REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
Premier Clothing Limited |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
One St Peter's Square |
Manchester |
M2 3DE |
Premier Clothing Limited (Registered number: 03655237) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
1,516,153 | 3,060,118 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,608,395 | 3,419,762 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Premier Clothing Limited (Registered number: 03655237) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors: amounts falling due within one year | 13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and distribution | 27 | 22 |
Administration | 8 | 7 |
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 |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
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 |
Profit on disposal of fixed assets | ( |
) |
Trademarks amortisation |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Interest paid on corporation |
tax |
Other loan interest |
Directors' loan interest |
ABL financing interest |
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 |
Adjustment relating to earlier years | (1,507 | ) | (549 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
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 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Unit 8 Naas Road Business Park, Muirfield Drive, Naas Road, Dublin 12 |
Nature of business: |
% |
Class of shares: | holding |
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 |
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 |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Deferred tax asset | - | 117,373 |
Aggregate amounts |
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 allowances | 14,873 |
Other short term timing differences | 102,500 |
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) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 360,522 | 397,759 |
Other creditors |
Amounts owed to related |
parties | 101,311 | - |
ABL financing | 4,686,014 | - |
Directors' current accounts | 50,000 | 50,000 |
Accrued expenses |
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 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
ABL financing | 4,948,991 | - |
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 |
Release of deferred tax asset | (117,373 | ) |
Balance at 31 December 2023 |
The deferred tax liability of the company consists of the tax effect of the following: |
2023 |
£ |
Accelerated capital allowances | 3,778 |
Other short term timing differences | - |
3,778 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 111,111 | 111,111 |
19. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 18,616,756 |
Profit for the year |
At 31 December 2023 | 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. |