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Tilley Endurables Limited

Annual Report and Financial Statements
Year Ended 31 December 2023

Registration number: 02992823

 

Tilley Endurables Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 7

 

Tilley Endurables Limited

Balance Sheet

31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

23,767

2,270

Current assets

 

Stocks

5

145,368

440,180

Debtors

6

353,632

307,132

Cash at bank and in hand

 

219,546

208,314

 

718,546

955,626

Creditors: Amounts falling due within one year

7

(137,280)

(415,516)

Net current assets

 

581,266

540,110

Net assets

 

605,033

542,380

Capital and reserves

 

Called up share capital

2,000

2,000

Profit and loss account

603,033

540,380

Shareholders' funds

 

605,033

542,380

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 18 September 2024
 

.........................................
F Rocchetti
Director

Company Registration Number: 02992823

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
6 Tresprison Court
Helston
Cornwall
TR13 0QD

These financial statements were authorised for issue by the director on 18 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Going concern

The financial statements have been prepared on a going concern basis. The group has remained profitable, and with continued shareholder support, the directors have concluded that the going concern basis is appropriate. This conclusion is further supported by the independent audit report signed on 12 June 2024, which was unqualified and not modified.

Management has thoroughly assessed the company's financial position and future prospects, considering various key factors. In 2023, the company's ecommerce business achieved significant growth, expanding by 23%, while the European wholesale market experienced a 12% increase in net sales. However, UK wholesale sales decreased compared to prior years. Despite this decline, the company maintained overall profitability consistent with previous years, demonstrating the resilience of its diversified business model.

Looking ahead, the company aims to continue positive trends in Ecommerce and European wholesale expansion. As of May 24, the management accounts for Ecommerce sales indicate a 40% year-to-date growth compared to the same period last year with the introduction of limited apparel collections and strategic fulfilment collaboration with the Canadian entity. This promising trend highlights the potential for further expansion and increased product offerings into the direct-to-consumer markets.

The company remains a critical component of the Tilley Endurables group, contributing 10% of the group's global net sales. This underscores the company's significance within the group’s overall strategy. The parent company continues to provide substantial support through funding, administrative resources, and sales assistance, bolstering the company’s competitive edge.

Given the positive growth trajectory of both the ecommerce and European wholesale businesses, the ongoing support from the parent company, and the continuous improvement of product distribution channels, the company is confident in its ability to continue as a going concern. This assessment is based on information available up to June 7, 2024. However, unforeseen events or significant changes in market conditions may impact the company's performance and financial stability. Management will continue to monitor the business environment closely and adjust strategies as necessary.

Foreign currency transactions and balances

Transactions with Tilley Endurables, Inc. are in Canadian dollars and are translated into sterling at a transfer price set by the company. Any transaction losses that arise because of the use of the set transfer price are absorbed by Tilley Endurables, Inc.

Transactions in Euros are translated into sterling at the rate prevailing at the beginning of the month in which the transaction takes place, to give materially the same result as if the actual exchange rate were used. Assets in Euros are translated into sterling at the rate of exchange ruling at the balance sheet date. Any exchange differences arising at the balance sheet date are reflected in the profit or loss account.

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.

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

The current corporation 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.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

20% on cost

Office equipment

33% on cost

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period which they relate.

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 11 (2022 - 9).

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

-

37,893

37,893

Additions

21,787

1,021

22,808

Disposals

-

(309)

(309)

At 31 December 2023

21,787

38,605

60,392

Depreciation

At 1 January 2023

-

35,624

35,624

Charge for the year

-

1,310

1,310

Eliminated on disposal

-

(309)

(309)

At 31 December 2023

-

36,625

36,625

Carrying amount

At 31 December 2023

21,787

1,980

23,767

At 31 December 2022

-

2,270

2,270

Included within the net book value of land and buildings above is £21,787 (2022 - £Nil) in respect of long leasehold land and buildings.
 

5

Stocks

2023
£

2022
£

Other inventories

145,368

440,180

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

117,666

225,341

Amounts owed by group undertakings

8

220,002

-

Prepayments

 

15,964

81,791

 

353,632

307,132

7

Creditors

Creditors: amounts falling due within one year

2023
 £

2022
 £

Trade creditors

13,060

31,613

Amounts due to group undertakings

-

111,834

Corporation tax

18,795

16,619

Social security and other taxes

46,291

76,312

Other creditors

4,457

3,517

Accrued expenses

54,677

175,621

137,280

415,516

8

Related party transactions

Summary of transactions with parent

During the period the company purchased £1,259,301 (2022: £1,473,468) of stock from Tilley Endurables, Inc. In addition management charges of £182,310 (2022: £130,456), website fees of £nil (2022: £nil), advertising and marketing fees of £109,610 (2022: £107,951) and other costs of £nil (2022: £nil) were charged by Tilley Endurables, Inc.

At 31 December 2023, the company was owed £220,002 (2022: £-111,834) by Tilley Endurables Inc. Disclosed as amounts due to/from group undertakings in the debtors and creditors notes.

On 22 April 2015 the company entered into a cross corporate guarantee in favour of Filefigure 30 Limited to guarantee on a joint and several basis the liabilities of the ultimate parent company Tilley Endurables, Inc. under a debenture. This was amended on 20 December 2019 to extend the maturity date to 1 May 2022.

On 26 November 2015 the company entered into a further cross corporate guarantee in favour of Bank Montreal to guarantee on a joint and several basis the liabilities of the ultimate parent company Tilley Endurables, Inc. under a debenture. This was most recently updated in December 2019.

On 25 July 2018, Gibraltar Brands Inc. purchased Tilley Endurables, Inc. from Hilco Capital Limited which included a transfer of the debt held to Gibraltar Brands, Inc.

 

Tilley Endurables Limited

Notes to the Financial Statements

Year Ended 31 December 2023

9

Parent and ultimate parent undertaking

The controlling party is Gibraltar & Company investment firm.

10

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Duncan Leslie, who signed for and on behalf of PKF Francis Clark on 23 September 2024.

11

Secured Debts

Bank of Montreal hold charges over the company's bank accounts, leasehold property and assignment of insurance. These were created on 26 November 2015. These were most recently updated on 30 January 2019.