ASICS UK LIMITED

Company Registration Number:
02104906 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 January 2023

End date: 31 December 2023

ASICS UK LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

ASICS UK LIMITED

Directors' report period ended 31 December 2023

The directors present their report with the financial statements of the company for the period ended 31 December 2023

Principal activities of the company

The principal activity of the company is the distribution of sportswear. The company distributes its product via two channels, one is via wholesale to its customers and the other is the retail (Direct-To-Consumers) channel through its own retail stores and the Asics Space Management Program. This is where space is rented in a wholesaler’s store that is managed and controlled by Asics.

Company policy on disabled employees

The company gives full consideration to applications for employment from disabled persons where the abilities are consistent withadequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career developmentand promotion. Where existing employees become disabled, it is the company’s policy to provide continuing employment whereverpracticable in the same or an alternative position to provide appropriate training to achieve this aim.

Additional information

Results and dividends: The profit for the year after taxation amounted to GBP 1,020,000 (2022 - GBP181,000). The directors recommend that no dividend is paid out this year (2022 – GBP nil). Future developments: In 2024, an increase in net sales across both retail and wholesale segments is anticipated, primarily driven by higher demand in the Sportstyle category. Going concern: The general uncertainty surrounding the impact of the cost of living crisis and rising inflation are creating disruption in supply chains and economic activity. The Directors so far see that there is not a significant impact on the company due to the wars in Ukraine and in Israel. There is limited impact on Inbound Supply towards ASICS in Europe due to the disruptions by Houthi Attacks on freight routes through the Red Sea but these are actioned and mitigated on ASICS Europe Group level. Whilst the Directors appreciate the difficultly in assessing the impact of the global events on the business and future cash flows, they have received written confirmation of financial support, from Asics Europe BV, an intermediate parent company, for a period to 31 December 2025. The Directors have made the relevant enquiries around the Asics European group and have reviewed the cash flow forecasts of Asics Europe BV which have also been sensitised to reflect severe, but plausible downside scenarios taking into consideration the group’s principal risks and are satisfied that Asics Europe BV has adequate resources to provide the support to the company, if it is needed. The company has a cash balance of GBP117,108 at 30 June 2024 and the Directors expect the company to be cash generative for a period to 31December 2025. Together with the transfer pricing agreement in place and the letter of support from Asics Europe BV the cash position of company is considered sufficient to cover its cash outflows during the going concern period. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. Post balance sheet events: No material events have occurred after the balance sheet date that would require adjustments to or disclosure in the financial statements. Treasury policies: The company has a treasury team based within its immediate parent undertaking ASICS Europe BV. The objectives of this team are to manage hedging contracts and to ensure cash is being fully utilised within the business. All hedging contracts are taken by ASICS Europe BV whereas the company does not have any hedging contracts. Employee involvement: During the year the company holds weekly meetings where an employee from each department is required to attend. This meeting is intended as a knowledge sharing session allowing departments to share information with one another on any wins they have achieved or any current issues. Twice a year the management also holds days which are compulsory for all employees to attend and provide updates on results and any activities which could affect them. On a bi-annual basis the management sends out employee engagement surveys which are European wide and these offer the employees the opportunity to feed back to the business any issues which they feel affects the business or affects employees directly. Sustainability: As one of the world’s top sports performance and lifestyle brands, ASICS is listed on the Tokyo Stock Exchange and operates 52 businesses globally, including ASICS UK Limited. ASICS's reach extends further through our supply chain business partners, sponsored events and connections to other stakeholders worldwide.‘Sustainable’ is a strategic pillar in our VISION2030, and it feeds into everything we do at ASICS. Under this pillar, we set out targets for our environmental and social impacts, covering the products and services we offer our customers, the relationships we build in our supply chain, and the environment we offer employees. Within the ASICS VISION 2030, this was the last year of our2021-2023 strategy, and you can read the results of our efforts in our 2023 Sustainability Report. It also marks the start of a new phase, with our Mid-Term Plan 2026 beginning in 2024. To ensure ASICS's sustainability actions are as effective as possible, we align our efforts with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD; the Science Based Targets initiative (SBTi), Race To Zero, the UN Sustainable Development Goals (SDGs) and UN Vision 2045. The ASICS Group has defined ambitious targets to reduce CO2 emissions by 63% towards 2030 and to be net zero by 2050, in alignment with the Science Based Targets initiative and aiming to contribute to limiting global temperature rise to 1.5C. Managing our supply chains: Upholding fair business practices, improving labour conditions and working to prevent human rights violations throughout our organization and supply chain are responsibilities we take very seriously. Our rigorous supply chain management program ensures compliance throughout our supply chains, and we have strengthened our policy and processes to check traceability in our materials procurement. In 2022, ASICS developed a Human Rights Policy and established a Human Rights Committee, to promote responsible purchasing practices and strengthen our commitment to human rights in our supply chain. A Sound Mind in a Sound Body needs a Sound Earth: We manage our sustainability performance using Environmental Management Systems. ASICS UK Limited is ISO14001 certified, which ensures environmental management is considered in all business processes. In the coming years, as we work towards ourVISION2030 and the next Mid-Term plan 2026, we plan to further integrate sustainability into our business strategy. We continue to explore how climate action and circularity can be integrated into the different business domains and portfolios towards ourVISION2030. We are excited about the future and committed to taking responsibility for our role in supporting the wellbeing of our planet and people around the world, by helping them maintain a sound mind in a sound body. SECR Report: Below table includes energy consumption for ASICS UK Limited and CO2 emissions for the sources as stipulated by the government’s Streamlined Energy and Carbon Reporting (SECR) policy. More sustainability information can be found in ASICS Global Sustainability Report2023 and its GRI Standards Contents Index 2023. Almost all sites in scope, ASICS UK Limited as well as its UK and Ireland based retail locations, are sourcing green electric power. Disclosure of information to the auditors: Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware. Reappointment of auditors: Ernst & Young LLP have been reappointed as regional auditors by Asics UK Limited.



Directors

The directors shown below have held office during the whole of the period from
1 January 2023 to 31 December 2023

Carsten Unbehaun
Menno de Vries


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
12 August 2024

And signed on behalf of the board by:
Name: Carsten Unbehaun
Status: Director

ASICS UK LIMITED

Profit And Loss Account

for the Period Ended 31 December 2023

2023 2022


£

£
Turnover: 70,003,000 61,808,000
Cost of sales: ( 46,856,000 ) ( 39,850,000 )
Gross profit(or loss): 23,147,000 21,958,000
Administrative expenses: ( 21,893,000 ) ( 21,522,000 )
Operating profit(or loss): 1,254,000 436,000
Interest receivable and similar income: 14,000
Profit(or loss) before tax: 1,268,000 436,000
Tax: ( 248,000 ) ( 255,000 )
Profit(or loss) for the financial year: 1,020,000 181,000

ASICS UK LIMITED

Balance sheet

As at 31 December 2023

Notes 2023 2022


£

£
Fixed assets
Tangible assets: 3 2,400,000 3,214,000
Total fixed assets: 2,400,000 3,214,000
Current assets
Debtors: 4 15,265,000 13,497,000
Cash at bank and in hand: 204,000 551,000
Total current assets: 15,469,000 14,048,000
Creditors: amounts falling due within one year: 5 ( 3,670,000 ) ( 3,997,000 )
Net current assets (liabilities): 11,799,000 10,051,000
Total assets less current liabilities: 14,199,000 13,265,000
Provision for liabilities: ( 534,000 ) ( 589,000 )
Total net assets (liabilities): 13,665,000 12,676,000
Capital and reserves
Called up share capital: 2,000,000 2,000,000
Other reserves: 279,000 310,000
Profit and loss account: 11,386,000 10,366,000
Total Shareholders' funds: 13,665,000 12,676,000

The notes form part of these financial statements

ASICS UK LIMITED

Balance sheet statements

For the year ending 31 December 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 12 August 2024
and signed on behalf of the board by:

Name: Carsten Unbehaun
Status: Director

The notes form part of these financial statements

ASICS UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover comprises the invoiced amounts of goods and services, net of trade discounts and value added tax, in respect of the company's continuing principal activity.

    Tangible fixed assets depreciation policy

    Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, based on prices prevailing at the date of acquisition, of each asset evenly over its expected useful life, as follows: Asset class Depreciation method and rate Fixture, fittings, plant and machinery 3 - 5 years Short leasehold improvement 3 - 10 years The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

    Other accounting policies

    Financial reporting standard 102 - reduced disclosure exemptions The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": - the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv) - the requirements of Section 7 Statement of Cash Flows - the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d) - the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A - the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29 - the requirements of Section 26 Share-based Payment paragraphs 26.1(b), 26.19 to 26.2 I and 26.23 - the requirements of section 28 Key Management Personnel Compensation - the requirements of Section 33 Related Party Disclosures paragraph 33.7. - This information is included in the consolidated financial statements of Asics Europe BV as at 31 December 2023 and these financial statements may be obtained from its principal office at 7-1-1, Minatojima - Nakamach, Chuo-ku, Kobe 650, Japan. The directors have taken advantage of the exemption in section 1 from including a statement of cash flows in the financial statements on the grounds that the company is wholly owned and its parent publishes group financial statements. Going concern The general uncertainty surrounding the impact of the cost of living crisis and rising inflation are creating disruption in supply chains and economic activity. The Directors so far see that there is not a significant impact on the company due to the wars in Ukraine and in Israel. There is limited impact on Inbound Supply towards ASICS in Europe due to the disruptions by Houthi Attacks on freight routes through the Red Sea but these are actioned and mitigated on ASICS Europe Group level. Whilst the Directors appreciate the difficultly in assessing the impact of the global events on the business and future cash flows, they have received written confirmation of financial support, from Asics Europe BV, an intermediate parent company, for a period to 31 December 2025. The Directors have made the relevant enquiries around the Asics European group and have reviewed the cash flow forecasts of Asics Europe BV which have also been sensitised to reflect severe, but plausible downside scenarios taking into consideration the group’s principal risks and are satisfied that Asics Europe BV has adequate resources to provide the support to the company, if it is needed. The company has a cash balance of GBP 117,108 at 30 June 2024 and the Directors expect the company to be cash generative for a period to 31 December 2025. Together with the transfer pricing agreement in place and the letter of support from Asics Europe BV the cash position of company is considered sufficient to cover its cash outflows during the going concern period. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on the amounts recognised in the financial statements. Lease classification The classification of leases as operating or finance leases requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires a liability to be recognised in the statement of financial position. The following is deemed to be the Company’s key source of estimation uncertainty: Impairment of fixed assets and onerous lease provision Where there are indicators of impairments of individual assets and onerous lease contracts, the Company performs impairment tests based on a value in use calculation. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget to the end of the lease term and do not include significant future investments that will enhance the asset’s performance. The model is most sensitive to the expected future cash flows and the growth rates used within the calculation. Revenue recognition Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. 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 despatch. Impairment of non-financial assets The Company assess at each reporting date whether an asset may be impaired. If any such indication exists the Company estimates recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount of an asset or cash-generated unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through an impairment in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease. An impairment loss recognised for all assets is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. Foreign currency Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. On translation of assets and liabilities of a financial operation in foreign currencies, movements go through the foreign currency translation reserve. Tax The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income. Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Cash and cash equivalents Cash and cash equivalents in the Balance Sheet comprise cash at banks and in hand. Trade debtors Debtors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Total Comprehensive Income in administrative expenses. Trade creditors Creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in administrative expenses. Provisions Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Operating leases Rentals payable under operating leases are charged in the Income Statement on a straight-line basis over the lease term. Share capital Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared. Pension The company operates a defined contribution pension scheme. Contributions are charged in the Income Statement as they become payable in accordance with the rules of the scheme.

ASICS UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 213 242

ASICS UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2023 9,919,000 2,377,000 12,296,000
Additions 110,000 110,000
Disposals
Revaluations
Transfers
At 31 December 2023 10,029,000 2,377,000 12,406,000
Depreciation
At 1 January 2023 6,869,000 2,213,000 9,082,000
Charge for year 894,000 30,000 924,000
On disposals
Other adjustments
At 31 December 2023 7,763,000 2,243,000 10,006,000
Net book value
At 31 December 2023 2,266,000 134,000 2,400,000
At 31 December 2022 3,050,000 164,000 3,214,000

ASICS UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Debtors

2023 2022
£ £
Trade debtors 4,889,000 6,509,000
Prepayments and accrued income 705,000 1,472,000
Other debtors 9,671,000 5,516,000
Total 15,265,000 13,497,000
Debtors due after more than one year: 104,000 104,000

ASICS UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 979,000 879,000
Taxation and social security 1,022,000 1,166,000
Accruals and deferred income 1,669,000 1,952,000
Total 3,670,000 3,997,000