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REGISTERED NUMBER: 04206852 (England and Wales)















ESPRIT GROUP UK LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023






ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 9

Consolidated Statement of Financial Position 10

Company Statement of Financial Position 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Statement of Cash Flows 14

Notes to the Consolidated Statement of Cash Flows 15

Notes to the Consolidated Financial Statements 17


ESPRIT GROUP UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: P I Burke
T R Dubberley
R R D Wheeler
S Eden





SECRETARY: Miss V A Beckett





REGISTERED OFFICE: Esprit House
Spon Lane
West Bromwich
West Midlands
B70 6AA





REGISTERED NUMBER: 04206852 (England and Wales)





AUDITORS: Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report of the company and the group for the year ended 28 February 2023.

REVIEW OF BUSINESS
The directors were satisfied with the results declared for the year ended 28 February 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
The group monitors costs and revenue on a constant basis to protect the financial stability of the group. The current market is stable with potential for growth.

The directors believe that they have taken all necessary and reasonable steps to protect the group. Although the group operates and trades outside of the UK, the majority of sales are within the UK and the directors do constantly review exchange rates, so any fluctuations should not have a major impact on the group's performance.

The directors do realise that events outside their control will affect the performance of the group.

KEY PERFORMANCE INDICATORS
The directors consider that the key financial performance indicators are turnover, gross profit margin and net profit.

The turnover for the group has decreased from £15.9 million in 2022 to £14.6 million in 2023, which is a decrease of 9%. The gross profit for the year has increased to £2.5 million with a gross profit margin of 17% (2022 - £2.06 million gross profit at a margin of 13%).

The net profit before tax has increased to £0.44 million from £0.33 million.

ON BEHALF OF THE BOARD:





T R Dubberley - Director


24 October 2023

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company and the group for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of a holding company for a group of companies that specialise in shop and store fitting.

DIVIDENDS
Interim dividends per share were paid during the year as follows:
Ordinary A £1 - £2.85714 - 28 February 2023
Ordinary B £1 - £16 - 28 February 2023

The total distribution of dividends for the year ended 28 February 2023 will be £ 6,800 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

P I Burke
T R Dubberley
R R D Wheeler

Other changes in directors holding office are as follows:

S Eden - appointed 1 May 2022

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations and expenditure during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Folkes Worton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T R Dubberley - Director


24 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ESPRIT GROUP UK LIMITED


Opinion
We have audited the financial statements of Esprit Group UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 28 February 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; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ESPRIT GROUP UK LIMITED


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

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ESPRIT GROUP UK LIMITED


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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group, the company and their industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgements. In response to the above identified risks audit procedures were designed to appropriately drawn conclusions. Audit procedures such as;

-Reviewing and challenging journal entries, in particular unusual account combinations;
-Challenging assumptions and judgements made by management in their significant accounting estimates; and
-Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud

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

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ESPRIT GROUP UK LIMITED


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 a Report of the Auditors 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.




Nigel Meredith FCA (Senior Statutory Auditor)
for and on behalf of Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

24 October 2023

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

TURNOVER 14,573,107 15,969,290

Cost of sales 12,072,382 13,909,004
GROSS PROFIT 2,500,725 2,060,286

Administrative expenses 1,925,284 1,709,682
575,441 350,604

Other operating income - 104,876
OPERATING PROFIT 4 575,441 455,480

Interest receivable and similar income 45,217 7,364
620,658 462,844

Interest payable and similar expenses 5 182,117 131,165
PROFIT BEFORE TAXATION 438,541 331,679

Tax on profit 6 135,069 6,925
PROFIT FOR THE FINANCIAL YEAR 303,472 324,754

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

303,472

324,754

Profit attributable to:
Owners of the parent 303,472 324,754

Total comprehensive income attributable to:
Owners of the parent 303,472 324,754

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 2,326,361 2,587,376
Tangible assets 10 688,767 546,858
Investments 11 - -
3,015,128 3,134,234

CURRENT ASSETS
Stocks 12 217,380 84,724
Debtors 13 1,469,958 1,680,269
Cash at bank and in hand 8,475,300 7,889,962
10,162,638 9,654,955
CREDITORS
Amounts falling due within one year 14 4,635,914 4,457,268
NET CURRENT ASSETS 5,526,724 5,197,687
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,541,852

8,331,921

CREDITORS
Amounts falling due after more than one year 15 (2,740,441 ) (2,887,282 )

PROVISIONS FOR LIABILITIES 18 (94,700 ) (34,600 )
NET ASSETS 5,706,711 5,410,039

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 20 5,705,711 5,409,039
SHAREHOLDERS' FUNDS 5,706,711 5,410,039

The financial statements were approved by the Board of Directors and authorised for issue on 24 October 2023 and were signed on its behalf by:





T R Dubberley - Director


ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

COMPANY STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 78,337 73,320
Investments 11 3,362,102 3,362,102
3,440,439 3,435,422

CURRENT ASSETS
Debtors 13 457,307 315,900
Cash at bank 2,434,818 2,149,941
2,892,125 2,465,841
CREDITORS
Amounts falling due within one year 14 10,053 116,903
NET CURRENT ASSETS 2,882,072 2,348,938
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,322,511

5,784,360

CREDITORS
Amounts falling due after more than one year 15 2,421,018 2,421,018
NET ASSETS 3,901,493 3,363,342

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 20 3,900,493 3,362,342
SHAREHOLDERS' FUNDS 3,901,493 3,363,342

Company's profit for the financial year 544,951 308,575

The financial statements were approved by the Board of Directors and authorised for issue on 24 October 2023 and were signed on its behalf by:





T R Dubberley - Director


ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 March 2021 1,000 5,091,085 5,092,085

Changes in equity
Dividends - (6,800 ) (6,800 )
Total comprehensive income - 324,754 324,754
Balance at 28 February 2022 1,000 5,409,039 5,410,039

Changes in equity
Dividends - (6,800 ) (6,800 )
Total comprehensive income - 303,472 303,472
Balance at 28 February 2023 1,000 5,705,711 5,706,711

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 March 2021 1,000 3,060,567 3,061,567

Changes in equity
Dividends - (6,800 ) (6,800 )
Total comprehensive income - 308,575 308,575
Balance at 28 February 2022 1,000 3,362,342 3,363,342

Changes in equity
Dividends - (6,800 ) (6,800 )
Total comprehensive income - 544,951 544,951
Balance at 28 February 2023 1,000 3,900,493 3,901,493

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,294,701 906,793
Interest paid (176,319 ) (123,478 )
Interest element of hire purchase payments
paid

(5,798

)

(7,687

)
Tax paid (28,728 ) (85,360 )
Net cash from operating activities 1,083,856 690,268

Cash flows from investing activities
Purchase of tangible fixed assets (303,949 ) (233,434 )
Sale of tangible fixed assets 23,469 59,049
Interest received 45,217 7,364
Net cash from investing activities (235,263 ) (167,021 )

Cash flows from financing activities
Loan repayments in year (105,799 ) -
Capital repayments in year (89,036 ) (90,967 )
Amount introduced by directors 171,285 143,299
Amount withdrawn by directors (232,905 ) (206,834 )
Government grants - 104,876
Equity dividends paid (6,800 ) (6,800 )
Net cash from financing activities (263,255 ) (56,426 )

Increase in cash and cash equivalents 585,338 466,821
Cash and cash equivalents at beginning of
year

2

7,889,962

7,423,141

Cash and cash equivalents at end of year 2 8,475,300 7,889,962

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 438,541 331,679
Depreciation charges 407,610 155,060
(Profit)/loss on disposal of fixed assets (8,025 ) 14,090
Government grants - (104,876 )
Finance costs 182,117 131,165
Finance income (45,217 ) (7,364 )
975,026 519,754
(Increase)/decrease in stocks (132,656 ) 386,789
Decrease/(increase) in trade and other debtors 271,931 (152,038 )
Increase in trade and other creditors 180,400 152,288
Cash generated from operations 1,294,701 906,793

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2023
28/2/23 1/3/22
£    £   
Cash and cash equivalents 8,475,300 7,889,962
Year ended 28 February 2022
28/2/22 1/3/21
£    £   
Cash and cash equivalents 7,889,962 7,423,141


ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/3/22 Cash flow At 28/2/23
£    £    £   
Net cash
Cash at bank and in hand 7,889,962 585,338 8,475,300
7,889,962 585,338 8,475,300
Debt
Finance leases (107,233 ) 89,036 (18,197 )
Debts falling due within 1 year (105,804 ) 4 (105,800 )
Debts falling due after 1 year (2,844,214 ) 105,796 (2,738,418 )
(3,057,251 ) 194,836 (2,862,415 )
Total 4,832,711 780,174 5,612,885

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Esprit Group UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of value added tax and other sales related taxes.

Revenue from the sale of goods and services is recognised when:
- the significant risks and rewards of ownership of the goods have passed to the buyer;
- the amount of the revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the entity; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the life of the lease
Plant and machinery - 20% on reducing balance and 15% on reducing balance
Fixtures and fittings - 20% on reducing balance and 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on cost

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying value of the asset, and is credited or charged to the statement of comprehensive income.

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,468,434 2,448,673
Social security costs 37,626 48,873
Other pension costs 51,451 53,204
2,557,511 2,550,750

The average number of employees during the year was as follows:
2023 2022

Production and administration 45 48
Directors 4 3
49 51

The average number of employees by undertakings that were proportionately consolidated during the year was 49 (2022 - 51 ) .

2023 2022
£    £   
Directors' remuneration 315,800 337,000

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 120,000 113,000

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 111,327 136,207
Other operating leases 234,920 252,412
Depreciation - owned assets 87,859 51,571
Depreciation - assets on hire purchase contracts 58,737 96,685
(Profit)/loss on disposal of fixed assets (8,025 ) 14,090
Goodwill amortisation 257,763 3,552
Development costs amortisation 3,252 3,252
Auditors' remuneration 12,870 7,889
Government grants received - (104,876 )

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest - 6
Bank loan interest 19,782 -
Director's loan interest 156,537 123,472
Hire purchase interest 5,798 7,687
182,117 131,165

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 74,969 28,663
Prior year tax adjustment - (1,038 )
Total current tax 74,969 27,625

Deferred tax 60,100 (20,700 )
Tax on profit 135,069 6,925

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 438,541 331,679
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

83,323

63,019

Effects of:
Expenses not deductible for tax purposes 1,694 1,473
Capital allowances in excess of depreciation - (29,876 )
Depreciation in excess of capital allowances 74,276 -
Research and development enhance expenditure (24,224 ) (27,691 )
Total tax charge 135,069 6,925

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of £1 each
Interim 2,000 2,000
Ordinary B shares of £1 each
Interim 4,800 4,800
6,800 6,800

9. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 March 2022
and 28 February 2023 2,609,596 16,250 2,625,846
AMORTISATION
At 1 March 2022 31,968 6,502 38,470
Amortisation for year 257,763 3,252 261,015
At 28 February 2023 289,731 9,754 299,485
NET BOOK VALUE
At 28 February 2023 2,319,865 6,496 2,326,361
At 28 February 2022 2,577,628 9,748 2,587,376

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


10. TANGIBLE FIXED ASSETS

Group
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 March 2022 20,576 475,282 378,480
Additions 10,419 37,915 3,790
Disposals (20,576 ) - -
At 28 February 2023 10,419 513,197 382,270
DEPRECIATION
At 1 March 2022 20,576 415,430 363,351
Charge for year 2,417 14,621 3,465
Eliminated on disposal (20,576 ) - -
At 28 February 2023 2,417 430,051 366,816
NET BOOK VALUE
At 28 February 2023 8,002 83,146 15,454
At 28 February 2022 - 59,852 15,129

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 859,412 49,225 1,782,975
Additions 251,825 - 303,949
Disposals (57,832 ) - (78,408 )
At 28 February 2023 1,053,405 49,225 2,008,516
DEPRECIATION
At 1 March 2022 387,564 49,196 1,236,117
Charge for year 126,064 29 146,596
Eliminated on disposal (42,388 ) - (62,964 )
At 28 February 2023 471,240 49,225 1,319,749
NET BOOK VALUE
At 28 February 2023 582,165 - 688,767
At 28 February 2022 471,848 29 546,858

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


10. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 March 2022 385,532
Transfer to ownership (318,782 )
At 28 February 2023 66,750
DEPRECIATION
At 1 March 2022 150,584
Charge for year 58,737
Transfer to ownership (184,061 )
At 28 February 2023 25,260
NET BOOK VALUE
At 28 February 2023 41,490
At 28 February 2022 234,948

Company
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 March 2022 263,706 80,918 344,624
Additions 20,125 2,690 22,815
At 28 February 2023 283,831 83,608 367,439
DEPRECIATION
At 1 March 2022 204,515 66,789 271,304
Charge for year 14,522 3,276 17,798
At 28 February 2023 219,037 70,065 289,102
NET BOOK VALUE
At 28 February 2023 64,794 13,543 78,337
At 28 February 2022 59,191 14,129 73,320

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 March 2022
and 28 February 2023 3,362,102
NET BOOK VALUE
At 28 February 2023 3,362,102
At 28 February 2022 3,362,102


12. STOCKS

Group
2023 2022
£    £   
Raw materials 375 370
Work-in-progress 679,861 170,925
Payments on account (462,856 ) (86,571 )
217,380 84,724

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 1,296,790 1,528,013 - -
Amounts owed by group undertakings - - 456,307 314,900
Other debtors 500 1,350 - -
Directors' loan accounts 122,790 61,170 - -
VAT - 40,292 - -
Called up share capital not paid 1,000 1,000 1,000 1,000
Prepayments 48,878 48,444 - -
1,469,958 1,680,269 457,307 315,900

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 105,800 105,804 - -
Hire purchase contracts (see note 17) 16,174 64,165 - -
Payments on account 366,018 49,806 - -
Trade creditors 1,528,823 1,993,483 - -
Amounts owed to group undertakings - - - 107,593
Tax 74,904 28,663 - -
Social security and other taxes 98,569 88,234 - -
VAT 332,963 - 2,158 1,780
Other creditors 27,964 30,378 800 800
Connected company 108,000 96,000 - -
Directors' loan accounts 4,000 4,000 7,095 6,730
Accruals 1,972,699 1,996,735 - -
4,635,914 4,457,268 10,053 116,903

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 16) 317,400 423,196 - -
Other loans (see note 16) 2,421,018 2,421,018 2,421,018 2,421,018
Hire purchase contracts (see note 17) 2,023 43,068 - -
2,740,441 2,887,282 2,421,018 2,421,018

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


16. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 105,800 105,804 - -
Amounts falling due between one and two years:
Bank loans - 1-2 years 105,800 317,412 - -
Amounts falling due between two and five years:
Bank loans - 2-5 years 211,600 105,784 - -
Amounts falling due in more than five years:
Repayable otherwise than by instalments
Other loans 2,421,018 2,421,018 2,421,018 2,421,018

Other borrowings consists of floating rate guaranteed loan notes issued to one of the directors, Mr T R Dubberley on 8 April 2013. Interest is payable half-yearly at 5% above the published Bank of England base rate.

At the balance sheet date Mr T R Dubberley held £2,421,018 (2022: £2,421,018).

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 16,174 64,165
Between one and five years 2,023 43,068
18,197 107,233

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


17. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 220,000 220,000
Between one and five years 660,000 880,000
880,000 1,100,000

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 94,700 34,600

Group
Deferred
tax
£   
Balance at 1 March 2022 34,600
Provided during year 60,100
Balance at 28 February 2023 94,700

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
700 Ordinary A £1 700 700
300 Ordinary B £1 300 300
1,000 1,000

ESPRIT GROUP UK LIMITED (REGISTERED NUMBER: 04206852)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


20. RESERVES

Group
Retained
earnings
£   

At 1 March 2022 5,409,039
Profit for the year 303,472
Dividends (6,800 )
At 28 February 2023 5,705,711

Company
Retained
earnings
£   

At 1 March 2022 3,362,342
Profit for the year 544,951
Dividends (6,800 )
At 28 February 2023 3,900,493


21. RELATED PARTY DISCLOSURES

Dividends totalling £6,800 (2022: £6,800) were paid in the year in respect of shares held by the company's directors.

During the year, loan note interest was paid to Mr T R Dubberley for an amount of £156,537 (2022: £123,472).

22. ULTIMATE CONTROLLING PARTY

The controlling party is T R Dubberley.