IRIS Accounts Production v24.2.0.383 03655237 Board of Directors 1.1.23 31.12.23 31.12.23 the distribution of hospitality and corporate wear under the Premier brand. true true false true true false false false true true true true true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh036552372022-12-31036552372023-12-31036552372023-01-012023-12-31036552372021-12-31036552372022-01-012022-12-31036552372022-12-3103655237ns15:EnglandWales2023-01-012023-12-3103655237ns14:PoundSterling2023-01-012023-12-3103655237ns10:Director12023-01-012023-12-3103655237ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3103655237ns10:FRS1022023-01-012023-12-3103655237ns10:Audited2023-01-012023-12-3103655237ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3103655237ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3103655237ns10:FullAccounts2023-01-012023-12-310365523712023-01-012023-12-3103655237ns10:OrdinaryShareClass12023-01-012023-12-3103655237ns10:Director22023-01-012023-12-3103655237ns10:Director32023-01-012023-12-3103655237ns10:Director42023-01-012023-12-3103655237ns10:Director52023-01-012023-12-3103655237ns10:CompanySecretary12023-01-012023-12-3103655237ns10:RegisteredOffice2023-01-012023-12-3103655237ns5:CurrentFinancialInstruments2023-12-3103655237ns5:CurrentFinancialInstruments2022-12-3103655237ns5:Non-currentFinancialInstruments2023-12-3103655237ns5:Non-currentFinancialInstruments2022-12-3103655237ns5:ShareCapital2023-12-3103655237ns5:ShareCapital2022-12-3103655237ns5:SharePremium2023-12-3103655237ns5:SharePremium2022-12-3103655237ns5:RetainedEarningsAccumulatedLosses2023-12-3103655237ns5:RetainedEarningsAccumulatedLosses2022-12-3103655237ns5:ShareCapital2021-12-3103655237ns5:RetainedEarningsAccumulatedLosses2021-12-3103655237ns5:SharePremium2021-12-3103655237ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103655237ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103655237ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3103655237ns5:OwnedAssets2023-01-012023-12-3103655237ns5:OwnedAssets2022-01-012022-12-3103655237ns5:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3103655237ns5:PatentsTrademarksLicencesConcessionsSimilar2022-01-012022-12-3103655237ns5:ComputerSoftware2023-01-012023-12-3103655237ns5:ComputerSoftware2022-01-012022-12-3103655237112023-01-012023-12-3103655237112022-01-012022-12-310365523712023-01-012023-12-310365523712022-01-012022-12-310365523722023-01-012023-12-310365523722022-01-012022-12-310365523732023-01-012023-12-310365523732022-01-012022-12-310365523742023-01-012023-12-310365523742022-01-012022-12-3103655237ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3103655237ns5:ComputerSoftware2022-12-3103655237ns5:PatentsTrademarksLicencesConcessionsSimilar2023-12-3103655237ns5:ComputerSoftware2023-12-3103655237ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3103655237ns5:ComputerSoftware2022-12-3103655237ns5:FurnitureFittings2022-12-3103655237ns5:MotorVehicles2022-12-3103655237ns5:ComputerEquipment2022-12-3103655237ns5:FurnitureFittings2023-01-012023-12-3103655237ns5:MotorVehicles2023-01-012023-12-3103655237ns5:ComputerEquipment2023-01-012023-12-3103655237ns5:FurnitureFittings2023-12-3103655237ns5:MotorVehicles2023-12-3103655237ns5:ComputerEquipment2023-12-3103655237ns5:FurnitureFittings2022-12-3103655237ns5:MotorVehicles2022-12-3103655237ns5:ComputerEquipment2022-12-3103655237ns5:CostValuation2022-12-3103655237ns5:Subsidiary12023-01-012023-12-3103655237ns5:Subsidiary112023-01-012023-12-3103655237ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3103655237ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3103655237ns5:CurrentFinancialInstruments2023-01-012023-12-3103655237ns5:Secured2023-12-3103655237ns5:Secured2022-12-3103655237ns5:DeferredTaxation2023-01-012023-12-3103655237ns5:DeferredTaxation2023-12-3103655237ns10:OrdinaryShareClass12023-12-3103655237ns5:RetainedEarningsAccumulatedLosses2022-12-3103655237ns5:SharePremium2022-12-31
REGISTERED NUMBER: 03655237 (England and Wales)












Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Premier Clothing Limited

Premier Clothing Limited (Registered number: 03655237)






Contents of the Financial Statements
for the year ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Premier Clothing Limited

Company Information
for the year ended 31 December 2023







DIRECTORS: Mrs Edna Violet Batson
Mr Jeoffrey Paul Batson
Mr Jonathan Peter Batson
Mr Ian Charles Milburn
Mr Stuart Paul Banks FCA



SECRETARY: Mrs Edna Violet Batson



REGISTERED OFFICE: Unit 7
Deeside Point
Zone 3 Deeside Industrial Park
Deeside
Flintshire
CH5 2UA



REGISTERED NUMBER: 03655237 (England and Wales)



SENIOR STATUTORY AUDITOR: Neil Barton



AUDITORS: Forvis Mazars LLP
Chartered Accountants
and Statutory Auditor
One St Peter's Square
Manchester
M2 3DE

Premier Clothing Limited (Registered number: 03655237)

Strategic Report
for the year ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

The principal activity of the company is the sourcing and wholesale distribution of the 'Premier' brand of corporate and hospitality clothing.

OVERVIEW
The sales growth of the Premier brand continued in 2023, with growth in both the UK and EU markets, as well increased turnover of our brands in North America. Total revenue was £22.37m (up from £20.16m in 2022).

Gross profit for the year reduced to £6.79m (down from £7.11m in 2022) due to the increased cost of goods, associated freight costs and not having the same benefit from currency contracts as in the previous year. The gross margin was 30.4% (down from 35.3% in 2022) and in part reflected our aim of keeping price rises to our customers to a minimum. The company is confident that most of the margin reduction pressures have come to an end and that gross margins will improve in 2024.

2023 was another year where the company continued to invest in its operating markets and product development, particularly in people and on inventory. Inventory levels increased to £25.29m (up from £22.75m in 2022) across the company's UK, Netherlands and USA warehouses.

In conjunction with our major customers we are in process of implementing a SKU reduction program to improve efficiencies and to provide cost savings. As a result company inventory levels are set to reduce to more efficient levels in 2024 without impacting service levels to customers.

Total operating costs (shown as both distribution costs and administrative expenses) increased to £5.27m (up from £4.05m), with a large proportion of the increase being due storage of the improved inventory holding and associated distribution costs. EBITDA was £1.62m (down from £3.25m in 2022).

Premier continued progress with its corporate & social responsibility programme, launching a further fifteen styles which incorporate fibres that are more sustainable. These new products also included the launch of the new brand, "Onna by Premier". A new concept in active uniforms for the medical, veterinary, and caring professions. During the year Premier Clothing Limited successfully maintained its important GOTS (Global Organic Textile Standard) and GRS (Global Recycled Standard) certifications and membership of the "Better Cotton" initiative (further information can be found at the company's website www.premierworkwear.com).

We appreciate all the effort and commitment from our colleagues and supply chain partners during the year and their continued support during 2024.

KEY PERFORMANCE INDICATORS
The principal key performance indicators are:

2023 2022
£m £m
Revenue 22.37 20.16
Gross profit 6.79 7.11
EBITDA 1.62 3.25
Shareholders' funds 19.77 18.73
Stocks 25.29 22.75


Premier Clothing Limited (Registered number: 03655237)

Strategic Report
for the year ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties of the business are considered to relate to political and macro-economic factors regarding the state of the economy, global commodity prices, interest rates, global shipping and foreign exchange rates. In particular these risks include:

- The continuing conflict in Ukraine and other geo-political tensions which have led to a challenging
environment with inflation, currency fluctuations and risks of an economic slowdown. This is again affecting the
supply chain with longer lead times due to shipping disruption.
- Inflation has led to substantial wage growth and increased operating costs in all areas of the business which our
cost reduction programme will help to mitigate. It is hoped that inflation will return to more sustainable levels by
mid-2024 and that interest rates will start falling.

ON BEHALF OF THE BOARD:





Mr Ian Charles Milburn - Director


6 August 2024

Premier Clothing Limited (Registered number: 03655237)

Report of the Directors
for the year ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
The total amount of dividends paid in the year was £nil (2022: £nil).

FUTURE DEVELOPMENTS
The company will continue to invest in new styles and designs, including sustainable and recycled products.

Other future developments are covered in the Strategic Report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs Edna Violet Batson
Mr Jeoffrey Paul Batson
Mr Jonathan Peter Batson
Mr Ian Charles Milburn
Mr Stuart Paul Banks FCA

DIRECTORS' INDEMNITY INSURANCE
Indemnity insurance cover is in place for all directors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable laws 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) 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 and then apply them consistently;
-make judgements 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 theta are sufficient to show and explain the company's transactions and disclose with reasonable accurate at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

Premier Clothing Limited (Registered number: 03655237)

Report of the Directors
for the year ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr Ian Charles Milburn - Director


6 August 2024

Report of the Independent Auditors to the Members of
Premier Clothing Limited

Opinion
We have audited the financial statements of Premier Clothing Limited (the 'company') for the year ended 31 December 2023 which comprise The Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 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 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.

Other information
The other information comprises the information included in the Strategic report and the Report of Directors, 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.

Opinions 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.

Report of the Independent Auditors to the Members of
Premier Clothing Limited


Matters on which we are required to report by exception
In 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 four, 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.

Auditors' 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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the company
is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance
with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of
non-compliance throughout our audit; and
- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including
fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cutoff assertion), and significant one-off or unusual transactions.


Report of the Independent Auditors to the Members of
Premier Clothing Limited

Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or
alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Neil Barton (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants
and Statutory Auditor
One St Peter's Square
Manchester
M2 3DE

6 August 2024

Premier Clothing Limited (Registered number: 03655237)

Statement of Comprehensive
Income
for the year ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 4 22,372,641 20,159,767

Cost of sales (15,582,785 ) (13,049,261 )
GROSS PROFIT 6,789,856 7,110,506

Distribution costs (4,466,943 ) (3,312,109 )
Administrative expenses (806,760 ) (738,279 )
1,516,153 3,060,118

Other operating income 83,449 138,305
OPERATING PROFIT 6 1,599,602 3,198,423

Interest receivable and similar income 8,793 221,339
1,608,395 3,419,762

Interest payable and similar expenses 7 (228,752 ) (1,235 )
PROFIT BEFORE TAXATION 1,379,643 3,418,527

Tax on profit 8 (332,720 ) (626,868 )
PROFIT FOR THE FINANCIAL YEAR 1,046,923 2,791,659

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,046,923

2,791,659

Premier Clothing Limited (Registered number: 03655237)

Statement of Financial Position
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 9 64,748 87,549
Tangible assets 10 41,928 41,304
Investments 11 889 889
107,565 129,742

CURRENT ASSETS
Stocks 12 25,288,910 22,745,320
Debtors: amounts falling due within one year 13 1,454,362 4,070,682
Debtors: amounts falling due after more than
one year

13

-

117,373
Cash at bank 447,976 637,640
27,191,248 27,571,015
CREDITORS
Amounts falling due within one year 14 (7,520,245 ) (8,972,890 )
NET CURRENT ASSETS 19,671,003 18,598,125
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,778,568

18,727,867

PROVISIONS FOR LIABILITIES 17 (3,778 ) -
NET ASSETS 19,774,790 18,727,867

CAPITAL AND RESERVES
Called up share capital 18 111,111 111,111
Share premium 19 119,441 119,441
Retained earnings 19 19,544,238 18,497,315
SHAREHOLDERS' FUNDS 19,774,790 18,727,867

The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2024 and were signed on its behalf by:





Mr Ian Charles Milburn - Director


Premier Clothing Limited (Registered number: 03655237)

Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 111,111 15,705,656 119,441 15,936,208

Changes in equity
Total comprehensive income - 2,791,659 - 2,791,659
Balance at 31 December 2022 111,111 18,497,315 119,441 18,727,867

Changes in equity
Total comprehensive income - 1,046,923 - 1,046,923
Balance at 31 December 2023 111,111 19,544,238 119,441 19,774,790

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Premier Clothing Limited ('The Company') is primarily engaged in the B2B distribution of hospitality and corporate wear under the Premier brand.

The company is a private company limited by shares and is incorporated in England and Wales. The address of the principal place of business and the registered office is Unit 7, Deeside Point, Deeside, Flintshire, CH5 2UA.

2. STATEMENT OF COMPLIANCE

The financial statements of Premier Clothing Limited have been prepared in compliance with United Kingdom Accounting Standards, including 'The Financial Reporting Accounting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006.

3. ACCOUNTING POLICIES

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

Basis of preparation
The financial statements are prepared on the going concern basis under the historical cost convention and comply with United Kingdom Accounting Standards and the Companies Act 2006.

Going concern
The company meets its day to day working capital requirements through its agreed banking facilities which are negotiated on a group wide basis.

After reviewing the company's forecasts and projections, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future, including a period of not less than 12 months from the date of signing of these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Key accounting judgements and estimates
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are discussed below:

(i) Stock valuation provision (shown as a reduction in stock and debited to the Income Statement through cost of sales)
A valuation loss is recognised where the expected selling price is less than cost. In arriving at this impairment loss, judgements and estimates have been used to assess the anticipated future selling prices of stocks held at the year end, particularly for slow-moving and discontinued items.

The main areas of judgement are:

(i) Impairment of assets
In assessing whether there have been any indicators of impairment, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability.

(ii) Depreciation and amortisation rates
In assessing the depreciation and amortisation rates the directors consider the expected useful life of the specific asset involved. To allow for an appropriate policy to be applied many fixed asset categories have a range of depreciation rates.

Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents net invoiced sales of goods, net of returns, discounts and rebates, excluding value added tax. Revenue is recognised when the goods are delivered to the customer. Carriage charges made to customers are included in revenue.

Intangible assets
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged to administrative expenses in the Statement of Comprehensive Income. Amortisation is calculated using the straight line method, to allocate the depreciable amount of the assets over their estimated useful lives as follows:

Trademarks- 10% on cost
Computer software- 25% - 50% on cost

Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates so as to write off their cost less residual amounts over their estimated useful economic lives. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.

Fixtures and fittings- 25% - 50% on cost
Motor vehicles- 25% on cost
Computer and office equipment- 25% - 50% on cost

The residual values and useful lives of assets are reviewed and adjusted if appropriate at the end of each reporting period.

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are stated at cost or, if lower, selling price including costs to sell. Cost includes all costs of purchase and also other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out basis.

A provision is made for damaged, discontinued and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted at the end of the financial year.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the end of the financial year.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currency
The company's functional and presentation currency is pound sterling.

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at the reporting date of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.


Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

3. ACCOUNTING POLICIES - continued
Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and a defined contribution pension plan.

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which service is received.

The company operates a defined contribution pension plan for its directors and 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 when they are due. Amounts not paid at the reporting date are included in accruals. The assets of the plan are held separately from the company in independently administered funds.

The company operates an annual bonus plan for certain employees. An expense is recognised in the Statement of Comprehensive Income when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

Financial instruments
Basic financial assets, including trade debtors, other receivables, cash and bank balances and investments 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade creditors, other payables, bank loans and other loans 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 receipts discounted at a market rate of interest.

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

Derivatives, including interest rate swaps and foreign exchange contracts, are not basic financial instruments.

The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates. Derivatives are initially recognised at fair value on the date a derivative is entered into and are subsequently revalued to fair value at the reporting date. Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income under the most appropriate heading. The fair value of forward foreign currency contracts is calculated by reference to comparable contracts with similar maturity profiles.

Trade debtors and other receivables within one year
Trade debtors and other receivables with no stated interest rate are recorded at transaction price less any impairment.

Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

Trade creditors and other payables
Trade creditors and other payables 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 the transaction price and subsequently measured at amortised cost using the effective interest method.

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Impairment of assets
Assets not measured at fair value are reviewed for any indications that the asset may be impaired. If such indications exists the recoverable amount of the asset or the assets cash generating unit is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Any losses arising from impairment are recognised in the Statement of Comprehensive Income under the appropriate heading.

Related parties
The company discloses transactions with related parties. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the financial statements. No disclosure is provided regarding transactions with group companies.

4. TURNOVER

The total turnover of the company for the year has been derived from its principal activity. Although trading is mostly undertaken in the UK there are also sales in the EU and USA. No further disclosure of overseas turnover is given due to it being considered commercially sensitive.

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,032,745 678,912
Social security costs 106,566 72,956
Other pension costs 35,893 26,425
1,175,204 778,293

The average number of employees during the year was as follows:
2023 2022

Sales and distribution 27 22
Administration 8 7
35 29

The company operates a defined contribution pension scheme for the benefit of employees and directors. The assets of the scheme are administered by an independent pensions provider. Pension payments are recognised as an expense during the year and amount to £35,893 (2022: £26,425). At the reporting date outstanding pension contributions amounted to £nil (2022: £nil).

2023 2022
£    £   
Directors' remuneration 45,500 2,380
Directors' pension contributions to money purchase schemes - 2,500

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 1

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

5. EMPLOYEES AND DIRECTORS - continued

From 1 January 2022 most of the directors' remuneration has been met by the ultimate holding company, Ralawise Group Holdings Limited. Management charges of £240,000 (2022: £240,000) were paid to Ralawise Group Holdings Limited in the year, which includes the provision of directors' services.

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 32,896 30,968
Profit on disposal of fixed assets (31,663 ) -
Trademarks amortisation 5,000 -
Computer software amortisation 17,801 24,823
Auditors' remuneration 21,000 20,000
Foreign exchange differences (137,881 ) (1,251,211 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 126 1,235
Bank loan interest 94,298 -
Interest paid on corporation
tax 7,809 -
Other loan interest 84,007 -
Directors' loan interest 4,090 -
ABL financing interest 38,422 -
228,752 1,235

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 213,076 715,829
Adjustment relating to earlier years (1,507 ) (549 )
Total current tax 211,569 715,280

Deferred tax 121,151 (88,412 )
Tax on profit 332,720 626,868

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,379,643 3,418,527
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

324,506

649,520

Effects of:
Expenses not deductible for tax purposes 2,643 1,132
Tax effect of differing rates 7,169 (21,219 )
Tax effect of super allowances (91 ) (2,016 )
Adjustment relating to earlier years (1,507 ) (549 )
Total tax charge 332,720 626,868

The main rate of corporation tax increased on 1 April 2023 from 19% to 25%.

9. INTANGIBLE FIXED ASSETS
Computer
Trademarks software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 250,000 152,178 402,178
AMORTISATION
At 1 January 2023 200,000 114,629 314,629
Amortisation for year 5,000 17,801 22,801
At 31 December 2023 205,000 132,430 337,430
NET BOOK VALUE
At 31 December 2023 45,000 19,748 64,748
At 31 December 2022 50,000 37,549 87,549

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

10. TANGIBLE FIXED ASSETS
Computer
Fixtures and
and Motor office
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 125,072 57,710 128,166 310,948
Additions 34,042 - 1,587 35,629
Disposals (80,553 ) (57,710 ) - (138,263 )
At 31 December 2023 78,561 - 129,753 208,314
DEPRECIATION
At 1 January 2023 102,228 51,476 115,940 269,644
Charge for year 22,794 4,125 5,977 32,896
Eliminated on disposal (80,553 ) (55,601 ) - (136,154 )
At 31 December 2023 44,469 - 121,917 166,386
NET BOOK VALUE
At 31 December 2023 34,092 - 7,836 41,928
At 31 December 2022 22,844 6,234 12,226 41,304

11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 889
NET BOOK VALUE
At 31 December 2023 889
At 31 December 2022 889

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Premier Clothing (Ireland) Limited
Registered office: Unit 8 Naas Road Business Park, Muirfield Drive, Naas Road, Dublin 12
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

12. STOCKS
2023 2022
£    £   
Goods for resale 25,288,910 22,745,320

The replacement value of stocks is in the region of £30,000,000 (2022: £23,718,000).

Stocks of £14,486,066 (2022: £nil) are subject to financing arrangements.

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 949,412 1,156,043
Amounts owed by group undertakings - 2,000,000
Other debtors 96,553 404,643
Tax 49,643 -
Prepayments and accrued income 358,754 509,996
1,454,362 4,070,682

Amounts falling due after more than one year:
Deferred tax asset - 117,373

Aggregate amounts 1,454,362 4,188,055

Amounts owed by group undertakings are unsecured, interest bearing and repayable on demand.

Trade debtors of £949,412 (2022: £nil) are subject to financing arrangements.

The deferred tax asset of the company consists of the tax effect of the following:

2022
£
Accelerated capital allowances14,873
Other short term timing differences102,500
117,373

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) - 488,389
Trade creditors 1,660,299 6,650,146
Amounts owed to group undertakings 889 284,545
Tax - 382,785
Social security and other taxes 24,892 21,242
VAT 360,522 397,759
Other creditors 15,481 9,431
Amounts owed to related
parties 101,311 -
ABL financing 4,686,014 -
Directors' current accounts 50,000 50,000
Accrued expenses 620,837 688,593
7,520,245 8,972,890

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - 488,389

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans - 488,389
ABL financing 4,948,991 -
4,948,991 488,389

The bank hold a debenture dated 31 October 2023 including fixed and floating charges over all assets and undertakings both present and future.

The ABL financing facility is secured against the stock and debtors as detailed in note 12 and 13 respectively.

The ABL financing facility is interest bearing, with the Invoice financing and Stock financing being base rate plus a margin. The facility end is 31 October 2026.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 3,778 -

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Charge to Statement of Comprehensive Income during year 121,151
Release of deferred tax asset (117,373 )
Balance at 31 December 2023 3,778

The deferred tax liability of the company consists of the tax effect of the following:

2023
£
Accelerated capital allowances3,778
Other short term timing differences-
3,778

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
111,111 Ordinary £1 111,111 111,111

19. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 18,497,315 119,441 18,616,756
Profit for the year 1,046,923 1,046,923
At 31 December 2023 19,544,238 119,441 19,663,679

Retained earnings represent cumulative profits and losses net of dividends and other adjustments.

Share premium represents the amount paid in excess of nominal value for shares.

Dividends and other distributions to the company's shareholders are recognised as liabilities in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the Statement of Changes in Equity.

20. CAPITAL COMMITMENTS

Amounts contracted but not provided for in the financial statements as at 31 December 2023 are £nil (2022: £3,780).

Premier Clothing Limited (Registered number: 03655237)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

21. DIRECTORS' INTEREST IN CONTRACTS

At 31 December 2023 an amount of £50,000 (2022: £50,000) is owed to J P Batson and J P Batson and is included within creditors: amounts falling due within one year.

During the year interest payable of £4,090 (2022: £nil) has been incurred by the company in respect of the above directors' loans. At 31 December 2023 this remains unpaid and is included with accruals: amounts falling due within one year.

22. RELATED PARTY DISCLOSURES

There are no related party disclosures other than those with group companies.

23. ULTIMATE CONTROLLING PARTY

On 6 January 2022, Ralawise Group Holdings Limited acquired a 100% shareholding in Premier Clothing Limited from Ralawise Limited and as a result became the immediate and ultimate parent of Premier Clothing Limited from this date.

24. CONTINGENT LIABILITIES

The company guarantees the bank borrowings of certain group companies amounting to £34,869,257 (2022: £14,457,264).

The company has given indemnities to its bankers covering open Letters of Credit at the year end of £nil (2022: £1,818,257).

25. FINANCIAL RISK MANAGEMENT

The company has exposure in three main areas of financial risk; foreign exchange , liquidity and customer credit.

Foreign exchange transactional currency exposure
The company is exposed to currency exchange risk due to a significant proportion of its transactions being denominated in non-sterling currencies. The net exposure of each currency is monitored and if necessary managed by the use of various forward foreign exchange products. The company also operates foreign currency bank accounts to offset the exposure on receivables and payables.

Liquidity and cashflow risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows and the company is in a position to meet its commitments and obligations as they fall due.

Customer credit exposure
The company may offer credit terms to its customers which allow payment of the debt after delivery of the goods. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships and by effective credit control procedures.