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Registered number: 04943907
Brag London Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 January 2024
C.Charles & Co Limited
Chartered Certified Accountants
Contents
Page
Strategic Report 1
Directors' Report 2—4
Independent Auditor's Report 5—9
Income Statement 10
Statement of Financial Position 11—12
Statement of Changes in Equity 13
Statement of Cash Flows 14
Notes to the Statement of Cash Flows 15
Notes to the Financial Statements 16—26
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 January 2024.
Review of the Business
The accounts reflect the performance of the company over the year to 31 January 2024. 
The current year's turnover was 48% down on last year from £24,240,025 to £12,623,190. This significant reduction was mainly the result of the cost of living crisis in the UK, which had a detrimental impact on the retail sector, particularly the fashion retail sector. Gross profits margins increased slightly to 21.52% (2023 : 21.25%), because of management's rigorous approach to the control of cost of sales, resulting in gross profits of £2,716,387 (2023: £5,151,992).
Due to the large decrease in the volume of business the company's net profit before tax reduced to £576,580 (2023 : £3,075,700). The net profit margin was also reduced from 12.69% to 4.57%. However this net profit level is back to pre-pandemic levels.
The directors agreed to declare an interim dividend of £4,000 per share.
The company continues to rely heavily on ASOS. However the proportion of sales to ASOS has fallen from the beginning of the year by 6%. Over the year sales to all key customers reduced.
Principal Risks and Uncertainties
Future financial reporting and legislative developments which may be of relevance to the Company are detailed below. This information is provided as a summary only. Where the Company requires further information it should obtain appropriate advice and assistance accordingly.
Disclosure of Risks
Brexit
The Company needs to continue to assess the nature and extent of risks and uncertainties arising from Brexit. All appropriate disclosures should be given as part of the reporting requirements within the Strategic Report/Directors' Report.
Coronavirus
The coronavirus (COVID-19) continues to have an effect on global markets, staffing, supply chains, and general business operations.
As such, the Company should assess the nature and extent of risks and uncertainties arising from the coronavirus. In doing so, the Company should consider what disclosures should be included within the Strategic Report/Directors' Report, where relevant.
Events since the end of the Year
Information relating to events since the end of the year is given in the notes to the financial statements.
On behalf of the board
Ms Julia Collins
Director
1 October 2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 January 2024.
Principal Activity
The company's principal activity in the year under review was that of the wholesale of textiles.
Dividends
No final dividends were paid during the year ended 31 January 2024.
The directors recommend interim dividends per share as follows:
Ordinary £1.00 shares
4000
Class E Shares £1.00 shares
 NIL
The total distribution of dividends for the year ended 31st January 2024 will be £400,000
Political Donations and Expenditure
Political donations amounted to nil.
Political expenditure amounted to nil.
Financial Instruments
The financial statements have been prepared in accordance with Financial Reporting Standards 102 ("FRS102").
The Financial Reporting Standards applicable in the United Kingdom and Republic of Ireland and the Statutory Requirements of the Companies Act 2006.
These financial statements which have been prepared under the historical cost convention requires from Management the exercise of judgement, to make estimates and assumptions that influence the application of accounting principles and the related amounts of assets and liabilities, income and expenses. The estimates and underlying assumptions are based on historical experience and various other factors that are deemed to be reasonable based on knowledge available at that time. Actual results may deviate from such estimates.
The estimates and underlying assumptions are revised on a continuous basis. Revisions in accounting estimates are recognised in the period during which the estimate is revised, if the estimate affects only that period, or in the period of the revision and future periods, if the revision affects the present as well as future periods.
Directors
The directors who held office during the year were as follows:
Ms Julia Collins
Mr Gavriel Chrysanthou
Post Balance Sheet Events
The ongoing Russia/Ukraine conflict: This ongoing conflict has resulted in going concern continues to be reviewed. Neither BRAG London Limited nor the owners are on the sanctions list at the time of this report.
The Israel/Gaza War has had an impact on a key international shipping route, increasing transport costs on some shipments. To date this has not had a major impact on the business.
Page 2
Page 3
Employee Engagement Statement
It is the policy of the Company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development programme creating the opportunity for employees to maintain and improve their performance and to develop their potential to a maximum level of attainment. In this way, staff will make their best possible contribution to the organisation's success. The Company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status, or disability. It is also the policy of the Company, where possible, to consider disabled persons in their application for employment with the Company and to protect the interests of existing members of the staff who are disabled.
Statement of Engagement with Suppliers, Customers and Others in a Business Relationship with the Company
The company's current policy concerning the payment of trade creditors is to:
-settle the terms of payments with the suppliers when agreeing the terms of each transaction;
-ensure that suppliers are made aware of the payments by inclusion of the relevant terms in contracts; and
-pay in accordance with company's contractual and other legal obligations.
Streamlined Energy and Carbon Reporting
The Board of Directors recognises that the effects of climate change, particularly extreme heat and flooding, are likely to threaten several countries in the world and may have a significant impact on business operating in those countries.
Our key suppliers, of both material and manufacturing services are based in the three continents of Asia, Africa and Europe. As a business we regularly review the services offered by our suppliers, this includes consideration of the certainty of future supply, and thus supplier business location. We recognize that climate change considerations will become increasingly important over the coming years when procuring both our material supplies and manufacturing services.
We also recognise that the fashion industry is a significant producer of global greenhouse gases and that increasing the use of recycled fabrics and reducing water usage are key mitigations. This year Brag successfully obtained "Global Recycled Standard ("GRS") Certification.
Regarding the environment, the company seeks to maintain a high proportion of its records electronically and of the paper it does use, over 90% of its paper consumption is recycled using recycling bags.
The company aims for continuous improvement in our approach to alleviating climate change, improving our environmental performance and comply with all the relevant rules and regulations.
Financial Risk Management Objectives and Policies
a) Covid -19 (coronavirus) - The management of BRAG London Limited continue to review the situation and utilise its resources to keep the business moving forward.
b) Brexit, the cost of living crisis and the Israel/Gaza War. The Company continues to assess the nature and extent of risks and uncertainties arising from these events.
Principal Risks and Uncertainties
The Company is required to manage a broad array of risks including, but not limited to, technology risk, operational risk, and liquidity risk. The process of risk identification and management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Directors' approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the Company, and the Directors have put in place an appropriate governance structure to monitor this. The Company manages its liquidity through detailed cash flow forecasts; these include foreseeable revenue projections, normally recurring operational costs and known capital expenditure requirements.
Page 3
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Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, M GEORGHIADES & ASSOCIATES LIMITED, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Ms Julia Collins
Director
Mr Gavriel Chrysanthou
Director
1 October 2024
Page 4
Page 5
Independent Auditor's Report
Opinion
We have audited the financial statements of Brag London Limited for the year ended 31 January 2024 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
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 entity's ability to continue as a going concern for a period of at least 12 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.
Page 5
Page 6
Emphasis of Matter
We draw your attention to the following notes to the financial statements:
1. Stocks and Work in Progress (W.I.P.)
The company has correctly stated and valued its stock at the lower of costs and or net realisable value, after making due allowance for obsolete and slow moving items at the year end. We have attended the stock count at the company’s warehouse at the year end. Due to location and other related health and safety issues including travelling restrictions, we haven’t attended the physical stock count at the year-end of all the other overseas factories. As an alternative standard audit procedure, we have obtained direct confirmation of the quantity of itemised line of stock held at the year-end on each factory. These confirmed quantity amounts they were subsequently confirmed and verified in both quantities and values with the stock master records held on the system at the warehouse in the UK. We have carried out our audit tests accordingly to verify existence, validity, accuracy and correct valuation of stock and work in progress held at the year end.
2. The entity has assessed the impact of the ongoing conflicts:
Russia – Ukraine Conflict. Neither BRAG London Limited nor the owners have any direct or indirect sanctions impact from these.
Israel – Gaza Conflict. Even though this ongoing conflict has had an impact on some of the distribution and transport costs incurred by the company, these will not impact on the company’s ability to continue trading as a going concern. The owners/directors will continue to review the situation and agree various other shipping routes that mitigate this risk for the business.
3. Covid-19 (Coronavirus)
The management of Brag London Limited continue to review the situation and utilise its resources to keep the business moving forward. This assessment will not impact on the company’s ability to continue as a going concern.
4. Brexit
The management of Brag London Limited continue to review and assess the cost-of-living crisis as well as continue assessing the nature and extent of risks and uncertainties arising from these events. These assessments will not impact the company’s ability to continue as a going concern. 
Other Information
The other information comprises the information included in the annual report, 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. 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 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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Page 7
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or 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 3-5, 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.
Page 7
Page 8
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: 
Raise queries with the board of directors to ensure that any irregularities are satisfactorily cleared.
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/auditors responsibilities. This description forms part of our Report of the Auditors. We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that we could.
We also identified the risks of material misstatements of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that potential for management bias, none of these were identified during our audit work. We have addressed this by examining and reviewing post year end sales and post year end cash book transactions and discussions made with the management.
For the statutory audit of the financial statements of Brag London Limited, trading as Loaded, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Extent to which the audit was considered capable of detecting irregularities, including fraud. We identify and assess the risks of material misstatement of the financial statements, whether due lo fraud or error, and then desih'll and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and perfonnance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax, financial instruments, pensions and IT specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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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 that 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.
Marios Georghiades FCCA, FMAAT (Senior Statutory Auditor)
for and on behalf of M GEORGHIADES & ASSOCIATES LIMITED , Statutory Auditor
1 October 2024
Page 9
Page 10
Income Statement
2024 2023
Notes £ £
TURNOVER 3 12,623,190 24,240,025
Cost of sales (9,906,803 ) (19,088,033 )
GROSS PROFIT 2,716,387 5,151,992
Administrative expenses (2,179,697 ) (2,074,062 )
OPERATING PROFIT 4 536,690 3,077,930
Other interest receivable and similar income 9 40,200 -
Interest payable and similar charges 10 (310 ) (2,230 )
PROFIT BEFORE TAXATION 576,580 3,075,700
Tax on Profit 11 (108,656 ) (606,148 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 467,924 2,469,552
The notes on pages 15 to 25 form part of these financial statements.
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Statement of Financial Position
Registered number: 04943907
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 108,341 95,945
108,341 95,945
CURRENT ASSETS
Stocks 13 1,003,897 939,878
Debtors 14 2,550,304 2,701,125
Cash at bank and in hand 3,040,194 3,321,502
6,594,395 6,962,505
Creditors: Amounts Falling Due Within One Year 15 (1,662,063 ) (2,058,205 )
NET CURRENT ASSETS (LIABILITIES) 4,932,332 4,904,300
TOTAL ASSETS LESS CURRENT LIABILITIES 5,040,673 5,000,245
PROVISIONS FOR LIABILITIES
Deferred Taxation 16 (3,066 ) (30,562 )
NET ASSETS 5,037,607 4,969,683
CAPITAL AND RESERVES
Called up share capital 18 7,200 7,200
Income Statement 5,030,407 4,962,483
SHAREHOLDERS' FUNDS 5,037,607 4,969,683
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On behalf of the board
Ms Julia Collins
Director
Mr Gavriel Chrysanthou
Director
1 October 2024
The notes on pages 15 to 25 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Income Statement Total
£ £ £
As at 1 February 2022 7,200 2,892,931 2,900,131
Profit for the year and total comprehensive income - 2,469,552 2,469,552
Dividends paid - (400,000) (400,000)
As at 31 January 2023 and 1 February 2023 7,200 4,962,483 4,969,683
Profit for the year and total comprehensive income - 467,924 467,924
Dividends paid - (400,000) (400,000)
As at 31 January 2024 7,200 5,030,407 5,037,607
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Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 319,493 2,819,590
Interest paid (310 ) (2,230 )
Tax paid (589,583 ) (201,191 )
Movement in Barclays Payment account - (62,201)
Net cash (used in)/generated from operating activities (270,400 ) 2,553,968
Cash flows from investing activities
Purchase of tangible assets (42,474 ) (24,916 )
Interest received 40,200 -
Net cash used in investing activities (2,274 ) (24,916 )
Cash flows from financing activities
Equity dividends paid (400,000 ) (400,000 )
Amount introduced by directors 397,638 (215,972)
Amount withdrawn by directors - (108,919)
Net cash used in financing activities (2,362 ) (724,891 )
(Decrease)/increase in cash and cash equivalents (275,036 ) 1,804,161
Cash and cash equivalents at beginning of year 2 3,321,502 1,517,341
Foreign exchange losses on cash and cash equivalents (6,272 ) -
Cash and cash equivalents at end of year 2 3,040,194 3,321,502
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 467,924 2,469,552
Adjustments for:
Tax on profit 108,656 606,148
Interest expense 310 2,230
Interest income (40,200 ) -
Depreciation of tangible assets 30,078 23,558
Foreign exchange losses 6,272 -
Movements in working capital:
(Increase)/decrease in stocks (64,019 ) 1,184,402
(Increase)/decrease in trade and other debtors (65,151 ) 630,442
Decrease in trade and other creditors (124,377 ) (2,096,742 )
Net cash generated from operations 319,493 2,819,590
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 3,040,194 3,321,502
3. Analysis of changes in net funds
As at 1 February 2023 Cash flows As at 31 January 2024
£ £ £
Cash at bank and in hand 3,321,502 (281,308) 3,040,194
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Notes to the Financial Statements
1. General Information
Brag London Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04943907 . The registered office is 105 Seven Sisters Road, London, N7 7QR.
The presentation currency of the financial statements is the Pound Sterling (£).
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold in accordance to the lease terms (8 years)
Plant & Machinery 25% on reducing balance
Motor Vehicles 25% on reducing balance
Fixtures & Fittings 15% on reducing balance
2.4. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.
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2.5. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is calculated using the first-in, first-out method and included all purchases, transport, and handling costs in bringing stocks to their present location and condition.erheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.6. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.8. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.9. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.
3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
4. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Operating lease rentals 258,382 220,962
Exchange differences 6,272 29,285
Depreciation of tangible fixed assets 30,078 23,558
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 14,625 11,000
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 2,012,899 1,820,733
Social security costs 217,318 198,378
Other pension costs 71,509 147,004
2,301,726 2,166,115
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7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 5 5
Sales, marketing and distribution 6 6
Manufacturing 10 13
Research and Development 10 7
Senior Managers 3 5
Pattern Cutters 10 10
Warehouse staff 8 8
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8. Directors' remuneration
2024 2023
£ £
Emoluments 181,667 90,000
Company contributions to money purchase pension schemes 27,521 100,000
209,188 190,000
Information regarding the highest paid director was as follows:
2024 2023
£ £
Emoluments 90,833 45,000
Gabby Chrysanthou
2024
2023
£
£
Gross Salary
90,833
45,000
Employers NIC
11,334
5,162
Pension contributions
12,087
50,000
Julia Collins
2024
2023
£
£
Gross Salary
90,833
45,000
Employers NIC
12,075
5,162
Pension Contributions
18,455
52,713
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9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 40,200 -
10. Interest Payable and Similar Charges
2024 2023
£ £
Other finance charges 310 2,230
11. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 19.0% 136,152 587,461
Deferred Tax
Deferred taxation (27,496 ) 18,687
Total tax charge for the period 108,656 606,148
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 576,580 3,075,700
Tax on profit at 24% (UK standard rate) 138,379 584,383
Goodwill/depreciation not allowed for tax 7,219 23,558
Expenses not deductible for tax purposes 669 3,542
Capital allowances (10,285 ) (23,904 )
Prior period adjustment - (118 )
Difference in tax rates 170 -
Deferred tax relating to changes in tax rates or laws (27,496 ) 18,687
Total tax charge for the period 108,656 606,148
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12. Tangible Assets
Land & Property
Leasehold Plant & Machinery Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 February 2023 237,553 6,000 191,851 435,404
Additions 30,518 - 11,956 42,474
As at 31 January 2024 268,071 6,000 203,807 477,878
Depreciation
As at 1 February 2023 228,072 5,810 105,577 339,459
Provided during the period 15,295 48 14,735 30,078
As at 31 January 2024 243,367 5,858 120,312 369,537
Net Book Value
As at 31 January 2024 24,704 142 83,495 108,341
As at 1 February 2023 9,481 190 86,274 95,945
13. Stocks
2024 2023
£ £
Stock 1,003,897 939,878
Cost is calculated using the first-in, first-out method and included all purchases, transport, and handling costs in bringing stocks to their present location and condition.
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 1,403,903 1,831,917
Prepayments and accrued income 80,968 80,910
Other debtors 751,881 503,697
VAT 313,552 68,629
Directors' loan accounts - 215,972
2,550,304 2,701,125
Short term debtors are measured at a transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised costs determined using the effective interest method, less any impairments losses for bad and doubtful debts.
Other debtors of £751,881 can be broken down as follows:
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14. Debtors - continued
  • Rent deposit £21,000
  • Staff loans £100
  • HMRC £730,781
15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 1,144,645 1,272,860
Corporation tax 135,991 589,422
Social security & other taxes 59,941 53,409
Other creditors 105,005 113,614
Accruals 34,815 28,900
Directors' loan accounts 181,666 -
1,662,063 2,058,205
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Other creditors of £105,005 can be broken down as follows:
  • Pension fund £8,222
  • Mr P Panayiotou £43,784
  • Mr and Mrs Collins £53,000
16. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 3,066 30,562
17. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 February 2023 30,562 30,562
Deferred taxation (27,496 ) (27,496 )
Balance at 31 January 2024 3,066 3,066
Provisions (i.e./ liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation, and the amount of the obligation can be estimated reliably.
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18. Share Capital
2024 2023
Allotted, called up and fully paid £ £
100 Ordinary Shares of £ 1.00 each 100 100
2024 2023
Allotted, called up but not fully paid £ £
710,000 Ordinary E shares of £ 0.01 each 7,100 7,100
19. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterpart to a financial instrument fails to meet its contractual obligation, and arises principally from the Company's receivables from customers and cash balances. The company had trade receivables from its major customer, a strong multinational company for which there is no significant credit risk. All trade receivables were paid following the year end.
20. Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.
The company does not have exposure to market risk within its balance sheet.
21. Liquidity Risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due.
The company's objective for managing its liquidity is to have enough cash reserves to meet its financial obligations as they fall due.
22. Cash-flow Interest Rate Risk
The Company is exposed to market price risk, interest rate risk, credit risk, liquidity risk, currency risk, other market price risk, operational risk, compliance risk, litigation risk, reputation risk, share ownership risk and capital risk management. The risk management policies employed by the Company to manage these risks are discussed below:
Market Price Risk
Market price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices. The Company's available for sale financial assets and financial assets at fair value through profit or loss are susceptible to market price risk.
Interest Rate Risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company had no borrowings throughout the reporting period and continues to have no borrowings following the balance sheet date.
Currency Risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Company's measurement currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the GBP(£) and the Euro (€). The Company's Management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
Operational risk:
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22. Cash-flow Interest Rate Risk - continued
Operational risk is the risk that derives from the deficiencies relating to the Company's information technology and control systems as well as the risk of human error and natural disasters. The Company's systems are evaluated, maintained and upgraded continuously.
Compliance risk:
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from non compliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Compliance Officer, as well as by the monitoring controls applied by the Company.
Litigation risk:
Litigation risk is the risk of financial loss, interruption of the Company's operations or any other undesirable situation that arises from the possibility of non execution or violation of legal contracts and consequentially of lawsuits. The risk is restricted through the contracts used by the Company to execute its operations.
Reputation risk:
The risk of loss of reputation arising from the negative publicity relating to The Company's operations (whether true or false) may result in a reduction of its customers, reduction in revenue and legal cases against The Company. The Company applies procedures to minimise this risk.
Capital risk management:
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Company's overall strategy remains unchanged from last year.
23. Other type of Risk
The general economic environment prevailing in the United Kingdom and internationally can affect the Company's operations to a great extent. Economic conditions such as inflation, unemployment, and development of the gross domestic product are directly linked to the economic course of every country and any variation in these and the economic environment in general may create. The Company is monitoring the impact of the increase in the cost of living on the business and mitigating this risk through regular reviews of its operations with key customers.
Fair value estimation:
The fair values of the company's financial assets and liabilities approximate their carrying amounts at the reporting date.
Environmental Risks and Climate Changes Responsibilities
The company seeks to maintain a high proportion of its records electronically and of the paper it does use, over 90% of its paper consumption is recycled using recycling bags. The company recognises that the effects of climate change, particularly extreme heat and flooding, are likely to threaten several countries in the world and may have a significant impact on business operating in those countries.
The company's key suppliers, of both material and manufacturing services are based in the three continents of Asia, Africa and Europe. As a business the company regularly review the services offered by its suppliers, this includes consideration of the certainty of future supply, and thus supplier business location. The company recognises that Climate Change considerations will become increasingly important over the coming years when procuring both its material supplies and manufacturing services.
The company also recognises that the fashion industry is a significant producer of global greenhouse gases and that increasing the use of recycled fabrics and reducing water usage are key mitigations.
The company aims for continuous improvement in its approach to alleviating Climate Change, improving our environmental performance and comply with all the relevant rules and regulations.
ONGOING CONFLICTS
a) Russia - Ukraine Conflict - neither BRAG London Limited nor the owners are currently on the sanctions list at the time of this report.
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23. Other type of Risk - continued
b) Israel - Gaza Conflict - This ongoing conflict has had an impact on some of the distribution and transport cost incurred by the company. The company will continue to review the situation and agree shipping routes that mitigate this risk for the business.
24. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £71,509 (2023: £147,004).
At the statement of financial position date contributions of £NIL were due to the fund and are included in creditors.
25. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 February 2023 Amounts advanced Amounts repaid Amounts written off As at 31 January 2024
£ £ £ £ £
Ms Julia Collins 143,697 199,157 - - (55,460 )
Mr Gavriel Chrysanthou 72,274 198,480 - - (126,206 )
The above loan is unsecured, interest free and repayable on demand.
26. Dividends
2024 2023
£ £
On equity shares:
Interim dividend paid 400,000 -
Final dividend paid - 400,000
400,000 400,000
27. Post Balance Sheet Events
There have not been any significant events since the balance sheet date. There were no essential adjusting events or non-adjusting events in the period of time elapsing between the balance sheet date and the date on which these financial statements are prepared. 
28. Controlling Parties
The company is managed and controlled by its directors who are also the shareholders.
29. Impairment of Fixed Assets
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At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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