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REGISTERED NUMBER: 03240384 (England and Wales)















INCORPORATEWEAR LIMITED

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2023






INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)






Contents of the Financial Statements
for the year ended 31 March 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11 to 20


INCORPORATEWEAR LIMITED

Company Information
for the year ended 31 March 2023







Directors: E Grigg
S S Sohal
R S Sohal



Registered office: Edison Road
Hams Hall Distribution Park
Coleshill
West Midlands
B46 1DA



Registered number: 03240384 (England and Wales)



Auditors: Cooper Parry Group Limited
Statutory Auditor
CUBO Birmingham
Office 401, 4th Floor
Birmingham
West Midlands
B3 3AX



Bankers: HSBC Bank Plc
120 Edmund Street
Birmingham
B3 2QZ

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Strategic Report
for the year ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Review of business
During the period Incorporatewear has seen an increase in existing customer requirements following the return of demand within the airline, tourism and retail sectors. Many of the customers are looking to refresh their uniforms in the coming 12 months.

Sales showed an increase of 44.7% from the previous financial year, primarily due to customer demand returning to normal following COVID-19, along with the successful roll-out of the uniform for the Commonwealth Ganes held in Birmingham. Gross margin improved from 13.45% to 16.25%.

The program of continuous improvement has led to our owners Workwear Uniform Group Limited (formally Direct Corporate Clothing Plc) investing in an automated warehousing system which, as a brand, we will be able to take advantage of during 2024. This will ensure our customers receive the best service whilst maintaining cost controls. In addition the new facility will reduce our Carbon footprint significantly.

The Company continues to pursue its growth organically within its core sectors. This is throughout the United Kingdom and Europe via our sister subsidiary Workwear Uniform Group BV.

Principal risks and uncertainties
The significant risks and uncertainties are set out below.

The price of many raw materials is dependent upon movements in commodity prices. In order to reduce the risk, the Company sources from various suppliers across the world, enabling sources of supply to be switched. In addition it is taking advantage by moving some of its sourcing to K&D, a related party of Workwear Uniform Group Limited.

The majority of the Company's purchases are denominated in foreign currency, particularly Euro and US Dollars. The Company mitigates currency exposure by the placing of forward hedging deals.

The Company trades only with recognised, creditworthy third parties. It is the Company's policy that all customers who wish to trade on credit terms are subject to credit verification. In addition, receivable balances are monitored on an ongoing basis with the result that the Company's exposure to bad debts is not significant.

The Company has a broad customer base which it services through its own client portal, with no single customer making up a significant proportion of the Company's turnover. The Directors keep this under constant review to ensure that there is no reliance on any one customer.

In common with other industrial businesses the Company is subject to risks associated with the environment. The Company manages these risks by continuous review of its processes to identify opportunities for improvement, whilst ensuring that the supply chain standards are met or exceeded at all times.

Post balance sheet events
On the 1st April 2023, the business merged with Workwear Uniform Group Limited (previously known as Direct Corporate Clothing plc). All employees were TUPE and all assets and liabilities were transferred to the existing legal entity that owns the shares of Incoporatewear. The business continues to trade under that name as a leading supplier within the Coporatewear market.

On behalf of the board:





S S Sohal - Director


28 March 2024

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Report of the Directors
for the year ended 31 March 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

Principal activity
The principal activity of the Company is the design, supply and management of corporate clothing for business use.

On 1 April 2023 the company's trading business and assets were hived up into the parent company, Workwear Uniform Group Limited.

Dividends
No dividends will be distributed for the year ended 31 March 2023.

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

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

E Grigg
S S Sohal
R S Sohal

Going concern
On 1 April 2023 the company's trade, assets and liabilities were hived up into the parent company, Workwear Uniform Group Limited. These financial statements are prepared on a wind-up basis of accounting where all assets are stated at their expected recoverable amounts. Following the hive up, any additional costs of the company will be borne by Workwear Uniform Group Limited.

Statement of directors' responsibilities
The directors are responsible for preparing the 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). 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Report of the Directors
for the year ended 31 March 2023


Auditors
The audit business of Haines Watts Birmingham LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Birmingham LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

The auditors, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





S S Sohal - Director


28 March 2024

Report of the Independent Auditors to the Members of
Incorporatewear Limited

Opinion
We have audited the financial statements of Incorporatewear Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 company's affairs as at 31 March 2023 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 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 non-going concern context in the preparation of the financial statements is appropriate.

The company ceased trading on 1 April 2023. We acknowledge and agree that the accounts should be prepared on a basis other than going concern. 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 over the managements treatment of going concern.

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

Emphasis of matter
We draw attention to note 21 in the financial statements which explains that the company's trade, assets and liabilities were hived up into the parent company, Workwear Uniform Group Limited, on 1 April 2023. As such, we do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in the paragraph titled 'Going Concern' shown in Note 2.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Incorporatewear Limited


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 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, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to:

- making enquires of directors and management as to where they consider there to be a susceptibility to
fraud and whether they have any knowledge or suspicion of fraud;
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or
non-compliance with laws and regulations;
- assessing the design effectiveness of the controls in place to prevent and detect fraud;
- assessing the risk of management override including identifying and testing journal entries;
- challenging the assumptions and judgements made by management in its significant accounting
estimates.

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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
Incorporatewear 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.




Andrew Hughes FCA (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
CUBO Birmingham
Office 401, 4th Floor
Birmingham
West Midlands
B3 3AX

28 March 2024

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Statement of Comprehensive
Income
for the year ended 31 March 2023

2023 2022
Notes £ £

Turnover 3 27,440,723 18,964,728

Cost of sales (22,980,429 ) (16,414,566 )
Gross profit 4,460,294 2,550,162

Distribution costs (70,285 ) (256,716 )
Administrative expenses (3,504,561 ) (2,961,161 )
Operating profit/(loss) 5 885,448 (667,715 )

Interest receivable and similar income 175 -
885,623 (667,715 )

Interest payable and similar expenses 7 - (1,022 )
Profit/(loss) before taxation 885,623 (668,737 )

Tax on profit/(loss) 8 149,630 (70,345 )
Profit/(loss) for the financial year 1,035,253 (739,082 )

Other comprehensive income - -
Total comprehensive income for the year 1,035,253 (739,082 )

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Statement of Financial Position
31 March 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 9 - 3,231
Tangible assets 10 - 299,875
- 303,106

Current assets
Stocks 11 12,147,119 4,679,639
Debtors 12 4,973,567 5,697,493
Cash at bank and in hand 265,794 1,511,793
17,386,480 11,888,925
Creditors
Amounts falling due within one year 13 11,015,809 6,976,613
Net current assets 6,370,671 4,912,312
Total assets less current liabilities 6,370,671 5,215,418

Provisions for liabilities 16 847,200 727,200
Net assets 5,523,471 4,488,218

Capital and reserves
Called up share capital 17 996,416 996,416
Share premium 18 853,721 853,721
Capital redemption reserve 18 12,000 12,000
Retained earnings 18 3,661,334 2,626,081
Shareholders' funds 5,523,471 4,488,218

The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by:





S S Sohal - Director


INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Statement of Changes in Equity
for the year ended 31 March 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£ £ £ £ £
Balance at 1 April 2021 996,416 3,365,163 853,721 12,000 5,227,300

Changes in equity
Total comprehensive income - (739,082 ) - - (739,082 )
Balance at 31 March 2022 996,416 2,626,081 853,721 12,000 4,488,218

Changes in equity
Total comprehensive income - 1,035,253 - - 1,035,253
Balance at 31 March 2023 996,416 3,661,334 853,721 12,000 5,523,471

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements
for the year ended 31 March 2023

1. Statutory information

Incorporatewear 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Going concern
The financial statements are prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland as applied in a non-going concern context.

On 1 April 2023 the company's trade, assets and liabilities were hived up into the parent company, Workwear Uniform Group Limited. These financial statements are prepared on a wind-up basis of accounting where all assets are stated at their expected recoverable amounts. Following the hive up, any additional costs of the company will be borne by Workwear Uniform Group Limited.

The comparative numbers for the year ended 31 March 2022 were prepared on a going concern basis as they had been formally approved by the directors prior to the date of the hive up.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7;
the requirements of paragraph 24(b) of IFRS 6.

This information is included in the consolidated financial statements of Workwear Uniform Group Limited as at 31 March 2023 and these financial statements may be obtained from its registered office or directly from Companies House.

Significant judgements and estimates
The preparation of financial statements requires management to make estimates and judgements that affect the reported amount of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual outcomes could differ from those estimates and judgements. Where appropriate, details of estimates and assumptions used are set out in the relevant notes to the accounts.

The key figures in the accounts that are most sensitive to estimates and assumptions are:
-


Stock provision- the Company makes a provision against those stock items in which recoverability
is uncertain, in assessing stock provisions the Company takes account of the number of units
despatched over a 12 month period as compared to the number of units held in stock with the
provision made against those items in excess of 12 months stock.
-

Impairment of property, plant and equipment - the Company performs an impairment review of
property, plant and equipment when indications of impairment exist. Impairment testing requires an
estimate of future cash flows and the application of suitable discount rate.

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

2. Accounting policies - continued

Turnover
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer. The Company has two distinct points where these risks and rewards are passed, on receipt of goods into the Company warehouse and on dispatch to customers. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax and duty.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:
- the significant risks and rewards of ownership are transferred 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 consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Intangible assets
Intangibles assets are stated at cost less accumulated amortisation and accumulated impairment losses. Computer software is initially recorded at cost. Where these assets have been acquired through a business combination, this will be the fair value allocated in the acquisition accounting. Where these have been acquired other than through a business combination, the initial cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Computer software and other intangible assets are amortised over their useful lives on straight line basis with the amortisation charge included within other operating expenses.

Estimated useful life is the shorter of legal duration and economic useful life, which represents the directors best estimate of the period over which the asset may be used to generate significant economic benefits to this.

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation.

Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost, less estimated residual value based on prices prevailing at the acquisition, of each asset evenly over its expected useful life, as follows:

Plant and machinery10 - 20% straight line
Fixtures and fittings10 - 33% straight line
Leasehold improvements10% straight line
Leasehold land & buildings5 - 20% straight line

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Stocks
Stocks are valued at the lower of cost and net realisable value, which is arrived at as follows:

Raw materials - purchase cost on a first-in, first-out basis
Work in progress and finished goods - actual cost of direct materials and labour plus attributable
overheads based on a normal level of activity but excluding
borrowing costs

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

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

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

2. Accounting policies - continued

Financial instruments
Basic financial instruments
Trade and other debtors/creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Other financial instruments - interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method less any impairment losses.

Financial instruments not considered to be basic financial instruments
Other financial instruments not meeting the definition of basic financial instruments are recognised initially at fair value. Subsequent to initial recognition other financial instruments are measured at fair value with changes recognised in profit or loss except as follows:

>investments in equity instruments that are not publicly traded and whose fair value cannot otherwise
be measured reliably shall be measured at cost less impairment; and
>hedging instruments in a designated hedging relationship shall be recognised as set out below.

Derivative financial instruments and hedging
Derivative financial instruments are recognised at fair value. The gain or loss on re-measurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences arising on translation are recognised in the profit and loss account.

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

2. Accounting policies - continued

Pension costs
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3. Turnover

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£ £
United Kingdom 21,893,762 17,429,027
Europe 5,432,579 1,094,340
Worldwide 114,382 441,361
27,440,723 18,964,728

4. Employees and directors
2023 2022
£ £
Wages and salaries 2,802,252 2,405,023
Social security costs 262,546 211,133
Other pension costs 132,301 117,172
3,197,099 2,733,328

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

Distribution 28 36
Administration 54 59
82 95

2023 2022
£ £
Directors' remuneration 122,853 152,066
Directors' pension contributions to money purchase schemes 21,636 21,160

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

5. Operating profit/(loss)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

2023 2022
£ £
Depreciation - owned assets 101,525 95,618
Computer software amortisation 2,510 5,540
Auditors' remuneration 23,794 18,569
Impairment of intangible assets 721 -
Operating leases - land and buildings 497,435 399,147
Operating leases - other 74,489 80,765
Foreign exchange loss/(gain) 1,257,494 (324,004 )
Impairment of tangible fixed assets 204,886 -

6. Exceptional items
2023 2022
£ £
Exceptional items - (80,599 )

Operating exceptional costs of £Nil (2022 £80,599) relate to exceptional professional fees and to subsidiary closure costs that have been incurred from restructuring undertaken during the current and prior periods.

7. Interest payable and similar expenses
2023 2022
£ £
Finance charges - 1,022

8. Taxation

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
Over/(under) provision in
prior period - (48,178 )

Deferred tax (149,630 ) 118,523
Tax on profit/(loss) (149,630 ) 70,345

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

8. Taxation - continued

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

2023 2022
£ £
Profit/(loss) before tax 885,623 (668,737 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

168,268

(127,060

)

Effects of:
Expenses not deductible for tax purposes 1,253 25,081
Utilisation of tax losses (295,159 ) 230,053
Adjustments to tax charge in respect of previous periods - (48,178 )

Timing differences (373 ) (4,099 )
Change in future rate of tax (23,619 ) (5,452 )
Total tax (credit)/charge (149,630 ) 70,345

Factors the may effect future tax charges
The main rate of corporation tax in force at the Statement of Financial Position date was 19%. A resolution to amend the corporation tax rate from 1 April 2023 was passed on 3 March 2021, at which point the main rate of corporation tax will increase to 25%. A small profits rate of 19% for companies with profits not exceeding £50k will take effect from the same date.

The deferred taxation balance has therefore been calculated at 25%, being the rate substantively enacted at the Statement of Financial Position date.

9. Intangible fixed assets
Computer
software
£
Cost
At 1 April 2022
and 31 March 2023 990,586
Amortisation
At 1 April 2022 987,355
Amortisation for year 2,510
Impairments 721
At 31 March 2023 990,586
Net book value
At 31 March 2023 -
At 31 March 2022 3,231

Intangible fixed assets have been written down to a net book value of £Nil via an impairment write off of £721 in lieu of the hive up of the trade of Incorporatewear Limited to Workwear Uniform Group Limited as from 1 April 2023.

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

10. Tangible fixed assets
Fixtures
Plant and and
machinery fittings Totals
£ £ £
Cost
At 1 April 2022 821,336 270,739 1,092,075
Additions - 6,536 6,536
At 31 March 2023 821,336 277,275 1,098,611
Depreciation
At 1 April 2022 575,794 216,406 792,200
Charge for year 76,470 25,055 101,525
Impairments 169,072 35,814 204,886
At 31 March 2023 821,336 277,275 1,098,611
Net book value
At 31 March 2023 - - -
At 31 March 2022 245,542 54,333 299,875

Tangible fixed assets have been written down to a net book value of £Nil via an impairment write off of £204,886 in lieu of the hive up of the trade of Incorporatewear Limited to Workwear Uniform Group Limited as from 1 April 2023.

11. Stocks
2023 2022
£ £
Finished goods 12,078,339 4,595,943
Work-in-progress 68,780 83,696
12,147,119 4,679,639

An impairment loss of £43,504 (2022 - £749,302) was recognised in the Statement of Comprehensive Income during the year in respect of stock. As at the balance sheet date an impairment provision of £1,696,216 (2022 - £1,652,712) is provided against the stock balance.

The replacement cost of stock is not materially different from the amount shown above.

12. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors 4,276,969 4,415,072
Amounts owed by group undertakings - 519,516
Other debtors 71,842 286,787
VAT 62,405 -
Deferred tax asset 172,346 22,716
Prepayments 390,005 453,402
4,973,567 5,697,493

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

12. Debtors: amounts falling due within one year - continued

Deferred tax asset
2023 2022
£ £
Accelerated capital allowances 59,652 (2,223 )
Other timing differences 112,694 24,939
172,346 22,716

An impairment loss/(gain) of £94,315 (2022 - (£82,868)) was recognised in the Statement of Comprehensive Income during the year in respect of trade debtors. As at the balance sheet date an impairment provision of £180,651 (2022 - £106,336) is provided against the aged debtor balance.

13. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 9,250,199 5,673,314
Amounts owed to group undertakings 9,611 -
Social security and other taxes 67,784 53,429
VAT - 229,895
Other creditors 10,728 3,419
Accruals and deferred income 1,677,487 1,016,556
11,015,809 6,976,613

Trade creditors are non-interest bearing and are normally on terms 30 to 60 days.

Amounts due to group undertakings are interest free and repayable on demand by agreement with the parent parent company.

14. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 562,699 529,185
Between one and five years 513,256 1,232,396
1,075,955 1,761,581

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

15. Financial instruments

2023 2022
£    £   
Financial assets
Financial assets measured at amortised cost 4,784,234 7,186,570

Financial liabilities
Financial liabilities measured at amortised cost 10,806,885 6,693,289

Financial assets measured at amortised cost comprise cash and cash equivalents, trade debtors, amounts owed by group undertakings, other debtors and prepayments.

Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings and related parties, other creditors, obligations under finance lease and hire purchase contracts and accruals.

Derivative financial instruments
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for
certain foreign currency payables. At 31 March 2023, the outstanding contracts all mature within
1 month (2022: 3 months) of the year end. The company is committed to purchasing $2,500,000 (2022 US$1,050,000) and to pay a fixed sterling amount.

The forward currency contracts are measured at fair value, which is determined using valuation
techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the
forward exchange rates for GBP:USD
.
The company has no interest rate derivative financial instruments (2022- none).

16. Provisions for liabilities
2023 2022
£ £
Other provisions 847,200 727,200

Deferred tax
£
Balance at 1 April 2022 (22,716 )
Credit to Statement of Comprehensive Income during year (149,630 )
Balance at 31 March 2023 (172,346 )

17. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
996,416 Ordinary shares £1 996,416 996,416

18. Reserves
Capital
Retained Share redemption
earnings premium reserve Totals
£ £ £ £

At 1 April 2022 2,626,081 853,721 12,000 3,491,802
Profit for the year 1,035,253 1,035,253
At 31 March 2023 3,661,334 853,721 12,000 4,527,055

INCORPORATEWEAR LIMITED (REGISTERED NUMBER: 03240384)

Notes to the Financial Statements - continued
for the year ended 31 March 2023

19. Pension commitments

The company participates in an ongoing defined contribution scheme, in which assets are held independently.

Amounts unpaid to the defined contribution scheme at period end was £9,664 (2022 - £9,754).

20. Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The parent company, Workwear Uniform Group Limited, is under the joint control of directors Mr Rajinder Singh Sohal and Mr Sarbjit Singh Sohal during the current and previous year.

Mr Rajinder Singh Sohal and Mr Sarbjit Sohal are also shareholders and directors in Paroh Limited, K&D Manufacturing Pvt Limited, Tiltoo Limited and Dashrent Limited. At the current and previous year end no amounts were owed to/from any of these companies by Incorporatewear Limited.

Incorporatewear Limited made purchases totalling £43,000 (2022 £Nil) from K&D Manufacturing Pvt Limited during the year.

No transactions occurred with any of the other companies listed above under common control.

Mr and Mrs Charan Dass Sohal, who are parents of Mr Rajinder Singh Sohal and Mr Sarbjit Singh Sohal, are shareholders and directors of Orbit International Plc.

During the year Incorporatewear Limited made purchases with a value of £303,000 (2022 £11,000) from Orbit International Plc.

At the year-end Incorporatewear Limited owed £113,793 (2022 £11,000) to Orbit International Plc.

21. Post balance sheet events

On 1 April 2023 the company's trade, assets and liabilities were hived up into the parent company, Workwear Uniform Group Limited. These financial statements are prepared on a wind-up basis of accounting where all assets are stated at their expected recoverable amounts. Following the hive up, any additional costs of the company will be borne by Workwear Uniform Group Limited.

22. Ultimate controlling party

The immediate parent company is Workwear Uniform Group Limited (formerly known as Direct Corporate Clothing Plc). The ultimate controlling party are the directors of Mr Rajinder Singh Sohal and Mr Sarbjit Singh Sohal.