Company Registration No. 06901981 (England and Wales)
NATURAL INSTINCT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
NATURAL INSTINCT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
NATURAL INSTINCT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
141,739
56,787
Tangible assets
4
8,381,263
8,839,480
8,523,002
8,896,267
Current assets
Stocks
273,980
305,502
Debtors
5
429,745
443,581
Cash at bank and in hand
950,303
665,566
1,654,028
1,414,649
Creditors: amounts falling due within one year
6
(7,912,681)
(8,462,267)
Net current liabilities
(6,258,653)
(7,047,618)
Total assets less current liabilities
2,264,349
1,848,649
Creditors: amounts falling due after more than one year
7
(1,952)
Provisions for liabilities
(234,837)
(181,454)
Net assets
2,027,560
1,667,195
Capital and reserves
Called up share capital - fully paid up
6
6
Share premium account
13,325
13,325
Capital redemption reserve
2
2
Profit and loss reserves
2,014,227
1,653,862
Total equity
2,027,560
1,667,195
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
NATURAL INSTINCT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2020
31 December 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 June 2021 and are signed on its behalf by:
Mr K H Brackhaus
Director
Company Registration No. 06901981
NATURAL INSTINCT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
1
Accounting policies
Company information
Natural Instinct Limited is a
private
company
limited by shares
incorporated in England and Wales.
The
company's registered number and registered office address can be found on the company information page.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents net invoiced sales of goods, excluding value added tax and after discounts allowed. Turnover is recognised when goods are sold in store or dispatched by the company.
1.3
Intangible fixed assets other than goodwill
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Trademarks
evenly over an estimated useful life of ten years
Website & IT systems
evenly over an estimated useful life of ten years
Website & IT systems are amortised from the point that the benefit is received being the date that systems become ‘live’.
1.4
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.
Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.
NATURAL INSTINCT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Freehold land
See below
Leasehold land and buildings
20% on cost
Plant and equipment
10% on cost, 20% on cost
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
20% on cost
Factory building
Between 5% and 20% on cost
Freehold land is not depreciated.
On disposal, the difference between net proceeds and the carrying amount of item sold is recognised in the Profit and Loss Account.
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
1.5
Stocks
Cost comprises raw materials, finished goods as well as goods purchased for resale which are valued at the lower of cost or net realisable value. Cost is calculated on the cost of purchase on an average basis. Net realisable value is based on estimated selling prices.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in the Profit and Loss Account.
1.6
Financial instruments
Financial instruments are classified by directors as basic or non-basic following the conditions on FRS102 Section 11. Basic financial instruments are initially measured at transaction price and subsequently recognised at amortised cost using the effective interest method. The company does not have any financial non-basic instruments.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NATURAL INSTINCT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company’s pension scheme are charged to the Profit and Loss Account in the period to which they relate.
1.9
Operating leases
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in
the
profit or loss
account
.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
47
50
NATURAL INSTINCT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
3
Intangible fixed assets
Trademarks
Website & IT systems
Total
£
£
£
Cost
At 1 January 2020
3,332
88,484
91,816
Additions
-
85,761
85,761
At 31 December 2020
3,332
174,245
177,577
Amortisation and impairment
At 1 January 2020
2,665
32,364
35,029
Amortisation charged for the year
334
475
809
At 31 December 2020
2,999
32,839
35,838
Carrying amount
At 31 December 2020
333
141,406
141,739
At 31 December 2019
667
56,120
56,787
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Factory building
Total
£
£
£
£
Cost
At 1 January 2020
2,843,085
1,126,271
6,109,179
10,078,535
Additions
33,553
38,937
72,490
Disposals
(63,965)
(79,459)
(143,424)
At 31 December 2020
2,779,120
1,080,365
6,148,116
10,007,601
Depreciation and impairment
At 1 January 2020
63,965
764,416
410,674
1,239,055
Depreciation charged in the year
108,202
412,621
520,823
Eliminated in respect of disposals
(63,965)
(69,575)
(133,540)
At 31 December 2020
803,043
823,295
1,626,338
Carrying amount
At 31 December 2020
2,779,120
277,322
5,324,821
8,381,263
At 31 December 2019
2,779,120
361,855
5,698,505
8,839,480
NATURAL INSTINCT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
381,327
350,192
Other debtors
48,418
93,389
429,745
443,581
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
601,886
459,570
Amounts owed to group undertakings
6,590,000
7,590,000
Corporation tax
455,207
76,217
Other taxation and social security
143,940
52,255
Other creditors
121,648
284,225
7,912,681
8,462,267
A charge has been registered at Companies House in relation to the amounts owed to TFC Holding Corporation which is shown above as amounts owed to group undertakings. This has been secured against the property Unit C, Logistics City, Lyon Way, Frimley, GU16 7ER, being all property registered at the Land Registry under title number SY856797.
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
1,952
8
Parent company
TFC Holding Corporation is the ultimate controlling party. This company is registered in the British Virgin Islands.
9
Related party transactions
Transactions with related parties
During the year the company made loan repayments of £1,000,000 to TFC Holding Corporation. At the year end the balance of the loan owed to TFC Holding Corporation totalled £6,590,000 (2019 : £7,590,000).