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COMPANY REGISTRATION NUMBER: 06462732
123 INVESTMENTS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 January 2023
123 INVESTMENTS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 29 JANUARY 2023
CONTENTS
PAGES
Officers and professional advisers
1
Strategic report
2 to 5
Directors' report
6 to 8
Independent auditor's report to the members
9 to 12
Consolidated statement of income and retained earnings
13
Company statement of income and retained earnings
14
Consolidated statement of financial position
15
Company statement of financial position
16
Consolidated statement of cash flows
17
Notes to the consolidated financial statements
18 to 27
123 INVESTMENTS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
THE BOARD OF DIRECTORS
S A Buck
B R Buck
C R Buck
S J Pickering
REGISTERED OFFICE
34 Roundhay Road
Leeds
England
LS7 1AB
AUDITOR
Wine & Co
Chartered accountants & statutory auditor
20-22 Bridge End
Leeds
LS1 4DJ
123 INVESTMENTS LIMITED
STRATEGIC REPORT
YEAR ENDED 29 JANUARY 2023
PRINCIPLE OBJECTIVES AND REVIEW OF BUSINESS
The Directors present the Company's Strategic Report for the 52 week period ended 29th January 2022 (the period).
PRINCIPAL ACTIVITIES
The Moda In Pelle group is a women's footwear brand. The principal activity of the company is the selling of it's own brands of footwear and accessories. The Moda In Pelle group ethos - "A premium, contemporary footwear and accessories brand that is designed with purpose and crafted without compromise" Our aim is to deliver a high quality, premium women's footwear proposition that encapsulates sustainability, quality, and design. We design and develop 3 brands within the group: Moda in Pelle M By Moda Shoon All our products are designed exclusively in-house and unique to ourselves. Sustainability is at the core of our brands; we are working hard to develop our individual brand commitments to sustainability, recently launching our sustainability strategy, as outlined below: Vision 'At Moda we are moving towards a better future, putting sustainability at our core. We believe in creating premium footwear whilst reducing our environmental impact' Our pillars: People, Product and Planet
BUSINESS REVIEW
FY23 has been a transformational year for the Moda In Pelle group. Over the last 47 years we have established a brand with true heritage and deep-rooted ties in footwear; the business has grown from a family-founded Leeds based retailer to fast becoming a recognised premium footwear and accessories brand. Moda In Pelle is a distinctive brand with a differentiated point of view, we aim to deliver unique high quality leather products that excite our customers. FY23 has demonstrated our brand's resilience and attractiveness to shoppers. We have delivered a record year of revenue, reflected in the 25% growth in sales, translating into an 1% fall in adjusted EBITDA for the Moda In Pelle brand. Whilst we are pleased with the success against our financial KPI targets, we have been focused on the implementation and delivery of our new five-year plan through FY23. This investment will give the brand a strong foundation for future growth. We have made considerable investment in several key areas: people, store openings, creative and brand, 3rd party channels. FY23 has been our largest year of investment, and we are incredibly excited about these opportunities present to our brand. We have opened 7 new stores in FY23, developing a new concept to create a new 'look and feel' that reflects our brand values. We have launched with both John Lewis and Next online throughout FY23, we see both retailers as an important revenue channel and brand partner for the future. As part of building our long-term plans, we have invested in our head office and retails team. Finally, we have a complete management team recruited and working together towards the delivery of our financial goals and brand targets. These results are only possible with the dedicated and talented team we have working with us at Moda In Pelle, I would like to take a moment to celebrate their success and achievements throughout the year. At Moda In Pelle, we aim to become a leading premium footwear brand, we have set our aspirations to open in international markets in FY25; our immediate focus however is to further develop our brand in the UK market, continuing to focus on exciting and innovative product ranges. Our collections are designed to be timeless, modern and contemporary, not fashion forward; with this in mind, the quality of our products is paramount to the DNA of the Moda In Pelle brand. Financial performance Despite the challenging macroeconomic climate impacting the wider retail sector in the UK we have delivered a robust financial performance for the year, which included several key milestones, delivering a full year revenue increase of 25% to £25m. As we continue to build momentum from last year, we are delighted to report adjusted EBITDA of £2.05m. We have seen strong growth in DTC channels, resulting in an improved full price mix for the year. Outlook Whilst we have made strong progress throughout the year, we remain cautious about the wider economic challenges facing our customers; we aim to continue to deliver high quality designed products that represent good value for our loyal customers. We are extremely excited about the next stage of our strategy as we look to further grow and shape Moda In Pelle to build its true potential for the future. Financial Review KPI Summary Year ended 31 Jan Year ended 31 Jan Change 2023 2022 £'000 £'000 Revenue £25,270 £20,159 +25% Gross Profit £11,819 £ 8,546 +38% Admin Expenses £ 8,934 £ 6,635 +35% Profit/(Loss) before tax £ 1,570 £ 1,804 -13% EBITDA £ 2,051 £ 2,082 -1% People Our employees are at the heart of the brand, we are fully committed to developing our talent, and acting in a responsible and supportive manner. Brand Our brand values and mission statement as outlined below, provide our guiding focus as a business; we work together to ensure we are focussed on the delivery of these values and goals. Brand Vision 'To be known as the women's premium footwear brand of choice'. Brand Values Be passionate about every customer. Trust each other in what we do. Working together as equals. Design without compromise. Be ambitious and entrepreneurial. Mission Statement 'We design shoes without compromise, creating and inspiring a unique feeling. Always loved our customers'.
PRINCIPAL RISKS AND UNCERTAINTIES
Consumer confidence As a retail business, our success to a very large extent is subject to consumer confidence and customers disposition to spend on fashion and discretionary spend products. As a premium fashion brand, we mitigate this risk by remaining focussed on providing high quality products at a market appropriate price; we are determined in our approach towards achieving high customer service standards. Competitive risk Moda In Pelle is an established and growing brand in the UK market. The brand has a growing customer base and store count, the management is focussed on building brand awareness through a multi-route to market strategy. Fashion risk Our business success is dependent on our ability to identify and produce and sell our collections of product, with effectively managed stock control. It is however, impossible to predict with certainty customers reactions to each seasons' collections. We do however proactively manage the risk through a flexible and dynamic supply chain. IT risk The group relies on the uninterrupted operation of both our systems and website. There are many unplanned or unforeseen events that could take place, this is therefore imperative that we rely on strong contingency planning and monitoring; which is rigorously planned into our ways of working and corporate governance. Customers Our customers are extremely important focus of our business. We aim to offer a full range of products available on our own website and an edited collection in our concessions and Moda stores. We aim to offer consistent and everlasting high quality products, that will in-turn create strong product and brand loyalty with our existing and growing customer database. We are working hard, with internal reviews to invest, build and improve our customer service proposition.
This report was approved by the board of directors on 27 October 2023 and signed on behalf of the board by:
S A Buck
Director
Registered office:
34 Roundhay Road
Leeds
England
LS7 1AB
123 INVESTMENTS LIMITED
DIRECTORS' REPORT
YEAR ENDED 29 JANUARY 2023
The directors present their report and the consolidated financial statements of the group for the year ended 29 January 2023 .
DIRECTORS
The directors who served the company during the year were as follows:
S A Buck
B R Buck
C R Buck
S J Pickering
DIVIDENDS
The directors do not recommend the payment of a dividend.
EMPLOYMENT OF DISABLED PERSONS
The company gives full consideration to applications for employment from disabled personswherethe requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
EMPLOYEE INVOLVEMENT
The company has systems in place to provide employees with information on matters of concern to them as employees.
FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, bank trade facilities, trade creditors, trade debtors, and loans to the company. The main purpose of these instruments is to raise funds for the company's operation and to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the accounting instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank trade facilities at floating rates of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, directors' report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law the directors have elected to prepare the consolidated 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 consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these consolidated financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the consolidated financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 27 October 2023 and signed on behalf of the board by:
S A Buck
Director
Registered office:
34 Roundhay Road
Leeds
England
LS7 1AB
123 INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF 123 INVESTMENTS LIMITED
YEAR ENDED 29 JANUARY 2023
OPINION
We have audited the consolidated financial statements of 123 Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 January 2023 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the consolidated financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 29 January 2023 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the consolidated 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 consolidated 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 consolidated financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the consolidated 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 consolidated 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 consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the consolidated 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 consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated 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 consolidated financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the consolidated financial statements are prepared is consistent with the consolidated financial statements; and
- the 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 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 consolidated 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, the directors are responsible for the preparation of the consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated 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.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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: Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error. We consider that our audit procedures are designed and carried out to give a reasonable expectation that material misstatements resulting from fraud would be discovered. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
JEFFREY WINE
(Senior Statutory Auditor)
For and on behalf of
Wine & Co
Chartered accountants & statutory auditor
20-22 Bridge End
Leeds
LS1 4DJ
27 October 2023
123 INVESTMENTS LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 29 JANUARY 2023
2023
2022
Note
£
£
TURNOVER
4
25,270,279
20,159,128
Cost of sales
( 13,451,185)
( 11,613,548)
-------------
-------------
GROSS PROFIT
11,819,094
8,545,580
Distribution costs
( 1,727,701)
( 837,639)
Administrative expenses
( 8,933,688)
( 6,634,827)
Other operating income
5
587,855
768,790
-------------
------------
OPERATING PROFIT
6
1,745,560
1,841,904
Interest payable and similar expenses
10
( 175,466)
( 37,478)
-------------
------------
PROFIT BEFORE TAXATION
1,570,094
1,804,426
Tax on profit
11
( 259,450)
( 288,037)
------------
------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
1,310,644
1,516,389
------------
------------
RETAINED LOSSES AT THE START OF THE YEAR
( 580,938)
( 2,097,327)
---------
------------
RETAINED EARNINGS/(LOSSES) AT THE END OF THE YEAR
729,706
( 580,938)
---------
------------
All the activities of the group are from continuing operations.
123 INVESTMENTS LIMITED
COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 29 JANUARY 2023
2023
2022
Note
£
£
Profit for the financial year and total comprehensive income
( 70,083)
( 45,144)
RETAINED LOSSES AT THE START OF THE YEAR
( 3,194,237)
( 3,149,093)
------------
------------
RETAINED LOSSES AT THE END OF THE YEAR
( 3,264,320)
( 3,194,237)
------------
------------
123 INVESTMENTS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
29 January 2023
2023
2022
Note
£
£
FIXED ASSETS
Intangible assets
12
60,002
75,002
Tangible assets
13
856,271
455,751
---------
---------
916,273
530,753
CURRENT ASSETS
Stocks
15
2,439,888
2,569,580
Debtors
16
1,970,180
1,873,352
Cash at bank and in hand
236,733
641,120
------------
------------
4,646,801
5,084,052
CREDITORS: amounts falling due within one year
17
( 4,667,764)
( 6,098,948)
------------
------------
NET CURRENT LIABILITIES
( 20,963)
( 1,014,896)
---------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
895,310
( 484,143)
CREDITORS: amounts falling due after more than one year
18
( 14,119)
( 18,390)
PROVISIONS
Taxation including deferred tax
20
( 151,112)
( 78,032)
---------
---------
NET ASSETS/(LIABILITIES)
730,079
( 580,565)
---------
---------
CAPITAL AND RESERVES
Called up share capital
24
373
373
Profit and loss account
729,706
( 580,938)
---------
---------
SHAREHOLDERS FUNDS/(DEFICIT)
730,079
( 580,565)
---------
---------
These consolidated financial statements were approved by the board of directors and authorised for issue on 27 October 2023 , and are signed on behalf of the board by:
S A Buck
Director
Company registration number: 06462732
123 INVESTMENTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
29 January 2023
2023
2022
Note
£
£
FIXED ASSETS
Investments
14
102
102
CURRENT ASSETS
Debtors
16
1,900
1,900
Cash at bank and in hand
2,399
7,220
-------
-------
4,299
9,120
CREDITORS: amounts falling due within one year
17
( 3,268,348)
( 3,203,086)
------------
------------
NET CURRENT LIABILITIES
( 3,264,049)
( 3,193,966)
------------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
( 3,263,947)
( 3,193,864)
------------
------------
NET LIABILITIES
( 3,263,947)
( 3,193,864)
------------
------------
CAPITAL AND RESERVES
Called up share capital
24
373
373
Profit and loss account
( 3,264,320)
( 3,194,237)
------------
------------
SHAREHOLDERS DEFICIT
( 3,263,947)
( 3,193,864)
------------
------------
The loss for the financial year of the parent company was £ 70,083 (2022: £ 45,144 ).
These consolidated financial statements were approved by the board of directors and authorised for issue on 27 October 2023 , and are signed on behalf of the board by:
S A Buck
Director
Company registration number: 06462732
123 INVESTMENTS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 29 JANUARY 2023
2023
2022
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year
1,310,644
1,516,389
Adjustments for:
Depreciation of tangible assets
290,480
225,243
Amortisation of intangible assets
15,000
15,000
Government grant income
( 581,808)
Interest payable and similar expenses
175,466
37,478
Tax on loss
259,450
288,037
Accrued expenses
95,729
150,465
Changes in:
Stocks
129,692
( 242,405)
Trade and other debtors
( 96,828)
( 430,885)
Trade and other creditors
( 1,520,677)
( 1,582,435)
------------
------------
Cash generated from operations
658,956
( 604,921)
Interest paid
( 175,466)
( 37,478)
Tax received/(paid)
64,758
( 91,257)
---------
---------
Net cash from/(used in) operating activities
548,248
( 733,656)
---------
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 691,000)
( 163,529)
---------
---------
Net cash used in investing activities
( 691,000)
( 163,529)
---------
---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
( 257,364)
36,461
Government grant income
581,808
Payments of finance lease liabilities
( 4,271)
( 4,271)
---------
---------
Net cash (used in)/from financing activities
( 261,635)
613,998
---------
---------
NET DECREASE IN CASH AND CASH EQUIVALENTS
( 404,387)
( 283,187)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
641,120
924,307
---------
---------
CASH AND CASH EQUIVALENTS AT END OF YEAR
236,733
641,120
---------
---------
123 INVESTMENTS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 29 JANUARY 2023
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 34 Roundhay Road, Leeds, England, LS7 1AB.
2. STATEMENT OF COMPLIANCE
These consolidated financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The consolidated financial statements consolidate the consolidated financial statements of 123 Investments Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover comprises revenue recognised by the company in respect of goods supplied, exclusive of Value Added Tax.
Income tax
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property Improvements
-
25% straight line
Website
-
33% straight line
Fixtures and fittings
-
25% straight line
Motor vehicles
-
33% straight line
Office equipment
-
25% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. TURNOVER
Turnover arises from:
2023
2022
£
£
Sale of goods
25,270,279
20,159,128
-------------
-------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. OTHER OPERATING INCOME
2023
2022
£
£
Government grant income
581,808
Insurance claims receivable
7,772
Other operating income
587,855
179,210
---------
---------
587,855
768,790
---------
---------
6. OPERATING LOSS
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Amortisation of intangible assets
15,000
15,000
Depreciation of tangible assets
290,480
225,243
Impairment of trade debtors
15,261
Foreign exchange differences
( 92)
( 963)
---------
---------
7. AUDITOR'S REMUNERATION
2023
2022
£
£
Fees payable for the audit of the consolidated financial statements
34,550
23,350
--------
--------
8. STAFF COSTS
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
196
160
Distribution staff
22
20
Administrative staff
58
46
----
----
276
226
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
4,993,858
3,899,765
Social security costs
396,243
281,588
Other pension costs
76,656
59,431
------------
------------
5,466,757
4,240,784
------------
------------
9. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
115,635
36,814
---------
--------
10. INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2022
£
£
Interest on banks loans and overdrafts
7
Interest on obligations under finance leases and hire purchase contracts
1,882
1,882
Other interest payable
35,706
35,589
Other interest payable and similar charges
137,878
---------
--------
175,466
37,478
---------
--------
11. TAX ON LOSS
Major components of tax income
2023
2022
£
£
Current tax:
UK current tax income
203,578
342,061
Adjustments in respect of prior periods
231
Corporation tax refund
( 17,439)
( 62,512)
---------
---------
Total current tax
186,370
279,549
---------
---------
Deferred tax:
Origination and reversal of timing differences
73,080
8,488
---------
---------
Tax on loss
259,450
288,037
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,570,094
1,804,426
------------
------------
Profit on ordinary activities by rate of tax
298,318
342,841
Adjustment to tax charge in respect of prior periods
(17,208)
( 62,512)
Effect of expenses not deductible for tax purposes
2,186
2,835
Effect of capital allowances and depreciation
( 92,176)
5,222
Effect of revenue exempt from tax
( 4,750)
Utilisation of tax losses
( 8,837)
------------
------------
Tax on loss
186,370
279,549
------------
------------
12. INTANGIBLE ASSETS
Group
Goodwill
£
Cost
At 30 January 2022 and 29 January 2023
150,002
---------
Amortisation
At 30 January 2022
75,000
Charge for the year
15,000
---------
At 29 January 2023
90,000
---------
Carrying amount
At 29 January 2023
60,002
---------
At 29 January 2022
75,002
---------
The company has no intangible assets.
13. TANGIBLE ASSETS
Group
Leasehold Property Improve -ments
Plant and machinery
Fixtures and fittings
Motor vehicles
Office Equipment
Total
£
£
£
£
£
£
Cost
At 30 Jan 2022
40,563
7,995
1,007,554
38,837
128,107
1,223,056
Additions
1,500
638,990
50,510
691,000
--------
-------
------------
--------
---------
------------
At 29 Jan 2023
42,063
7,995
1,646,544
38,837
178,617
1,914,056
--------
-------
------------
--------
---------
------------
Depreciation
At 30 Jan 2022
21,043
7,995
633,536
20,468
84,263
767,305
Charge for the year
10,186
240,191
11,847
28,256
290,480
--------
-------
------------
--------
---------
------------
At 29 Jan 2023
31,229
7,995
873,727
32,315
112,519
1,057,785
--------
-------
------------
--------
---------
------------
Carrying amount
At 29 Jan 2023
10,834
772,817
6,522
66,098
856,271
--------
-------
------------
--------
---------
------------
At 29 Jan 2022
19,520
374,018
18,369
43,844
455,751
--------
-------
------------
--------
---------
------------
The company has no tangible assets.
14. INVESTMENTS
The group has no investments.
Company
Unlisted
£
Cost
At 30 January 2022 and 29 January 2023
102
----
Impairment
At 30 January 2022 and 29 January 2023
----
Carrying amount
At 30 January 2022 and 29 January 2023
102
----
At 29 January 2022
102
----
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
123 Retail Limited: 34 Roundhay Road, Leeds, LS7 1AB
Ordinary
100
Direct Footwear Ltd: 34 Roundhay Road, Leeds, LS7 1AB
Ordinary
100
Moda Concessions Ltd: 34 Roundhay Road, Leeds, LS7 1AB
Ordinary
100
15. STOCKS
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,439,888
2,569,580
------------
------------
----
----
16. DEBTORS
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
487,928
1,011,277
Prepayments and accrued income
352,463
415,673
Amounts due from related companies
440,098
5,400
1,500
1,500
Other debtors
689,691
441,002
400
400
------------
------------
-------
-------
1,970,180
1,873,352
1,900
1,900
------------
------------
-------
-------
17. CREDITORS: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
215,565
472,929
Trade creditors
862,854
823,273
3,601
7,201
Amounts owed to group undertakings
2,564,077
1,650,207
Accruals and deferred income
397,336
301,607
17,679
12,679
Corporation tax
528,200
277,072
Social security and other taxes
1,220,058
1,803,927
64,653
63,346
Obligations under finance leases and hire purchase contracts
4,271
4,271
Amounts owed to related companies
353
27,874
Invoice discounting
196,506
411,450
Other creditors
1,242,621
1,976,545
618,338
1,469,653
------------
------------
------------
------------
4,667,764
6,098,948
3,268,348
3,203,086
------------
------------
------------
------------
The bank loans and overdrafts totalling £215,565 (2022: £472,929) falling due within one year are secured by a group company. The invoice discounting facilities totalling £196,506 (2022: £411,450) falling due within one year are secured by a group company.
18. CREDITORS: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Obligations under finance leases and hire purchase contracts
14,119
18,390
--------
--------
----
----
19. FINANCE LEASES AND HIRE PURCHASE CONTRACTS
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
4,271
4,271
Later than 1 year and not later than 5 years
14,119
18,390
--------
--------
----
----
18,390
22,661
--------
--------
----
----
20. PROVISIONS
Group
Deferred tax (note 21)
£
At 30 January 2022
78,032
Additions
76,044
Charge against provision
( 2,964)
---------
At 29 January 2023
151,112
---------
The company does not have any provisions.
21. DEFERRED TAX
The deferred tax included in the statement of financial position is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in provisions (note 20)
151,112
78,032
---------
--------
----
----
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
151,112
78,032
---------
--------
----
----
22. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 76,656 (2022: £ 59,431 ).
23. GOVERNMENT GRANTS
The amounts recognised in the consolidated financial statements for government grants are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Recognised in other operating income:
Government grants recognised directly in income
581,808
----
---------
----
----
24. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
373
373
373
373
----
----
----
----
25. ANALYSIS OF CHANGES IN NET DEBT
At 30 Jan 2022
Cash flows
At 29 Jan 2023
£
£
£
Cash at bank and in hand
641,120
(404,387)
236,733
Debt due within one year
(477,200)
257,364
(219,836)
Debt due after one year
(18,390)
4,271
(14,119)
---------
---------
---------
145,530
( 142,752)
2,778
---------
---------
---------