Srl
Italy
Ordinary
100
16
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
16,444
8,048
Investments in associates
17
21
25
16,465
8,073
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
16
Fixed asset investments
(Continued)
- 34 -
Group
At 1 April 2021
Additions
Share of total comprehensive income
Disposal
Total
£
£
£
£
£
Australian Salon Professional Pty Limited ("ASPP")
-
-
-
-
-
Asia Salon Professional Limited ("ASPL")
-
-
-
-
-
Total
-
-
-
-
-
Company
At 1 April 2021
Additions
Share of total comprehensive income
Disposal
Total
£
£
£
£
£
Australian Salon Professional Pty Limited ("ASPP")
21
-
-
-
21
Asia Salon Professional Limited ("ASPL")
4
-
-
(4)
-
Total
25
-
-
(4)
21
17
Associates
Details of associates at 31 March 2022 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Australian Salon Professional Pty Limited ("ASPP")
Australia
Supply and distribution of quality hair products
Ordinary
35.00
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 35 -
18
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
2,586,630
2,326,448
1,859,040
1,753,918
19
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,489,187
857,333
1,312,851
644,704
Amounts due from subsidiary undertakings
191,170
186,622
Amounts due from associate undertakings
15,610
15,610
Other debtors
644,895
883,092
630,944
877,710
Prepayments and accrued income
73,806
84,318
69,948
81,689
2,207,888
1,840,353
2,204,913
1,806,335
Amounts falling due after one year:
Deferred tax asset (note 23)
8,446
40,144
8,446
40,144
Total debtors
2,216,334
1,880,497
2,213,359
1,846,479
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 36 -
20
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
22
31,207
75,364
31,207
75,364
Obligations under finance leases and hire purchase agreements
24
13,597
11,882
13,597
11,882
Commercial finance loan
22
80,169
80,169
Trade creditors
644,848
370,995
629,481
346,452
Amounts due to group undertakings
100
Corporation tax payable
130,934
11,896
130,934
11,896
Other taxation and social security
145,391
73,953
130,663
73,546
Other creditors
43,538
23,477
43,539
16,231
Accruals and deferred income
1,332,390
1,452,955
1,300,843
1,429,946
2,341,905
2,100,691
2,280,364
2,045,486
21
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
22
31,207
31,207
Obligations under finance leases and hire purchase agreements
24
76,167
35,309
76,167
35,309
76,167
66,516
76,167
66,516
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 37 -
22
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
31,207
106,571
31,207
106,571
Commercial finance loan
80,169
80,169
31,207
186,740
31,207
186,740
Payable within one year
31,207
155,533
31,207
155,533
Payable after one year
31,207
31,207
The long-term loans are secured by fixed and floating charges over the company assets.
The commercial finance loan is secured on the trade debtors of the company.
The bank loan is repaid on a monthly basis over a total term of three years and accrues interest at 3.22% fixed rate.
23
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Group
£
£
£
£
Origination and reversal of timing differences
-
-
8,446
40,144
Timing differences on foreign taxation of subsidiaries
49,345
59,501
-
-
49,345
59,501
8,446
40,144
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Company
£
£
£
£
Origination and reversal of timing differences
-
-
8,446
40,144
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
23
Deferred taxation
(Continued)
- 38 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability/(Asset) at 1 April 2021
19,357
(40,144)
Charge to profit or loss
21,542
31,698
Liability/(Asset) at 31 March 2022
40,899
(8,446)
24
Finance lease and hire purchase obligations
Future minimum lease payments due under finance leases and hire purchase agreements:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
13,597
11,882
13,597
11,882
In two to five years
76,167
35,309
76,167
35,309
89,764
47,191
89,764
47,191
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery and vehicles, and the agreements are secured on the assets to which they relate. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,819
111,290
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 39 -
26
Share-based payment transactions
Equity-settled share based payments
The company has issued share options to certain individuals to subscribe for Ordinary D shares of the company. All of the share options have been granted under the company's 2010, 2015, 2017 and 2020 Equity Incentive Plans. A summary of the share options granted at 31 March 2022 are as follows:
Group
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 April 2021
150
50
31.15
19.60
Granted
-
100
-
36.92
Exercised
(50)
-
26.37
-
Outstanding at 31 March 2022
100
150
33.54
31.15
Company
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 April 2021
150
50
31.15
19.60
Granted
-
100
-
36.92
Exercised
(50)
-
26.37
-
Outstanding at 31 March 2022
100
150
33.54
31.15
The options outstanding at 31 March 2022 had an exercise price ranging from £20 to £36.92, and a remaining contractual life of 1 to 9 years.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 40 -
27
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
5,572
5,572
56
56
Ordinary B shares of 1p each
2,000
2,000
20
20
Ordinary C shares of 1p each
500
500
5
5
Ordinary D shares of 1p each
190
180
3
2
Ordinary E shares of 1p each
-
382
-
4
Ordinary F shares of 1p each
1,046
1,046
10
10
9,308
9,680
94
97
The ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.
On 20 August 2021 the company repurchased and subsequently cancelled 40 ordinary D shares and 382 ordinary E shares for £200,000. During the year the company issued 50 Ordinary D shares for £1,319
.
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 41 -
28
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
257,163
264,724
257,163
264,724
Between two and five years
856,638
854,985
856,638
854,985
In over five years
623,727
831,636
623,727
831,636
1,737,528
1,951,345
1,737,528
1,951,345
29
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2022
2021
2022
2021
£
£
£
£
Group
Entities in which the company has a participating interest
66,396
170,910
-
2,308,238
Entities in which the directors have a participating interest
501,263
554,868
-
-
Company
Fellow group undertakings
716,343
372,178
-
-
Entities in which the company has a participating interest
62,158
170,910
-
2,186,813
Entities in which the directors have a participating interest
501,263
554,868
-
-
INTERNATIONAL HAIR COSMETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
29
Related party transactions
(Continued)
- 42 -
The following amounts were outstanding at the reporting end date:
Amounts owed by related parties
2022
2021
£
£
Group
Entities in which the company has a participating interest
-
15,610
Entities in which the directors have a participating interest
263,974
87,458
Company
Fellow group undertakings
191,170
186,622
Entities in which the company has a participating interest
-
15,610
Entities in which the directors have a participating interest
263,974
87,458
No guarantees have been given or received.
During the year the company provided £nil (2021 - £243,786) against amounts receivable from entities in which the company has a participating interest. In the context of the consolidated accounts this impairment is net of historic provisions at a group level, and the effect on the group profit and loss account during the year is £4,238 (2021 - £135,737).
Dividends paid to directors and their immediate families were £267,438 (2021 - £486,759).
2022-03-31
2021-04-01
false
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
Mr. N Summer
Mr. D Bailey
Mr. T Pattison
Ms. C Bailey
Ms Claire Bailey
Mr. E Bailey
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