Company registration number 06166994 (England and Wales)
SUIT SUPPLY UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SUIT SUPPLY UK LIMITED
COMPANY INFORMATION
Director
F M de Jong
Company number
06166994
Registered office
C/o TMF Group 13th Floor
One Angel Court
London
United Kingdom
EC2R 7HJ
Auditor
BKL Audit LLP
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
SUIT SUPPLY UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
SUIT SUPPLY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Principal activities
The company operates clothing retail stores in the United Kingdom, specialising in business attire and accessories. Customers can also order clothes via the webstore.
Review of the business
KPI's for the company are turnover and EBITDA.
The company’s turnover for the year ended 31 December 2023 was £28.2m, which represents an increase of £3.9m (16.1%) compared to the turnover of £24.3m in 2022. This was due to continued sales growth experienced in 2023 arising from the post COVID recovery together with a growth in custom made sales.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) was £1.1m, up from £700k in 2022.
The profit after taxation was £846k (2022: £405k). This increase was mainly driven by the increase in EBITDA with operational expenses making up a lower percentage of the cost base.
There were no dividends paid during the year (2022: £nil).
Principal risks and uncertainties
As part of the Risk and Opportunity Register a wide range of risks was considered and assessed. The risks considered most relevant in terms of likelihood and impact (scale 1 (low) to 5 (high)) for Suit Supply to achieve its targets are explained in the table below.
These are risks that have been assessed in the risk management process as having at least a moderate potential impact. In general, it is possible that further latent risks or risks that are currently estimated as immaterial may negatively impact the Group’s development in the future to more than the stated extent.
| | | |
Compliance with Suitsupply's code of conduct and law and regulations (m) | | | |
| | | |
| | | |
Reputational damage to the Suitsupply brand (m) | | | |
Changing consumer preference (m) | | | |
Global economies and competition | | | |
| | | |
| | | |
Attract and retain talent (m) | | | |
| | | |
| | | |
In the table all material risks are marked (m) and explained in more detail. In contrast, risks assessed with a reduced likelihood and impact (within 1 year) are not explained in more detail.
SUIT SUPPLY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
COMPLIANCE
Compliance with Suitsupply’s code of conduct and laws and regulations
Given the rapidly changing (external) environment, compliance with Suitsupply’s code of conduct and laws and regulations is important and the likelihood of non-compliance is increasing. The possible impact of non-compliance could be high and Suitsupply would like to avoid those risks.
In 2023, Suitsupply maintained its focus on identifying and mitigating compliance risks. The ethics & compliance program is further anchored within the organization and it is important to note the investigation guidelines for the SpeakUp reports. This policy provides guidelines for the investigation of SpeakUp reports made by Suitsupply employees through the SpeakUp web platform or through emails sent to compliance@suitsupply.com or speakup@suitsupply.com. It aims to ensure a consistent way of handling, administrating, and investigating compliance related matters.
STRATEGIC AND EXTERNAL
Reputational damage to the Suitsupply brand
Inherently, brands are subject to reputational risks. The likelihood is considered relatively high, also the possible impact is considered high as this could impact brand perception. Risk appetite is low as the brands are a key part of the success of the business.
This risk for Suitsupply is mitigated by having strong focus on brand consistency through all channels as well as campaigns, collections, stores, social media etc. Furthermore, Suitsupply has an extensive training programme and a focus on CSR policies. Suitsupply has registered its brand name in all active countries.
Changing consumer behaviour
As a retail brand, Suitsupply is exposed to changes in consumer behavior and consumer preferences. Suitsupply closely follows these trends and responds to this with a continued focus on an interpreted collection of tailored formal wear as well as elevated casual.
The likelihood is considered medium as we believe that Suitsupply will remain to have a relevant position in the market. Risk appetite is low because the potential impact on the business can be relatively high.
OPERATIONS
Attract and retain talent
Not being able to recruit and retain best of class employees may impact the ability to effectively run, scale, grow and innovate Suitsupply and maintain the desired quality levels of the product and services. In general, there is a high demand on qualified personnel.
The likelihood of this risk and impact is considered medium as Suitsupply is an attractive brand to work for, also impact is medium as it will slow down potential growth. Risk appetite is relatively low because it is an important element for future growth.
Suitsupply has significantly invested in its recruitment team and efforts. The internal recruiting team has been expanded and embedded in the business units. In addition, Suitsupply offers a multi-layered training cycle to develop our employee’s expertise and skillset aligning with brand expectations.
Outlook 2024 and forecasting
The Suitsupply group expects to further grow the business. It believes key drivers include:
Increased sell-through of stock through the company’s current physical footprint;
Continuation of strong like for like performance amongst others by investments to support the current store base (e.g. back of house investments, additional fitting rooms)
New store openings and expansions of current stores
The annual plan also includes costs efficiencies and based thereon there will be sufficient cash headroom available to execute the plan and make the required investments in new and existing stores. The Company expects that the average total number of FTE’s to remain more or less stable with planned investments mostly focused on the extension and improvement of the existing stores.
SUIT SUPPLY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
F M de Jong
Director
24 September 2024
SUIT SUPPLY UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
F M de Jong
Auditor
Wilson Wright LLP acted as auditor of the company up until 2 April 2024. On 2 April 2024, Wilson Wright LLP transferred its audit business to BKL Audit LLP. The members subsequently consented to the appointment of BKL Audit LLP as auditor to the company. The auditor BKL Audit LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
SUIT SUPPLY UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
F M de Jong
Director
24 September 2024
SUIT SUPPLY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SUIT SUPPLY UK LIMITED
- 6 -
Opinion
We have audited the financial statements of Suit Supply UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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.
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 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 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
SUIT SUPPLY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SUIT SUPPLY UK LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Capability of the audit in detecting irregularities, including fraud:
Based on our understanding of the company and the industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries. Audit procedures performed by the auditors included:
- Discussions with key management personnel, including consideration of known or suspected instances of non-compliance with laws and regulations;
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
- Identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SUIT SUPPLY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SUIT SUPPLY UK LIMITED (CONTINUED)
- 8 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Jeremy Asher FCA (Senior Statutory Auditor)
for and on behalf of BKL Audit LLP
25 September 2024
Chartered Accountants and Statutory Auditor
First Floor
5 Fleet Place
London
EC4M 7RD
SUIT SUPPLY UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Year
ended
ended
31 December
31 December
2023
2022
as restated
Notes
£
£
Revenue
3
28,224,488
24,267,282
Cost of sales
(19,180,017)
(17,089,636)
Gross profit
9,044,471
7,177,646
Distribution costs
(161,563)
(210,470)
Administrative expenses
(7,995,778)
(6,468,134)
Other operating income
3,113
Operating profit
4
887,130
502,155
Investment income
7
178,965
55,041
Profit before taxation
1,066,095
557,196
Tax on profit
8
(220,487)
(152,069)
Profit and total comprehensive income for the year
845,608
405,127
SUIT SUPPLY UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
1,334,751
579,897
Current assets
Trade and other receivables
10
3,202,388
2,343,779
Cash and cash equivalents
876,943
855,104
4,079,331
3,198,883
Current liabilities
11
(2,501,095)
(1,722,989)
Net current assets
1,578,236
1,475,894
Total assets less current liabilities
2,912,987
2,055,791
Provisions for liabilities
Deferred tax liability
12
156,533
144,945
(156,533)
(144,945)
Net assets
2,756,454
1,910,846
Equity
Called up share capital
14
2
2
Share premium account
550,000
550,000
Retained earnings
15
2,206,452
1,360,844
Total equity
2,756,454
1,910,846
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 24 September 2024
F M de Jong
Director
Company registration number 06166994 (England and Wales)
SUIT SUPPLY UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
2
550,000
955,717
1,505,719
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
405,127
405,127
Balance at 31 December 2022
2
550,000
1,360,844
1,910,846
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
845,608
845,608
Balance at 31 December 2023
2
550,000
2,206,452
2,756,454
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Suit Supply UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/o TMF Group 13th Floor, One Angel Court, London, United Kingdom, EC2R 7HJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Suit Supply Holding B.V. These consolidated financial statements are available from its registered office, Gelrestraat 16, 1079 MZ Amsterdam, The Netherlands.
1.2
Going concern
The company has traded with operating profits since inception. At the year-end the company had net current assets of £1,578,236 (2022: £1,475,894) and made a profit after tax of £845,608 (2022: £405,127). Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Turnover represents amounts derived from the supply of business attire and accessories which fall within the company's ordinary activities after deduction of trade discounts and value added tax. Revenue is recognised on receipt of goods by the customer for store sales and at the point the goods are dispatched from the warehouse for webstore sales. All turnover is recognised within the United Kingdom.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10 years/10.0% per annum
Fixtures and fittings
7 years/14.3% per annum
Computers
3 years/33.3% per annum
Assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Inventories
Inventory is not owned on a local entity level but by the related entity Suit Supply B.V. The related cost of sales transactions is recognised on the flash title basis at the moment of the sale.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances and balances owed by group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, and loans from connected companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.15
Finance costs of financial liabilities are recognised in the profit and loss account over the term of such instruments at a constant rate on the carrying amount.
Finance costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress.
Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Shop sales
23,829,462
20,228,248
Web sales
4,395,026
4,039,034
28,224,488
24,267,282
All revenue arose within the UK.
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(25,580)
(232)
Fees payable to the company's auditor for the audit of the company's financial statements
33,000
30,000
Depreciation of owned property, plant and equipment
181,179
175,675
Operating lease charges
807,390
899,972
Depreciation of tangible fixed assets is included in administrative expenses. Included in the depreciation expense is an amount of £3,517 (2022: £4,957) related to depreciation charged by Suit Supply B.V, for the use of its assets by the company.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
as restated
Management and administration
5
3
Store employees
82
68
Total
87
71
The comparative period has been restated to reflect the actual number of employees, rather than the full time equivalent.
Their aggregate remuneration comprised:
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
2023
2022
£
£
Wages and salaries
3,509,456
2,829,677
Social security costs
377,971
326,141
Pension costs
58,345
53,388
3,945,772
3,209,206
6
Director's remuneration
The remuneration for the Director in the year was borne by Suit Supply B.V. The total remuneration for the director paid by Suit Supply UK Limited was £nil (2022: £nil).
7
Investment income
2023
2022
£
£
Interest income
Interest receivable from group companies
178,965
55,041
There is interest on related parties' accounts applicable, which amounts to 2.1-4.5% (2022: 1.3%) per annum.
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
231,884
118,267
Adjustments in respect of prior periods
(22,985)
33,802
Total current tax
208,899
152,069
Deferred tax
Origination and reversal of timing differences
11,588
Total tax charge
220,487
152,069
An increase in the UK corporation tax main rate from 19% to 25% for financial years beginning 1 April 2023 was substantially enacted on 24 May 2021.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,066,095
557,196
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
250,746
105,867
Tax effect of expenses that are not deductible in determining taxable profit
8,981
3,800
Adjustments in respect of prior years
(22,985)
33,802
Depreciation in excess of permanent capital allowances
(22,487)
22,929
Under/(over) provided in prior years
(5,356)
(14,329)
Deferred tax movement
11,588
Taxation charge for the period
220,487
152,069
9
Property, plant and equipment
Leasehold land and buildings
Assets under construction
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
2,792,454
258,749
178,809
3,230,012
Additions
41,455
856,225
35,823
933,503
Disposals
(2,685)
(3,383)
(6,068)
At 31 December 2023
2,831,224
856,225
291,189
178,809
4,157,447
Depreciation and impairment
At 1 January 2023
2,332,020
167,834
150,261
2,650,115
Depreciation charged in the year
125,826
37,285
14,551
177,662
Eliminated in respect of disposals
(1,843)
(3,238)
(5,081)
At 31 December 2023
2,456,003
201,881
164,812
2,822,696
Carrying amount
At 31 December 2023
375,221
856,225
89,308
13,997
1,334,751
At 31 December 2022
460,434
90,915
28,548
579,897
The category land and buildings includes leasehold improvements. Suit Supply UK Limited does not own any land.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
59,569
113,268
Amounts owed by group undertakings
2,825,752
1,973,959
Other receivables
5,923
427
Prepayments
272,044
214,275
3,163,288
2,301,929
2023
2022
Amounts falling due after more than one year:
£
£
Deposits
39,100
41,850
Total debtors
3,202,388
2,343,779
The amount receivable from related parties solely relate to current accounts with Suit Supply B.V. The interest rate for the year ranged from 2.1% to 4.5% (2022: 1.3%) per annum, there is no expiry date of the current account.
11
Current liabilities
2023
2022
Notes
£
£
Trade payables
697,639
705,452
Corporation tax
185,297
108,129
Other taxation and social security
658,801
125,707
Deferred income
147,354
168,655
Gift cards in circulation
172,723
132,615
Other payables
639,281
482,431
2,501,095
1,722,989
Included in other payables is a balance of £9,205 (2022: £21,461) relating to defined contribution pension charges.
Post year end, the group entered into a new refinancing agreement and a charge has been placed over the company creating security over bank accounts, insurances, tangible assets, contracts and goodwill, as well as a floating charge over all assets.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
156,533
144,945
2023
Movements in the year:
£
Liability at 1 January 2023
144,945
Charge to profit or loss
11,588
Liability at 31 December 2023
156,533
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,345
53,388
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
15
Retained earnings
The retained earnings reserve represents cumulative profits and losses, net of dividends paid and other adjustments. This is a distributable reserve.
SUIT SUPPLY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
665,335
875,901
Between two and five years
2,239,800
2,344,365
In over five years
373,950
933,439
3,279,085
4,153,705
There were no other capital commitments outstanding at 31 December 2023 (2022: £nil).
17
Related party transactions
The company has taken advantage of the exemption available in accordance with Section 33.1A of Financial Reporting Standard 102 whereby it has not disclosed transactions entered into between two or more members of a group, as the parent company wholly owns the subsidiary undertakings in which the company is party to the transactions.
18
Ultimate controlling party
The smallest group in which the results of Suit Supply UK Limited are consolidated is headed by the immediate parent, Suit Supply Holding B.V., with a registered address being Gelrestraat 16, 1079 MZ Amsterdam, The Netherlands. Fokke de Jong HoldCo LLC is the ultimate parent company and its consolidated financial statements can be obtained from its registered office, c/o Corporation Service Company, 251 Little Falls Drive, 19808, Wilmington, USA.
The director F M de Jong is the ultimate controlling party.
19
Prior period adjustment
A prior year adjustment has been posted to reclassify the amount previously included in finance costs to administrative expenses in accordance with the group policy. This adjustment has no impact on the profit, net assets, or total equity of the company which remain as previously reported.
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