Company registration number 08140744 (England and Wales)
TOTALLY WICKED LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
TOTALLY WICKED LIMITED
COMPANY INFORMATION
Directors
Mr F B N Cropper
Mr S J Mercer
Mr B G F Williamson
Mr L Humberstone
Mr M J Saxton
Mr J Urry
Company number
08140744
Registered office
Stancliffe Street
Blackburn
Lancashire
BB2 2QR
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Stancliffe Street
Blackburn
Lancashire
BB2 2QR
Bankers
HSBC Bank plc
60 Church Street
Blackburn
Lancashire
BB1 5AS
TOTALLY WICKED LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
TOTALLY WICKED LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 202
2
.
Review of business
The company is primarily an intermediate holding company and also holds various freehold property (that is leased to other group subsidiaries) and various intellectual property assets (that are licensed to other group subsidiaries).
The business has emerged from the Covid-19 pandemic, which caused significant disruption to the sector, in a strong financial position as a result of the combination of a strong and established omni-channel proposition, and enduring consumer demand for the brand.
The business has managed to maintain a material proportion of the significant number of new customers that our two principle e-commerce sites; totallywicked.co.uk and theelectroniccigarettecompany.co.uk attracted during the various lockdown periods in the pandemic, which has resulted in a much stronger performance from this division than was anticipated when retail stores reopened.
The anti-smoking charity Action on Smoking and Health (ASH) released the results of their latest survey indicating that there are now 4.3m vapers in 2022, an increase of 17% from 2021, and the highest rate ever. The main reason given by ex-smokers for vaping continued to be to help them quit smoking. This increase in vapers has contributed to the continued growth and strong performance of the business.
During the second half of the year, there was an increasing trend in consumer habits towards disposable e-cigarettes. The simplicity of these products has attracted a significant number of new adult vapers into the sector, and our business, allowing a new cohort of smokers to transition to a significantly reduced harm product. To capitalise on this material and incremental revenue stream, the group has successfully partnered with a number of number of principal brand leaders, whilst at the same time launching our own Totally Wicked range of branded products, which enable us to capitalise on the scale disposable market of today, whilst also transitioning customers through a product set which is more environmentally sustainable, and strategically advantageous.
The recovery of the retail business since the pandemic has been better than anticipated, partly driven by the rise in the number of vapers, and partly by a slowing of new openings from competitors who are not able to provide the fully integrated offering and investment that the group has been able to make.
Totally Wicked remains absolutely committed to its retail store portfolio which consisted of 148 dedicated vaping stores at the year-end (74 corporate and 74 dedicated resellers). Retail is critical to enabling Totally Wicked to offer the advice and expertise that has and will continue to enable many 1000’s of successful quit attempts of smokers, and deliver on our purpose of “empowering smokers to transform their lives”.
The distribution division of UK Vapour Brands delivered a strong recovery during the year as the independent vaping sector reopened following the epidemic. The recent and ongoing investment made into UKVB’s principal ecommerce operation (theelectroniccigarettcompany.co.uk) enabled it to consolidate the growth achieved during the various lockdowns of the prior year.
Throughout this period, the main advocates of vaping in the UK have remained steadfastly supportive of the positive benefits of smokers switching to vaping, including Public Health England (now the Office for Health Improvement and Disparities), Department of Health, NHS, Cancer Research UK and the Royal College of Physicians.
The business also commenced the renewal and reorganisation of its Stancliffe Street production facilities during the period to generate greater production efficiencies at the Blackburn based site.
TOTALLY WICKED LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Principal risks and uncertainties
Sterling entered a period of decline against the US dollar during the year, which negatively impacted the landed cost of the group’s hardware products. Currency fluctuations continue to remain a risk.
The Group is exposed to the risk of exchange rate movements (primarily US$) and from time to time uses exchange rate hedging products to reduce some of this risk. The company does not actively use any other financial instruments as part of its financial risk management.
The Group has a fixed 4 year credit facility (expiring September 2022) with HSBC Bank plc that is repayable on a straight line amortising basis. Other credit facilities are provided in the form of various vendor loan notes provided by existing and former shareholders. Both have variable interest rates.
The UK government is currently carrying out a consultation to see what regulatory changes could potentially be made to further enable vaping as the most effective smoking cessation method in the UK.
..............................
Mr M J Saxton
Director
Date: .............................................
TOTALLY WICKED LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company is that of a
n intermediate
holding company, co-ordinating the activities of its subsidiary undertakings.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr F B N Cropper
Mr S J Mercer
Mr B G F Williamson
Mr L Humberstone
Mr M J Saxton
Mr J Urry
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £6,500,000. The directors do not recommend payment of a final dividend.
Auditor
The auditor, Pierce C A Limited, 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 company’s
auditor
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 company’s
auditor
is aware of that information.
On behalf of the board
Mr M J Saxton
Director
11 October 2022
TOTALLY WICKED LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
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 company and of the profit or loss of the company 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;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TOTALLY WICKED LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOTALLY WICKED LIMITED
- 5 -
Opinion
We have audited the financial statements of Totally Wicked Limited (the 'company') for the year ended 31 March 2022 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 company's affairs as at 31 March 2022 and of its 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 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.
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.
TOTALLY WICKED LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTALLY WICKED LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
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 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.
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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:
-
The nature of the industry, the company’s control environment, the significant laws and regulations relevant to the company, and the company’s policies on detection of fraud;
-
Results of our enquiries of management and of those charged with governance;
-
Our review of disclosures included in the financial statements, and
-
Engagement team discussions in respect of any potential indicators of non-compliance or fraud.
We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.
We did not identify a material risk of non-compliance with laws and regulations or of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
TOTALLY WICKED LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TOTALLY WICKED LIMITED
- 7 -
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.
Simon Diggle (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
11 October 2022
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
TOTALLY WICKED LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
Notes
£
£
Turnover
2
1,255,000
1,255,000
Administrative expenses
(667,394)
(708,794)
Operating profit
3
587,606
546,206
Interest receivable and similar income
5
5,500,007
7,500,046
Interest payable and similar expenses
6
(312)
Profit before taxation
6,087,301
8,046,252
Taxation
7
(175,105)
(59,976)
Total comprehensive income for the year
5,912,196
7,986,276
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TOTALLY WICKED LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
10
14,095
16,903
Tangible assets
9
7,325,397
7,492,422
Investments
11
966,860
966,860
8,306,352
8,476,185
Current assets
Debtors
13
11,736
11,736
Cash at bank and in hand
258,422
578,232
270,158
589,968
Creditors: amounts falling due within one year
14
(88,130)
(165,074)
Net current assets
182,028
424,894
Total assets less current liabilities
8,488,380
8,901,079
Provisions for liabilities
Deferred tax liability
15
175,105
(175,105)
-
Net assets
8,313,275
8,901,079
Capital and reserves
Called up share capital
16
58,800
58,800
Profit and loss reserves
8,254,475
8,842,279
Total equity
8,313,275
8,901,079
The financial statements were approved by the board of directors and authorised for issue on 11 October 2022 and are signed on its behalf by:
Mr M J Saxton
Director
Company Registration No. 08140744
TOTALLY WICKED LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
58,800
8,856,003
8,914,803
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
7,986,276
7,986,276
Dividends
8
-
(8,000,000)
(8,000,000)
Balance at 31 March 2021
58,800
8,842,279
8,901,079
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
5,912,196
5,912,196
Dividends
8
-
(6,500,000)
(6,500,000)
Balance at 31 March 2022
58,800
8,254,475
8,313,275
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
1
Accounting policies
Company information
Totally Wicked Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Stancliffe Street, Blackburn, Lancashire, BB2 2QR.
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.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption in FRS 102 paragraph 1.12 from the requirement to produce a cash flow statement and to disclose certain related party
transactions.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The ultimate parent company is Totally Wicked Holdings Limited, a company registered in England and Wales. Totally Wicked Holdings
Limited prepares group financial statements and these can be obtained from the company's registered office.
1.2
Going concern
The directors are not aware of any material uncertainties affecting the company and consider that the company will have sufficient resources to continue trading for the foreseeable future. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.
true
Whilst the directors have adopted the going concern basis set out above, the impact of the worldwide Coronavirus pandemic, Covid-19, on all businesses represents an uncertainty and the true impact of this pandemic will only become apparent over time.
The directors have given due consideration to the impact of the pandemic on the company and consider that it will have adequate resources to manage that impact.
1.3
Turnover
Turnover represents amounts receivable for
rent and licence fees
net of VAT
.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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
10% on cost
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 12 -
1.5
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:
Land and buildings freehold
2% on cost
Plant and machinery
25% on cost
Fixtures, fittings & equipment
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests in subsidiaries
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
1.8
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.
1.9
Financial instruments
The company 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 company's balance sheet 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
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
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.
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including
creditors
, 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 creditors
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 creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax
.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover
Rent receivable
255,000
255,000
Licence fees and management fees receivable
1,000,000
1,000,000
1,255,000
1,255,000
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
2
Turnover and other revenue
(Continued)
- 15 -
2022
2021
£
£
Other significant revenue
Interest income
7
46
Dividends received
5,500,000
7,500,000
Turnover analysed by geographical market
2022
2021
£
£
United Kingdom
1,255,000
1,255,000
3
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
3,000
1,500
Depreciation of owned tangible fixed assets
167,025
190,143
Amortisation of intangible assets
2,808
2,808
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Directors
6
6
5
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
7
46
Income from fixed asset investments
Income from shares in group undertakings
5,500,000
7,500,000
Total income
5,500,007
7,500,046
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
5
Interest receivable and similar income
(Continued)
- 16 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
7
46
6
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Other interest
312
7
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
59,976
Deferred tax
Origination and reversal of timing differences
175,105
Total tax charge
175,105
59,976
The actual charge 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
6,087,301
8,046,252
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,156,587
1,528,788
Tax effect of expenses that are not deductible in determining taxable profit
534
534
Effect of change in corporation tax rate
31,581
Group relief
(100,161)
Permanent capital allowances in excess of depreciation
10,395
(62,007)
Depreciation on assets not qualifying for tax allowances
21,161
17,661
Deferred tax adjustments in respect of prior years
100,008
Dividend income
(1,045,000)
(1,425,000)
Taxation charge for the year
175,105
59,976
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
8
Dividends
2022
2021
£
£
Interim paid
6,500,000
8,000,000
9
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2021 and 31 March 2022
8,033,007
144,900
166,607
8,344,514
Depreciation and impairment
At 1 April 2021
546,943
144,900
160,249
852,092
Depreciation charged in the year
160,667
6,358
167,025
At 31 March 2022
707,610
144,900
166,607
1,019,117
Carrying amount
At 31 March 2022
7,325,397
7,325,397
At 31 March 2021
7,486,064
6,358
7,492,422
10
Intangible fixed assets
Goodwill
Trademarks
Total
£
£
£
Cost
At 1 April 2021 and 31 March 2022
8,021,549
7,528,135
15,549,684
Amortisation and impairment
At 1 April 2021
8,021,549
7,511,232
15,532,781
Amortisation charged for the year
2,808
2,808
At 31 March 2022
8,021,549
7,514,040
15,535,589
Carrying amount
At 31 March 2022
14,095
14,095
At 31 March 2021
16,903
16,903
11
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
12
966,860
966,860
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
12
Subsidiaries
These financial statements are separate company financial statements for Totally Wicked Limited.
Details of the company's subsidiaries at 31 March 2022 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Pillbox38 (UK) Limited
1
Ordinary
100.00
The Electronic Cigarette Company (UK) Ltd
1
Ordinary
100.00
Totally Wicked E-Liquid (Europe) GmbH
2
Ordinary
90.00
UK Vapour Brands Limited
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Stancliffe Street, Blackburn, Lancashire, BB2 2QR
2
Siemensstr. 7, 93055 Regensburg, Deutschland
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
11,736
11,736
14
Creditors: amounts falling due within one year
2022
2021
£
£
Amounts owed to group undertakings
43,272
42,756
Corporation tax
59,966
Other taxation and social security
41,859
37,105
Accruals and deferred income
2,999
25,247
88,130
165,074
15
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
2022
2021
Balances:
£
£
ACAs
242,919
-
Tax losses
(67,814)
-
175,105
-
TOTALLY WICKED LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
15
Deferred taxation
(Continued)
- 19 -
2022
Movements in the year:
£
Liability at 1 April 2021
-
Charge to profit or loss
175,105
Liability at 31 March 2022
175,105
16
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
49,200
49,200
49,200
49,200
B Ordinary shares of £1 each
9,000
9,000
9,000
9,000
D Ordinary shares of £1 each
600
600
600
600
58,800
58,800
58,800
58,800
17
Financial commitments, guarantees and contingent liabilities
The company, together with fellow group companies, has provided its bankers with a multilateral guarantee. At the balance sheet date an amount of £
1
,
875
,
0
00 (20
21 -
£
5
,
625
,
0
00) was outstanding in respect of this guarantee.
T
he company, together with fellow group companies,
has
provided a guarantee in favour of Mr F B N Cropper as Security Trustee which is secured over the assets of this and fellow group companies. At the balance sheet date the outstanding amount in respect of this guarantee was £10
0
,
3
05,334 (20
21 -
£10
2
,
805
,
334
).
18
Related party transactions
The company has taken advantage of the provisions of FRS 102 to not disclose transactions and balances with companies which are within the same wholly owned group of companies, and which are therefore eliminated on consolidation.
19
Events after the reporting date
Subsequent to the balance sheet date, the company declared, and paid, a dividend amounting to £500,000.
2022-03-31
2021-04-01
false
CCH Software
CCH Accounts Production 2022.300
Mr F B N Cropper
Mr S J Mercer
Mr S J Mercer
Mr L Humberstone
Mr B G F Williamson
Mr J Urry
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