Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-202023-01-202023-01-20The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income 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 and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.During the year the Company charged £2,769 (2022 - £7,734) to Blackstone Design Limited in respect of office facilities. At the reporting date, the Company was owed £209,387 (2022 - £209,387) by Blackstone Design Limited, a company jointly-owned by the Company and E M Abraham. Interest of £4,067 (2022 - £4,120) was charged on the loan. a company jointly-owned by the Company and E M Abraham During the year, the Company paid rent of £500,000 (2022 - £500,000) to Eric M Abraham. At the reporting date, the Company was owed £5,264,992 (2022 - £5,252,602) by Curtain Road Properties Limited, included in other debtors. Curtain Road Properties Limited is a joint venture company registered in Guernsey in which Eric Abraham has an interest. There are no repayment terms or interest charges for this balance. During the year, the Company made sales amounting to £4,761 (2022 - £290,470) to its subsidiary, Sock Ons Limited. At the reporting date, the Company was owed £4,017 (2022 - £30,057) by Sock Ons Limited, included within trade debtors. At the reporting date, the Company was owed £20,379 (2022 - £20,379) by E M Abraham Limited, a company in which Eric M Abraham has a material interest. During the year the Company paid a dividend of £7,000,000 (2022 - £700,000) to Eric M Abraham, a director of the Company.75305498775Blackstone Design Limited Eric M Abraham Curtain Road Properties Limited Sock Ons Limited E M Abraham Limited Eric M Abraham7500000false2022-01-21false38wholesale of clothing40false 00955238 2022-01-21 2023-01-20 00955238 2021-01-21 2022-01-20 00955238 2023-01-20 00955238 2022-01-20 00955238 2021-01-21 00955238 c:Director1 2022-01-21 2023-01-20 00955238 c:Director2 2022-01-21 2023-01-20 00955238 c:Director3 2022-01-21 2023-01-20 00955238 c:Director4 2022-01-21 2023-01-20 00955238 c:RegisteredOffice 2022-01-21 2023-01-20 00955238 d:Buildings d:LongLeaseholdAssets 2022-01-21 2023-01-20 00955238 d:Buildings d:LongLeaseholdAssets 2023-01-20 00955238 d:Buildings d:LongLeaseholdAssets 2022-01-20 00955238 d:PlantMachinery 2022-01-21 2023-01-20 00955238 d:PlantMachinery 2023-01-20 00955238 d:PlantMachinery 2022-01-20 00955238 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-01-21 2023-01-20 00955238 d:MotorVehicles 2022-01-21 2023-01-20 00955238 d:MotorVehicles 2023-01-20 00955238 d:MotorVehicles 2022-01-20 00955238 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-01-21 2023-01-20 00955238 d:FurnitureFittings 2022-01-21 2023-01-20 00955238 d:FurnitureFittings 2023-01-20 00955238 d:FurnitureFittings 2022-01-20 00955238 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-01-21 2023-01-20 00955238 d:OwnedOrFreeholdAssets 2022-01-21 2023-01-20 00955238 d:CurrentFinancialInstruments 2023-01-20 00955238 d:CurrentFinancialInstruments 2022-01-20 00955238 d:Non-currentFinancialInstruments 2023-01-20 00955238 d:Non-currentFinancialInstruments 2022-01-20 00955238 d:CurrentFinancialInstruments d:WithinOneYear 2023-01-20 00955238 d:CurrentFinancialInstruments d:WithinOneYear 2022-01-20 00955238 d:Non-currentFinancialInstruments d:AfterOneYear 2023-01-20 00955238 d:Non-currentFinancialInstruments d:AfterOneYear 2022-01-20 00955238 d:ShareCapital 2023-01-20 00955238 d:ShareCapital 2022-01-20 00955238 d:ShareCapital 2021-01-21 00955238 d:RetainedEarningsAccumulatedLosses 2022-01-21 2023-01-20 00955238 d:RetainedEarningsAccumulatedLosses 2023-01-20 00955238 d:RetainedEarningsAccumulatedLosses 2021-01-21 2022-01-20 00955238 d:RetainedEarningsAccumulatedLosses 2022-01-20 00955238 d:RetainedEarningsAccumulatedLosses 2021-01-21 00955238 d:AcceleratedTaxDepreciationDeferredTax 2023-01-20 00955238 d:AcceleratedTaxDepreciationDeferredTax 2022-01-20 00955238 d:TaxLossesCarry-forwardsDeferredTax 2023-01-20 00955238 d:TaxLossesCarry-forwardsDeferredTax 2022-01-20 00955238 c:OrdinaryShareClass1 2022-01-21 2023-01-20 00955238 c:OrdinaryShareClass1 2023-01-20 00955238 c:OrdinaryShareClass1 2022-01-20 00955238 c:OrdinaryShareClass2 2022-01-21 2023-01-20 00955238 c:OrdinaryShareClass2 2023-01-20 00955238 c:OrdinaryShareClass2 2022-01-20 00955238 c:FRS102 2022-01-21 2023-01-20 00955238 c:Audited 2022-01-21 2023-01-20 00955238 c:FullAccounts 2022-01-21 2023-01-20 00955238 c:PrivateLimitedCompanyLtd 2022-01-21 2023-01-20 00955238 d:Subsidiary1 2022-01-21 2023-01-20 00955238 d:Subsidiary1 1 2022-01-21 2023-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2023-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2022-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2023-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2022-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:MoreThanFiveYears 2023-01-20 00955238 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:MoreThanFiveYears 2022-01-20 00955238 c:Consolidated 2023-01-20 00955238 c:ConsolidatedGroupCompanyAccounts 2022-01-21 2023-01-20 00955238 2 2022-01-21 2023-01-20 00955238 6 2022-01-21 2023-01-20 00955238 3 2023-01-20 00955238 3 2022-01-20 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 00955238














EMA TEXTILES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

 
EMA TEXTILES LIMITED
 
 
COMPANY INFORMATION


Directors
E M Abraham 
Eric M Abraham 
N C Ross-Field 
L C Zelkha 




Registered number
00955238



Registered office
62-72 Tabernacle Street

London

EC2A 4LR




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD





 
EMA TEXTILES LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Statement of Financial Position
 
10 - 11
Company Statement of Financial Position
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14
Consolidated Analysis of Net Debt
 
15
Notes to the Financial Statements
 
16 - 34


 
EMA TEXTILES LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 20 JANUARY 2023

Introduction
 
The directors present their Group Strategic Report for the year ended 20 January 2023. 

Business review
 
Overall trading conditions in the clothing market have remained difficult for the Group’s key customers with high street sales affected by the cost-of-living crisis, lagged effects of the COVID-19 pandemic and changes in shopping patterns.
The main highlights for the year are as follows:

Group turnover has improved from £21.4m to £23.6m but gross margins have suffered slightly;

Administrative expenses have increased by 5%, after stripping out the effect of exchange rate gains (2022 - losses);

A downfall in financial market conditions at the Statement of Financial Position date has seen the loss of most of the previous year's unrealised gains on the carrying value of the Company's listed investment portfolio with an overall unrealised deficit of £4m for the year compared to a fair value gain of £4.8m in 2022;

Other investment income has increased this year from £1.6m to £2m.

Financial Position
The financial position of the Group remains strong with Group net assets of approximately £77m (2022 - £85m) and no debt.
The management of the business and the execution of the Group's strategy are, of course, subject to the normal commercial risks affecting the retail clothing industry in the UK. As a very long-established business EMA Textiles Limited has built strong associations with leading retailers and developed enduring relationships with reputable overseas suppliers who continue to work closely with the Company.

Principal risks and uncertainties
 
The principal risks and uncertainties faced by the Group comprise: 
• Economic Downturns: Economic downturns can lead to reduced consumer spending, which may affect demand.
• Customer retention: The textiles industry is highly competitive. It can be challenging to retain key customers so it is important to continue to provide high quality products and customer service levels with competitive pricing.
• Supplier Reliability:  financial problems or operational issues encountered by a supplier can disrupt the supply chain.
• Fluctuating Currency Exchange Rates: Exchange rate fluctuations can affect costs of imports.
• Quality Control and Product Consistency: Maintaining consistent quality in imported textiles is crucial for customer satisfaction. 
• Increased awareness of global environmental issues and employer’s responsibilities to their workforce has led to stricter enforcement of regulations. The consequences of any failure to comply may cause a risk to  both the supply and sale of product. 
• Logistical Challenges: Shipping and logistics issues, including port congestion, strikes, and transportation capacity shortages, can disrupt the flow of goods
• Tariffs and Trade Policies: Changes in international trade policies, tariffs, and trade agreements can impact the cost and availability of textiles from specific regions or countries.

Page 1

 
EMA TEXTILES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 20 JANUARY 2023

Financial key performance indicators
 
The directors consider the key performance indicators of the business to be gross margin, operating profit and returns on investments as set out in the Consolidated Statement of Comprehensive Income on page 9.

 

This report was approved by the board on 5 October 2023 and signed on its behalf.



Eric M Abraham
Director

Page 2

 
EMA TEXTILES LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 20 JANUARY 2023

The directors present their report and the financial statements for the year ended 20 January 2023.

Directors

The directors who served during the year were:

E M Abraham 
Eric M Abraham 
N C Ross-Field 
L C Zelkha 

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £1,131,715 (2022 - profit £5,366,084).

During the year, dividends of £7,000,000 (2022 - £700,000) were paid to the controlling shareholders and £51,450 (2022 - £29,400) paid to non-controlling interests.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

The directors are hopeful that they will be able to maintain the Group's trading activities in the ensuing year and that the Group is well placed to take advantage of new market opportunities.

Engagement with employees

Management encourage the involvement and participation of the employees in the Group and make every effort to ensure regular contact and exchange of information with staff. It is the Group's policy to give full and fair consideration to suitable applications from disabled persons for employment. 

Page 3

 
EMA TEXTILES LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 20 JANUARY 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Events after the reporting date

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 5 October 2023 and signed on its behalf.
 





Eric M Abraham
Director

Page 4

 
EMA TEXTILES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMA TEXTILES LIMITED

Opinion


We have audited the financial statements of EMA Textiles Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 20 January 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 20 January 2023 and of the Group's 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 opinion


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.


In connection with our audit of the financial statementsour 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the
Page 5

 
EMA TEXTILES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMA TEXTILES LIMITED (CONTINUED)

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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' 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' Responsibilities Statement set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
EMA TEXTILES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMA TEXTILES LIMITED (CONTINUED)

Auditors' 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 Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience of the clothing, property and equity investment sectors;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and 
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Group’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
 
agreeing financial statement disclosures to underlying supporting documentation; 
enquiring of management as to actual and potential litigation and claims; and 
reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations
Page 7

 
EMA TEXTILES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EMA TEXTILES LIMITED (CONTINUED)

to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

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 2006Our 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 Auditors' 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.





Stephen Iseman FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

5 October 2023
Page 8

 
EMA TEXTILES LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 20 JANUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
23,565,682
21,407,490

Cost of sales
  
(22,307,594)
(20,178,479)

Gross profit
  
1,258,088
1,229,011

Administrative expenses
  
(1,483,016)
(1,937,374)

Other operating income
 5 
840,456
1,043,001

Operating profit
 6 
615,528
334,638

Income from fixed assets investments
  
-
150,000

Income from current assets investments
 10 
1,572,064
965,657

Loss on disposal of investments
  
(125,679)
(190,051)

Interest receivable and similar income
 11 
415,069
443,323

Fair value movements
  
(3,961,708)
4,792,562

(Loss)/profit before taxation
  
(1,484,726)
6,496,129

Taxation
 12 
334,233
(1,033,623)

(Loss)/profit for the financial year
  
(1,150,493)
5,462,506

(Loss)/profit for the year attributable to:
  

Non-controlling interests
  
(18,778)
96,422

Owners of the parent Company
  
(1,131,715)
5,366,084

  
(1,150,493)
5,462,506

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 16 to 34 form part of these financial statements.

Page 9

 
EMA TEXTILES LIMITED
REGISTERED NUMBER:00955238

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 20 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
12,319
25,239

Tangible assets
 16 
68,161
75,850

Investments
 17 
410,000
410,000

Investment property
 18 
11,800,251
11,800,251

  
12,290,731
12,311,340

Current assets
  

Stocks
 19 
640,228
792,122

Debtors: amounts falling due within one year
 20 
11,843,719
11,294,298

Current asset investments
 21 
45,957,191
51,659,526

Cash at bank and in hand
 22 
10,486,679
14,396,829

  
68,927,817
78,142,775

Current liabilities
  

Creditors: amounts falling due within one year
 23 
(2,258,411)
(2,765,601)

Net current assets
  
 
 
66,669,406
 
 
75,377,174

Total assets less current liabilities
  
78,960,137
87,688,514

Creditors: amounts falling due after more than one year
 24 
(110,000)
(110,000)

Provisions for liabilities
  

Deferred taxation
 25 
(2,166,951)
(2,693,385)

Net assets
  
76,683,186
84,885,129


Capital and reserves
  

Called up share capital 
 26 
1,000,541
1,000,541

Profit and loss account
 27 
75,369,025
83,500,740

Equity attributable to owners of the parent Company
  
76,369,566
84,501,281

Non-controlling interests
  
313,620
383,848

  
76,683,186
84,885,129


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 October 2023.



Eric M Abraham
Director

The notes on pages 16 to 34 form part of these financial statements.
Page 10

 
EMA TEXTILES LIMITED
REGISTERED NUMBER:00955238
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 20 JANUARY 2023


Page 11

 
EMA TEXTILES LIMITED
REGISTERED NUMBER:00955238

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 20 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
64,203
71,361

Investments
 17 
820,040
820,040

Investment property
 18 
11,800,251
11,800,251

  
12,684,494
12,691,652

Current assets
  

Stocks
 19 
35,149
40,328

Debtors: amounts falling due within one year
 20 
11,542,076
11,280,009

Current asset investments
 21 
45,957,190
51,659,526

Cash at bank and in hand
 22 
10,278,735
14,246,299

Current liabilities
  
67,813,150
77,226,162

Creditors: amounts falling due within one year
 23 
(1,852,644)
(2,667,490)

Net current assets
  
 
 
65,960,506
 
 
74,558,672

Total assets less current liabilities
  
78,645,000
87,250,324

  

Creditors: amounts falling due after more than one year
 24 
(110,000)
(110,000)

Provisions for liabilities
  

Deferred taxation
 25 
(2,166,951)
(2,693,385)

Net assets
  
76,368,049
84,446,939


Capital and reserves
  

Called up share capital 
 26 
1,000,541
1,000,541

Profit and loss account
  
75,367,508
83,446,398

  
76,368,049
84,446,939


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 October 2023.


Eric M Abraham
Director

The notes on pages 16 to 34 form part of these financial statements.

Page 12

 
EMA TEXTILES LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 20 JANUARY 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


At 1 January 2021
1,000,541
78,834,656
79,835,197
316,826
80,152,023



Profit for the year
-
5,366,084
5,366,084
96,422
5,462,506

Dividends: Equity capital
-
(700,000)
(700,000)
-
(700,000)

Dividends: paid to non-controlling interests
-
-
-
(29,400)
(29,400)



At 21 January 2022
1,000,541
83,500,740
84,501,281
383,848
84,885,129



Loss for the year
-
(1,131,715)
(1,131,715)
(18,778)
(1,150,493)

Dividends: Equity capital
-
(7,000,000)
(7,000,000)
-
(7,000,000)

Dividends: paid to non-controlling interests
-
-
-
(51,450)
(51,450)


At 20 January 2023
1,000,541
75,369,025
76,369,566
313,620
76,683,186



 
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 20 JANUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
1,000,541
78,832,843
79,833,384



Profit for the year
-
5,313,555
5,313,555

Dividends: Equity capital
-
(700,000)
(700,000)



At 21 January 2022
1,000,541
83,446,398
84,446,939



Loss for the year
-
(1,078,890)
(1,078,890)

Dividends: Equity capital
-
(7,000,000)
(7,000,000)


At 20 January 2023
1,000,541
75,367,508
76,368,049


The notes on pages 16 to 34 form part of these financial statements.

Page 13

 
EMA TEXTILES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 20 JANUARY 2023

2023
2022
£
£

Cash flows used in operating activities

(Loss)/profit for the financial year
(1,150,493)
5,462,506

Adjustments for:

Amortisation of intangible assets
12,920
12,920

Depreciation of tangible assets
9,532
10,696

Taxation charge
(334,233)
1,033,623

Decrease/(increase) in stocks
151,894
(88,041)

Increase in debtors
(736,320)
(773,970)

(Decrease)/increase in creditors
(475,355)
99,132

Net fair value losses/(gains)
3,961,708
(4,792,562)

Corporation tax paid
(37,135)
(242,762)

Income from investments
(1,987,137)
(1,667,403)

Loss on disposal of investments
-
298,474

Net cash generated used in operating activities

(584,619)
(647,387)


Cash flows from investing activities

Purchase of tangible fixed assets
(1,843)
(638)

Sale of investment properties
-
705,638

Income from investments
1,987,137
1,667,403

Purchase of investment properties
-
(369,724)

Net purchase/(sale) of listed investments
1,740,626
(119,614)

Net cash from investing activities

3,725,920
1,883,065

Cash flows used in financing activities

Dividends paid
(7,000,000)
(700,000)

Dividends paid to non-controlling interests
(51,450)
(29,400)

Net cash used in financing activities
(7,051,450)
(729,400)

Net (decrease)/increase in cash and cash equivalents
(3,910,149)
506,278

Cash and cash equivalents at beginning of year
14,396,828
13,890,551

Cash and cash equivalents at the end of year
10,486,679
14,396,829


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,486,679
14,396,829


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 
EMA TEXTILES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 20 JANUARY 2023




At 21 January 2022
Cash flows
At 20 January 2023
£

£

£

Cash at bank and in hand

14,396,829

(3,910,150)

10,486,679

Debt due within 1 year

(485)

(8,265)

(8,750)

Liquid investments

51,659,526

(5,702,335)

45,957,191


66,055,870
(9,620,750)
56,435,120

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

1.


General information

EMA Textiles Limited is a private limited liability company incorporated in England and Wales. The registered office address and principal place of business is at 62-72 Tabernacle Street, London, EC2A 4LR.
The principal activity of the Group during the year continued to be the import and wholesale of clothing.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 
2.3

Turnover

Turnover is the amount receivable for the supply of goods falling within the Group's ordinary activities, exclusive of Value Added Tax.
Sales of goods are recognised when the goods are delivered and title has been passed.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

Page 16

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is £ Sterling.

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 cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within administration expenses.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date.

Page 17

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income 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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

 
2.10

Intangible assets

Goodwill represents the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its estimated useful economic life of 10 years.

 
2.11

Tangible fixed assets

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 18

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

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.

Depreciation is provided on the following basis:

Long-term leasehold property
-
50 years
Plant and machinery
-
6 to 10 years
Motor vehicles
-
4 years
Fixtures and fittings
-
3 years

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.

 
2.12

Investment property

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

 
2.13

Investments

Investments in subsidiaries and unlisted investments held as fixed assets are valued at cost less provision for impairment.
Current asset listed investments are measured at their fair value at the reporting date and changes in their fair value from the previous year end are recognised in the Consolidated Statement of Comprehensive Income.

 
2.14

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Stock includes expenditure incurred in acquiring stocks and other costs in bringing them to their existing location and condition.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 19

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Financial instruments

Basic financial assets, including trade and other receivables, and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is remeasured at the present value of the future receipts discounted at a market rate of interest if material.
Such assets are subsequently carried at amortised cost using the effective interest method. 
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
Financial liabilities, including trade and other creditors are initially recognised at cost price. If evidence identified of changes to the liabilities, an impairment gain is recognised in the Consolidated Statement of Comprehensive Income.

 
2.19

Dividends

Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 20

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

a)To determine whether there are indicators of impairment of the Group’s tangible assets, intangible assets, fixed asset investments and investment properties. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

b)To determine whether there are indicators of impairment of the Group's trading stock. Factors taken into consideration in reaching such decision include net realisable value of the items in normal day to day trading.

In preparing these financial statements, the directors have considered the following key sources of
estimation uncertainty:
Tangible and intangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.


4.


Turnover

The whole of the turnover is attributable to the business activity of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
21,794,634
20,071,423

Rest of Europe
1,770,949
1,235,071

Rest of the world
100
100,996

23,565,683
21,407,490



5.


Other operating income

2023
2022
£
£

Net rents receivable
840,456
860,399

Government grants receivable
-
182,602

840,456
1,043,001


Page 21

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(395,422)
186,189

Other operating lease rentals
7,796
-

403,218
(186,189)


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Audit of the consolidated and parent Company's financial statements
25,000
32,100

Financial and taxation matters

137,236
207,250

162,236
239,350


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
1,960,947
1,978,342
1,909,021
1,928,342

Social security costs
228,548
222,040
222,363
216,361

Cost of defined contribution scheme
25,586
21,133
25,586
21,133

2,215,081
2,221,515
2,156,970
2,165,836


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Sales and distribution
28
31
28
31



Administration
11
10
10
9

39
41
38
40

Page 22

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
336,874
261,165


The highest paid director received remuneration of £200,000 (2022 - £200,000).


10.


Income from investments

2023
2022
£
£


Income from current asset investments
1,572,064
965,657




11.


Interest receivable

2023
2022
£
£


Other interest receivable
415,069
443,323


12.


Taxation


2023
                         
£
£

Corporation tax


Current tax on profits for the year
192,201
142,390

Adjustments in respect of previous periods
-
(10,793)


Total current tax

192,201
131,597

Deferred tax


Origination and reversal of timing differences
14,762
-

Deferred tax on fair value movements
(541,196)
902,026

Total deferred tax
(526,434)
902,026


Taxation on (loss)/profit on ordinary activities
(334,233)
1,033,623
Page 23

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(1,484,726)
6,496,129


(Loss)/profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)
(282,098)
1,234,265

Effects of:


Non-tax deductible amortisation of goodwill and impairment
2,455
2,455

Expenses not deductible for tax purposes
4,342
626

Difference between capital allowances and depreciation for the year
(13,951)
11

Utilisation of tax losses
-
(8,514)

Book losses on disposal of investments
23,879
36,109

Adjustments to tax charge in respect of prior periods
-
(10,793)

Short-term timing difference leading to a decrease in taxation
(29)
-

Non-taxable movement in fair value
752,725
(910,587)

Non-taxable dividends receivable
(298,692)
(211,975)

Unrelieved tax losses carried forward
3,570
-

Deferred tax
(526,434)
902,026

Total tax charge for the year
(334,233)
1,033,623


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2023
2022
£
£


Ordinary shares
7,000,000
700,000


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £1,078,890 (2022 - profit £5,313,555).

Page 24

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

15.


Intangible assets

Group





Goodwill

£



Cost


At 21 January 2022
129,200



At 20 January 2023

129,200



Amortisation


At 21 January 2022
103,961


Charge for the year on owned assets
12,920



At 20 January 2023

116,881



Net book value



At 20 January 2023
12,319



At 20 January 2022
25,239



Page 25

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

16.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 21 January 2022
57,426
205,042
246,877
142,380
651,725


Additions
-
-
-
1,843
1,843


Disposals
-
-
(246,877)
-
(246,877)



At 20 January 2023

57,426
205,042
-
144,223
406,691



Depreciation


At 21 January 2022
24,158
168,837
246,877
136,003
575,875


Charge for the year on owned assets
1,149
5,681
-
2,702
9,532


Disposals
-
-
(246,877)
-
(246,877)



At 20 January 2023

25,307
174,518
-
138,705
338,530



Net book value



At 20 January 2023
32,119
30,524
-
5,518
68,161



At 20 January 2022
33,268
36,205
-
6,377
75,850

Page 26

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

           16.Tangible fixed assets (continued)


Company






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost


At 21 January 2022
57,426
205,042
246,877
132,411
641,756


Additions
-
-
-
1,354
1,354


Disposals
-
-
(246,877)
-
(246,877)



At 20 January 2023

57,426
205,042
-
133,765
396,233



Depreciation


At 21 January 2022
24,158
168,837
246,877
130,523
570,395


Charge for the year on owned assets
1,149
5,681
-
1,682
8,512


Disposals
-
-
(246,877)
-
(246,877)



At 20 January 2023

25,307
174,518
-
132,205
332,030



Net book value



At 20 January 2023
32,119
30,524
-
1,560
64,203



At 20 January 2022
33,268
36,205
-
1,888
71,361






Page 27

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

17.


Fixed asset investments

Group





Unlisted investments

£



Cost


At 21 January 2022
1,934,825



At 20 January 2023

1,934,825



Impairment


At 21 January 2022
1,524,825



At 20 January 2023

1,524,825



Net book value



At 20 January 2023
410,000



At 20 January 2022
410,000

Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost


At 21 January 2022
410,040
1,934,825
2,344,865



At 20 January 2023

410,040
1,934,825
2,344,865



Impairment


At 21 January 2022
-
1,524,825
1,524,825



At 20 January 2023

-
1,524,825
1,524,825



Net book value



At 20 January 2023
410,040
410,000
820,040



At 20 January 2022
410,040
410,000
820,040

Page 28

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Sock Ons Limited
74 Mount Pleasant Road, London, NW10 3EJ
Wholesale of babywear
Ordinary
51%


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Sock Ons Inc.
1205 Manor Drive, Suite 100, Mechanicsburg, PA17055-4894
Wholesale of babywear
Ordinary
51%


18.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 21 January 2022
11,800,251



At 20 January 2023
11,800,251

The 2023 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Cost
11,855,956
11,855,956

Page 29

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

19.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Finished goods and goods for resale
640,228
792,122
35,149
40,328


The difference between purchase price or production cost of stocks and their replacement cost is not material.


20.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade debtors
4,930,939
4,621,868
4,638,913
4,613,279

Other debtors
6,692,878
6,314,867
6,685,154
6,312,251

Prepayments and accrued income
219,902
357,563
218,009
354,479

11,843,719
11,294,298
11,542,076
11,280,009



21.


Current asset investments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Listed investments
45,957,191
51,659,526
45,957,190
51,659,526



22.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
10,486,679
14,396,829
10,278,735
14,246,299

10,486,679
14,396,829
10,278,735
14,246,299


Page 30

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

23.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,084,736
1,394,503
761,258
1,380,728

Corporation tax
-
31,835
-
-

Other taxation and social security
63,210
138,939
61,223
137,031

Other creditors
412,592
343,448
339,490
300,187

Accruals and deferred income
697,873
856,876
690,673
849,544

2,258,411
2,765,601
1,852,644
2,667,490



24.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other creditors
110,000
110,000
110,000
110,000




25.


Deferred taxation


Group



2023


£






At beginning of year
(2,693,385)


Charged to profit or loss
526,434



At end of year
(2,166,951)

Page 31

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023
 
25.Deferred taxation (continued)

Company


2023


£






At beginning of year
(2,693,385)


Charged to profit or loss
526,434



At end of year
(2,166,951)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

(Accelerated)/decelerated capital allowances
(3,648)
11,114
(3,648)
11,114

Fair value movements
(2,163,303)
(2,704,499)
(2,163,303)
(2,704,499)

(2,166,951)
(2,693,385)
(2,166,951)
(2,693,385)


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Deferred ordinary shares of £1 each
1,000,000
1,000,000
1,000 (2022 - 1,000) Ordinary shares of $1 each
541
541

1,000,541

1,000,541

The deferred ordinary shares have no voting rights or entitlement to a distribution of profit and have restricted rights in the event of a winding up.
The ordinary shares have full voting rights and the holders of the shares shall receive the whole of any dividend paid. In the event of winding up the holders will be the first to receive any distribution.



27.


Reserves

Profit and loss account

Includes all current and prior period retained profits including net fair value movements in relation to current asset investments and investment properties. As at the reporting date, the total distributable profits amounted to £65,791,543 (2022 - £70,938,333).

Page 32

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

28.


Contingent liabilities

The following contingent liabilities existed at the reporting date:

a)£1,341,024 (2022 - £2,588,343) in respect of irrevocable documentary credits at sight.

b)£250,000 (2022 - £250,000) guarantee in favour of H M Revenue and Customs.

The above contingent liabilities, together with bank advances, are secured on certain listed investments.


29.


Pension commitments

The Company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £25,586 (2022 - £21,133). Contributions totalling £1,986 (2022 - £2,141) were payable to the fund at the reporting date and are included in creditors.


30.


Commitments under operating leases

Lessee
The Group and the Company had no commitments under non-cancellable operating leases at the reporting date.


Lessor
The Group lease out the investment properties under non-cancellable operating leases for the following future minimum lease payments. There are no contingent rents.

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
978,692
960,027
978,692
960,027

Later than 1 year and not later than 5 years
1,923,167
2,526,275
1,923,167
2,526,275

Later than 5 years
601,917
977,500
601,917
977,500

3,503,776
4,463,802
3,503,776
4,463,802

Page 33

 
EMA TEXTILES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 20 JANUARY 2023

31.


Related party transactions

During the year the Company charged £2,769 (2022 - £7,734) to Blackstone Design Limited in respect of office facilities. At the reporting date, the Company was owed £209,387 (2022 - £209,387) by Blackstone Design Limiteda company jointly-owned by the Company and E M Abraham. Interest of £4,067 (2022 - £4,120) was charged on the loan.

During the year, the Company paid rent of £500,000 (2022 - £500,000) to Eric M Abraham

At the reporting date, the Company was owed £5,264,992 (2022 - £5,252,602) by Curtain Road Properties Limited, included in other debtors. Curtain Road Properties Limited is a joint venture company registered in Guernsey in which Eric Abraham has an interest. There are no repayment terms or interest charges for this balance. 

During the year, the Company made sales amounting to £4,761 (2022 - £290,470) to its subsidiary, Sock Ons Limited. At the reporting date, the Company was owed £4,017 (2022 - £30,057) by Sock Ons Limited, included within trade debtors.

At the reporting date, the Company was owed £20,379 (2022 - £20,379) by E M Abraham Limiteda company in which Eric M Abraham has a material interest.

During the year the Company paid a dividend of £7,000,000 (2022 - £700,000) to Eric M Abraham, a director of the Company.
 
Key management personnel
The aggregate remuneration payable to key management personnel amounted to £660,874 (2022 - £585,165).


32.


Controlling party

The Company is controlled by Eric M Abraham, a director of the Company, by virtue of his shareholding.

 
Page 34