Company registration number 07666215 (England and Wales)
GERARD FASHIONS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
GERARD FASHIONS GROUP LIMITED
COMPANY INFORMATION
Director
Mr Gerard Dargan
Company number
07666215
Registered office
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
Danske Bank
Donegall Square West
Belfast
Ireland
BT1 6SJ
GERARD FASHIONS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 37
GERARD FASHIONS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The director presents the strategic report for the year ended 31 January 2024.

Fair Review of the Business

Gerard Fashions Group Limited operates 30 (2023 - 29) retail clothing stores, 12 of them in Northern Ireland, 3 in Scotland, and 15 in the Republic of Ireland (ROI).

The turnover in the year for the group is £13.8m (2023 - £13.6m) resulting in gross profit of £9.1m (2023 - £8.7m). This represents 66% (2023 - 64%) of turnover.

The director intends to pursue strategies that would enhance the growth of the group and result in improved performance.

Principal risks and uncertainties

This is the second full year of trading after the Covid-19 pandemic as the final restrictions have been lifted during the year ended 31 January 2022, and we firmly believe that the group is well placed to succeed in a post COVID-19 world.

 

As the group operates in a competitive market place, it also faces the following risks to its business:

 

The challenges we face are predominantly associated with maintaining our reputation amongst the consumer and other key stakeholders. To continue our good standing, we maintain a robust quality assurance system with regular reviews and inspections undertake by management. Any required actions are captured, implemented and re-inspected to ensure quality.

 

As for many businesses our size, the environment in which we operate continues to be challenging. We are also subject to consumer spending patterns and consumers overall level of disposable income within our economy. The process of risk acceptance and risk management is addressed through a framework of policies; all policies are subject to Board approval and ongoing review by management.

 

As fashion retailers we are forever contending with the very volatile issue of seasonality, having to ramp up inventories and then deplete them in a time-sensitive manner. There are certain things we cannot control, like the weather, if summer has not been hot enough we have to slash prices and dilute margins to sell stock that is not selling due to change of weather.

 

Alongside the stock management risk, the group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely. Cash and bank are monitored on a regular intervals and funding is secured before any acquisition commitments are made.

 

The group has got the strategy in place to continue to expand in Republic of Ireland. More purchasing power and know-how of fashion industry will give a competitive advantage over its competitors.

 

Key performance indicators

We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover and gross margin.

    

Turnover of the group amounted to £13.8m (2023 - £13.6m).

 

Gross profit amounts to £9.1m (2023 - £8.7m) and the gross profit margin equates to 66% (2023 - 64%).

 

During the year, the group made a profit before tax of £1.8m (2023 - £2m).

Other performance indicators

The key non-financial performance indicators are customer service and satisfaction, and stakeholder relationships.

 

Future developments

The group is in a good position to take advantage of any opportunities which may arise in the future. The director aims to maintain the management which have resulted in profitability in this reporting period.

GERARD FASHIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

On behalf of the board

Mr Gerard Dargan
Director
27 August 2024
GERARD FASHIONS GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activities of the group continued to be that of retail and wholesale of women's clothing and property investment.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr Gerard Dargan
Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr Gerard Dargan
Director
27 August 2024
GERARD FASHIONS GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GERARD FASHIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GERARD FASHIONS GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Gerard Fashions Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director 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 director is 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:

GERARD FASHIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GERARD FASHIONS GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

 

GERARD FASHIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GERARD FASHIONS GROUP LIMITED
- 7 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

 

Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the group’s license to operate. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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; for instance, any non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.

 

Fraud may involve deliberate concealment by, for example, forgery or intentional omissions, misrepresentation, or through an act of collusion that would mitigate internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

 

 

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.

GERARD FASHIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GERARD FASHIONS GROUP LIMITED
- 8 -

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.

 

 

 

Ketan Shah (Senior Statutory Auditor)
For and on behalf of KLSA LLP
27 August 2024
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
GERARD FASHIONS GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,818,192
13,590,286
Cost of sales
(4,686,549)
(4,928,900)
Gross profit
9,131,643
8,661,386
Administrative expenses
(7,421,974)
(6,473,870)
Other operating income/(expenses)
85,530
(68,498)
Exceptional item
-
0
(146,934)
Operating profit
4
1,795,199
1,972,084
Interest receivable and similar income
8
56,961
22,485
Interest payable and similar expenses
9
(22,980)
(2,697)
Profit before taxation
1,829,180
1,991,872
Tax on profit
10
(407,704)
(476,187)
Profit for the financial year
1,421,476
1,515,685
Profit for the financial year is all attributable to the owners of the parent company.
GERARD FASHIONS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
1,421,476
1,515,685
Other comprehensive income
-
-
Total comprehensive income for the year
1,421,476
1,515,685
Total comprehensive income for the year is all attributable to the owners of the parent company.
GERARD FASHIONS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Negative goodwill
12
(207,580)
(402,526)
Tangible assets
13
1,874,916
1,921,330
Investment property
14
2,188,486
1,410,241
3,855,822
2,929,045
Current assets
Stocks
18
1,375,780
1,428,950
Debtors falling due after more than one year
19
289,363
770,342
Debtors falling due within one year
19
817,877
677,995
Cash at bank and in hand
3,585,081
3,641,134
6,068,101
6,518,421
Creditors: amounts falling due within one year
20
(1,418,538)
(2,351,939)
Net current assets
4,649,563
4,166,482
Total assets less current liabilities
8,505,385
7,095,527
Creditors: amounts falling due after more than one year
21
-
(3,854)
Provisions for liabilities
Deferred tax liability
23
19,982
27,747
(19,982)
(27,747)
Net assets
8,485,403
7,063,926
Capital and reserves
Called up share capital
25
1,001
1,000
Revaluation reserve
10,539
10,539
Profit and loss reserves
8,473,863
7,052,387
Total equity
8,485,403
7,063,926
The financial statements were approved and signed by the director and authorised for issue on 27 August 2024
Mr Gerard Dargan
Director
Company registration number 07666215 (England and Wales)
GERARD FASHIONS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
2,102
2,102
Current assets
Debtors
19
402,002
418,628
Cash at bank and in hand
4
6
402,006
418,634
Creditors: amounts falling due within one year
20
(23,062)
(172,276)
Net current assets
378,944
246,358
Net assets
381,046
248,460
Capital and reserves
Called up share capital
25
1,001
1,000
Profit and loss reserves
380,045
247,460
Total equity
381,046
248,460

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £132,585 (2023 - £256,136 profit).

The financial statements were approved and signed by the director and authorised for issue on 27 August 2024
Mr Gerard Dargan
Director
Company registration number 07666215 (England and Wales)
GERARD FASHIONS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
1,000
10,539
5,796,702
5,808,241
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
1,515,685
1,515,685
Dividends
11
-
-
(260,000)
(260,000)
Balance at 31 January 2023
1,000
10,539
7,052,387
7,063,926
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
1,421,476
1,421,476
Issue of share capital
25
1
-
-
1
Balance at 31 January 2024
1,001
10,539
8,473,863
8,485,403
GERARD FASHIONS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
1,000
251,324
252,324
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
256,136
256,136
Dividends
11
-
(260,000)
(260,000)
Balance at 31 January 2023
1,000
247,460
248,460
Year ended 31 January 2024:
Profit and total comprehensive income
-
132,585
132,585
Issue of share capital
25
1
-
1
Balance at 31 January 2024
1,001
380,045
381,046
GERARD FASHIONS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,961,027
1,312,868
Interest paid
(22,980)
(2,697)
Income taxes paid
(1,050,713)
(77,615)
Net cash inflow from operating activities
887,334
1,232,556
Investing activities
Purchase of tangible fixed assets
(160,487)
(339,474)
Proceeds from disposal of tangible fixed assets
-
2,200
Purchase of investment property
(778,245)
(225,241)
Proceeds from disposal of investment property
-
154,473
Repayment of loans
(31,368)
166,867
Interest received
56,961
22,485
Net cash used in investing activities
(913,139)
(218,690)
Financing activities
Proceeds from issue of shares
1
-
Repayment of bank loans
-
(40,929)
Payment of finance leases obligations
(30,249)
(37,250)
Dividends paid to equity shareholders
-
0
(260,000)
Net cash used in financing activities
(30,248)
(338,179)
Net (decrease)/increase in cash and cash equivalents
(56,053)
675,687
Cash and cash equivalents at beginning of year
3,641,134
2,965,447
Cash and cash equivalents at end of year
3,585,081
3,641,134
GERARD FASHIONS GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
33
31,365
(17)
Investing activities
Repayment of loans
(31,368)
-
0
Dividends received
-
0
260,000
Net cash (used in)/generated from investing activities
(31,368)
260,000
Financing activities
Proceeds from issue of shares
1
-
Dividends paid to equity shareholders
-
(260,000)
Net cash generated from/(used in) financing activities
1
(260,000)
Net decrease in cash and cash equivalents
(2)
(17)
Cash and cash equivalents at beginning of year
6
23
Cash and cash equivalents at end of year
4
6
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
1
Accounting policies
Company information

Gerard Fashions Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Kalamu House, 11 Coldbath Square, London, EC1R 5HL.

 

The group consists of Gerard Fashions Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention to include the investment properties and certain financial instruments at fair vale. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

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

The consolidated group financial statements consist of the financial statements of the parent company Gerard Fashions Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.3
Going concern

In accordance with his responsibilities, the director has considered the appropriateness of the going concern basis for the preparation of the financial statements. For this basis he has reviewed the financial and cash flow projections for the next 12 months from the date of the approval of the financial statements.

 

In addition, the director is not aware of any unlikely event, conditions and business risks beyond this point that may cast a significant doubt on the group's ability to continue as a going concern.

 

On the basis of this, the director has a reasonable expectation that the group will continue in operational existence for the foreseeable future.  Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. These financial statements are prepared on the going concern basis.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

a) Sale of goods - retail

 

The group operates retail shops for the sale of women's clothing and related accessories. Sales of goods are recognised on sale to the customer, which is considered the point of delivery; retail sales are usually by cash, credit or payment card.

 

b) Sale of goods - wholesale

 

The group sells women's clothing and accessories in the wholesale market to it's subsidiaries. Sales of goods are recognised on delivery to the wholesaler, when the wholesaler has full discretion over the channel and price to sell the product and there is no unfulfilled obligation that could affect the wholesaler's acceptance of the product

 

c) Rental income

 

Turnover from rental income represents amounts receivable from gross rents charged to tenants and the invoiced value of other services supplied. Rents received prior to the period to which they relate are accounted for as deferred income and released to the profit and loss account in the period to which the rent relates.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Negative goodwill arose due to fair value of net assets exceeding the consideration given.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

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

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -

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:

Freehold land and buildings
2% Straight Line basis
Leasehold land and buildings
Straight line on cost over the lease periods of between one and ten years
Leasehold improvements
Straight line on cost over the lease periods
Plant and equipment
25% on reducing balance
Fixtures and fittings
15% on reducing balance
Motor vehicles
25% straight line basis
Other assets
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Depreciation and residual values

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

 

De-recognition

Tangible assets are de-recognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

1.7
Investment properties

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

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.8
Fixed asset investments

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

 

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

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

1.9
Impairment of fixed assets

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

 

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

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -

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

 

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

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

1.10
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined on direct purchase value and all costs attributable to bringing the stock to its current location and condition and is stated on a Fist-in-First-out (FIFO) basis. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expense.

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

1.11
Cash at bank and in hand

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
1.13
Equity instruments

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

1.14
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 23 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

a) Functional and presentation currency

 

The group's functional and presentation currency is the pound sterling, the currency of the United Kingdom.

 

b) Transactions and balances

 

Transactions in foreign currencies during the year are converted into pound sterling, the currency of the United Kingdom, at rates ruling at the transaction dates. Assets and liabilities at the reporting date which are expressed in foreign currencies are translated into pound sterling at rates ruling at that date. The resulting differences from conversion and translation are dealt with in profit or loss in the year in which they arise.

1.19

Comparatives

There were no changes in presentation in the current year.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Useful economic lives of tangible assets and investment properties

Management reviews the useful lives, depreciation methods and residual values of the items of tangible fixed assets and on a regular basis. During the year, the director determined no significant changes in the useful lives and residual values. The carrying amounts of tangible fixed assets and investment properties are disclosed in note 13 and 14.

Stocks Provisioning

The group sells women's clothing and is subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stock, as well as applying assumptions around saleability of the goods.

Fair value of investment properties

The fair value of investment property is derived from the current market prices of comparable real estate. The fair value is based on a valuation made by independent appraisers who hold a recognised and relevant valuation licence and have recent experience in valuing property in the same location as the company’s investment property. The carrying amount of investment property is disclosed in note 14.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
13,805,336
13,590,286
Sale of services
12,856
-
13,818,192
13,590,286
2024
2023
£
£
Other significant revenue
Interest income
56,961
22,485
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
3
Turnover and other revenue
(Continued)
- 25 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,648,763
5,562,457
Republic of Ireland
8,169,429
8,027,829
13,818,192
13,590,286
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(7,291)
120,473
Depreciation of owned tangible fixed assets
199,213
197,570
Depreciation of tangible fixed assets held under finance leases
7,688
35,854
Profit on disposal of tangible fixed assets
-
(2,200)
(Profit)/loss on disposal of investment property
-
0
36,013
Amortisation of intangible assets
(194,946)
(222,171)
Operating lease charges
1,638,261
1,547,156
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,960
3,630
Audit of the financial statements of the company's subsidiaries
32,390
24,350
36,350
27,980
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
157
192
-
-
Admin & Managers
39
39
-
-
Total
196
231
-
0
-
0
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,770,034
2,348,937
-
0
-
0
Social security costs
240,718
196,027
-
-
Pension costs
174,362
20,768
-
0
-
0
3,185,114
2,565,732
-
0
-
0
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
267,000
52,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
267,000
52,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
32,680
3,244
Other interest income
24,281
19,241
Total income
56,961
22,485
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
32,680
3,244
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
149
253
Other finance costs:
Interest on finance leases and hire purchase contracts
1,908
2,444
Other interest
20,923
-
Total finance costs
22,980
2,697
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
415,469
382,543
Adjustments in respect of prior periods
-
0
93,644
Total current tax
415,469
476,187
Deferred tax
Origination and reversal of timing differences
(7,765)
-
0
Total tax charge
407,704
476,187

From 1 April 2023, the main rate of corporation tax increased from 19% to 25%, resulting in an hybrid rate of 24% for the year.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 28 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,829,180
1,991,872
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
439,003
378,456
Tax effect of expenses that are not deductible in determining taxable profit
20,561
34,418
Tax effect of income not taxable in determining taxable profit
-
0
(49,476)
Tax effect of utilisation of tax losses not previously recognised
-
0
(524)
Permanent capital allowances in excess of depreciation
(13,134)
(23,916)
Depreciation on assets not qualifying for tax allowances
23,597
23,094
Other permanent differences
(7,765)
-
0
Under/(over) provided in prior years
-
0
93,644
Tax adjustments due to consolidation adjustments
(44,579)
20,491
Other adjustments
(9,979)
-
0
Taxation charge
407,704
476,187
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
260,000
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 February 2023 and 31 January 2024
566,673
(2,773,379)
(2,206,706)
Amortisation and impairment
At 1 February 2023
566,673
(2,370,853)
(1,804,180)
Amortisation charged for the year
-
0
(194,946)
(194,946)
At 31 January 2024
566,673
(2,565,799)
(1,999,126)
Carrying amount
At 31 January 2024
-
0
(207,580)
(207,580)
At 31 January 2023
-
0
(402,526)
(402,526)
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
12
Intangible fixed assets
(Continued)
- 29 -
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Other assets
Total
£
£
£
£
£
£
£
£
Cost
At 1 February 2023
1,814,636
131,597
1,048,021
339,506
1,544,190
18,936
36,280
4,933,166
Additions
-
0
-
0
12,260
-
0
130,727
17,500
-
0
160,487
At 31 January 2024
1,814,636
131,597
1,060,281
339,506
1,674,917
36,436
36,280
5,093,653
Depreciation and impairment
At 1 February 2023
333,233
131,597
816,981
265,049
1,410,530
18,166
36,280
3,011,836
Depreciation charged in the year
33,579
-
0
73,943
29,975
64,259
5,145
-
0
206,901
At 31 January 2024
366,812
131,597
890,924
295,024
1,474,789
23,311
36,280
3,218,737
Carrying amount
At 31 January 2024
1,447,824
-
0
169,357
44,482
200,128
13,125
-
0
1,874,916
At 31 January 2023
1,481,403
-
0
231,040
74,457
133,660
770
-
0
1,921,330
The company had no tangible fixed assets at 31 January 2024 or 31 January 2023.
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
13
Tangible fixed assets
(Continued)
- 31 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
7,688
15,378
-
0
-
0
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023 and 31 January 2024
1,410,241
-
Additions through external acquisition
778,245
-
At 31 January 2024
2,188,486
-

Investment property comprises £2,188,486. The director believes this to be an appropriate value as it was made on an open market basis by reference to market evidence of transaction prices for similar properties.

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2,102
2,102
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
2,102
Carrying amount
At 31 January 2024
2,102
At 31 January 2023
2,102
16
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
16
Subsidiaries
(Continued)
- 32 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Baristyle Limited
United Kingdom
Ordinary
100.00
-
Bolan Investments Limited
United Kingdom
Ordinary
100.00
-
Filby Limited
United Kingdom
Ordinary
100.00
-
Abril Ingenieria Topografica, Spain S.L
Spain
Ordinary
-
100.00
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
718,635
1,047,341
402,002
418,628
Carrying amount of financial liabilities
Measured at amortised cost
685,909
1,019,545
23,062
172,276
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
293,254
204,850
-
-
Finished goods and goods for resale
1,082,526
1,224,100
-
0
-
0
1,375,780
1,428,950
-
-
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Amounts owed by group undertakings
-
-
332,615
378,431
Other debtors
429,365
276,999
69,387
40,197
Prepayments and accrued income
388,512
400,996
-
0
-
0
817,877
677,995
402,002
418,628
Amounts falling due after more than one year:
Other debtors
289,363
770,342
-
0
-
0
Total debtors
1,107,240
1,448,337
402,002
418,628
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Debtors
(Continued)
- 33 -
Other debtors (amounts falling due after more than one year) represent loans advanced to Bolan SSAS Trust. The loans carry interest of 3.25% and 3.75% and are repayable by 1 May 2025 and 1 June 2034 respectively.
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
22
3,855
30,250
-
0
-
0
Trade creditors
526,356
780,502
-
0
3,480
Amounts owed to group undertakings
-
0
-
0
-
0
136,748
Corporation tax payable
196,617
831,861
-
0
-
0
Other taxation and social security
536,012
504,387
-
-
Other creditors
42,203
100,105
18,720
28,006
Accruals and deferred income
113,495
104,834
4,342
4,042
1,418,538
2,351,939
23,062
172,276
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
22
-
0
3,854
-
0
-
0
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
3,855
32,158
-
0
-
0
In two to five years
-
0
3,980
-
0
-
0
3,855
36,138
-
-
Less: future finance charges
-
0
(2,034)
-
0
-
0
3,855
34,104
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 34 -
23
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Investment property
19,982
27,747
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
27,747
-
Credit to profit or loss
(7,765)
-
Liability at 31 January 2024
19,982
-

The deferred tax liability set out above is expected to reverse when the properties are sold. The movements during the year represent the release of the provision on inter group transfer of the property.

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,362
20,768

A defined contribution pension scheme is operated for all qualifying employees.

 

During the year, the group paid a pension contribution amounting to £154,000 in relation to one of the directors of Bolan Investments Limited.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000
1,000
1,001
1,000
Ordinary Shares - non voting of £1 each
1
-
-
-

The company allotted one ordinary Class A Share (non voting share) during the year with an aggregate nominal value of £1 which remains unpaid.

GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 35 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,211,209
1,034,660
-
-
Between two and five years
2,341,469
1,258,340
-
-
In over five years
639,722
170,588
-
-
4,192,400
2,463,588
-
-
27
Related party transactions
Transactions with related parties

During the year, the group entered into the following transactions with related parties:

 

The balance receivable from related parties at the year end date are as follows:

 

Amounts due from connected company - £26,495 (2023 - £39,737)

 

The companies are connected as they are under common control, which makes them related parties, and the balance represents funds advanced during the normal course of business activities.

 

Amounts due from Bolan SSAS Trust - £426,918 (2023 - £770,342)

 

The balance represents loans advanced to the Trust.

 

No guarantees were given or received.

 

28
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

The balance has been re-paid in full after the year end.

 

Further, during the year, the directors sold two of their investment properties to the group at a cost of £370,000.

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Funds advanced
-
-
31,368
31,368
-
31,368
31,368
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 36 -
29
Controlling party

The ultimate controlling party is Mr G Dargan as director and majority shareholder in the current and previous year.

 

30
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
3,641,134
(56,053)
3,585,081
Obligations under finance leases
(34,104)
30,249
(3,855)
3,607,030
(25,804)
3,581,226
31
Analysis of changes in net funds - company
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
6
(2)
4
32
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,421,476
1,515,685
Adjustments for:
Taxation charged
407,704
476,187
Finance costs
22,980
2,697
Investment income
(56,961)
(22,485)
Gain on disposal of tangible fixed assets
-
(2,200)
(Gain)/loss on disposal of investment property
-
0
36,013
Amortisation and impairment of intangible assets
(194,946)
(222,171)
Depreciation and impairment of tangible fixed assets
206,901
233,424
Movements in working capital:
Decrease/(increase) in stocks
53,170
(217,596)
Decrease/(increase) in debtors
372,465
(948,865)
(Decrease)/increase in creditors
(271,762)
462,179
Cash generated from operations
1,961,027
1,312,868
GERARD FASHIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 37 -
33
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit for the year after tax
132,585
256,136
Adjustments for:
Investment income
-
0
(260,000)
Movements in working capital:
Decrease/(increase) in debtors
47,994
(23,464)
(Decrease)/increase in creditors
(149,214)
27,311
Cash generated from/(absorbed by) operations
31,365
(17)
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