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Company registration number: 7118927
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FOR THE YEAR ENDED
31 JANUARY 2021
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VALOREM CAPITAL ONE LIMITED
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VALOREM CAPITAL ONE LIMITED
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COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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VALOREM CAPITAL ONE LIMITED
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CONTENTS
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Statement of financial position
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Notes to the financial statements
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VALOREM CAPITAL ONE LIMITED
REGISTERED NUMBER:7118927
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STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Capital redemption reserve
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VALOREM CAPITAL ONE LIMITED
REGISTERED NUMBER:7118927
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2021
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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D A Crisp
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The notes on pages 3 to 10 form part of these financial statements.
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Valorem Capital One Limited is a private company limited by shares, incorporated in England & Wales under the Companies Act, registration number 7118927.
The address of the registered office is Lynton House, 7-12 Tavistock Square, London, WC1H 9LT.
The address of the principal place of business is Unit 16, Quadrant Court, Crossways Business Park, Greenhithe, Kent, DA9 9AY.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The emergence of the 2020 Covid-19 pandemic and the associated social distancing measures and imposed travel restrictions has significantly impacted businesses at the time at which these accounts are being approved and the company is not immune to this. The directors are working to ensure the safety of their employees and maintaining the continuity of their operations as far as they are able, whilst adhering to Government advice.
The directors have taken all relevant measures to ensure they are able to safeguard cashflow, jobs, customers and supply chains to put them in the best possible position to be able to pick up on opportunities as they arise once business starts to return to normal.
It is difficult to estimate how Covid-19 will impact the company’s trading and for how long. Given the uncertainties that exist, this may cast significant doubt on the Company’s ability to continue as a going concern.
The directors are confident that as a result of the measures they have put into place, the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.Accounting policies (continued)
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Impairment of fixed assets and goodwill
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Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting 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 immediately in profit or loss.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.Accounting policies (continued)
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Financial instruments (continued)
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receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key source of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual income. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Stock provisions
Stock is carried in the statement of financial position at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock. The directors have used their knowledge and experience of the industry to determine the level of provision required based on the ageing profile of stock.
Bad debt provisions
In calculation of the year end bad debt provisions Management have made the provision based on their knowledge of their customers and their ability to repay its debts.
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The average monthly number of employees, including directors, during the year was 29 (2020 -23).
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
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Impairment of tangible fixed assets
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Charge for the year on owned assets
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
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Investments in associates
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Amounts owed by group undertakings
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Amounts owed by joint ventures and associated undertakings
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Prepayments and accrued income
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Derivative financial instruments at fair value
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
9.Debtors (continued)
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The company enters into foreign currency contracts to mitigate the exchange rate risk for certain foreign currency debtors. Details of the contracts outstanding at 31 January 2021 are as follows:
Contract Buy Sell Maturity
1 £250,000 €280,750 30/07/2021
2 £250,000 €280,750 29/07/2022
3 £1,379,698 $1,870,180 07/08/2023
The forward currency contracts are measured at fair value using quoted forward exchange rates.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Bank loans of £63,612 (2020: £183,517) are secured on a fixed and floating charge over all assets of the company and a personal guarantee given by the director.
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Creditors: Amounts falling due after more than one year
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The total of bank loans due after more than 5 years is £101,853.
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The company has provided a guarantee of $463,100 in respect of sale or return goods supplied to a customer.
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VALOREM CAPITAL ONE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
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Related Party Transactions
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At the period end there were loans due to CP Parfums Limited of £23,550 (2020 - £28,247). During the period, the company also recharged CP Parfums Limited £10,810 (2020 - £9,358). Valorem Capital One Limited owns a participating interest in CP Parfums Limited
During the year the Company was charged £15,936 (2019 - £16,159) by Crisp Finance Limited, a company owned by D A Crisp in respect of a personal guarantee which represents 3% of the liability secured.
In their report, the auditors emphasised the following matter without qualifying their report:
Events and conditions disclosed in note 2.2 indicate a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. The auditors' opinion was not modified in respect of this matter. The audit report was signed by Ralph Mitchison FCA (Senior statutory auditor) on behalf of Menzies LLP on 27/07/2020.
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