Company registration number 01967787 (England and Wales)
IT LUGGAGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
IT LUGGAGE LIMITED
COMPANY INFORMATION
Directors
Mr S Selvi
Mr P Richardson
Mr M Cetin
Mr G Blackman
Mr S Mehta
(Appointed 27 July 2023)
Secretary
Mr S Selvi
Company number
01967787
Registered office
Luggage House
The Chase
Foxholes Business Park
Hertford
Hertfordshire
UK
SG13 7NN
Auditor
Munir Tatar & Associates
32 Willoughby Road
London
N8 0JG
Business address
Luggage House
The Chase
Foxholes Business Park
Hertford
Hertfordshire
UK
SG13 7NN
IT LUGGAGE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
IT LUGGAGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

Introduction

 

This strategic report sets out IT Luggage Ltd's performance for the financial year ended 31 March 2023. We will review our business model, key risks and opportunities, and provide an overview of our financial performance during the year. The report is also intended to provide insight into how we have complied with section 172 of the Companies Act 2006 (the "Act").

 

Section 172 Statement

IT Luggage Ltd takes its duties under section 172 of the Companies Act 2006 seriously. We are committed to promoting the long-term success of the company for the benefit of our shareholders and stakeholders. In fulfilling our duties under the Act, we have taken into account the following factors:

 

The interests of our shareholders - We have worked hard to create value for our shareholders, delivering a strong financial performance during the year. We have also implemented various initiatives to meet the needs of our shareholders, most of whom are also officers of the company. These initiatives include focusing on promoting profitable product lines, investing our focus into lucrative markets and cutting surplus costs where viable.

 

Employees engagement - Our employees are central to our success, and we are committed to treating them

fairly and with respect. We have recently invested in various employee engagement initiatives, including creating social and networking opportunities for employees, and encouraging connections. We have also created upskilling opportunities, to offer employees scope for growth.

 

Customer engagement - Our customers are at the heart of everything we do. We strive to deliver high-quality

products and services that meet their needs and exceed their expectations. During the year, we regularly met with customers to ensure that the right products and services were available to meet their requirements.

 

Supplier engagement - Our suppliers are important partners in our business. We work closely with them to

ensure that we have a reliable supply chain that meets our needs and delivers value for money. During the year, we regularly engaged with our suppliers to help them better understand our needs as well as build relationships to collaboratively work together over difficult periods.

 

Environmental impact - We are committed to operating in a responsible and sustainable manner. We have recently incorporated eco products using recycled materials within our range using FSC and recycled cardboard for all packaging. Our work from home initiative has reduced carbon emissions through reduction in travel.

IT LUGGAGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Fair review of the business

The principal activities of the group during the year continued to be the importation, wholesale and retail of travel goods and luggage. The group's headquarters are based in the United Kingdom, but the group also possesses operations in the USA, Hong Kong and the EU.

 

The key financial and other performance indicators during the year were as follows:

2023 2022 Change

£ £ %

Turnover 119,971,509 47,767,801 151

Group operating profit 3,951,350 2,385,186 66

Profit after tax 2,169,392 1,355,487 60

Total Equity 34,388,121 32,294,936 6

Current assets as % of current liabilities (Quick ratio) 169% 307% -45

Average number of employees 150 111 35

 

The primary reason for the material increase of turnover, operating profit and profit after tax was due to the recovery from the covid-19 pandemic on the group's global operations. FY22 saw the group ease back to relatively normal levels of trading while in FY23 all entities within the group have generated trading volumes similar to pre-pandemic levels. During FY22 the business also suffered from freight rates increasing substantially, which significantly impacted profitability and overall performance. Whilst freight rates remain high in FY23, they have normalised from the previous period. In addition, the group continued to grow trading in the German entity once again, having restarted in FY22, which also helped to increase sales across Europe. Increase in operating profit is mainly as a result of increased revenues with focus on managing the Group’s overheads.

 

Furthermore, the group continues to rely on its strong cashflow position to preserve valuable liquidity within the group, allowing the funding of working capital requirements and transfer loans across the entities when necessary. Although the quick ratio reduced as a result of increase in non-trade related liabilities, cash reserves strengthened from FY22.

 

The directors regularly monitor certain key performance indicators, including:

Operating cash flows

Like for like sales growth

Purchasing volume discounts

Principal risks and uncertainties

 

The group's operations are exposed to numerous risks and external factors as described below.

 

Credit risk

The group's exposure to credit risk is limited to the carrying amount of financial assets recognised at the end of the reporting period. The group continuously monitors defaults of customers and other counterparties to minimise this risk. Additionally, the group insures the majority of its trade debtors.

 

Political and economic uncertainty

Travel may be at risk during times of political and economic uncertainty. The affected regions may experience reduced travel, which may reduce demand for luggage and travel goods. Given the group's worldwide operations, this uncertainty may affect the performance of certain entity markets within the group. Global uncertainty arose during the covid-19 pandemic, and whilst that was alleviated by FY23, other geopolitical factors arising in the period could cause further macro economic uncertainty.

 

IT LUGGAGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Development and performance

The overall results for the year were a significant improvement from FY22 and demonstrated a full recovery to the success enjoyed in the years prior to the covid-19 pandemic, as deemed by the directors. The material increase in turnover and demand was a result of global travel restrictions being lifted, combined with new product ranges being introduced by the group.

 

Pre covid-19 levels of turnover and profitability have largely been achieved, and management are confident that their strong cashflow position and brand will continue to serve them well. This optimism has been substantiated by the fact that the group has continued to enjoy strong success in sales, profitability and cash flow up until the date of signing-off this report. This continued financial improvement, combined with the external environment returning to some normality, provides ongoing confidence that the group will continue as a going concern and the business will remain viable.

 

Further opportunities exist to grow the business in existing markets, particularly in the USA and Europe.

 

On behalf of the board

Mr S Selvi
Director
.........................
IT LUGGAGE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activities of the Group are described in the Strategic Report under the "Fair review of the business" paragraph.

Strategy and purpose

The values of the business, which encompasses the relationships that the business has with all major stakeholder groups, are described within the S172 statement of the Strategic Report,

Results and dividends

The results for the year are set out in the Strategic Report.

 

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

 

Mr S Selvi
Mr P Richardson
Mr M Lanston
(Resigned 27 July 2023)
Mr M Cetin
Mr G Blackman
Mr S Mehta
(Appointed 27 July 2023)
Auditor

In accordance with the company's articles, a resolution proposing that Munir Tatar & Associates be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

Conclusion

IT Luggage Ltd has delivered a strong financial performance during the year relative to the prior year period, and we remain committed to the long-term success of the company and the group. We would like to take this opportunity to thank our shareholders, employees, customers, and suppliers for their continued support.

IT LUGGAGE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
On behalf of the board
Mr S Selvi
Director
15 February 2024
IT LUGGAGE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

IT LUGGAGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IT LUGGAGE LIMITED
- 7 -
Opinion

We have audited the financial statements of IT Luggage Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

IT LUGGAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IT LUGGAGE LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach uses a combination of a robust risk assessment, an in-depth understanding of the entity's control environment and financial processes, and tailored substantive procedures to enable comprehensive assurance over financial data to be gathered. This approach demonstrates how our procedures are deemed capable of detecting irregularities, including fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Munir Tatar
(Senior Statutory Auditor)
For and on behalf of Munir Tatar & Associates
15 February 2024
Chartered Certified Accountants
Statutory Auditor
32 Willoughby Road
London
N8 0JG
IT LUGGAGE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
119,971,509
47,767,801
Cost of sales
(83,647,049)
(37,259,943)
Gross profit
36,324,460
10,507,858
Distribution costs
(2,173,229)
(816,484)
Administrative expenses
(30,550,117)
(6,932,625)
Other operating income/(expenses)
350,236
(373,563)
Operating profit
3,951,350
2,385,186
Interest receivable and similar income
505,666
60,017
Interest payable and similar expenses
(39,411)
(56,172)
Profit before taxation
4,417,605
2,389,031
Tax on profit
(2,248,213)
(1,033,544)
Profit for the financial year
21
2,169,392
1,355,487
Other comprehensive income
Revaluation of tangible fixed assets
-
3,130,894
Currency translation gain taken to retained earnings
-
7,106
Total comprehensive income for the year
2,169,392
4,493,487
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

IT LUGGAGE LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
6
6,994
9,176
Other intangible assets
6
45,408
34,343
Total intangible assets
52,402
43,519
Tangible assets
9
2,242,267
1,996,682
Investment property
7
3,750,000
3,750,000
Investments
8
518
-
6,045,187
5,790,201
Current assets
Stocks
11
2,789,172
3,130,807
Debtors
12
21,856,911
14,020,885
Cash at bank and in hand
46,530,937
22,847,913
71,177,020
39,999,605
Creditors: amounts falling due within one year
13
(42,399,093)
(13,013,071)
Net current assets
28,777,927
26,986,534
Total assets less current liabilities
34,823,114
32,776,735
Creditors: amounts falling due after more than one year
14
-
(10,473)
Provisions for liabilities
Deferred tax liability
15
434,993
471,326
(434,993)
(471,326)
Net assets
34,388,121
32,294,936
Capital and reserves
Called up share capital
17
49,999
49,999
Revaluation reserve
18
3,130,894
3,130,894
Other reserves
67,677
67,677
Distributable profit and loss reserves
21
31,139,551
29,046,366
Total equity
34,388,121
32,294,936

The directors of the group have elected not to include a copy of the profit and loss account within the financial statements.

IT LUGGAGE LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 15 February 2024 and are signed on its behalf by:
Mr S  Selvi
Director
Company registration number 01967787 (England and Wales)
IT LUGGAGE LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
6
34,133
18,780
Tangible assets
9
1,874,238
1,971,406
Investment property
7
3,750,000
3,750,000
Investments
8
66,124
65,606
5,724,495
5,805,792
Current assets
Stocks
11
312,485
144,997
Debtors
12
22,254,777
14,752,396
Cash at bank and in hand
36,978,176
18,675,968
59,545,438
33,573,361
Creditors: amounts falling due within one year
13
(33,724,886)
(9,557,503)
Net current assets
25,820,552
24,015,858
Total assets less current liabilities
31,545,047
29,821,650
Provisions for liabilities
Deferred tax liability
15
636,959
644,559
(636,959)
(644,559)
Net assets
30,908,088
29,177,091
Capital and reserves
Called up share capital
17
49,999
49,999
Revaluation reserve
18
3,130,894
3,130,894
Other reserves
67,677
67,677
Distributable profit and loss reserves
21
27,659,518
25,928,521
Total equity
30,908,088
29,177,091

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,730,997 (2022 - £1,416,950 profit).

The financial statements were approved by the board of directors and authorised for issue on
15 February 2024
15 February 2024
and are signed on its behalf by:
Mr S  Selvi
Director
Company registration number 01967787 (England and Wales)
IT LUGGAGE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Revaluation reserve
Other Reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
29,228
-
67,677
27,709,985
27,806,890
Year ended 31 March 2022:
Profit for the year
-
-
-
1,355,487
1,355,487
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,130,894
-
-
3,130,894
Currency translation differences
-
-
-
7,106
7,106
Total comprehensive income
-
3,130,894
-
1,362,593
4,493,487
Reissuance of shares eliminated in prior period
17
21,088
-
-
-
21,088
Adjustment to prior period
(317)
-
-
(26,212)
(26,529)
Balance at 31 March 2022
49,999
3,130,894
67,677
29,046,366
32,294,936
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
2,169,392
2,169,392
Currency translation differences
-
-
-
(76,207)
(76,207)
Balance at 31 March 2023
49,999
3,130,894
67,677
31,139,551
34,388,121
It was discovered during this accounting period that a material error was made in the submitted financial statements for the year ended 31st March 2022. The error relates to the revaluation uplift in the freehold property - addressed Riverside House, River way, Harlow, CM20 2DW - that was performed following a change in use from an owner-occupied building to an investment property. The revaluation gain of £3,130,894 should have been credited to the other comprehensive income and a non-distributable revaluation reserve created, in accordance with section 17 of FRS 102. Whereas instead, the revaluation gain was incorrectly credited to the Profit & Loss account line "Fair value gains and losses on investment properties", therefore overstating the profit before tax figure by £3,130,894. The comparative figures have been amended within this set of financial statements to reflect the correct treatment of the revaluation uplift both for the prior period and this period. The effect of this amendment is a correction to the prior period profit figure, the prior and current period SOCI, the prior and current period SOCE and the prior and current period revaluation reserve in the balance sheet.
IT LUGGAGE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Revaluation reserve
Other reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2021
49,999
-
67,677
24,511,571
24,629,247
Year ended 31 March 2022:
Profit for the year
-
-
-
1,416,950
1,416,950
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,130,894
-
-
3,130,894
Total comprehensive income
-
3,130,894
-
1,416,950
4,547,844
Balance at 31 March 2022
49,999
3,130,894
67,677
25,928,521
29,177,091
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,730,997
1,730,997
Balance at 31 March 2023
49,999
3,130,894
67,677
27,659,518
30,908,088
It was discovered during this accounting period that a material error was made in the submitted financial statements for the year ended 31st March 2022. The error relates to the revaluation uplift in the freehold property - addressed Riverside House, River way, Harlow, CM20 2DW - that was performed following a change in use from an owner-occupied building to an investment property. The revaluation gain of £3,130,894 should have been credited to the other comprehensive income and a non-distributable revaluation reserve created, in accordance with section 17 of FRS 102. Whereas instead, the revaluation gain was incorrectly credited to the Profit & Loss account line "Fair value gains and losses on investment properties", therefore overstating the profit before tax figure by £3,130,894. The comparative figures have been amended within this set of financial statements to reflect the correct treatment of the revaluation uplift both for the prior period and this period. The effect of this amendment is a correction to the prior period profit figure, the prior and current period SOCI, the prior and current period SOCE and the prior and current period revaluation reserve in the balance sheet.
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

IT Luggage Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Luggage House, The Chase, Foxholes Business Park, Hertford, Hertfordshire, UK, SG13 7NN.

 

The group consists of IT Luggage Limited and all of its subsidiaries.

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.

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 pound sterling.

The financial statements have been prepared under the historical cost convention.

 

The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of IT Luggage Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits) except IT Luggage Australia, which did not trade throughout the year and the non trading transactions with this company considered not material. IT Luggage GmbH started trading again in the period, so has been consolidated into the accounts.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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 VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch of the goods), the amount of 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.

 

Revenue from the sale of services, which mainly comes in the form of commission earned by the subsidiaries and is passed back to the parent, is also recognised in a similar manner to the sale of goods. The revenue is recognised when the significant risks and rewards of ownership of the services have transferred to the recipient, the amount of 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.

1.6
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, which is 20 years.

 

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 carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software (including website)
20% straight line
Patents & licences
5% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of accumulated depreciation and any impairment losses.

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 basis:

Leasehold land and buildings
2% straight line
Plant and equipment
20% straight line
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.9
Investment property

Investment properties, which are property held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for at fair value with changes in fair value recognised in the profit and loss.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.17
Taxation

The tax expense represents the sum of the tax currently chargeable plus any deferred tax.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.18
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
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 leased asset are consumed.

1.21
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.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.22
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 the profit and loss.

2
Judgements and key sources of estimation uncertainty
Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful life of assets

Useful economic life of assets are applied as per the rates stated within Note 1.

Inventory

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Note 16 states the value determined for this accounting period. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends, alongside any provisions associated with obsolete or damaged stock.

3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,880
16,000
Audit of the financial statements of the company's subsidiaries
30,240
25,500
51,120
41,500
For other services
Other taxation services
8,000
8,000
All other non-audit services
20,880
10,500
28,880
18,500
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
4
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Selling and distribution
36
35
10
13
Administration
114
76
52
28
Total
150
111
62
41
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
16,020,632
3,443,119
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
8,862,632
1,762,632
6
Intangible fixed assets
Group
Goodwill
Software (including website)
Patents & licences
Total
£
£
£
£
Cost
At 1 April 2022
325,463
135,470
31,047
491,980
Additions
-
25,208
-
25,208
At 31 March 2023
325,463
160,678
31,047
517,188
Amortisation and impairment
At 1 April 2022
316,287
108,353
23,821
448,461
Amortisation charged for the year
2,182
12,070
2,073
16,325
At 31 March 2023
318,469
120,423
25,894
464,786
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 31 March 2023
6,994
40,255
5,153
52,402
At 31 March 2022
9,176
27,117
7,226
43,519
Company
Goodwill
Software (including website)
Total
£
£
£
Cost
At 1 April 2022
281,831
23,975
305,806
Additions
-
25,208
25,208
At 31 March 2023
281,831
49,183
331,014
Amortisation and impairment
At 1 April 2022
281,831
5,195
287,026
Amortisation charged for the year
-
9,855
9,855
At 31 March 2023
281,831
15,050
296,881
Carrying amount
At 31 March 2023
-
34,133
34,133
At 31 March 2022
-
18,780
18,780

 

7
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 April 2022 and 31 March 2023
3,750,000
3,750,000

Investment property comprises the freehold building addressed Riverside House, River way, Harlow, CM20 2DW. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31st March 2023 by an independent valuation agency, who are not connected with the company.

 

The property value is not deemed to have fluctuated between the two balance sheet dates. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Directors of the company agree with this assessment that the value remains at £3.75m, in line with the previous period end date.

 

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Investment property
(Continued)
- 25 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
3,750,000
3,750,000
3,750,000
3,750,000
8
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
518
-
66,124
65,606

The investment in subsidiaries balance relates to the initial investment in the IT Luggage (Thailand) Ltd entity which was incorporated in the accounting period, but is not included consolidated in the group accounts on the basis that it is a dormant, immaterial subsidiary.

Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
-
Additions
518
At 31 March 2023
518
Carrying amount
At 31 March 2023
518
At 31 March 2022
-

The in-year movement relates to the initial investment in the IT Luggage (Thailand) Ltd entity which was incorporated in the accounting period, and is a subsidiary majority-owned by IT Luggage Ltd.

 

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
65,606
Additions
518
At 31 March 2023
66,124
Carrying amount
At 31 March 2023
66,124
At 31 March 2022
65,606
9
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
2,050,198
170,887
1,492,574
298,784
4,012,443
Additions
326,982
14,908
13,079
73,321
428,290
Disposals
-
-
(24,571)
(54,502)
(79,073)
At 31 March 2023
2,377,180
185,795
1,481,082
317,603
4,361,660
Depreciation and impairment
At 1 April 2022
484,835
159,843
1,100,917
271,262
2,016,857
Depreciation charged in the year
78,186
25,952
62,641
12,023
178,802
Eliminated in respect of disposals
-
-
(21,764)
(54,502)
(76,266)
At 31 March 2023
563,021
185,795
1,141,794
228,783
2,119,393
Carrying amount
At 31 March 2023
1,814,159
-
339,288
88,820
2,242,267
At 31 March 2022
1,566,459
11,044
391,657
27,522
1,996,682
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Tangible fixed assets
(Continued)
- 27 -
Company
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
1,873,188
1,441,075
244,282
3,558,545
Additions
-
7,445
-
7,445
At 31 March 2023
1,873,188
1,448,520
244,282
3,565,990
Depreciation and impairment
At 1 April 2022
311,252
1,057,929
217,958
1,587,139
Depreciation charged in the year
37,464
60,380
6,769
104,613
At 31 March 2023
348,716
1,118,309
224,727
1,691,752
Carrying amount
At 31 March 2023
1,524,472
330,211
19,555
1,874,238
At 31 March 2022
1,561,936
383,146
26,324
1,971,406

The leasehold buildings asset class includes the property 8 The Chase, Unit D, Herford, SG13 7NN, which has been partially sub-let to a third party tenant in return for a commercial rent, since the start of the accounting period. Given that the fair value of the different components - owner-occupied vs investment property - cannot be easily distinguished, and the owner-occupied portion is not insignificant, management have deemed it appropriate to continue classifying the whole property as PPE. The asset continues to be disclosed under tangible fixed assets, rather than investment property.

 

Freehold buildings was a separate asset class under tangible fixed assets in the prior period, but has been reclassified to investment property due to a change in use, as explained in note 12.

10
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
IT Luggage DE GmbH
GERMANY
Importer and distributor of travel goods
Ordinary
100.00
IT Luggage USA,Ltd
USA
Importer and distributor of travel goods
Ordinary
100.00
IT Luggage HK Ltd
HONG KONG
Exporter of travel goods
Ordinary
100.00
IT Luggage AUS PTY Ltd
AUSTRALIA
Dormant
Ordinary
100.00
IT Luggage (Thailand) Ltd
THAILAND
Dormant
Ordinary
76.00

IT Luggage (Thailand) Ltd is a new majority-owned subsidiary incorporated during the accounting period.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Subsidiaries
(Continued)
- 28 -

The aggregate capital & reserves and the profit /(Loss) for the year of the subsidiaries noted above, that were not included in the consolidated accounts, were as follows together with the reason for non consolidation.

 

Name undertaking Profit/(Loss) (£) Capital and Reserves (£) Reason

IT Luggage Aus PTY Ltd 0 491 Dormant

IT Luggage (Thailand) Ltd 0 518 Dormant

 

11
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,789,172
3,130,807
312,485
144,997
12
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
19,952,549
12,401,919
1,355,612
62,824
Amounts owed by group undertakings
-
-
20,572,329
13,693,285
Other debtors
1,485,107
906,252
27,332
598,613
Prepayments and accrued income
169,278
462,737
49,527
147,697
21,606,934
13,770,908
22,004,800
14,502,419
Deferred tax asset (note 15)
249,977
249,977
249,977
249,977
21,856,911
14,020,885
22,254,777
14,752,396
13
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
7,161,500
5,475,184
335,903
459,731
Amounts owed to group undertakings
77,993
77,448
77,993
77,448
Corporation tax payable
1,104,847
301,081
1,580,041
327,836
Other taxation and social security
649,949
1,772,713
322,658
1,759,898
Other creditors
4,567,752
4,087,205
3,950,305
5,887,374
Accruals and deferred income
28,837,052
1,299,440
27,457,986
1,045,216
42,399,093
13,013,071
33,724,886
9,557,503
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
14
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Accruals and deferred income
-
10,473
-
-
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
(159,470)
(123,137)
-
-
Tax losses
-
-
249,977
249,977
Investment property
594,463
594,463
-
-
434,993
471,326
249,977
249,977
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
42,496
50,096
-
-
Tax losses
-
-
249,977
249,977
Investment property
594,463
594,463
-
-
636,959
644,559
249,977
249,977
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
221,349
394,582
Credit to profit or loss
(36,333)
(7,600)
Liability at 31 March 2023
185,016
386,982

Deferred tax assets are recognised on the unused tax losses of £1,315,668, which have not been offset against this year's profits, but rather are being deferred to future years. It is probable that the unused tax losses will be carried forward and offset against profits in a future accounting period, hence the recognition of a deferred tax asset.

IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,171
36,363

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

17
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
49,999
49,999
49,999
49,999
18
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
3,130,894
-
3,130,894
-
Revaluation surplus arising in the year
-
3,130,894
-
3,130,894
At the end of the year
3,130,894
3,130,894
3,130,894
3,130,894
19
Other reserves
2023
2022
Group and company
£
£
At the beginning and end of the year
67,677
67,677
20
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.

The auditor was Munir Tatar.
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
21
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
29,046,366
27,683,773
25,928,521
24,511,571
Profit for the year
2,169,392
1,355,487
1,730,997
1,416,950
Currency translation differences
(75,111)
7,106
-
-
At the end of the year
31,139,551
29,046,366
27,659,518
25,928,521
22
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Key management personnel
19,034,161
5,591,530
Company
Key management personnel
19,034,161
5,591,530

£19,034,161 of the other creditors / accruals and deferred income balance within note 18 relates to liabilities owed to the Directors of the company, which are considered to be related party transactions. The movement in the year relates to a combination of additional amounts accrued and payments made by the company to the Directors of some of the liability.

 

 

The prior period related party transactions figure was incorrectly omitted from the submitted financial statements for the year ended 31st March 2022. The amounts due to related parties should have been disclosed in the notes of the accounts. Given the material nature of the balance, an amendment has been made to the comparative figures of the group and the company, to correctly disclose the amounts due to related parties.

 

23
Controlling party
The ultimate controlling party is Mr S Selvi, who is the managing director and majority shareholder of the group.
IT LUGGAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
24
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
2,169,392
1,355,486
Adjustments for:
Taxation charged
2,248,213
1,033,544
Finance costs
39,411
56,172
Investment income
(505,666)
(60,017)
Gain on disposal of tangible fixed assets
(24,543)
(842,242)
Amortisation and impairment of intangible assets
16,325
33,399
Depreciation and impairment of tangible fixed assets
178,802
216,067
Movements in working capital:
Decrease/(increase) in stocks
341,635
(656,852)
Increase in debtors
(7,836,026)
(8,176,889)
Increase in creditors
28,571,783
4,937,915
Cash generated from/(absorbed by) operations
25,199,326
(2,103,416)
25
Analysis of changes in net debt - group
2023
£
Opening net funds
Cash and cash equivalents
22,847,913
Changes in net debt arising from:
Cash flows of the entity
23,682,506
Acquisition and disposal of subsidiaries
518
Closing net funds as analysed below
46,530,937
Closing net funds
Cash and cash equivalents
46,530,937
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.100No description of principal activityMr P RichardsonMr M LanstonMr M CetinMr G BlackmanMr S MehtaMr S MehtaMr S  Selvi019677872022-04-012023-03-3101967787bus:CompanySecretaryDirector12022-04-012023-03-3101967787bus:Director12022-04-012023-03-3101967787bus:Director32022-04-012023-03-3101967787bus:Director42022-04-012023-03-3101967787bus:Director52022-04-012023-03-3101967787bus:Director22022-04-012023-03-3101967787bus:Director62022-04-012023-03-3101967787bus:CompanySecretary12022-04-012023-03-31019677872023-03-31019677872021-04-012022-03-3101967787bus:Consolidated2023-03-3101967787bus:PrivateLimitedCompanyLtd2022-04-012023-03-3101967787bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3101967787bus:FRS1022022-04-012023-03-3101967787bus:Audited2022-04-012023-03-3101967787bus:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3101967787bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP