Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31truefalse22022-01-01falseThe sale of sporting goods.2 11974358 2022-01-01 2022-12-31 11974358 2021-01-01 2021-12-31 11974358 2022-12-31 11974358 2021-12-31 11974358 2021-01-01 11974358 5 2022-01-01 2022-12-31 11974358 5 2021-01-01 2021-12-31 11974358 d:CompanySecretary1 2022-01-01 2022-12-31 11974358 d:Director1 2022-01-01 2022-12-31 11974358 d:RegisteredOffice 2022-01-01 2022-12-31 11974358 e:OfficeEquipment 2022-01-01 2022-12-31 11974358 e:OfficeEquipment 2022-12-31 11974358 e:OfficeEquipment 2021-12-31 11974358 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 11974358 e:CurrentFinancialInstruments 2022-12-31 11974358 e:CurrentFinancialInstruments 2021-12-31 11974358 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 11974358 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 11974358 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 11974358 e:ReportableOperatingSegment1 2021-01-01 2021-12-31 11974358 e:UKTax 2022-01-01 2022-12-31 11974358 e:UKTax 2021-01-01 2021-12-31 11974358 e:ShareCapital 2022-12-31 11974358 e:ShareCapital 2021-12-31 11974358 e:ShareCapital 2021-01-01 11974358 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11974358 e:RetainedEarningsAccumulatedLosses 2022-12-31 11974358 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 11974358 e:RetainedEarningsAccumulatedLosses 2021-12-31 11974358 e:RetainedEarningsAccumulatedLosses 2021-01-01 11974358 d:OrdinaryShareClass1 2022-01-01 2022-12-31 11974358 d:OrdinaryShareClass1 2022-12-31 11974358 d:OrdinaryShareClass1 2021-12-31 11974358 d:FRS102 2022-01-01 2022-12-31 11974358 d:Audited 2022-01-01 2022-12-31 11974358 d:FullAccounts 2022-01-01 2022-12-31 11974358 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 11974358










AGUILA SPORT UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
AGUILA SPORT UK LIMITED
 
 
COMPANY INFORMATION


Director
J M Lopez Gonzalez 




Company secretary
Forgate Secretaries Limited



Registered number
11974358



Registered office
Unit 11 Bury Business Centre
Kay Street

Bury

BL9 6BU




Independent auditors
Simmons Gainsford LLP
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
AGUILA SPORT UK LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 23


 
AGUILA SPORT UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The director presents the strategic report for the year ended 31 December 2022.

Principal activity

The activity of the Company consists of promoting and distributing to the markets sports textile products, accessories and footwear of our own brand through a network of distributors and its own experience in design, marketing and sales.

Business review
 
The revenue and profit for the financial year amounted to £15,587,337 (2021: £13,698,806) and £1,866,772 (2021: £4,323,570) respectively, as set out in the Statement of Comprehensive Income. Its turnover increased by 15% comparing to prior year. Therefore, the Company is still in a good position to continue developing and growing the business.
2022 saw the Company continuing to emerge from the effects of the Covid 19 pandemic – however, other global events have had an impact on markets, supply chain and overheads. 
The Company continued to work closely with its staff, distributors, suppliers and advisors to ensure it tackles the pandemic, Brexit and supply chain challenges.
Management has also continued with the internal business reorganisation programme that focused on:
 
Exploration of new business opportunities;
Implementation of a robust credit control procedure to ensure early identification of customers with credit issue;
Recruitment of suitable sales and administration staff to meet the set sales target.

The Directors recommended not to distribute any dividends given the expectations of investment and growth of the brand in the country.

Principal risks and uncertainties
 
There are a number of potential risks and uncertainties which could have a material impact on the Company's performance and could cause actual results to differ materially from expected and historic results. The Director monitors risks on an ongoing basis and implements appropriate procedures and processes to try and mitigate the adverse consequences of such risks.
The main risk the business faces is delays in the delivery of the products. This could cause a possible loss of customers if our service fails to meet their expectation. This risk has been mitigated by implementing following procedure in the group level:
      
Continuing investment in production personnel and machinery in Joma Sport, our main supplier, to reduce delivery times to the client.
Continuing with the expansion of the Company's distribution network through strategic partnerships and joint ventures.   

Financial key performance indicators
 
The Director monitors financial key performance indicators to manage the business on an ongoing basis. The key financial performance indicators for the Company are the cash position, turnover, gross profit and the profit after tax which are shown in the Financial Statements and summarised below:  

Page 1

 
AGUILA SPORT UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
        £
        £
Turnover

15,587,337

13,698,806
 
Gross profit

3,000,869

5,961,904
 
Profit for the year

1,866,772

4,323,570
 


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



J M Lopez Gonzalez
Director

Date: 23 October 2023

Page 2

 
AGUILA SPORT UK LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The director presents his report and the financial statements for the year ended 31 December 2022.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


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

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,866,772 (2021 - £4,323,570).

The directors have chosen to disclose information on principal activity, business review, principal risks and uncertainties, required by the Companies Act 2006 to be included in the Directors' Report, within the Strategic Report, found on pages 1 - 2.

Director

The director who served during the year was:

J M Lopez Gonzalez 

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

Page 3

 
AGUILA SPORT UK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Auditors

The auditorsSimmons Gainsford LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





J M Lopez Gonzalez
Director

Date: 23 October 2023

Page 4

 
AGUILA SPORT UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGUILA SPORT UK LIMITED
 

Opinion


We have audited the financial statements of Aguila Sport UK Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
AGUILA SPORT UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGUILA SPORT UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
AGUILA SPORT UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGUILA SPORT UK LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
 
the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the Company including including its management structure and control systems (including the opportunity for management to override such controls).
management's incentives and opportunities for fraudulent manipulation of the financial statements including the Company's remuneration and bonus policies and performance targets; and
the industry and environment in which it operates

We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.

Based on this understanding we identified the following matters as being of significance to the entity:

laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation and distributable profits legislation;
the timing of the recognition of commercial income;
management bias in selecting accounting policies and determining estimates;
inappropriate journal entries;
manipulation of specific performance measures to meet remuneration targets; and
recoverability of debtors

We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:

enquiries of management and those charged with as to whether the entity complies with such laws and regulations; 
enquiries with the same concerning any actual or potential litigation or claims; 
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
inspection of relevant legal correspondence;
assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls during the period;
Page 7

 
AGUILA SPORT UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGUILA SPORT UK LIMITED (CONTINUED)


obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
reviewing the financial statements for compliance with the relevant disclosure requirements;
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing the minutes of Board meetings and correspondence with HMRC; and
evaluating the underlying business reasons for any unusual transactions.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Shilen Manek ACA, FCCA (Senior statutory auditor)
  
for and on behalf of
Simmons Gainsford LLP
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

23 October 2023
Page 8

 
AGUILA SPORT UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
15,587,337
13,698,806

Cost of sales
  
(12,586,468)
(7,736,902)

Gross profit
  
3,000,869
5,961,904

Administrative expenses
  
(685,188)
(625,374)

Operating profit
 5 
2,315,681
5,336,530

Interest payable and similar expenses
 8 
(10,831)
-

Profit before tax
  
2,304,850
5,336,530

Tax on profit
 9 
(438,078)
(1,012,960)

Profit for the financial year
  
1,866,772
4,323,570

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 14 to 23 form part of these financial statements.

Page 9

 
AGUILA SPORT UK LIMITED
REGISTERED NUMBER: 11974358

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 10 
751
1,502

  
751
1,502

Current assets
  

Debtors: amounts falling due within one year
 11 
5,846,862
4,129,383

Cash at bank and in hand
 12 
4,456,555
7,326,768

  
10,303,417
11,456,151

Creditors: amounts falling due within one year
 13 
(4,120,963)
(7,141,220)

Net current assets
  
 
 
6,182,454
 
 
4,314,931

Total assets less current liabilities
  
6,183,205
4,316,433

  

Net assets
  
6,183,205
4,316,433


Capital and reserves
  

Called up share capital 
 14 
1,000
1,000

Profit and loss account
 15 
6,182,205
4,315,433

  
6,183,205
4,316,433


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J M Lopez Gonzalez
Director

Date: 23 October 2023

The notes on pages 14 to 23 form part of these financial statements.

Page 10

 
AGUILA SPORT UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
1,000
(8,137)
(7,137)



Profit for the year
-
4,323,570
4,323,570



At 1 January 2022
1,000
4,315,433
4,316,433



Profit for the year
-
1,866,772
1,866,772


At 31 December 2022
1,000
6,182,205
6,183,205


The notes on pages 14 to 23 form part of these financial statements.

Page 11

 
AGUILA SPORT UK LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
1,866,772
4,323,570

Adjustments for:

Depreciation of tangible assets
751
-

Interest paid
10,831
-

Taxation charge
438,078
1,012,960

(Increase) in debtors
(1,302,285)
(4,128,917)

(Decrease)/increase in creditors
(2,007,297)
6,097,892

Corporation tax (paid)/received
(1,866,232)
-

Net cash generated from operating activities

(2,859,382)
7,305,505


Cash flows from investing activities

Purchase of tangible fixed assets
-
(1,502)

Net cash from investing activities

-
(1,502)

Cash flows from financing activities

Interest paid
(10,831)
-

Net cash used in financing activities
(10,831)
-

Net (decrease)/increase in cash and cash equivalents
(2,870,213)
7,304,003

Cash and cash equivalents at beginning of year
7,326,768
22,765

Cash and cash equivalents at the end of year
4,456,555
7,326,768


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,456,555
7,326,768

4,456,555
7,326,768


The notes on pages 14 to 23 form part of these financial statements.

Page 12

 
AGUILA SPORT UK LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

7,326,768

(2,870,213)

4,456,555


7,326,768
(2,870,213)
4,456,555

The notes on pages 14 to 23 form part of these financial statements.

Page 13

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

The Company is a private Company limited by shares and is incorporated in England and Wales, registration number 11974358. The address of its registered office is Unit 11 Bury Business Centre, Kay Street, Bury, United Kingdom, BL9 6BU.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Debtors

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

 
2.10

Cash and cash equivalents

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

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

 
2.11

Creditors

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

Page 16

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the directors to make judgments, estimates and assumptions about the carrying amounts 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.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
No material judgments in applying accounting policies were used and there were no key sources of estimation uncertainty during the preparation of these financial statements.

Page 17

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sales of sportswear
15,587,337
13,698,806

15,587,337
13,698,806


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Auditors' remuneration
11,000
8,750

Exchange differences
(51)
151

Other operating lease rentals
8,923
3,744


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2022
2021
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
11,000
8,750

Page 18

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
22,000
8,750

Cost of defined contribution scheme
566
110

22,566
8,860


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


        2022
        2021
            No.
            No.







Administration
2
2


8.


Interest payable and similar expenses

2022
2021
£
£


Other interest payable
10,831
-

10,831
-


9.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
438,078
1,012,960

Taxation on profit on ordinary activities
 
438,078
 
1,012,960
Page 19

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
2,304,850
5,336,530


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
437,922
1,013,941

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
25

Capital allowances for year in excess of depreciation
142
(371)

Utilisation of tax losses
-
(656)

Changes in provisions leading to an increase (decrease) in the tax charge
14
21

Total tax charge for the year
438,078
1,012,960


Factors that may affect future tax charges

In the March 2022 Budget, The Corporation Tax rate will increase to 25% for larger companies from 1 April 2023. 

Page 20

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 January 2022
1,502



At 31 December 2022

1,502



Depreciation


Charge for the year on owned assets
751



At 31 December 2022

751



Net book value



At 31 December 2022
751



At 31 December 2021
1,502

Page 21

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Debtors

2022
2021
£
£


Trade debtors
4,425,693
3,999,435

Other debtors
566,169
870

Prepayments and accrued income
855,000
129,078

5,846,862
4,129,383



12.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
4,456,555
7,326,768

4,456,555
7,326,768



13.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
3,041,448
5,199,383

Corporation tax
-
1,012,960

Other taxation and social security
19,277
478,994

Other creditors
184
147

Accruals and deferred income
1,060,054
449,736

4,120,963
7,141,220



14.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1,000 (2021 - 1,000) Ordinary shares of £1.00 each
1,000
1,000


Page 22

 
AGUILA SPORT UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Reserves

Profit and loss account

The profit & loss account comprises accumulated losses incurred by the group and Company since incorporation.


16.


Contingent liabilities

The Company has given a guarantee in favour of HM Revenue & Customs under a VAT deferment scheme amounting to £150,000.


17.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £566 (2021 - £110). Contributions totalling £184 (2021 - £147) were payable to the fund at the balance sheet date and are included in creditors.


18.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the balance sheet date.


19.


Related party transactions

During the year purchases of £9,508,707 (2021: £6,585,575) were made from Joma Sport S.A, the sole shareholder of the Company.
At the year end £2,978,324 (2021: £5,081,211) was due to Joma Sport S.A. The balance is interest free and repayable on demand.


20.


Controlling party

The immediate and ultimate parent undertaking and controlling party of the Company is Joma Sport S.A., a Company incorporated in Spain. The published financial statements of Joma Sport S.A. are available for inspection at Calle Ramon y Cajal 134, Portillo de Toledo, 45512, Spain.

 
Page 23