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Registration number: 12918440

Siere Trading Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Siere Trading Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Income Statement

10

Consolidated Statement of Comprehensive Income

11

Consolidated Statement of Financial Position

12

Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 29

 

Siere Trading Ltd

Company Information

Directors

J Chen

J Ping

Registered office

130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Siere Trading Ltd

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the group is that of the wholesale and online sales of clothing and footwear.

Fair review of the business

The group's turnover for the year was £30,196,032 (2022: £25,441,955) and the group made a profit after tax of £876,423 (2022: £881,435). Net assets at 31 December 2023 amounted to £1,853,971 (2022: £975,608).

The group has demonstrated solid financial performance in 2023 in line with expectations, with steady sales and profitability across all markets. Sales were particularly strong in the US where the economy was more resilient to the global economic climate compared to Europe and the UK. The group was impacted by rising costs in the year due to higher inflation, but these were mitigated through price increases, resulting in profit margins being maintained.

Financial KPIs

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Turnover

£'000

30,196

25,442

Gross Profit Margin

%

32

35

Operating Profit Margin

%

4

4

Principal risks and uncertainties

The directors and executive leadership team regularly assess the group's exposure to risk. During the year ended 31 December 2023, the principal risk on trading both operationally and financially was the significant increase in costs due to inflation. Management continue to monitor KPIs and costs across the group to pro-actively deal with any such issues.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liability. The group aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the group.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variability rate debt.The group monitors cash on a daily basis, along with a review of available banking facilities, debtors and creditors, to ensure that the group has sufficient cashflow and funds to continue trading.

Price risk is the risk of cost inflation and the group's ability to maintain margins through price increases in light of the cost pressure, particularly from fabric, manufacturing cost and logistics. This is being actively managed by regular review of manufacturing and logistics costs on an ongoing basis.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Foreign exchange risk is the risk of volatile exchange rates causing a financial loss from international transactions. Sterling has been volatile during the year with the current global political climate proving to have had a direct impact on sterling value. The group operates bank accounts in multiple currencies to help mitigate against this exposure where possible.

 

Siere Trading Ltd

Strategic Report for the Year Ended 31 December 2023

Future developments

Whilst the global economic outlook remains challenging and conflicts around the world continue to cause instability in the market, the directors are positive regarding the year ahead.

The licensing agreement with DVF will come to an end in early 2025. The directors are in discussions with other fashion brands regarding new exclusive licensing agreements in 2025 to replace the DVF brand. The parent company, Glamel Trading Ltd, will fully support the group during this transition. The directors remain confident about the future.

Approved by the Board on 24 September 2024 and signed on its behalf by:

.........................................
J Chen
Director

 

Siere Trading Ltd

Directors' Report for the Year Ended 31 December 2023

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

Directors of the group

The directors who held office during the year were as follows:

J Chen

J Ping

Information included in the Strategic Report

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial risk management and exposure.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 24 September 2024 and signed on its behalf by:

.........................................
J Chen
Director

 

Siere Trading Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

 

Siere Trading Ltd

Independent Auditor's Report to the Members of
Siere Trading Ltd

Qualified opinion

We have audited the financial statements of Siere Trading Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

give a true and fair view of the state of the group's and the company's affairs as at 31 December 2023 and of the group's 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 qualified opinion on financial statements

Whilst we were appointed as auditor of the company in respect of the year ended 31 December 2022, group accounts were not required and thus we did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning inventory chattel of £4,011,590 held by the subsidiary undertakings at 31 December 2022 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount at 31 December 2022 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended.

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 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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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.

 

Siere Trading Ltd

Independent Auditor's Report to the Members of
Siere Trading Ltd

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.

As described in the basis of qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £4,011,590 held at 31 December 2022. We have concluded that where other information refers to the inventory balance or related balances such as cost of sales or gross profit it may be materially misstated for the same reason.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Siere Trading Ltd

Independent Auditor's Report to the Members of
Siere Trading Ltd

Auditor 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:

Based on our understanding of the Group and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws environmental legislation, health and safety legislation, data protection legislation and international maritime regulations. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the Group is complying with relevant legislation by making enquiries of management and conducting a review of board minutes. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.

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.

 

Siere Trading Ltd

Independent Auditor's Report to the Members of
Siere Trading Ltd

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 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.

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

25 September 2024

 

Siere Trading Ltd

Consolidated Income Statement for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

30,196,032

25,441,955

Cost of sales

 

(20,562,772)

(16,545,747)

Gross profit

 

9,633,260

8,896,208

Administrative expenses

 

(8,655,764)

(7,956,786)

Other operating income

105,573

50,722

Operating profit

4

1,083,069

990,144

Other interest receivable and similar income

3,383

-

Interest payable and similar expenses

(46,714)

(15,439)

   

(43,331)

(15,439)

Profit before tax

 

1,039,738

974,705

Tax on profit

7

(163,315)

(93,270)

Profit for the financial year

 

876,423

881,435

Profit/(loss) attributable to:

 

Owners of the company

 

876,423

881,435

 

Siere Trading Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

876,423

881,435

Foreign currency translation gains

1,940

-

Total comprehensive income for the year

878,363

881,435

Total comprehensive income attributable to:

Owners of the company

878,363

881,435

 

Siere Trading Ltd

Consolidated Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

8

23,760

25,710

Current assets

 

Stocks

10

6,161,801

4,530,163

Debtors

11

2,861,373

3,541,369

Cash at bank and in hand

 

1,844,968

2,764,362

 

10,868,142

10,835,894

Creditors: Amounts falling due within one year

13

(9,037,122)

(9,883,943)

Net current assets

 

1,831,020

951,951

Total assets less current liabilities

 

1,854,780

977,661

Provisions for liabilities

14

(809)

(2,053)

Net assets

 

1,853,971

975,608

Capital and reserves

 

Called up share capital

16

10,000

10,000

Retained earnings

17

1,843,971

965,608

Equity attributable to owners of the company

 

1,853,971

975,608

Shareholders' funds

 

1,853,971

975,608

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................

J Chen
Director

Company registration number: 12918440

 

Siere Trading Ltd

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

8

3,237

8,213

Investments

9

8,750

8,934

 

11,987

17,147

Current assets

 

Stocks

10

713,528

518,573

Debtors

11

466,440

832,328

Cash at bank and in hand

 

130,745

552,697

 

1,310,713

1,903,598

Creditors: Amounts falling due within one year

13

(1,126,220)

(1,801,217)

Net current assets

 

184,493

102,381

Total assets less current liabilities

 

196,480

119,528

Provisions for liabilities

14

(809)

(2,053)

Net assets

 

195,671

117,475

Capital and reserves

 

Called up share capital

16

10,000

10,000

Retained earnings

185,671

107,475

Shareholders' funds

 

195,671

117,475

The company made a profit of £78,196 (2022: 69,055) for the financial year.

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
J Chen
Director

Company registration number: 12918440

 

Siere Trading Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

10,000

965,608

975,608

975,608

Profit for the year

-

876,423

876,423

876,423

Other comprehensive income

-

1,940

1,940

1,940

Total comprehensive income

-

878,363

878,363

878,363

At 31 December 2023

10,000

1,843,971

1,853,971

1,853,971



 

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

10,000

84,173

94,173

94,173

Profit for the year

-

881,435

881,435

881,435

At 31 December 2022

10,000

965,608

975,608

975,608

 

Siere Trading Ltd

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

10,000

107,475

117,475

Profit for the year

-

78,196

78,196

At 31 December 2023

10,000

185,671

195,671



 

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

10,000

38,420

48,420

Profit for the year

-

69,055

69,055

At 31 December 2022

10,000

107,475

117,475

 

Siere Trading Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

876,423

881,435

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

11,221

8,098

Finance income

(3,383)

-

Finance costs

46,714

15,439

Income tax expense

7

163,315

93,270

Foreign exchange gains/losses

 

(183,440)

62,059

 

910,850

1,060,301

Working capital adjustments

 

Increase in stocks

 

(1,631,638)

(4,530,163)

Decrease/(increase) in trade and other debtors

 

683,607

(3,536,628)

(Decrease)/increase in trade and other creditors

 

(606,642)

9,261,704

Cash generated from operations

 

(643,823)

2,255,214

Income taxes (paid)/received

 

(222,036)

7,684

Net cash flow from operating activities

 

(865,859)

2,262,898

Cash flows from investing activities

 

Interest received

3,383

-

Acquisitions of tangible assets

8

(10,204)

(24,988)

Net cash flows from investing activities

 

(6,821)

(24,988)

Cash flows from financing activities

 

Interest paid

(46,714)

(15,439)

Net (decrease)/increase in cash and cash equivalents

 

(919,394)

2,222,471

Cash and cash equivalents at 1 January

 

2,764,362

541,891

Cash and cash equivalents at 31 December

 

1,844,968

2,764,362

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

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

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal activity of the company and group is that of the wholesale and online sales of clothing and footwear.

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

No income statement is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial period of £78,196 (2022: £69,055).

Summary of significant accounting policies and key accounting estimates

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

Summary of disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosure exemptions available under FRS 102:

(a) No cash flow statement has been presented for the company;
(b) Disclosures in respect of financial instruments of the company have not been prepared.

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December each year.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The group made a profit for the year ended 31 December 2023 and had net assets at that date amounting to £1,853,971, including cash at bank of £1,844,968.

At 31 December 2023, a net amount of £5,819,077 was due to the parent undertaking. The parent undertaking have confirmed that it is their intention to continue to support Siere Trading Ltd for the foreseeable future. The group continues to trade profitability and the cashflow forecasts prepared show the group has sufficient working capital for a period of at least 12 months from the date of approval of the financial statements.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in the preparation of the financial statements.

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of clothing and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Turnover in respect of online sales is recognised when customers place an order and pay on the online platform. Turnover in respect of wholesale sales is recognised when goods are despatched or collected. The company recognises revenue from services rendered when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for the company's associated activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Furniture, fittings and equipment

33% straight line

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling prices less costs to complete and sell. Cost is determined using the weighted average method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

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

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the financial statements are as folllows;

i) Impairment of stock

Annually, the group considers the carrying value of stock to identify whether there has been any impairment. This estimate includes consideration of seasonal trends, style taste and confirmed demand for the group's products within the fashion environment in which the group operates. Provision for impairment is made when the net realisable value of any stock line is considered to be less than the carrying value.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

30,196,032

25,441,955

The analysis of the group's turnover for the year by geographic market is as follows:

2023
£

2022
£

UK

1,853,802

1,710,759

Europe

8,583,042

7,444,101

Rest of world

19,759,188

16,287,095

30,196,032

25,441,955

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

11,221

8,098

Foreign exchange (gains)/losses

(183,440)

62,059

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

2,581,900

2,216,058

Social security costs

259,034

218,024

Pension costs, defined contribution scheme

65,788

50,923

Other employee expense

147,889

84,510

3,054,611

2,569,515

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and sales

38

31

38

31

6

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

70,000

19,000

Other compliance services

851

1,314

70,851

20,314

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

7

Taxation

Tax charged/(credited) in the consolidated income statement

2023
£

2022
£

Current taxation

UK corporation tax

28,706

19,283

Foreign tax adjustment to prior periods

135,853

74,430

Total current income tax

164,559

93,713

Deferred taxation

Arising from origination and reversal of timing differences

(1,244)

(443)

Tax expense in the income statement

163,315

93,270

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,039,738

974,705

Corporation tax at standard rate

219,892

184,693

Differences between depreciation and capital allowances

(114)

(685)

Decrease from effect of different UK tax rates on some earnings

(1,805)

-

UK effect of tax losses

4,211

3,268

Effect of foreign tax rates

(57,625)

(93,563)

Deferred tax movement

(1,244)

(443)

Total tax charge

163,315

93,270

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax

Group & company

2023

(Liability)
£

Accelerated capital allowances

(809)

(809)

2022

(Liability)
£

Accelerated capital allowances

(2,053)

(2,053)

8

Tangible assets

Group

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

37,570

37,570

Additions

10,204

10,204

Foreign exchange movements

(1,189)

(1,189)

At 31 December 2023

46,585

46,585

Depreciation

At 1 January 2023

11,860

11,860

Charge for the year

11,221

11,221

Foreign exchange movements

(256)

(256)

At 31 December 2023

22,825

22,825

Carrying amount

At 31 December 2023

23,760

23,760

At 31 December 2022

25,710

25,710

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Company

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

15,279

15,279

Additions

456

456

At 31 December 2023

15,735

15,735

Depreciation

At 1 January 2023

7,066

7,066

Charge for the year

5,432

5,432

At 31 December 2023

12,498

12,498

Carrying amount

At 31 December 2023

3,237

3,237

At 31 December 2022

8,213

8,213

9

Investments

Company

2023
£

2022
£

Investments in subsidiaries

8,750

8,934

Subsidiaries

£

Cost or valuation

At 1 January 2023

8,934

Revaluations

(184)

At 31 December 2023

8,750

Carrying amount

At 31 December 2023

8,750

At 31 December 2022

8,934

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2023

2022

Subsidiary undertakings

Sempra International Trading B.V.

Apollolaan 151, Desk 432, Newday offices A'dam Zuid, 1077AR, Amsterdam, The Netherlands

Ordinary

100%

100%

SIA International Trading Limited

440 West 14th Street, New York, NY 10014 , USA

Ordinary

100%

100%

All of the subsidiary undertakings above are included in the consolidated results.

The principal activities of each subsidiary undertaking are as follows:

Sempra International Trading B.V. - the wholesale trade and online business of clothing and accessories.
SIA International Trading Limited - the wholesale trade and online business of clothing and accessories.
 

10

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Stock

6,161,801

4,530,163

713,528

518,573

11

Debtors

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Trade debtors

2,650,798

3,294,350

237,708

311,271

Amounts owed by group undertakings

-

4,741

169,347

393,118

Other debtors

11,737

31,013

11,211

26,388

Prepayments

190,486

165,346

48,174

55,632

Accrued income

-

45,919

-

45,919

Corporation tax asset

8,352

-

-

-

2,861,373

3,541,369

466,440

832,328

Trade debtors are stated net of provisions for diminution in value of £212,095 (2022: £Nil).

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

1,844,968

2,764,362

130,745

552,697

13

Creditors

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Due within one year

Trade creditors

1,619,438

1,317,285

170,744

143,023

Amounts due to parent undertaking

5,819,077

7,670,078

521,027

1,428,045

Social security and other taxes

606,011

444,352

90,581

75,607

Other payables

75,130

-

55,658

-

Accruals

865,194

350,831

259,504

135,259

Corporation tax liability

52,272

101,397

28,706

19,283

9,037,122

9,883,943

1,126,220

1,801,217

14

Provisions for liabilities

Group and company

Deferred tax
£

Total
£

At 1 January 2023

2,053

2,053

Increase (decrease) in existing provisions

(1,244)

(1,244)

At 31 December 2023

809

809

15

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £65,788 (2022 - £50,923).

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

16

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1.00 each

10,000

10,000

10,000

10,000

         

There are no restrictions on the repayment of capital or the distribution of dividends.

17

Reserves

Profit and loss account - this reserve records retained earnings and accumulated losses.

18

Commitments, guarantees and contingencies

Operating leases

The total of future minimum lease payments under operating leases not recognised in the statement of financial position is as follows:

2023
£

2022
£

Not later than one year

144,603

49,110

The amount of non-cancellable operating lease payments recognised as an expense during the year was £111,835 (2022 - £82,860).

19

Analysis of changes in net debt

Group

 

At 1 January 2023

Net cash flows

At 31 December 2023

Cash and cash equivalents

Cash

2,764,362

(919,394)

1,844,968

Total of net cash / (borrowings)

2,764,362

(919,394)

1,844,968

 

Siere Trading Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Related party transactions

Summary of transactions with subsidiaries

In accordance with FRS102 paragraph 33.1A, exemption is taken not to disclose transactions in the period or amounts falling due between undertakings where 100% of the voting rights are controlled within the Group.

21

Parent and ultimate parent undertaking

The immediate parent undertaking is Glamel Trading Limited, incorporated in Hong Kong.

The ultimate parent undertaking is Fentennial Limited, incorporated in the British Virgin Islands.

The parent of the smallest and largest group preparing group accounts in which the results of the company are included is Glamel Trading Limited whose registered address is Unit 1904, 19/F., Podium Plaza, 5 Hanoi Road, Rsmi Sha Tsui, Kowloon, Hong Kong.