for the Period Ended 31 December 2023
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 December 2023
Principal activities of the company
Company policy on disabled employees
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
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
And signed on behalf of the board by:
Name:
Status: Director
for the Period Ended
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The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 December 2023
Basis of measurement and preparation
Turnover policy
Tangible fixed assets depreciation policy
Other accounting policies
for the Period Ended 31 December 2023
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for the Period Ended 31 December 2023
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for the Period Ended 31 December 2023
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