Company registration number 03102409 (England and Wales)
GENESIS GROUP INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GENESIS GROUP INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
A P Hughes
S Venediger
Secretary
A P Hughes
Company number
03102409
Registered office
Unit 4 Alpha Point
Sharston Industrial Estate
Bradnor Road
Manchester
M22 4TE
Auditor
Royce Peeling Green Limited
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
GENESIS GROUP INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 22
GENESIS GROUP INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The directors are responsible for reviewing the principal areas of risk and uncertainty so that major risks can be identified and mitigating action taken.
The company is subject to the same general risks and uncertainties as any other business, for example, the changes in general economic conditions, interest rate fluctuations, the credit worthiness of customers, the performance and stability of suppliers and the impact of competition
.
The leadership team meet on a regular basis to review the management accounts and performance of the company.
The key financial performance indications for the year ended 31 December 2023 are summarised below:
2023 2022
£ £
Turnover 12,650,652 10,867,006
Gross profit percentage 28.81% 30.55%
Net loss post tax (554.259) (542,195)
Current assets 4,707,958 9,239,852
Debtor days 45 28
Stock turnover 107 380
Current liabilities 4,442,019 8,424,722
Solvency 1.06 1.06
Net assets 348,752 903,011
The company is a member of a group and when considering the performance the directors are considering the performance of this company alone.
Overall the directors are satisfied with the company's performance throughout the year, despite a loss having been made. This was budgeted for due to continued investment in certain sectors of the business.
Principal risks and uncertainties
The leadership team continue to monitor costs which due to the economic climate in the UK coming out of a pandemic increased beyond the control of the team, in particular distribution costs, fuel and transport costs. This and the effect of the Ukraine war has exacerbated costs together with a cost of living crisis, increasing inflation and interest rates a result a loss was incurred again in the year to 31 December 2023. The leadership team continue to monitor costs closely and compare against budgets.
Development and performance
2023 met the expectations of the leadership team in that a loss was predicted. Given the uncertain economy, increased interest and inflation arising from world events and increase in energy costs the leadership team are happy with the results for the year.
GENESIS GROUP INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future Developments
The directors fully expect to continue to grow and expect to generate profits in the next year. The revised strategy of the company is being implemented and profits are being achieved in the 2024 year. Profits are being budgeted and presently these budgets and expectations are being met.
It is anticipated that the trade, assets and liabilities will within the foreseeable future all become part of Puma UK and the company will cease to trade. The date of the integration has not been confirmed at the date of signing this financial statements but is likely to be within 18 months. With the continued support from the Puma group, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence until the integration has been completed.
The company therefore continues to adopt the going concern basis in preparing its financial statements at this time
A P Hughes
Director
25 September 2024
GENESIS GROUP INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company in the year under review continued to be that of the provision of teamwear: kit and training wear, apparel and accessories.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A P Hughes
S Venediger
Financial instruments
Treasury operations and financial instruments
The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company’s activities. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
In accordance with the company's articles, a resolution proposing that Royce Peeling Green Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
GENESIS GROUP INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
A P Hughes
Director
25 September 2024
GENESIS GROUP INTERNATIONAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 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.
GENESIS GROUP INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENESIS GROUP INTERNATIONAL LIMITED
- 6 -
Opinion
We have audited the financial statements of Genesis Group International Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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.
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.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
GENESIS GROUP INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENESIS GROUP INTERNATIONAL LIMITED (CONTINUED)
- 7 -
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 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, 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.
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.
At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how management seek to comply with them. This helps us to make appropriate risk assessments.
During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration by, for example, reviewing Board Minutes and other documentation.
We assess the risk of material misstatement in the financial statements
Review of controls set in place by management
Enquiry of management as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist
Challenge of management assumptions with regard to accounting estimates
Identification and testing of journal entries, particularly those which may appear to be unusual by size or nature.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements, or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
GENESIS GROUP INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENESIS GROUP INTERNATIONAL LIMITED (CONTINUED)
- 8 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Carolyn Dutton
Senior Statutory Auditor
For and on behalf of Royce Peeling Green Limited
25 September 2024
Chartered Accountants
Statutory Auditor
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
GENESIS GROUP INTERNATIONAL LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
12,650,652
10,867,006
Cost of sales
(9,005,430)
(7,547,587)
Gross profit
3,645,222
3,319,419
Distribution costs
(176,385)
(171,657)
Administrative expenses
(3,611,549)
(3,620,845)
Other operating income
140
11,685
Operating loss
4
(142,572)
(461,398)
Interest receivable and similar income
8
315
444
Interest payable and similar expenses
(242,607)
(119,417)
Loss before taxation
(384,864)
(580,371)
Tax on loss
9
(169,395)
38,176
Loss for the financial year
(554,259)
(542,195)
Retained earnings brought forward
882,399
1,424,594
Retained earnings carried forward
328,140
882,399
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GENESIS GROUP INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
82,813
87,881
Current assets
Stocks
11
2,643,710
7,862,701
Debtors
12
2,013,842
1,354,740
Cash at bank and in hand
50,406
22,411
4,707,958
9,239,852
Creditors: amounts falling due within one year
13
(4,442,019)
(8,424,722)
Net current assets
265,939
815,130
Net assets
348,752
903,011
Capital and reserves
Called up share capital
15
1,084
1,084
Share premium account
18,513
18,513
Capital redemption reserve
1,015
1,015
Profit and loss reserves
328,140
882,399
Total equity
348,752
903,011
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
A P Hughes
Director
Company registration number 03102409 (England and Wales)
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Genesis Group International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4 Alpha Point, Sharston Industrial Estate, Bradnor Road, Manchester, M22 4TE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group. PUMA SE, (a company incorporated in Germany), the immediate parent company prepares audited consolidated accounts containing the results of the company.
1.2
Going concern
The directors have reviewed the company’s forecasts and projectiontrues and, whilst the eventual financial impact of global economies on the company such as UK trading agreements with the world and the EU, inflationary implications, the cost of living crisis and the Ukraine conflict remains uncertain, the directors are confident that the company will be able to remain operational throughout. A profit is predicted for the coming year and this is expected to continue for the foreseeable future.
It is anticipated that the trade, assets and liabilities will within the foreseeable future all become part of Puma UK and the company will cease to trade. The date of the integration has not been confirmed at the date of signing this financial statements but is likely to be within 18 months. With the continued support from the Puma group, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence until the integration has been completed.
The company therefore continues to adopt the going concern basis in preparing its financial statements at this time
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The company sells a range of apparel and accessories products. Sales of good are recognised when the company has delivered products to the customers and there is no unfulfilled obligation that could affect the customer's acceptance of the products.
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% and 25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and any losses arising from impairment is recognised in the profit and loss account in administrative expenses. Financial assets classified as receivable within one year are not amortised.
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date and any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price and any losses arising from impairment are recognised in the profit and loss account in other administrative expenses
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Tax items are determined taking into account the various prevailing tax laws and the relevant administrative opinions.
The company makes judgements in respect of the following:-
Depreciation rates
Stock provisions
Bad debt provisions
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
12,650,652
10,867,006
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
12,630,908
10,801,488
Europe
19,744
64,002
Asia
-
1,516
12,650,652
10,867,006
2023
2022
£
£
Other revenue
Interest income
315
444
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(17,635)
34,691
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
40,706
76,720
Profit on disposal of tangible fixed assets
-
(3,000)
Operating lease charges
137,787
139,633
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
2
2
Administration
22
23
Sales
8
10
Product
18
18
Total
50
53
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,951,031
2,022,938
Social security costs
207,038
215,301
Pension costs
51,727
63,468
2,209,796
2,301,707
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
105,633
168,376
Company pension contributions to defined contribution schemes
5,920
5,895
111,553
174,271
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
7
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,727
63,468
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
315
444
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
16,783
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
169,395
(54,959)
Total tax charge/(credit)
169,395
(38,176)
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(384,864)
(580,371)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(96,216)
(110,270)
Tax effect of expenses that are not deductible in determining taxable profit
7,489
4,193
Unutilised tax losses carried forward
84,484
112,572
Adjustments in respect of prior years
(42,681)
Permanent capital allowances in excess of depreciation
4,243
(3,060)
Depreciation on assets not qualifying for tax allowances
1,070
Deferred tax adjustments in respect of prior years
169,395
Taxation charge/(credit) for the year
169,395
(38,176)
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
273,819
485,806
770,433
27,500
1,557,558
Additions
35,638
35,638
Disposals
(32,626)
(69,769)
(88,167)
(190,562)
At 31 December 2023
241,193
416,037
717,904
27,500
1,402,634
Depreciation and impairment
At 1 January 2023
253,030
485,081
704,066
27,500
1,469,677
Depreciation charged in the year
3,383
441
36,882
40,706
Eliminated in respect of disposals
(32,626)
(69,769)
(88,167)
(190,562)
At 31 December 2023
223,787
415,753
652,781
27,500
1,319,821
Carrying amount
At 31 December 2023
17,406
284
65,123
82,813
At 31 December 2022
20,789
725
66,367
87,881
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,643,710
7,862,701
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,556,714
820,986
Amounts owed by group undertakings
2,845
33,529
Prepayments and accrued income
312,590
189,137
1,872,149
1,043,652
Deferred tax asset (note 14)
141,693
311,088
2,013,842
1,354,740
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
160,877
339,863
Amounts owed to group undertakings
3,875,204
3,793,392
Taxation and social security
195,065
76,109
Other creditors
7,540
9,773
Accruals and deferred income
203,333
4,205,585
4,442,019
8,424,722
Obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
-
3,589
Tax losses
141,693
307,499
141,693
311,088
2023
Movements in the year:
£
Asset at 1 January 2023
(311,088)
Charge to profit or loss
169,395
Asset at 31 December 2023
(141,693)
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,084
1,084
1,084
1,084
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Operating lease commitments: lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
136,230
55,788
Between two and five years
125,651
19,296
261,881
75,084
17
Financial commitments, guarantees and contingent liabilities
At the balance sheet date, Genesis Group International had contractual obligations to pay £662, (2022 - £36,511) to customers for gifted kit and training wear.
A guarantee was entered into on 13 May 2022 in favour of HM Revenue and Customs for £200,000.
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
498,453
532,618
Other related parties
473,840
480,856
4,863,481
4,929,749
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
123,492
69,845
Other related parties
581,552
88,243
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
2,844
33,529
GENESIS GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Related party transactions
(Continued)
- 22 -
The company entered into an agreement with Puma SE, to transfer monies into a group holding account on which interest is earned/charged. At the balance sheet date included within creditors is an amount of £3,293,652 (2022 - £3,793,392). Interest of £242,607 (2022 - £119,417) was charged in the year.
19
Controlling party
At the balance sheet date, the immediate parent and controlling party was Puma SE. Copies of the consolidated financial statements of Puma SE can be obtained from the Company Secretary at Puma SE, Puma Way, 91074 Herzogenaurach, Germany.
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