RELIGION RETAIL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
Company Registration No. 06757232 (England and Wales)
RELIGION RETAIL LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 10
RELIGION RETAIL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
-
49,585
Current assets
Inventories
-
239,022
Trade and other receivables
4
1
192,594
Cash and cash equivalents
-
39,658
1
471,274
Current liabilities
5
-
(382,322)
Net current assets
1
88,952
Total assets less current liabilities
1
138,537
Provisions for liabilities
6
-
(2,723)
Net assets
1
135,814
Equity
Called up share capital
7
1
1
Retained earnings
-
135,813
Total equity
1
135,814
The directors of the company have elected not to include a copy of the income statement 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 12 February 2020 and are signed on its behalf by:
Mr G P J Collins
Director
Company Registration No. 06757232
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 2 -
1
Accounting policies
Company information
Religion Retail Limited
("the company") distributes Religion branded clothing. The products are sold through direct-to-consumer distribution channels in the UK.
On 30 June 2018, all of the company's trade and assets were transferred to fellow subsidiary Religion Limited through the intercompany loan account. From 1 July 2018 the company became dormant and has been ever since.
The
company
is a private company limited by shares and is
incorporated
and domiciled
in England and Wales.
The registered office is
18 Hyde Gardens, Eastbourne, East Sussex, BN21 4PT.
Statement of compliance
The individual financial statements of Religion Retail Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and 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.
1.1
Accounting convention
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of Preparation
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of land and buildings and certain financial assets and liabilities measured at fair value through profit or loss.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgements in the process of applying the company's accounting policies.
Exemptions for qualifying entities under FRS 102
FRS 102 allows a qualifying entity certain disclosure exemptions. The company has taken advantage of the exemptions, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows, and paragraph 1.12(e), from disclosure of key management personnel compensation, on the basis that it is a qualifying entity and the parent of the smallest consolidated group to which the company is apart of, Collins Enterprises (UK), includes the company's cash flows and key management compensation in the consolidated financial statements.
These consolidated financial statements are available from its registered office
at 18 Hyde Gardens, Eastbourne, East Sussex, BN21 4PT.
1.2
Going concern
The company met its day to day working capital requirements by way of loans from companies within the group
true
of
which it is a member.
From the 1st July 2018 the
company
became dormant and
has received confirmation that the group companies concerned
that,
for
at least 12 months from the date of approval of these financial statements
and for
the foreseeable future
, any obligation that may arises relating to the company will be met by the group companies.
At the reporting date the are no balance sheet values and therefore no concern that the directors will not be able to met there obligations as and when they fall due.
On t
his
basis the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of
support by the group.
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 3 -
1.3
Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods and services rendered, net of returns, discounts and rebates allowed by the company and value added taxes.
The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to the company's sales channel has been met, as described below.
(i) Sale of goods - retail
The company operates retail shops for the sale of apparel, accessories and certain related products. Sale of goods are recognised on sale to the customer, which is considered the point of delivery. Retail sales are usually in cash, credit or payment card.
Sales are made to retail customers with a right to return within 28 days, subject to certain conditions regarding usage. Accumulated experience is used to estimate and provide for such returns at the time of sale.
(ii) Sale of goods - internet based transactions
The company sells goods via third party websites for delivery to the customer. Revenue is recognised when the risks and rewards of the inventory is passed to the customer. For deliveries to the customer this is the point of acceptance of the goods by the customer.
Provision is made for credit notes based on the expected level of returns which is based on the historical experience of returns.
1.4
Property, plant and equipment
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.
(i) Land and buildings
Land and buildings include leasehold retail outlets. Land and buildings are stated at cost less accumulated depreciation and accumulated impairment losses. The company has not-adopted the transition exemption under FRS 102 paragraph 35.10(d).
(ii)Plant and machinery and fixtures, fittings and equipment
Plant and machinery and fixtures, fittings and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
(iii) Depreciation and residual values
Tangible fixed assets are stated at cost less depreciation and
some
capital contributions. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as
per the
follow
ing table.
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
Fixtures, fittings & equipment
15% reducing balance method
Computer equipment
3 years straight line
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
(iv) Derecognition
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss and included in 'Other operating (losses)/gains'.
1.5
Impairment of non-current 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).
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.
Cost is determined on the first-in, first-out basis (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bring the inventory to its present location and conditions.
At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less cost to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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 trade and other receivables 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
method 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 company after deducting all of its liabilities.
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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 payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.
Current and deferred taxation assets and liabilities are not discounted.
(i) Current tax
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years
. Taxable profit differs from net profit as reported in the income statement 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.
Tax is calculated on the basis of
tax rates
and laws
that have been enacted or substantively enacted by the
period end.
(ii) Deferred tax
Deferred tax arises from timing difference that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
(i) Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
(ii) Defined contribution pension plans
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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 lease
s
asset are consumed.
1.13
Foreign exchange
(i) Functional and presentational currency
The company's functional and presentation currency is the pound sterling.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. There are no material foreign currency transactions.
1.14
The company classifies certain one-off charges or credits that have a material impact on the company's financial results as 'exceptional items'. These are disclosed separately to provide further understanding of the financial performance of the company.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 10 (2017 - 16).
The above employee numbers represents a period of 12 months. The employee numbers for the 6 month to the transfer of trade were 19.
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
3
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 January 2018
143,457
Additions
925
Transfers
(144,382)
At 31 December 2018
-
Depreciation and impairment
At 1 January 2018
93,872
Depreciation charged in the year
4,083
Transfers
(97,955)
At 31 December 2018
-
Carrying amount
At 31 December 2018
-
At 31 December 2017
49,585
4
Trade and other receivables
2018
2017
Amounts falling due within one year:
£
£
Trade receivables
-
125,477
Amounts owed by group undertakings
1
-
Other receivables
-
33,695
Prepayments and accrued income
-
33,422
1
192,594
5
Current liabilities
2018
2017
£
£
Trade payables
-
18,140
Amounts owed to group undertakings
-
243,868
Taxation and social security
-
20,321
Other payables
-
16,709
Accruals and deferred income
-
83,284
-
382,322
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 8 -
6
Deferred taxation
Deferred tax assets and liabilities are offset where the 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
2018
2017
Balances:
£
£
ACAs
-
2,723
2018
Movements in the year:
£
Liability at 1 January 2018
2,723
Credit to profit or loss
(2,723)
Liability at 31 December 2018
-
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary Shares of £1 each
1
1
8
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 qualified and the auditor reported as follows:
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
8
Audit report information
(Continued)
- 9 -
Qualified opinion on financial statements.
We have audited the financial statements of Religion Retail Limited
(the 'company')
for the year ended 31 December 2018 which comprise
, the Statement Of Financial Position 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, except for the possible effects of the matter described in the 'Basis for qualified opinion' paragraph, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to physical inventory quantities, the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2018 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 qualified opinion
With respect to inventory having a carrying value of £99,750 immediately prior to the transfer of trade and assets to a fellow subsidiary on 30 June 2018 the evidence available to us was limited because we were unable to observe the counting of physical inventories held at the stores prior to the transfer of inventory. We were unable to satisfy ourselves by alternative means concerning those inventory quantities held at 30 June 2018, which amount to £99,750 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary and the consequential effect on the cost of sales for the year ended 31 December 2018.
With respect to the comparative inventory having a carrying value of £239,022, which was subject to a qualification in 2017, we were unable to observe the counting of physical inventories of stores and those held by third parties at the comparative end of year. We were unable to satisfy ourselves by alternative means concerning those inventory quantities held at 31 December 2017, which amount to £84,755 and are included in the above comparative inventory value. Consequently we were unable to determine whether any adjustment to this amount as at 31 December 2017 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2018.
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 qualified opinion.
As described in the 'Basis for qualified opinion' section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £99,750 held at 30 June 2018, prior to the transfer to the fellow subsidiary, and £83,664 held at 31 December 2017. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.
RELIGION RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
8
Audit report information
(Continued)
- 10 -
Matters on which we are required to report by exception
Except for the matter described in the 'Basis for qualified opinion' section of our report, 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 directors' report.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:
-
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
-
we were unable to determine whether adequate accounting records had been maintained.
The senior statutory auditor was Neville Beckhurst FCA.
The auditor was Plummer Parsons.
9
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:
2018
2017
£
£
-
84,844
The above represents the obligations as at the reporting date. On 30 June 2018, immediately prior to the transfer, the company had obligations under contract of £61,705.
10
Related party transactions
Transactions with the members of the group
The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 not to disclose transactions entered into between two or more members of a group where the subsidiary which is party to the transaction is wholly owned by the other party.
At the year end the balance due from group companies was £1 (2017: £243,868) and the company concerned was Collins Enterprises (UK) Limited (2017: Religion Limited).
11
Parent company
The immediate and ultimate parent company is Collins Enterprises (UK) Limited, a company registered in England & Wales, and the registered office is 18 Hyde Gardens, Eastbourne, East Sussex, BN21 4PT.
The company was under the control of the director, Mr D J Collins, during both the current year and previous periods.