| These financial statements are prepared on the going concern basis, as the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
The company recognised a loss for the reporting period ended 31 December 2022 of £4,000,209 (2021:£4,141,528) and had net assets at that date of £3,286,210 and net liabilities (2021: £17,544,240).
During the year, the company undertook a capital reconstruction whereby the preference shares were redesignated as ordinary shares, to capitalise the balance sheet.
Management and shareholders undertook a strategic review of the business during the year. This exercise reinforced their belief that the brand, with its rich history and iconic status, has the potential to be producing larger revenues and becoming profitable in the medium to long term.
To achieve this management and shareholders believe that a complete repositioning of the brand is required, with a more elevated design aesthetic, increased product quality and innovation, higher price positioning and category expansion.
Underpinning this strategy was the brand moving “back home” to its Italian roots. Therefore during 2023 the brand relocated back to Milan, with all Design, Product, Creative and Marketing functions being based there.
A business plan was developed which highlighted an immediate cash deficit as a result of these investments in future growth with the immediate parent company committing monies to ensure the company remains a Going Concern for at least 12 months from the date of the audit report.
Therefore, management are able to affirm their belief that the company will remain a Going Concern. |