Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true8476truetruetruetruetrue2023-01-01falseRetail sale of clothing in specialised storesfalse 03299115 2023-01-01 2023-12-31 03299115 2022-01-01 2022-12-31 03299115 2023-12-31 03299115 2022-12-31 03299115 2022-01-01 03299115 1 2023-01-01 2023-12-31 03299115 1 2022-01-01 2022-12-31 03299115 3 2023-01-01 2023-12-31 03299115 3 2022-01-01 2022-12-31 03299115 d:CompanySecretary1 2023-01-01 2023-12-31 03299115 d:Director1 2023-01-01 2023-12-31 03299115 d:Director2 2023-01-01 2023-12-31 03299115 d:RegisteredOffice 2023-01-01 2023-12-31 03299115 e:Buildings e:LongLeaseholdAssets 2023-01-01 2023-12-31 03299115 e:Buildings e:LongLeaseholdAssets 2023-12-31 03299115 e:Buildings e:LongLeaseholdAssets 2022-12-31 03299115 e:PlantMachinery 2023-01-01 2023-12-31 03299115 e:PlantMachinery 2023-12-31 03299115 e:PlantMachinery 2022-12-31 03299115 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03299115 e:MotorVehicles 2023-01-01 2023-12-31 03299115 e:MotorVehicles 2023-12-31 03299115 e:MotorVehicles 2022-12-31 03299115 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03299115 e:FurnitureFittings 2023-01-01 2023-12-31 03299115 e:FurnitureFittings 2023-12-31 03299115 e:FurnitureFittings 2022-12-31 03299115 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03299115 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03299115 e:CurrentFinancialInstruments 2023-12-31 03299115 e:CurrentFinancialInstruments 2022-12-31 03299115 e:Non-currentFinancialInstruments 2023-12-31 03299115 e:Non-currentFinancialInstruments 2022-12-31 03299115 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 03299115 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 03299115 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 03299115 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 03299115 e:UKTax 2023-01-01 2023-12-31 03299115 e:UKTax 2022-01-01 2022-12-31 03299115 e:ShareCapital 2023-01-01 2023-12-31 03299115 e:ShareCapital 2023-12-31 03299115 e:ShareCapital 2022-01-01 2022-12-31 03299115 e:ShareCapital 2022-12-31 03299115 e:ShareCapital 2022-01-01 03299115 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03299115 e:RetainedEarningsAccumulatedLosses 2023-12-31 03299115 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03299115 e:RetainedEarningsAccumulatedLosses 2022-12-31 03299115 e:RetainedEarningsAccumulatedLosses 2022-01-01 03299115 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 03299115 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 03299115 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 03299115 d:OrdinaryShareClass1 2023-01-01 2023-12-31 03299115 d:OrdinaryShareClass1 2023-12-31 03299115 d:OrdinaryShareClass1 2022-12-31 03299115 d:FRS102 2023-01-01 2023-12-31 03299115 d:Audited 2023-01-01 2023-12-31 03299115 d:FullAccounts 2023-01-01 2023-12-31 03299115 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03299115 e:WithinOneYear 2023-12-31 03299115 e:WithinOneYear 2022-12-31 03299115 e:BetweenOneFiveYears 2023-12-31 03299115 e:BetweenOneFiveYears 2022-12-31 03299115 e:MoreThanFiveYears 2023-12-31 03299115 e:MoreThanFiveYears 2022-12-31 03299115 e:HirePurchaseContracts e:WithinOneYear 2023-12-31 03299115 e:HirePurchaseContracts e:WithinOneYear 2022-12-31 03299115 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-12-31 03299115 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-31 03299115 2 2023-01-01 2023-12-31 03299115 7 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure


Registered number: 03299115












CARHARTT WIP UK (RETAIL) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

CARHARTT WIP UK (RETAIL) LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 3
Directors' report
 
4
Directors' responsibilities statement
 
5
Independent auditor's report
 
6 - 9
Profit and loss account
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 26


 

CARHARTT WIP UK (RETAIL) LIMITED
 
COMPANY INFORMATION


Directors
E Fah 
K Collins 




Company secretary
K Collins



Registered number
03299115



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

CARHARTT WIP UK (RETAIL) LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the strategic report and financial statements for the year ended 31 December 2023.
The principal activity of the company continued to be that of the sale and distribution of a diverse range of clothing and accessories tailored to meet the needs of both working professionals and everyday consumers. 
The immediate parent entity during the year was WIP Trading AG.

Business review
 
The profit and loss account on page 10 of the financial statements provides a summary of the company’s trading results for the year. The performance and results for the year are in line with the directors' expectations.
During the year the business enjoyed further growth with turnover increasing by 8% from £13.6m to £14.7m. This growth was driven by a higher customer demand. 
At the end of 2024, a new store is scheduled to open in Glasgow, with an estimated annual turnover of £1.5 million.
The directors remain focused on continuing to strengthen this area of the business and achieving continued growth in both revenue and profits.
The company’s balance sheet remains strong with net current assets of £2.0m and shareholders' funds of £1.6m. Profitability has enabled the company to achieve a good return on its investment.
The directors continue to review the business and industry to minimise or mitigate the risks that are prevalent in a commercial environment.
Post year-end, the parent group renewed its licensing agreement for use of the brand.
On 31 December 2023, the group restructured some of its UK operations, during which the company entered into a Business Transfer Agreement with a fellow group company. Pursuant to the terms of this Agreement, the fellow group company's wholesale trade, assets and liabilities were transferred to the company on this date, with the exception of some of the fellow group company’s property agreements where landlord consent is required.

Principal risks and uncertainties
 
The principal risk to the company is that demand for the brand will collapse.
Compliance and legislation affecting the company is complex and fast-moving. These changes can lead to additional obligations and can have a significant effect on profitability. The company mitigates this risk by creating a transfer price policy. 
In 2023, a new transfer price guideline was introduced throughout the Group with the aim of ensuring that each individual company achieves an appropriate EBIT margin. This strategy is managed by adjusting the parent company's material purchase prices and may include compensation payments at the end of the financial year.
The financial instruments used by the company arise wholly and directly from its activities. The main financial instruments comprise debtors, cash at bank and creditors. The financial risks arising from these financial instruments are considered low. The mature financial stability of the business ensures the company maintains excellent terms with preferred suppliers and their credit partners.
Cash reserves have remained healthy over the year and the company continues to trade with the support of its parent company. Working capital will continue to be monitored on a regular basis by the directors.

Page 2

 

CARHARTT WIP UK (RETAIL) LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The key performance indicators used by the company include the turnover, which grew significantly from £13.6m to £14.7m. The results for the year were in line with targets and expectations.
The company has greatly enhanced governance and the reporting of key performance indicators to ensure optimal business performance, including monthly reporting of key metrics to the board.

Other key performance indicators
 
Key performance indicators are maintained across all parts of the business to ensure we are constantly monitoring and challenging our results.


This report was approved by the board and signed on its behalf.



E Fah
Director

Date: 25 September 2024

Page 3

 

CARHARTT WIP UK (RETAIL) LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £337,024 (2022 - £2,308,214).

The directors do not recommend a dividend

Directors

The directors who served during the year were:

E Fah 
K Collins 

Matters covered in the Strategic report

As permitted by S414c(11) of the Companies Act 2006, the directors have elected to disclose information, equired to be in the directors' report by Schedule 7 of the "Large and Medium Sized Companies and Groups Accounts and Reports) Regulations 2008", in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





E Fah
Director

Date: 25 September 2024

Page 4

 

CARHARTT WIP UK (RETAIL) LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Page 5

 

CARHARTT WIP UK (RETAIL) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARHARTT WIP UK (RETAIL) LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion


We have audited the financial statements of Carhartt WIP UK (Retail) Limited (the 'company') for the year ended 31 December 2023, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the notes to the financial statements, including significant accounting policiesThe 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:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.


Page 6

 

CARHARTT WIP UK (RETAIL) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARHARTT WIP UK (RETAIL) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 directors are 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 5, the directors are 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 7

 

CARHARTT WIP UK (RETAIL) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARHARTT WIP UK (RETAIL) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the retail sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation claims; and
reviewing correspondence with HM Revenue and Customs.
Page 8

 

CARHARTT WIP UK (RETAIL) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CARHARTT WIP UK (RETAIL) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.


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 2006Our 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.





Marc Levy FCA (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
25 September 2024
Page 9

 

CARHARTT WIP UK (RETAIL) LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
14,687,988
13,565,147

Cost of sales
  
(7,886,680)
(6,611,350)

Gross profit
  
6,801,308
6,953,797

Administrative expenses
  
(6,494,638)
(4,661,175)

Other operating income
 5 
105,974
48,185

Operating profit
 6 
412,644
2,340,807

Interest receivable and similar income
 8 
8,237
173

Interest payable and similar expenses
 9 
-
(32,766)

Profit before taxation
  
420,881
2,308,214

Tax on profit
 10 
(83,857)
-

Profit for the financial year
  
337,024
2,308,214

There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been prepared.

Page 10


 
REGISTERED NUMBER:03299115
CARHARTT WIP UK (RETAIL) LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,012,251
753,220

  
1,012,251
753,220

Current assets
  

Stocks
 12 
1,435,526
980,807

Debtors: amounts falling due after more than one year
 13 
334,510
221,721

Debtors: amounts falling due within one year
 13 
2,239,259
605,032

Cash at bank and in hand
  
1,265,526
1,888,151

  
5,274,821
3,695,711

Creditors: amounts falling due within one year
 14 
(3,307,358)
(2,023,674)

Net current assets
  
 
 
1,967,463
 
 
1,672,037

Total assets less current liabilities
  
2,979,714
2,425,257

Creditors: amounts falling due after more than one year
 15 
(11,336)
-

Provisions for liabilities
  

Other provisions
 17 
(1,357,299)
(1,151,202)

  
 
 
(1,357,299)
 
 
(1,151,202)

Net assets
  
1,611,079
1,274,055


Capital and reserves
  

Called up share capital 
 18 
2,700,100
2,700,100

Profit and loss account
  
(1,089,021)
(1,426,045)

Total equity
  
1,611,079
1,274,055


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




E Fah
Director

Date: 25 September 2024

The notes on pages 13 to 26 form part of these financial statements.

Page 11

 

CARHARTT WIP UK (RETAIL) LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
2,700,100
(3,734,259)
(1,034,159)


Comprehensive income for the year

Profit for the financial year
-
2,308,214
2,308,214
Total comprehensive income for the year
-
2,308,214
2,308,214



At 1 January 2023
2,700,100
(1,426,045)
1,274,055


Comprehensive income for the year

Profit for the financial year
-
337,024
337,024
Total comprehensive income for the year
-
337,024
337,024


At 31 December 2023
2,700,100
(1,089,021)
1,611,079


The notes on pages 13 to 26 form part of these financial statements.

Page 12

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Carhartt WIP UK (Retail) Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

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 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 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of WIP Trading AG as at 31 December 2023 and these financial statements may be obtained from its registered office.

 
2.3

Going concern

The directors have considered future financial forecasts and the ability of the group to provide ongoing support. These forecasts indicate an underlying profit. In making their going concern assessment, the directors have obtained written confirmation from its parent company. The company will be reliant on the written confirmation from its parent company that it will provide financial support to the company for a period of at least 12 months from the date of approval of the financial statements to assist in meeting the company's liabilities as and when they fall due to the extent that it is not available from its existing resources. The directors are not aware of any reasons why this support would be withdrawn in the foreseeable future.
For these reasons, the directors continue to believe that it is appropriate to adopt the going concern basis for the preparation of the financial statements.

Page 13

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue represents amounts receivable for garments and accessories net of value added tax and is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually at the point of sale by the retail outlet), when 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.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Amortisation over the life of the lease
Plant and machinery
-
33% Straight-line
Motor vehicles
-
25% Straight-line
Fixtures and fittings
-
20% Straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.6

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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 company after deducting all of its liabilities. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
 
Financial liabilities

Basic financial liabilities, including trade and other creditors, and loans from fellow group companies, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Page 15

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)





Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.7

Stocks

Stocks represent garments and acessories for resale and are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Finished goods include labour and attributable overheads that have been incurred in bringing the stock to their present location and condition.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 16

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

  
2.9

Share capital

Ordinary shares are classified as equity.

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.13

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 17

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 18

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 2, management have been required to make judgments, estimates and assumptions. These estimates which relate to the carrying values of assets and liabilities, where not readily available from other sources, are based on underlying assumptions and experience. Actual results may differ from these estimates. These estimates and assumptions are reviewed on an on-going basis.
A provision has been made for estimated business rates, where a demand has not been received by the company. The directors have made their assessment based on an estimate by a Chartered Surveyor, by reference to the rateable value of similar properties. The provision covers the period from 1 April 2017 onwards, being the last date that the ratings list entry was updated. There is an inevitable degree of judgment involved in that each property is unique and the rateable value will ultimately depend on an assessment made by the Valuation Office Agency.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.

Page 19

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Other operating income
65,450
44,370

Net rents receivable
40,524
-

Insurance claims receivable
-
3,815

105,974
48,185



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Definded contribution pension costs
29,889
32,785

Operating lease charges
1,360,441
1,142,129

Audit fees payable to the company's auditor
14,000
11,250

Depreciation of tangible fixed assets
303,746
446,057


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,811,375
1,702,221

Social security costs
155,603
139,852

Cost of defined contribution scheme
29,889
32,785

1,996,867
1,874,858


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales and marketing
74
82



Administrative
1
1



Management
1
1

76
84

Page 20

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Interest receivable and similar income

2023
2022
£
£


Interest receivable from group companies
7,813
-

Other interest receivable
424
173

8,237
173


9.


Interest payable and similar expenses

2023
2022
£
£


Interest payable to group companies
-
32,766


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
83,857
-


Total current tax
83,857
-
Page 21

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
420,881
2,308,214


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
98,907
438,561

Effects of:


Expenses not deductible for tax purposes
1,454
1,184

Capital allowances for year in excess of depreciation
42,162
58,100

Utilisation of tax losses
(56,093)
(498,781)

Changes in provisions leading to an increase (decrease) in the tax charge
(2,646)
969

Other differences leading to an increase (decrease) in the tax charge
73
(33)

Total tax charge for the year
83,857
-

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. For the financial year ended 31 December 2023, the current weighted averaged tax rate was 23.5%.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 22

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 January 2023
537,756
32,580
-
3,545,463
4,115,799


Additions
342,602
958
-
50,354
393,914


Transfers intra group
105,570
15,051
28,290
619,550
768,461



At 31 December 2023

985,928
48,589
28,290
4,215,367
5,278,174



Depreciation


At 1 January 2023
457,216
29,975
-
2,875,388
3,362,579


Charge for the year
29,504
1,526
-
272,716
303,746


Transfers intra group
10,700
13,179
17,681
558,038
599,598



At 31 December 2023

497,420
44,680
17,681
3,706,142
4,265,923



Net book value



At 31 December 2023
488,508
3,909
10,609
509,225
1,012,251



At 31 December 2022
80,540
2,605
-
670,075
753,220


12.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,435,526
980,807


There is no significant difference between the replacement cost of stock and its carrying amount.

Page 23

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors


2023
2022
£
£

Due after more than one year

Other debtors
334,510
221,721

334,510
221,721

Due within one year

Trade debtors
19,263
35,135

Amounts owed by group undertakings
1,670,004
250,440

Other debtors
188,937
138,222

Prepayments and accrued income
361,055
181,235

2,573,769
826,753


Amounts owed by group undertakings have no fixed repayment date and are repayable on demand.


14.


Creditors: amounts falling due within one year

2023
2022
£
£

Trade creditors
382,904
216,654

Amounts owed to group undertakings
2,555,501
953,995

Corporation tax
34,985
-

Other taxation and social security
56,078
487,622

Obligations under finance lease and hire purchase contracts
791
-

Other creditors
1,011
75,732

Accruals and deferred income
276,088
289,671

3,307,358
2,023,674


Amounts owed to group undertakings have no fixed repayment date and are repayable on demand.


15.


Creditors: amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
11,336
-


Page 24

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
791
-

Between 1-5 years
11,336
-

12,127
-


17.


Provisions




Provisions

£





At 1 January 2023
1,151,202


Charged to profit or loss
206,097



At 31 December 2023
1,357,299

The provision recognised represents the potential business rates liability, notwithstanding a demand for payment has not been received by the company.


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,700,100 (2022 - 2,700,100) Ordinary shares of £1.00 each
2,700,100
2,700,100

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



19.


Reserves

Profit and loss account

The profit and loss reserve includes all current and prior period retained profits and losses.

Page 25

 

CARHARTT WIP UK (RETAIL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Capital commitments


At 31 December 2023 the company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
853,527
-


21.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
1,186,223
1,082,071

Later than 1 year and not later than 5 years
2,962,442
2,383,879

Later than 5 years
1,809,182
300,432

5,957,847
3,766,382


22.


Related party transactions

The company has taken advantage of the exemption contained in FRS102 Section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.


23.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is WIP Trading AG, a company registered in Switzerland.
The smallest and largest group that prepares group accounts and for which the company is a member is that headed by WIP Trading AG. Their registered office is Kirschgartenstrasse 5, 4051, Basel, Switzerland.
The ultimate controlling company is  Cadello Investment AG. Their registered office is Kirschgartenstrasse 5, 4051, Basel, Switzerland.
The ultimate controlling party is Edwin Fah.
 
Page 26