Company registration number 06531135 (England and Wales)
AUDEMARS PIGUET (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
AUDEMARS PIGUET (UK) LIMITED
COMPANY INFORMATION
Directors
D. Compton
M. Vigano
M. Cito
(Appointed 12 July 2024)
Company number
06531135
Registered office
82-84 Grosvenor Street
1st Floor
London
W1K 3JZ
Auditor
Ad Valorem Audit Services Limited
Chartered Certified Accountants & Statutory Auditor
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN
AUDEMARS PIGUET (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Income statement
11
Statement of financial position
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
AUDEMARS PIGUET (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The results for the year and financial position of the company are as shown in the annexed financial statements.

 

The annexed financial statements show that the company made a profit before tax for the year ended 31 December 2023 of £4,485,239 and had accumulated retained earnings of £3,862,459.

 

Operating profit was £3,316,789 (2022: £2,487,593).

 

In 2019 the company reinforced its retail operations by establishing a network of 3 boutiques in London on New Bond Street (AP House), at Harrods and on Sloane Street. Since then and despite a challenging COVID context over 2020 and 2021 for the retail sector, the company has demonstrated strong & sustained financial performance.

 

The directors are pleased with the results presented by these financial statements for 2023, highlighting robust financial health and a successful operational strategy.

 

Along with its retail operations, the company carries out servicing & repair work but undertakes no manufacturing or assembling of products within the UK.

 

Business environment: Company activity is wholly within the high-end luxury goods market.

Principal risks and uncertainties

Risks and uncertainties

Company activity is the wholesale and retail of luxury goods. Retailers are selected to ensure the company is represented with different end consumer markets and has good geographic coverage. In addition to this the company has opened its own boutiques in recent years to expand the retail outlets and experience offered to its clientele.

 

Almost by definition the market for luxury goods is very international. The UK market is therefore exposed to movements between most of the major world currencies. Furthermore, a proportion of UK sales are to international business travellers and tourists. The internet creates the opportunity for seasoned travellers to compare prices on a global scale. Of course this uncertainty is common to all companies who operate in this high end market. On balance, the company considers this to be a low risk as London continues to enjoy the status of a global tourist destination.

 

Brexit in the short term has not had an adverse effect on the UK market as the fluctuation in exchange rate made the UK an attractive place to purchase. Mid to long term the company will be investing heavily in the market as there is great potential for growth in the UK.

 

Key performance indicators

Gross Profit Percentage:

2023: 24.4%

2022: 25.3%

 

Transfer pricing policy was set with parent company during the current year and is reviewed on an on-going basis.

Other performance indicators

Employees Cost:

2023: £3,001,638

2022:    £2,746,637

Employee costs have increased in the year. The average number of employees in the year were 32 (2022: 30).

AUDEMARS PIGUET (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
S172(1) statement

The company is dedicated to delivering world-class business to our customers through superior products and exceptional customer service by creating an environment for our employees where each person is valued, challenged to reach their potential, and contributes to the growth of the company, the community and themselves. The directors continue to set and review targets on a regular basis to ensure they remain a challenge but not unachievable. The company acknowledges its corporate social responsibility and aims to become a company trusted and desired by all our stakeholders, investors, employees, and the local community. To ensure we maintain the company’s high standards of business conduct, the directors review business operations on a regular basis and ensure clear actions are set and monitored to ensure high standards are maintained.

On behalf of the board

D. Compton
Director
1 August 2024
AUDEMARS PIGUET (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the importation, wholesale and retail of watches.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £3,500,000. The directors do not recommend payment of a final dividend.

Directors

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

D. Compton
R. Sandoz-Dit-Bragard
(Resigned 2 May 2024)
M. Vigano
M. Cito
(Appointed 12 July 2024)
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 1 days' purchases, based on the average daily amount invoiced by suppliers during the year.

Financial instruments

The company uses various financial instruments including cash, trade receivables and payables that arise directly from its operations. The existence of these financial instruments exposes the company to a number of financial risks, of which the more significant risks are liquidity risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below:

Liquidity risk

The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

In order to ensure the future competitiveness of the group and its subsidiaries, our parent company continues to research innovative and new models to bring to the market.

AUDEMARS PIGUET (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Engagement with Suppliers, Customers and Others

Customers

The company prides itself on the development of innovative products and services to help our customers. We recognise our customers are the life blood of our organisation and their product satisfaction is key to our business. Our goal is to provide our customers with outstanding service and support, to develop new products and activities to help our customers achieve their goals and to work closely with them as trusted partners and not just a supplier. In the UK we have developed a robust organisation with a dynamic field-based team to work closely with the customer. Customer satisfaction and loyalty are crucial factors and determine our financial performance and we work to improve this constantly.

 

Suppliers

The company is committed to work closely with highly professional suppliers with excellent ethical standards whilst maintaining best practice, supporting them to ensure they align with our corporate code of conduct. We aim to mitigate the most significant risks to the business by working closely with our suppliers and focusing on those critical to our business continuity, sharing findings for continuous improvement.

 

Employees

Our objective is to successfully hire, train, and motivate employees who want to serve the customer. Everyone in the company must be committed to delivering customer satisfaction. We offer a range of private medical cover to suit all employees and we have salary sacrifice offerings.

Business relationships

Shareholders

Audemars Piguet (UK) Limited is a wholly owned subsidiary of Audemars Piguet Holding SA. The group remains independent and still owned by the founding families.

 

The group determines the direction for the business, but locally the management team ensures the company is compliant with local legislation and implements strategies to satisfy the requirements of the local market.

 

The management team have demonstrated their resilience during challenging market conditions, ensuring the company is well positioned to deliver value for the corporation.

 

The company has good communication with the group and reports monthly on the company’s performance and at the annual shareholders meeting.

 

Community

Our aim is to coexist in harmony and contribute to our community, we focus on minimising our environmental impact, supporting education and research, contributing to the continuing development of a learning society and fundraising for charities.

 

Society

The company adopts the corporate social responsibilities promoted by the group. By responding to our customer requests, the group will contribute to the sustainable growth of industries and expansion of technological innovations. We are also taking measures considering the protection of the environment throughout the whole process of our business activities, such as avoiding the use of substances of concern, promoting energy-saving and resource-saving and reducing packaging materials. This will lead to reducing the environmental impact for the entire society.

Post reporting date events

There have been no events since the balance sheet date to report.

Future developments

The company is in a strong financial position and will continue to introduce new models and consolidate its geographic coverage within the UK.

AUDEMARS PIGUET (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Auditor

The auditor, Ad Valorem Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The board of directors of Audemars Piguet (UK) Limited understand the importance and risks posed by climate change to our stakeholders and supply chain and are keen to improve energy efficiency and reduce our carbon emissions. As a company and group we are focused on evaluating how our business activities interact with the wider environment and are looking to reduce our carbon footprint.

Our UK energy use, which relates to electricity only, is 66,106 kWh for the year ended 31 December 2023. Our carbon equivalent emissions for this period were 13,689 KgCO2e.

Audemars Piguet (UK) Limited remains committed to reducing its carbon footprint and is actively focused on the following areas:

1) Ensuring the Head office is as energy efficient as possible by using LED energy efficient lighting.

2) Ensuring computers and monitors are switched off at night.

3) Encouraging the use of virtual meetings where possible to reduce the amount of travel.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
D. Compton
Director
1 August 2024
AUDEMARS PIGUET (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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.

AUDEMARS PIGUET (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AUDEMARS PIGUET (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of Audemars Piguet (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 UK adopted international accounting standards.

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 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 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:

AUDEMARS PIGUET (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUDEMARS PIGUET (UK) LIMITED
- 8 -
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 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 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.

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.

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

AUDEMARS PIGUET (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUDEMARS PIGUET (UK) LIMITED
- 9 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

1) Enquiries of management concerning the company's policies and procedures relating to:

 

2) The company's remuneration policies, key drivers for remuneration and bonus levels; and

 

3) Discussions among the engagement team regarding how and when fraud might occur in the financial statements and any potential indicators of fraud.

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and IFRS as issued by the IASB and adopted by the EU.

.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty.

 

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

AUDEMARS PIGUET (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUDEMARS PIGUET (UK) LIMITED
- 10 -

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.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Darren Kerins FCCA (Senior Statutory Auditor)
For and on behalf of Ad Valorem Audit Services Limited
1 August 2024
Chartered Certified Accountants
Statutory Auditor
Chartered Certified Accountants & Registered Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN
AUDEMARS PIGUET (UK) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Revenue
3
72,071,814
58,777,195
Cost of sales
(54,520,764)
(43,854,328)
Gross profit
17,551,050
14,922,867
Other operating income
188,574
246,811
Administrative expenses
(14,422,835)
(12,682,085)
Operating profit
4
3,316,789
2,487,593
Investment revenues
8
1,222,870
1,020,000
Finance costs
9
(54,420)
(60,548)
Profit before taxation
4,485,239
3,447,045
Income tax expense
10
(1,110,475)
(594,144)
Profit and total comprehensive income for the year
3,374,764
2,852,901

The income statement has been prepared on the basis that all operations are continuing operations.

AUDEMARS PIGUET (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
12
3,523,907
5,632,945
Investments
13
306,000
306,000
Deferred tax asset
20
34,777
-
0
3,864,684
5,938,945
Current assets
Inventories
15
10,893,657
5,660,463
Trade and other receivables
16
7,671,669
9,275,081
Current tax recoverable
966,765
842,650
Cash and cash equivalents
10,716,607
11,511,803
30,248,698
27,289,997
Current liabilities
Trade and other payables
18
26,440,088
23,983,992
Current tax liabilities
-
0
726,678
Lease liabilities
19
656,828
648,082
27,096,916
25,358,752
Net current assets
3,151,782
1,931,245
Non-current liabilities
Lease liabilities
19
2,954,007
3,610,835
Deferred tax liabilities
20
-
0
71,660
2,954,007
3,682,495
Net assets
4,062,459
4,187,695
Equity
Called up share capital
22
200,000
200,000
Retained earnings
3,862,459
3,987,695
Total equity
4,062,459
4,187,695
The financial statements were approved by the board of directors and authorised for issue on 1 August 2024 and are signed on its behalf by:
D. Compton
Director
Company registration number 06531135 (England and Wales)
AUDEMARS PIGUET (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
200,000
6,134,794
6,334,794
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,852,901
2,852,901
Dividends
11
-
(5,000,000)
(5,000,000)
Balance at 31 December 2022
200,000
3,987,695
4,187,695
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
3,374,764
3,374,764
Dividends
11
-
(3,500,000)
(3,500,000)
Balance at 31 December 2023
200,000
3,862,459
4,062,459
AUDEMARS PIGUET (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
4,425,647
9,381,032
Interest paid
(54,420)
(60,548)
Income taxes paid
(2,067,705)
(1,224,238)
Net cash inflow from operating activities
2,303,522
8,096,246
Investing activities
Purchase of property, plant and equipment
(173,506)
(907,903)
Interest received
9,070
-
0
Dividends received
1,213,800
1,020,000
Net cash generated from investing activities
1,049,364
112,097
Financing activities
Payment of lease liabilities
(648,082)
(639,452)
Dividends paid
(3,500,000)
(5,000,000)
Net cash used in financing activities
(4,148,082)
(5,639,452)
Net (decrease)/increase in cash and cash equivalents
(795,196)
2,568,891
Cash and cash equivalents at beginning of year
11,511,803
8,942,912
Cash and cash equivalents at end of year
10,716,607
11,511,803
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Audemars Piguet (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82-84 Grosvenor Street, 1st Floor, London, W1K 3JZ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The company applies accounting policies consistent with those applied by the group. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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.

1.3
Revenue

Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts.

 

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the company's activities. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Retail and wholesale

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 company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of 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 bases:

Plant and machinery
25% on cost
Computer equipment
33% on cost
Promotion corners and boutiques
10% - 33% on cost
Essential watches
20% on cost less residual value
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 income statement.

1.5
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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.

 

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.

1.7
Inventories

Inventories, including merchandise and spares, are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is determined on a first in first out basis.

The company has a distribution agreement with the parent company's marketing subsidiary responsible for global distribution. The directors consider this transaction to be on arm's length basis. Under this agreement the company has the right to return slow moving or obsolete stock to the manufacturer. Therefore, the directors are not required to make any local provision for slow moving or obsolescent stocks.

 

1.8
Cash and cash equivalents

Cash and cash equivalents 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.

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

 

Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against 'selling and marketing costs' in the income statement.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

 

Trade payables

Trade payables are recognised initially at fair value and subsequently measured at amortised cost. They are not interest bearing and are stated at their nominal value.

1.11
Equity instruments

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 when the company has 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.

1.13
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 inventories or non-current 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.

1.14
Retirement benefits

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

1.15
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sale of watches and accessories
72,071,814
58,777,195
2023
2022
£
£
Revenue analysed by geographical market
UK
72,071,814
58,777,195
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
9,347
15,734
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
16,000
Depreciation of property, plant and equipment
1,360,774
1,376,348
(Profit)/loss on disposal of property, plant and equipment
-
18,908
Cost of inventories recognised as an expense
54,520,764
43,754,079
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,000
16,000
For services in respect of parent and fellow group companies
Audit
-
0
15,774
6
Employees

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

2023
2022
Number
Number
Sales and marketing
22
20
Administration
9
9
Technical
1
1
Total
32
30

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,521,905
2,307,294
Social security costs
292,276
280,227
Pension costs
187,457
159,116
3,001,638
2,746,637
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
276,865
284,747

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
276,865
284,747
Company pension contributions to defined contribution schemes
19,250
16,503
8
Investment income
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
9,070
-
0
Other income
Dividends from shares in group undertakings
1,213,800
1,020,000
1,222,870
1,020,000
Income above relates to assets held at amortised cost, unless stated otherwise.
9
Finance costs
2023
2022
£
£
Interest on lease liabilities
51,918
60,548
Other interest payable
2,502
-
0
Total interest expense
54,420
60,548
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
10
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,091,871
726,578
Adjustments in respect of prior periods
125,041
(79,989)
Total UK current tax
1,216,912
646,589
Deferred tax
Origination and reversal of temporary differences
(106,437)
(52,445)
Total tax charge
1,110,475
594,144

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
4,485,239
3,447,045
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
1,054,928
654,939
Effect of expenses not deductible in determining taxable profit
357,854
345,489
Under/(over) provided in prior years
125,041
(79,989)
UK dividend income
(285,486)
(193,800)
Capital allowances
(35,425)
(80,050)
Effect of deferred tax
(106,437)
(52,445)
Taxation charge for the year
1,110,475
594,144

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where the Group operates. The legislation will be effective for the Group’s financial year beginning 1 January 2024. The Group is in scope of the enacted or substantively enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes.

 

This assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities in the Group.

 

In the UK, the effective tax rate for the Company is above 15% and therefore it does not expect a potential exposure to Pillar Two top-up taxes.

11
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary Shares
Interim dividend paid
17.50
25.00
3,500,000
5,000,000
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
12
Property, plant and equipment
Plant and machinery
Computer equipment
Promotion corners and boutiques
Essential watches
Total
£
£
£
£
£
Cost
At 1 January 2022
86,087
-
0
9,915,278
-
0
10,001,365
Additions
25,820
-
0
-
0
882,083
907,903
Disposals
-
0
-
0
(91,531)
-
0
(91,531)
At 31 December 2022
111,907
-
0
9,823,747
882,083
10,817,737
Additions
-
0
9,291
-
0
164,215
173,506
Transfer to held for sale
-
0
-
0
-
0
(1,046,298)
(1,046,298)
At 31 December 2023
111,907
9,291
9,823,747
-
0
9,944,945
Accumulated depreciation and impairment
At 1 January 2022
86,087
-
0
3,796,046
-
0
3,882,133
Charge for the year
1,076
-
0
1,343,918
31,354
1,376,348
Eliminated on disposal
-
0
-
0
(73,689)
-
0
(73,689)
At 31 December 2022
87,163
-
0
5,066,275
31,354
5,184,792
Charge for the year
6,455
2,581
1,258,564
93,174
1,360,774
On assets reclassified as held for sale
-
0
-
0
-
0
(124,528)
(124,528)
At 31 December 2023
93,618
2,581
6,324,839
-
0
6,421,038
Carrying amount
At 31 December 2023
18,289
6,710
3,498,908
-
3,523,907
At 31 December 2022
24,744
-
4,757,472
850,729
5,632,945

Property, plant and equipment includes right-of-use assets, as follows:

Promotional display & boutiques includes a premises lease capitalised in accordance with IFRS16. Acquisition cost is £6,354,239 (2022: £6,354,239), Accumulated depreciation is £3,258,586 (2022: £2,606,869).

Rights of use assets are included within promotional corners and boutiques.

13
Investments
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
-
0
-
0
306,000
306,000

The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Investments
(Continued)
- 24 -
14
Subsidiaries
Name of undertaking
Address
Principal activities
Class of
% Held
shares held
Direct
Audemars Piguet (Sloane Street) UK Limited
UK
Retail of watches
Ordinary shares
51.00
15
Inventories
2023
2022
£
£
Spare parts
594,191
532,982
Merchandise
10,299,466
5,127,481
10,893,657
5,660,463

Inventories are valued at the lower of cost and net realisable value. The company has a distribution agreement with the parent company's marketing subsidiary responsible for global distribution. Under this agreement the company has the right to return slow moving or obsolete stock to the manufacturer. Therefore, the directors do not make any local provision for slow moving or obsolescent stocks.

 

16
Trade and other receivables
2023
2022
£
£
Trade receivables
3,857,676
5,272,680
Amounts owed by subsidiary undertakings
3,325,381
3,589,475
Amounts owed by fellow group undertakings
225,236
162,607
Other receivables
12,600
11,600
Prepayments
250,776
238,719
7,671,669
9,275,081

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

Included in trade and other receivables are amounts due after 1 year amounting to £nil (2021: £nil).

 

Amounts owed by group undertakings are repayable on demand and have no security, payment date or interest date.

 

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
17
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Expected credit loss assessment
2023
2022
Balance
Rate
Loss allowance
Balance
Rate
Loss allowance
Trade receivables
£
%
£
£
%
£
Current
3,766,838
-
-
4,882,657
-
-
31 - 60 days
20,405
-
-
112,179
-
-
61 - 90 days
14,158
-
-
129,810
-
-
90 days +
56,276
-
-
148,034
-
-
3,857,677
-
5,272,680
-

No significant receivable balances are impaired at the reporting end date.

18
Trade and other payables
2023
2022
£
£
Trade payables
571,824
168,299
Payments received on account
438,787
355,045
Amounts owed to fellow group undertakings
22,372,925
20,923,566
Accruals
386,731
554,568
Social security and other taxation
2,669,821
1,982,514
26,440,088
23,983,992

Amounts owed to group undertakings are repayable on demand and have no security, payment date or interest date.

19
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
656,828
648,082
In two to five years
2,542,158
2,680,977
Total undiscounted liabilities
3,198,986
3,329,059
Future finance charges and other adjustments
411,849
929,858
Lease liabilities in the financial statements
3,610,835
4,258,917
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Lease liabilities
(Continued)
- 26 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
656,828
648,082
Non-current liabilities
2,954,007
3,610,835
3,610,835
4,258,917
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
51,918
60,548
Other leasing information is included in note 24.
20
Deferred taxation
Liabilities
Assets
2023
2022
2023
2022
£
£
£
£
Deferred tax balances
-
0
71,660
34,777
-
0
Deferred tax assets are expected to be recovered after more than one year.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
£
Liability at 1 January 2022
124,105
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(52,445)
Liability at 1 January 2023
71,660
Deferred tax movements in current year
Charge/(credit) to profit or loss
(106,437)
Asset at 31 December 2023
(34,777)
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 27 -

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
187,457
159,116

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
200,000
200,000
200,000
200,000
23
Contingent liabilities

At the statement of financial position date, Audemars Piguet (UK) Limited had given a guarantee, via its bankers, to the UK tax authorities in respect of a VAT and Duty Deferment Bond with a limit of £700,000 (2022 - £700,000). At the statement of financial position date the liability under the Bond amounted to £700,000 (2022 - £700,000) and this is disclosed within trade and other payables.

24
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2023
2022
£
£
Expense relating to short-term leases
2,797
2,148
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Other leasing information
(Continued)
- 28 -

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

2023
2022
Operating leases apart from land and buildings
£
£
Within one year
2,125
2,125
Between two and five years
3,868
5,993
5,993
8,118
Information relating to lease liabilities is included in note 19.
25
Capital risk management

The company is not subject to any externally imposed capital requirements.

26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

The key members of management are the directors D. Compton, M. Vigano and R. Sandoz-Dit-Bragard. D. Compton’s emoluments are disclosed within the employees and directors note (note 5). M. Vigano and R.Sandoz-Dit-Bragard are remunerated by other group companies and did not receive any emoluments from this company.

Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Subsidiaries
11,284,858
9,535,843
-
0
-
0
Associates
9,529
41,680
58,806,921
46,790,234
11,294,387
9,577,523
58,806,921
46,790,234
AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 29 -

During the year the company charged a management fee of £50,336 (2022 - £84,835) to its subsidiary Audemars Piguet (Sloane Street) UK Limited.

 

During the year the company charged a management fee of £138,238 (2022 - £161,976) to its fellow group company Audemars Piguet (Marketing) S.A.

 

During the year the company re-charged administrative expenses to Audemars Piguet (Sloane Street) UK Limited of £83,948 (2022 - £193,968).

 

During the year the company was re-charged various expenses by fellow group companies, which are included in administrative expenses, of £746,117 (2022 - £301,383).

 

During the year the company re-charged various expenses to fellow group companies, which are included in administrative expenses, of £96,930 (2022 - £nil).

 

Associated companies above are fellow group companies.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Associates
22,372,772
20,923,566

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Subsidiaries
3,325,381
3,589,475
Associates
225,082
162,607
3,550,463
3,752,082

Associated companies above are fellow group companies.

27
Directors' transactions

The company has provided a director an advance of £5,000 (2022 - £5,000) to meet expenditure on company business. At the balance sheet date this balance was outstanding and included in other receivables. This represents the highest balance outstanding in the year.

28
Controlling party

The immediate parent undertaking is Audemars Piguet Holding SA, registered in Switzerland. The ultimate parent undertaking and controlling party is HFLB Holding SA. The largest group for which group accounts are prepared and of which the Company is a member is Audemars Piguet Holding SA, whose accounts are available from Case postale 16, 1348 Le Brassus, Switzerland

AUDEMARS PIGUET (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
29
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
4,485,239
3,447,045
Adjustments for:
Finance costs
54,420
60,548
Investment income
(1,222,870)
(1,020,000)
(Gain)/loss on disposal of property, plant and equipment
-
18,908
Depreciation and impairment of property, plant and equipment
1,360,774
1,376,348
Movements in working capital:
Increase in inventories
(4,311,424)
(2,104,645)
Decrease/(increase) in trade and other receivables
1,603,412
(2,496,816)
Increase in trade and other payables
2,456,096
10,099,644
Cash generated from operations
4,425,647
9,381,032
30
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
11,511,803
(795,196)
10,716,607
Obligations under finance leases
(4,258,917)
648,082
(3,610,835)
7,252,886
(147,114)
7,105,772
1 January 2022
Cash flows
31 December 2022
Prior year:
£
£
£
Cash at bank and in hand
8,942,912
2,568,891
11,511,803
Obligations under finance leases
(4,898,369)
639,452
(4,258,917)
4,044,543
3,208,343
7,252,886
AUDEMARS PIGUET (UK) LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
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