Company Registration No. 06899998 (England and Wales)
True Religion Brand Jeans U.K. Limited
Financial statements
For the period ended 28 January 2023
Pages for filing with registrar
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
BALANCE SHEET
AS AT 28 JANUARY 2023
28 January 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
95,448
89,116
Current assets
Stocks
-
48,308
Debtors
5
5,338,542
2,687,601
Cash at bank and in hand
407,273
74,381
5,745,815
2,810,290
Creditors: amounts falling due within one year
6
(965,275)
(624,634)
Net current assets
4,780,540
2,185,656
Net assets
4,875,988
2,274,772
Capital and reserves
Called up share capital
7
2,834,061
2,834,061
Profit and loss reserves
2,041,927
(559,289)
Total equity
4,875,988
2,274,772
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 October 2023 and are signed on its behalf by:
M Buckley
Director
Company Registration No. 06899998
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 2 -
1
Accounting policies
Company information
True Religion Brand Jeans U.K. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 118 Commercial Street, Spitalfields, London, E1 6NF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, 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:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of TRLG Intermediate Holding, LLC. These consolidated financial statements are available from its registered office, 500 West 190th Street, Suite 300, Gardena, CA 90248.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for designer clothing provided in the normal course of business, and is shown net of VAT and other sales related taxes.
The company uses the industry standard NRF 4-5-4 calendar each year.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on sale of the goods), the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity.
1.3
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.
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 3 -
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:
Land and buildings Leasehold
over the length of the lease
Fixtures, fittings & equipment
5 years Straight line
Computer equipment
3 years 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 credited or charged to profit or loss.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.5
Stocks
Stocks are stated at the lower of cost and net realisable value.
Net realisable value is the estimated selling price less all estimated costs of completion and costs incurred in marketing, selling and distribution.
1.6
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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 company’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 is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.8
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.
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.9
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 leases asset are consumed.
1.10
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.
1.11
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Management
5
5
Sales
1
4
6
9
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 5 -
4
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 30 January 2022
141,268
36,718
20,356
198,342
Additions
15,817
15,817
Disposals
(56,703)
(1,108)
(355)
(58,166)
At 28 January 2023
84,565
51,427
20,001
155,993
Depreciation and impairment
At 30 January 2022
57,518
31,360
20,348
109,226
Depreciation charged in the period
3,135
6,215
105
9,455
Eliminated in respect of disposals
(56,589)
(1,095)
(452)
(58,136)
At 28 January 2023
4,064
36,480
20,001
60,545
Carrying amount
At 28 January 2023
80,501
14,947
95,448
At 29 January 2022
83,750
5,358
8
89,116
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,377,743
359,922
Corporation tax recoverable
316,284
Amounts owed by group undertakings
2,869,365
1,930,573
Other debtors
79,689
69,077
5,326,797
2,675,856
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
5
Debtors
(Continued)
- 6 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
11,745
11,745
Total debtors
5,338,542
2,687,601
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
93,324
87,199
Corporation tax
352,239
Other taxation and social security
381,225
285,259
Other creditors
138,487
252,176
965,275
624,634
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
2,834,061 Ordinary shares of £1 each
2,834,061
2,834,061
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Sarah Yardley BSc ACA
Statutory Auditor:
MGR Weston Kay LLP
TRUE RELIGION BRAND JEANS U.K. LIMITED
True Religion Brand Jeans U.K. Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 7 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
71,750
136,115
Between two and five years
185,354
257,104
257,104
393,219
10
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related party disclosures' not to disclose transactions between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
11
Parent company
The parent company that draws up accounts on the smallest group of undertakings is TRLG Intermediate Holdings, LLC, a company registered in the USA (5330873) by virtue of indirectly owning 100% of the share capital.
It is the belief of the directors' that there is no ultimate controlling party.