Company Registration No. 09119941 (England and Wales)
FABIANA FILIPPI RETAIL (U.K) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
FABIANA FILIPPI RETAIL (U.K) LTD
COMPANY INFORMATION
Directors
Ms V Cocco
Mr M Filippi Coccetta
Mr S Sorbi
Company number
09119941
Registered office
42 Conduit Street
London
England
W1S 2YH
Accountants
AccountsCo
1 Purley Place
London
England
N1 1QA
FABIANA FILIPPI RETAIL (U.K) LTD
CONTENTS
Page
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 10
FABIANA FILIPPI RETAIL (U.K) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2018.
Principal activities
The principal activity of the company
was
that of
making sales of luxury Italian made fashion clothes and accessories through its shop in Mayfair, London.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms V Cocco
Mr M Filippi Coccetta
Mr S Sorbi
Significant events
The company's lease over the Mayfair shop is due to expire in 2020. The company has the right to renew the lease. It is currently the intention of the directors to renew the lease and these financial statements have been prepared on this basis.
The Accounts include an amount £99,845 (2017 £10,965) which is overdue from a tenant that rents office space above the company's shop in Mayfair. The company is currently negotiating a repayment plan for the overdue amounts with the tenant. A provision of £36,800 has been made against the receivable amount.
Going concern
The
directors anticipate that the
company will continue to receive financial support from its main shareholder, Fabiana Filippi S.p.a.
F
or
this
reason
,
the directors have determined that it is appropriate to prepare these financial statements on the basis that the company will continue as a going concern for the foreseeable future.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Ms V Cocco
Director
23 April 2019
FABIANA FILIPPI RETAIL (U.K) LTD
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 2 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
4
809,758
925,698
Current assets
Stocks
326,097
296,273
Debtors
5
448,632
316,484
Cash at bank and in hand
917,200
752,340
1,691,929
1,365,097
Creditors: amounts falling due within one year
6
(875,369)
(586,122)
Net current assets
816,560
778,975
Total assets less current liabilities
1,626,318
1,704,673
Creditors: amounts falling due after more than one year
7
(756,700)
(731,700)
Provisions for liabilities
(36,800)
-
Net assets
832,818
972,973
Capital and reserves
Called up share capital
8
1,000,000
1,000,000
Equity reserve
1,600,000
1,600,000
Profit and loss reserves
(1,767,182)
(1,627,027)
Total equity
832,818
972,973
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 2018 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.
FABIANA FILIPPI RETAIL (U.K) LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 23 April 2019 and are signed on its behalf by:
Ms V Cocco
Director
Company Registration No. 09119941
FABIANA FILIPPI RETAIL (U.K) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
- 4 -
Share capital
Equity reserve
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2017
1,000,000
600,000
-
(456,310)
1,143,690
Year ended 31 December 2017:
Loss and total comprehensive income for the year
-
-
-
(1,170,718)
(1,170,718)
Other movements
-
1,000,000
1,000,000
Balance at 31 December 2017
1,000,000
1,600,000
-
(1,627,027)
972,973
Year ended 31 December 2018:
Loss and total comprehensive income for the year
-
-
-
(140,155)
(140,155)
Balance at 31 December 2018
1,000,000
1,600,000
-
(1,767,182)
832,818
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 5 -
1
Accounting policies
Company information
Fabiana Filippi Retail (U.K) Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
42 Conduit Street, London, England, W1S 2YH.
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
.
The principal accounting policies adopted are set out below.
1.2
Going concern
The company's lease over the shop
in
Mayfair is due to expire in 2020. The company has the right to renew the lease. It is currently the intention of the directors to renew the lease and these financial statements have been prepared on this basis.
The
directors anticipate that the
company will continue to receive financial support from its main shareholder, Fabiana Filippi S.p.a.
. F
or these reasons, the directors have determined that it is appropriate to prepare these financial statements on the basis that the company will continue as a going concern for the foreseeable future.
1.3
Turnover and other operating income
Turnover represents amounts receivable for: 1) goods net of VAT and discounts; 2) rental of the upper floors of the premises located at 42 Conduit Street, net of VAT; and 3) merchant commissions.
Other income represents recharges to other group companies according to the contract in place.
Revenue from the sale of goods is recognised when the goods are sold from the shop. Revenue from the rent of the upper floors is apportioned according to the period of occupancy. Merchant commissions are accrued for once they are recognised and accepted by the merchant. Other operating income is apportioned according to the period that the services have been performed.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation
.
The company's main asset is its lease over its shop in Mayfair. This lease is due to expire in 2020. The company has the right to renew the lease. It is currently the intention of the directors to renew the lease and these financial statements have been prepared on this basis.
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives
. For this purpose it has been assumed that the company's lease over its shop in Mayfair will be extended. The following basis for residual lives have been used.
Leasehold Buildings
10 years
Fixtures, fittings & equipment
10 years
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
of the purchase cost of the stocks. Stocks are purchased from the company's main shareholder Fabiana Filippi S.p.a.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss.
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
.
1.8
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.
Classification of financial liabilities
Basic financial liabilities
Basic financial liabilities, including creditors
and
loans from
fellow group companies are
initially recognised at transaction price
.
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 at transaction price
.
1.9
Taxation
Deferred tax
As a result of the magnitude of the losses made in the years to 31 December 2018 the directors believe that it is not prudent to account for deferred tax assets within these financial statements.
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 7 -
1.10
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.11
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.
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 asset are consumed.
1.13
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 are included in the profit and loss account for the period.
2
Interest payable and similar expenses
2018
2017
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
4,689
11,390
3
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2018
2017
Notes
£
£
In respect of:
Property, plant and equipment
4
-
1,000,000
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
3
Impairments
(Continued)
- 8 -
4
Tangible fixed assets
Leasehold buildings
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2018
2,080,000
686,034
2,766,034
Additions
-
19,020
19,020
At 31 December 2018
2,080,000
705,054
2,785,054
Depreciation and impairment
At 1 January 2018
1,624,000
216,336
1,840,336
Depreciation charged in the year
65,143
69,817
134,960
At 31 December 2018
1,689,143
286,153
1,975,296
Carrying amount
At 31 December 2018
390,857
418,901
809,758
At 31 December 2017
456,000
469,698
925,698
Tangible fixed assets comprise entirely of costs relating to the company's shop in Mayfair.
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
145,488
20,578
Other debtors
303,144
295,906
448,632
316,484
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
5
Debtors
(Continued)
- 9 -
Other debtors £303,144 (2017: £295,906) includes rental deposits of £165,375 (2017: £165,375) paid by the company for its shop in Mayfair.
As at 31 December 2018 the Accounts included an amount of £99,845 due from tenant that rents office space above the company's shop in Mayfair. The company is negotiating a repayment plan for the overdue amounts. A provision of £36,800 has been made against the receivable amount.
6
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
21,764
22,674
Amounts due to group undertakings
788,313
522,318
Other taxation and social security
35,912
29,154
Other creditors
29,380
11,976
875,369
586,122
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Other creditors
756,700
731,700
Creditors: amounts falling due after more than one year £
756,700
(201
7
: £731,700) includes a loan from the company's main shareholder, Fabiana Filippi S.p.a. of £700,000
(201
7
: £700,000). The terms of the loan are that the lender will advance up to £2,800,000 to the company at an interest rate of 1% above Euribor 3 and that interest is payable on 10 January each year. The current term of the loan is that it is to be repaid by the company to Fabiana Filippi S.p.a. in full by 31 December 201
9
. The directors are in discussion with Fabiana Filippi S.p.a. to extend the deadline for repayment of this loan. The directors anticipate that these discussions will be successful.
At the board of directors meeting held 14 December 2017 a decision by Fabiana Filippi S.p.a to convert £1,000,000 of loans and payables due to Fabiana Filippi S.p.a into equity was ratified by the directors. This follows a similar decision made on the 11 May 2016 to convert £600,000 of loans and payables due to Fabiana Filippi S.p.a. into equity.
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000,000 Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
9
Uncertainties
FABIANA FILIPPI RETAIL (U.K) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
9
Uncertainties
(Continued)
- 10 -
The company has the right to renew the lease over its shop in Mayfair when it expires in 2020. It is the intention of the directors to renew the lease and these financial statements have been prepared on the basis that the lease will be extended.
10
Related party relationships and transactions
Transactions with Fabiana Filippi S.p.a.
During the year the company undertook the following transactions with Fabiana Filippi S.p.a.
• Purchase of goods for resale: £5
39,359
(201
7
: £
544,124
)
• Interest cost of inter-company loan: £
4,689
(201
7
: £1
1
,
390
)
• Recharged service cost: £10,
7
00 (201
7
: £
10,600
)
• Other income: £276,
278
(201
7
: £
276,278
)
At the balance sheet date the company had the following amounts due to Fabiana Filippi S.p.a.
•
Trade payables
: £
788,313
(201
7
: £
522,318
)
•
Loan
: £7
00
,
00
0 (201
7
:
£
700,000)
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Mr S Sorbi
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