Company Registration No. 03142746 (England and Wales)
A.S.H.S. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JANUARY 2023
A.S.H.S. LIMITED
COMPANY INFORMATION
Directors
MW Hindmarch
E Lax Banon
N Marandi
AS Seymour
HJ Seymour
Secretary
HJ Seymour
Company number
03142746
Registered office
The Stable Block, The Plough Brewery
516 Wandsworth Road
London
SW8 3JX
Auditor
Rickard Luckin Limited
First Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
A.S.H.S. LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
A.S.H.S. LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 JANUARY 2023
- 1 -

The directors present the strategic report together with the audited financial statements for the period ended 28 January 2023.

 

 

Business Review

 

A.S.H.S. Limited operates worldwide under the trading name Anya Hindmarch. Founded in 1987 by Ms Anya Hindmarch, the group today is a global luxury brand with a distinctive London identity and a reputation for innovation, craftsmanship and humour. Its principal activity remains the design, production and sale of luxury handbags and accessories. The Group is headquartered in London.

 

The Group's products are sold through its digital site, supported by social media channels, in addition to a core portfolio of Anya Hindmarch branded stores and concessions in the UK and Asia. The group also sells its products to a carefully selected network of wholesale, specialty stores and e-commerce customers present in key luxury markets around the world.

 

 

Highlights

 

Having bought back the Company in 2019, management embarked on a turnaround and despite all the challenges imposed by the pandemic, the Company launched its groundbreaking project, 'The Village' in May 21. This new retail concept of five neighbouring stores, anchored by the new Anya Café, allows the Company to play creatively with the eponymous Anya Hindmarch brand. Each store focuses on a different part of the brand's DNA and offers an innovative, experiential approach to retail. This concept was developed further in 2022 with the addition of a sixth store, The World’s Smallest Department Store, offering a selection of exclusive collaborations with traditional British brands.

 

The Village includes The Village Hall, a shop that changes every six weeks into a new highly creative concept, ensuring constant traffic, community engagement and digital content. In 2022 it housed several successful concepts including a stationery store, the viral sensation - The Ice Cream Project, a wellness concept centered around sleep, and the return of Anya’s Grotto at Christmas where 2500 children booked to see Father Christmas. These activations built the brand's following and emphasised our move towards being more of a lifestyle brand with a direct-to-consumer approach.

 

Based on the huge success of the Labelled shop at The Village, the brand started to roll out dedicated spaces with key partners globally launching with Selfridges and Harrods.

 

The Universal Bag is an ongoing project that emphasizes the brands commitment to sustainability working collaboratively with supermarkets globally to eradicate the use of single use plastic bags. Launched initially with Sainsbury’s and Waitrose the £10 bag gained cult status and has since rolled out to other partners in the UK and Asia.

 

As well as continued adaptation to the fast-moving retail environment and changing patterns of consumer behaviour, the Group continues to reinforce operational rigor across the business, capitalising on changing trends to improve efficiencies.

Financial overview

 

 

*Earnings before interest, tax, depreciation, amortisation and exceptional items.

A.S.H.S. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 2 -
Principle Risks and Uncertainties

 

The operation of the Group’s business is subject to a number of risks which could adversely affect the Group’s future development. The principal risks and uncertainties are presented below.

 

Marketplace

The luxury accessories business is highly competitive and presents a number of operational risks characteristic of this sector. The marketplace continues to evolve with the rush to digital selling abating and a rekindling of interest in traditional shops.

 

The Group seeks to stand out in this environment by offering a highly distinctive range of products, as well as offering a highly differentiating personalisation service and a digital, direct to consumer model.

 

Credit risk

The principal credit risk for the Group arises from its trade debtors. To manage this risk, the Group performs credit checks on all customers and subsequently sets appropriate credit limits. The Directors also seek to secure export insurance for substantially all of the Group's trade clients, although this insurance market has become increasingly difficult.

 

Third party production risk

The Group produces its products through a network of third-party suppliers whose performance in terms of quality, compliance with local laws and regulations, and adherence to delivery deadlines is important to ensure the timely availability of stock in stores, online and for delivery to wholesale customers. The Group is in regular contact with suppliers to monitor adherence to the terms of supply.

 

Liquidity risk

The Directors seek to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable seasonal operational needs. The Group monitors budgets and cash flow forecasts on a weekly basis and works closely with its shareholders to ensure that the group has the appropriate resources available to fund all working capital cycles.

 

Foreign exchange risk

The Group is exposed to both translational and transactional foreign exchange. The Group purchases product in both US Dollars and Euros. To mitigate the exchange risk and add certainty to cash flows, the Group takes out forward contracts in US Dollars and Euros on a percentage of its purchases. Since the acquisition of the Japan franchise in 2014, the Group is also exposed to translational risk on movements between JPY/GBP exchange rates. The exposure is managed by the parent company by pricing sales to the Japanese subsidiary in Yen and converting Yen balances into sterling.

 

Environmental issues

The Group is committed to the promotion of environmental initiatives and minimising the environmental impact of its business. Our industry is energy intensive and to satisfy the requirements of our customers requires a high level of transport usage. Through focusing on creating an efficient and sustainable business the Group is taking steps to reduce its on-going carbon footprint. The Group’s objective is to recycle as much of its waste as possible, and to use recycled raw materials where possible.

 

Social responsibility

The Group does not make any political contributions but is active in the communities in which it is based and supports charitable causes in the industry which it serves.

 

Employment of disabled persons

The Group is committed to a policy of recruitment and promotion based on aptitude and ability without discrimination of any kind. Management actively pursues both the employment of disabled persons whenever a suitable vacancy arises and the continued employment and retraining of employees who become disabled whilst employed by the company. Particular attention is given to the training, career development and promotion of disabled employees with a view to encouraging them to play an active role in the development of the Group.

 

A.S.H.S. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 3 -

Employee involvement

The flow of information to staff has been maintained by our company meetings in Head Office. Members of the management team also regularly visit stores and discuss matters of current interest and concern to the business with members of staff.

 

War in Ukraine

The ongoing war in Ukraine has increased global uncertainty. The Group’s production capacity and customer base are both widely distributed which gives some protection for localised problems and can only help protect our strategic ambitions. The Group is also examining the possibilities of reshoring more of its supply lines soon.

Going Concern

The Directors have prepared cash flow forecasts based on their present plans, expectations and intentions. Based on these forecast cash flows, the directors are satisfied that the Group is able to meet their liabilities as and when they fall due and for a minimum period of twelve months from the date these financial statements are signed. Accordingly, these financial statements have been prepared on a going concern basis.

Approval

 

The strategic report was approved on behalf of the board

AS Seymour
Director
11 October 2023
A.S.H.S. LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 JANUARY 2023
- 4 -

The directors present their annual report and financial statements for the period ended 28 January 2023.

Principal activities

The principal activity of the company and the group continued to be that of the design, production and sale of luxury handbags and accessories.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

MW Hindmarch
E Lax Banon
J Marandi
(Resigned 30 May 2022)
N Marandi
AS Seymour
HJ Seymour
Results and dividends

The results for the period are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

A.S.H.S. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Matters covered in the strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of results for the year, principal risks and uncertainties, corporate and social responsibility and going concern.

On behalf of the board
AS Seymour
Director
11 October 2023
A.S.H.S. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A.S.H.S. LIMITED
- 6 -
Opinion

We have audited the financial statements of A.S.H.S Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 28 January 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

A.S.H.S. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.S.H.S. LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Capability of the audit in detecting irregularity, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; through communications with the component auditor and via inspection of the parent company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group and the parent company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the parent company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

A.S.H.S. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.S.H.S. LIMITED
- 8 -

Secondly the parent company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade and export legislation; consumer rights legislation; data protection legislation; and anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we and the component auditor performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

A.S.H.S. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.S.H.S. LIMITED
- 9 -

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Amit Popat (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
13 October 2023
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
A.S.H.S. LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 JANUARY 2023
- 10 -
13 Month period
Period ended
ended
22 January
22 January
2023
2022
Notes
£000
£000
Turnover
3
20,513
15,726
Cost of sales
(8,410)
(6,026)
Gross profit
12,103
9,700
Administrative expenses
(13,139)
(13,028)
Other operating income
71
258
Exceptional item
4
(479)
(119)
Operating loss
5
(1,444)
(3,189)
Interest receivable and similar income
9
8
36
Interest payable and similar expenses
10
(144)
(24)
Loss before taxation
(1,580)
(3,177)
Tax on loss
11
214
(4)
Loss for the financial period
(1,366)
(3,181)
Other comprehensive income
Currency translation differences
(37)
(162)
Total comprehensive income for the period
(1,403)
(3,343)
Operating loss is analysed as:
EBITDA*
(722)
(2,657)
Exceptional items
(479)
(119)
Foreign exchange gains/(losses)
67
(102)
Depreciation and impairment
(222)
(199)
Amortisation
(88)
(112)
Loss on disposal of fixed assets
-
-
Operating loss
(1,444)
(3,189)
* (Earnings before interest, tax, depreciation, amortisation,
foreign exchange and exceptional items)
Loss for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

A.S.H.S. LIMITED
GROUP BALANCE SHEET
AS AT 28 JANUARY 2023
28 January 2023
- 11 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
12
117
148
Tangible assets
13
771
684
888
832
Current assets
Stocks
17
3,180
2,086
Debtors
18
3,114
2,715
Cash at bank and in hand
2,175
2,078
8,469
6,879
Creditors: amounts falling due within one year
19
(4,749)
(4,009)
Net current assets
3,720
2,870
Total assets less current liabilities
4,608
3,702
Creditors: amounts falling due after more than one year
20
(6)
(15)
Provisions for liabilities
Provisions
22
27
208
(27)
(208)
Net assets
4,575
3,479
Capital and reserves
Called up share capital
24
1
1
Share premium account
7,500
5,000
Capital redemption reserve
1,076
1,076
Profit and loss reserves
(4,002)
(2,598)
Total equity
4,575
3,479
The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
AS Seymour
Director
Company registration number 03142746 (England and Wales)
A.S.H.S. LIMITED
COMPANY BALANCE SHEET
AS AT 28 JANUARY 2023
28 January 2023
- 12 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
12
117
148
Tangible assets
13
763
682
880
830
Current assets
Stocks
17
2,267
1,524
Debtors
18
2,950
2,298
Cash at bank and in hand
1,416
1,403
6,633
5,225
Creditors: amounts falling due within one year
19
(4,355)
(3,752)
Net current assets
2,278
1,473
Total assets less current liabilities
3,158
2,303
Creditors: amounts falling due after more than one year
20
(6)
(15)
Provisions for liabilities
Provisions
22
-
0
180
-
(180)
Net assets
3,152
2,108
Capital and reserves
Called up share capital
24
1
1
Share premium account
7,500
5,000
Capital redemption reserve
1,076
1,076
Profit and loss reserves
(5,425)
(3,969)
Total equity
3,152
2,108

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £1,456,015 (2022 - £3,177,356 loss).

The financial statements were approved by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
11 October 2023
AS Seymour
Director
Company registration number 03142746 (England and Wales)
A.S.H.S. LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 JANUARY 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 27 December 2020
1
5,000
1,076
745
6,822
Period ended 22 January 2022:
Loss for the period
-
-
-
(3,181)
(3,181)
Other comprehensive income:
Currency translation differences
-
-
-
(162)
(162)
Total comprehensive income for the period
-
-
-
(3,343)
(3,343)
Balance at 22 January 2022
1
5,000
1,076
(2,598)
3,479
Period ended 28 January 2023:
Loss for the period
-
-
-
(1,366)
(1,366)
Other comprehensive income:
Currency translation differences
-
-
-
(37)
(37)
Total comprehensive income for the period
-
-
-
(1,403)
(1,403)
Issue of share capital
24
-
0
2,500
-
-
2,500
Balance at 28 January 2023
1
7,500
1,076
(4,002)
4,575
A.S.H.S. LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 JANUARY 2023
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
£000
Balance at 27 December 2020
1
5,000
1,076
(791)
5,286
Period ended 22 January 2022:
Loss and total comprehensive income for the period
-
-
-
(3,178)
(3,178)
Balance at 22 January 2022
1
5,000
1,076
(3,969)
2,108
Period ended 28 January 2023:
Loss and total comprehensive income for the period
-
-
-
(1,456)
(1,456)
Issue of share capital
24
-
0
2,500
-
-
2,500
Balance at 28 January 2023
1
7,500
1,076
(5,425)
3,152
A.S.H.S. LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 15 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash absorbed by operations
30
(1,974)
(3,145)
Interest paid
(21)
(24)
Income taxes paid
(4)
(5)
Net cash outflow from operating activities
(1,999)
(3,174)
Investing activities
Purchase of intangible assets
(71)
(75)
Purchase of tangible fixed assets
(311)
(667)
Interest received
8
12
Net cash used in investing activities
(374)
(730)
Financing activities
Issue of new shares
2,500
-
0
Net cash generated from/(used in) financing activities
2,500
-
Net increase/(decrease) in cash and cash equivalents
127
(3,904)
Cash and cash equivalents at beginning of period
2,078
6,144
Effect of foreign exchange rates
(32)
(162)
Cash and cash equivalents at end of period
2,173
2,078
Relating to:
Cash at bank and in hand
2,175
2,078
Bank overdrafts included in creditors payable within one year
(2)
-
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 16 -
1
Accounting policies
Company information

A.S.H.S. Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Stable Block, The Plough Brewery, 516 Wandsworth Road, London, SW8 3JX.

 

The group consists of A.S.H.S. Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the company prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company A.S.H.S Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 January 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern

These financial statements are prepared on the going concern basis. The group made a loss for the period of £1,403,000 and the group had net assets of £4,575,000. The company had net assets of £3,152,000 as at 28 January 2023.

 

The directors have received assurances from the controlling shareholder, that he will continue to support the group for at least a period of twelve months from the date these financial statements are signed.

 

The directors have prepared cash flow forecasts and have implemented a strategic plan that is expected to improve the group's financial performance.

 

Based on these cashflow forecasts and with the support of the shareholder, the directors are satisfied that the company is able to meet its liabilities as and when they fall due, for at least the next twelve months from the date of signing these financial statements and therefore the directors consider that it is appropriate to prepare these financial statements on the going concern basis.

1.4
Reporting period

The company and the group has changed its year end date in the prior period and the current results represent a 53 week period ending 28 January 2023. The results are therefore not directly comparable with the comparative 56 week period.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

A provision is made for expected wholesale returns based on previous experience and commercialized terms in place.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Property leases acquired have been separated from goodwill. They are recognised at fair value and amortised over the lengths of the leases.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 18 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Acquired leases
Over the length of the leases
Other intangibles
Over 3 years
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Straight line over the life of the lease
Fixtures and fittings
25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 19 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

 

Reinstatement costs are capitalised and amortised over the length of the lease.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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 finance income as appropriate.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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 is 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.

1.17
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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 22 -
1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.22

Exceptional items

Income and expenses classified as exceptional are shown separately on the face of the profit and loss account. Income and expenses are treated as exceptional in nature if they are significant one off income or expenses and are not expected to reoccur.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of fixed assets

The group has made losses in recent periods which may be an indication that intangible and tangible fixed assets are impaired. The directors have concluded that no further impairment provision is necessary after reviewing the expected future performance of these assets, or groups of assets for a larger cash generating unit.

Stock provisions

The directors have made provisions against raw material and finished goods where they estimate the recoverable value of stock is lower than the cost, based on age and seasonality, condition and location of stock.

Provisions

The directors have reviewed the leases that the group has entered into and have made appropriate provisions for onerous leases where the cost of the leases exceed any expected future benefit to be gained from these leases.

 

In addition to this, the directors have made a provision for dilapidations based on their experience from previous store closures.

 

The directors have also made appropriate provisions for sales returns after the period end relating to this period, based on experience and actual returns received.

3
Turnover and other revenue
2023
2022
£000
£000
Other significant revenue
Interest and other income
8
36
Royalty income
71
3
Grants received relating to furlough income
-
255
2023
2022
£000
£000
Turnover analysed by geographical market
UK
10,090
6,697
Europe
2,537
1,808
Japan
4,749
4,274
Rest of World
3,137
2,947
20,513
15,726

The directors have chosen not to disclose particulars of turnover in accordance with part 5 of I schedule 68 of statutory instrument 2018 No 410 of the Companies Act.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 24 -
4
Exceptional item
2023
2022
£000
£000
Expenditure
Onerous lease provisions and store closure costs
21
13
Legal and professional fees
431
40
Exceptional payroll costs
27
66
479
119

During the current period legal and professional fees relating to a regulatory investigation have been treated as exceptional. In addition exceptional costs were incurred in relation to onerous leases provided for as well as reinstatement costs in relation to the closure of the Ledbury store during the period.

5
Operating loss
2023
2022
£000
£000
Operating loss for the period is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(67)
102
Government grants relating to furlough income
-
(255)
Depreciation of owned tangible fixed assets
222
199
Amortisation of intangible assets
88
112
Operating lease charges
731
859
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
90
70
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
58
56
53
50
Sales and distribution
64
55
39
32
Total
122
111
92
82
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
7
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Wages and salaries
4,553
4,522
3,814
3,521
Social security costs
403
358
403
358
Pension costs
129
123
129
123
5,085
5,003
4,346
4,002
Redundancy payments made or committed
-
35
-
35

Wages and salary costs during the current period for the company and group include £27,000 (2022: £66,000) which relate to exceptional payroll costs. Redundancy payments made are included within exceptional items.

8
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
324
325
Company pension contributions to defined contribution schemes
15
15
339
340

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
164
189
Company pension contributions to defined contribution schemes
8
8
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 26 -
9
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Interest on bank deposits
8
11
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
-
0
25
Total income
8
36
2023
2022
Investment income includes the following:
£000
£000
Interest on financial assets measured at fair value through profit or loss
-
0
25
10
Interest payable and similar expenses
2023
2022
£000
£000
Finance costs for financial instruments measured at fair value through profit or loss
123
-
0
Other interest
21
24
Total finance costs
144
24
11
Taxation
2023
2022
£000
£000
Current tax
Foreign current tax on profits for the current period
4
4
Deferred tax
Origination and reversal of timing differences
(218)
-
0
Total tax (credit)/charge
(214)
4
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
11
Taxation
(Continued)
- 27 -

The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£000
£000
Loss before taxation
(1,580)
(3,177)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(300)
(604)
Tax effect of expenses that are not deductible in determining taxable profit
375
200
Change in unrecognised deferred tax assets
(268)
4,202
Effect of change in corporation tax rate
(29)
(3,829)
Depreciation on assets not qualifying for tax allowances
4
31
Effect of overseas tax rates
4
4
Taxation (credit)/charge
(214)
4

The group has estimated tax losses of £71.4m (2022: £73.2m) available to carry forward against future profits.

 

The group has a deferred tax asset which has not been provided in the accounts amounting to £19.0m (2022: £18.8m). It is not certain that the timing difference will reverse for part of this asset and for this reason no provision has been made for the deferred tax asset.

12
Intangible fixed assets
Group
Goodwill
Acquired leases
Other intangibles
Total
£000
£000
£000
£000
Cost
At 23 January 2022
1,043
449
334
1,826
Additions
-
0
-
0
71
71
Disposals
-
0
-
0
(13)
(13)
At 28 January 2023
1,043
449
392
1,884
Amortisation and impairment
At 23 January 2022
1,043
449
187
1,679
Amortisation charged for the period
-
0
-
0
88
88
At 28 January 2023
1,043
449
275
1,767
Carrying amount
At 28 January 2023
-
0
-
0
117
117
At 22 January 2022
-
0
-
0
148
148
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
12
Intangible fixed assets
(Continued)
- 28 -
Company
Other intangibles
£000
Cost
At 23 January 2022
334
Additions
71
Disposals
(13)
At 28 January 2023
392
Amortisation and impairment
At 23 January 2022
187
Amortisation charged for the period
88
At 28 January 2023
275
Carrying amount
At 28 January 2023
117
At 22 January 2022
148
13
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Total
£000
£000
£000
Cost
At 23 January 2022
1,096
4,182
5,278
Additions
67
244
311
Disposals
(624)
(3,434)
(4,058)
Exchange adjustments
(5)
(7)
(12)
At 28 January 2023
534
985
1,519
Depreciation and impairment
At 23 January 2022
823
3,772
4,595
Depreciation charged in the period
52
170
222
Eliminated in respect of disposals
(624)
(3,434)
(4,058)
Exchange adjustments
(5)
(6)
(11)
At 28 January 2023
246
502
748
Carrying amount
At 28 January 2023
288
483
771
At 22 January 2022
273
411
684
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
13
Tangible fixed assets
(Continued)
- 29 -
Company
Leasehold land and buildings
Fixtures and fittings
Total
£000
£000
£000
Cost
At 23 January 2022
947
3,996
4,943
Additions
67
235
302
Disposals
(613)
(3,434)
(4,047)
At 28 January 2023
401
797
1,198
Depreciation and impairment
At 23 January 2022
674
3,587
4,261
Depreciation charged in the period
52
169
221
Eliminated in respect of disposals
(613)
(3,434)
(4,047)
At 28 January 2023
113
322
435
Carrying amount
At 28 January 2023
288
475
763
At 22 January 2022
273
409
682
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Investments in subsidiaries
15
-
0
-
0
-
0
-
0
Movements in fixed asset investments
Company
Shares in group undertakings
£000
Cost or valuation
At 23 January 2022 and 28 January 2023
4,980
Impairment
At 23 January 2022 and 28 January 2023
4,980
Carrying amount
At 28 January 2023
-
At 22 January 2022
-
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 30 -
15
Subsidiaries

Details of the company's subsidiaries at 28 January 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
ASHS East Coast Limited
England and Wales
Non-trading company
Ordinary
100.00
-
A.S.H.S. USA Limited
England and Wales
Non-trading company
Ordinary
100.00
-
A.S.H.S. New York Inc
United States of America
Dormant
Ordinary
100.00
-
Anya Hindmarch Japan Inc
Japan
Trading company
Ordinary
100.00
-
Anya Hindmarch Limited
England and Wales
Non-trading company
Ordinary
100.00
-
A.S.H.S. Nevada LLC
United States of America
Dormant
Ordinary
0
100.00
A.S.H.S. Madison LLC
United States of America
Lease holding company
Ordinary
0
100.00
A.S.H.S. Downtown LLC
United States of America
Lease holding company
Ordinary
0
100.00

The registered office for all subsidiary undertakings incorporated in England and Wales is The Stable Block, The Plough Brewery, 516 Wandsworth Road, London, SW8 3JX.

 

A.S.H.S. Nevada LLC is registered at c/o CSC Services of Nevada, Inc., 502 East John Street, Carson City, Nevada 89706, USA.

 

A.S.H.S. Madison LLC is registered at co/ VCorp Agent Services, Inc., 25 Robert Pitt Drive Suite 204, Monsey, New York, 10952, USA.

 

A.S.H.S. Downtown LLC is registered at 795 Madison Avenue, New York, New York, 10065, USA.

 

A.S.H.S. New York Inc is registered at 110 Prince Street, New York, New York 10012, USA.

 

Anya Hindmarch Japan Inc is registered at 3-1-31, Minami Aoyama, Minato-ku, Tokyo, 107-0062, Japan.

16
Financial instruments
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
123
1
123
1

During the year the company had entered into various hedging instruments, to reduce its exposure to movements in the principal exchange rates in which it had transactions. Included in other creditors is the fair value of the contracts of £123,000 (2022: 1,000).

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 31 -
17
Stocks
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Raw materials and consumables
211
120
211
120
Finished goods and goods for resale
2,969
1,966
2,056
1,404
3,180
2,086
2,267
1,524

At the period end the directors made a provision for old and damaged stock including discontinued stock lines. During the period there was a net credit to the profit and loss account in respect of this totalling £168,000 (2022: £427,000 net debit) and for the company a net credit of £150,000 (2022: £429,000 net debit).

18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
1,581
1,132
1,412
1,058
Amounts owed by group undertakings
-
-
593
-
Other debtors
784
1,200
439
877
Prepayments and accrued income
531
383
506
363
2,896
2,715
2,950
2,298
Deferred tax asset (note 21)
218
-
0
-
0
-
0
3,114
2,715
2,950
2,298
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans and overdrafts
2
-
0
2
-
0
Trade creditors
2,879
1,502
2,748
1,320
Amounts owed to group undertakings
-
0
-
-
0
7
Corporation tax payable
4
4
-
0
-
0
Other taxation and social security
556
219
426
202
Other creditors
613
1,098
613
1,098
Accruals and deferred income
695
1,186
566
1,125
4,749
4,009
4,355
3,752
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 32 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Trade creditors
6
15
6
15
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£000
£000
Tax losses
218
-
Group
Company
2023
2023
Movements in the period:
£000
£000
Asset at 23 January 2022
-
-
Credit to profit or loss
(218)
-
Asset at 28 January 2023
(218)
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period for the group.

The group has estimated tax losses of £71.4m (2022: £73.2m) available to carry forward against future profits.

 

The group has a deferred tax asset which it has not provided for in the accounts amounting to £19.0m (2022: £18.8m). It is not certain that the timing difference will reverse and for this reason no provision has been made for the part of the deferred tax asset.

22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Provision for onerous leases
27
208
-
180
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
22
Provisions for liabilities
(Continued)
- 33 -
Movements on provisions:
Provision for onerous leases
Group
£000
At 23 January 2022
208
Utilisation of provision
(180)
Exchange difference
(1)
At 28 January 2023
27
Provision for onerous leases
Company
£000
At 23 January 2022
180
Utilisation of provision
(180)
At 28 January 2023
-

In the prior period the directors have made provisions for the net cost to the group, of onerous leases on loss making stores. In addition to this, a provision has been made for dilapidations where there is a commitment to return the store to its original condition. The reduction in the provisions in the year are due to the utilisation of these provisions.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
129
123

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
83,600
83,600
836
836
Growth of 1p each
10,250
10,250
103
103
Performance of 1p each
15,322
15,322
153
153
109,172
109,172
1,092
1,092
A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
24
Share capital
(Continued)
- 34 -
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
A Preference of 1p each
10,000
10,000
100
100
B Preference of 1p each
10,000
10,000
100
100
C Preference of 1p each
5,000
-
50
-
25,000
20,000
250
200
Preference shares classified as equity
250
200
Total equity share capital
1,342
1,292

The ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

 

The performance shares will rank pari passu with the ordinary shares as to voting rights, dividend and capital distribution, subject to the company's financial performance meeting certain thresholds. Until such time and subject thereto, the performance shares have no voting, dividend or capital distribution rights. They do not confer rights of redemption.

 

The growth shares will rank pari passu with the ordinary shares as to voting rights, dividends and capital distribution only on an exit and subject to certain hurdles and minimum returns having been achieved. Until such time and subject thereto, the growth shares have no voting, dividend or capital distribution rights. They do not confer rights of redemption.

 

The A preference shares rank in priority to the B preference shares. The C preference shares rank in priority to the A preference shares. Subject to certain initial investment amounts being repaid in full, the preference shares will rank in priority to the ordinary shares, growth shares and performance shares with respect to dividend and capital distribution until certain holders of preference shares have received a prescribed return on their preference shares, following which the preference shares will be cancelled. Until such time and subject thereto, the preference shares have no rights to dividends or capital distribution. They do not carry any voting rights nor do they confer rights of redemption.

25
Financial commitments, guarantees and contingent liabilities

The company has entered into a cross guarantee in favour of HSBC Bank with A.S.H.S. USA Limited and ASHS East Coast Limited. At the period end the maximum liability represented by group borrowings under this guarantee was £Nil.

 

HSBC Bank have a fixed and floating charge over the current and future assets of the company.

 

HM Revenue & Customs have a guarantee over the bank current account for any amount due to them up to £40,000.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 35 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Within one year
872
820
859
778
Between two and five years
2,822
2,592
2,822
2,581
In over five years
491
903
491
903
4,185
4,315
4,172
4,262
27
Related party transactions

Payments have been made in the period in respect of consultancy services received during the period from a director of the company. These payments totalled £3,000 for the period (2022: £3,250) and amounts owed to the director at the period end was £250 (2022: £Nil).

28
Events after the reporting date

After the period end, the company issued 1,000 £0.01 C Preference shares for £500,000.

 

The company also issued 1 £0.01 Class A Founder share for £0.01.

29
Controlling party

During the current and prior period the ultimate controlling party was Mr Javad Marandi by virtue of his shareholding.

 

After the reporting date a Class A Founder share was issued to Anya Seymour who is now the ultimate controlling party from 17 April 2023.

A.S.H.S. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 36 -
30
Cash absorbed by group operations
2023
2022
£000
£000
Loss for the period after tax
(1,366)
(3,181)
Adjustments for:
Taxation (credited)/charged
(214)
4
Finance costs
144
24
Investment income
(8)
(36)
Fair value movement on foreign exchange contracts
-
24
Amortisation and impairment of intangible assets
88
112
Depreciation and impairment of tangible fixed assets
222
199
Decrease in provisions
(181)
(314)
Movements in working capital:
(Increase)/decrease in stocks
(1,094)
224
Increase in debtors
(181)
(914)
Increase in creditors
616
713
Cash absorbed by operations
(1,974)
(3,145)
31
Analysis of changes in net funds - group
23 January 2022
Cash flows
Exchange rate movements
28 January 2023
£000
£000
£000
£000
Cash at bank and in hand
2,078
134
(37)
2,175
Bank overdrafts
-
0
(2)
-
(2)
2,078
132
(37)
2,173
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