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Registered number: 00134995










Moss Bros Group Limited










Annual report and financial statements

For the period ended 27 January 2024

 
Moss Bros Group Limited
 

Company Information


Directors
David William Adams 
Brian Denis Brick 
Warren Edmond Flick jr 
Jeffery Owen Spiegel 
Sheila Marie Geraghty 
Menoshi Shina 




Company secretary
David William Adams



Registered number
00134995



Registered office
8 St Johns Hill
Clapham Junction

London

SW11 1SA




Independent auditors
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

2nd Floor

168 Shoreditch High Street

London

E1 6RA





 
Moss Bros Group Limited
 

Contents



Page
Strategic report
 
1 - 6
Directors' report
 
7 - 9
Independent auditors' report
 
10 - 13
Statement of comprehensive income
 
14
Balance sheet
 
15
Statement of changes in equity
 
16
Notes to the financial statements
 
17 - 38


 
Moss Bros Group Limited
 

Strategic report
For the period ended 27 January 2024

Introduction
 
The directors present their strategic report together with the audited financial statements for the 52 week period ended 27 January 2024.
Principal activities
Established in 1851, Moss Bros Group Ltd (“the Group”) designs and retails a range of high quality men’s formal wear along with a complementary smart casual range.  It also offers a hire service, a custom made service and a subscription service. The business operates predominantly in the UK and Eire, through its national chain of 107 retail stores, but also sells online on both its own website and other digital marketplaces.

Business review and Key Performance Indicators
 
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With demand for weddings having normalised following the post pandemic surge seen in the prior year, total sales for the 52 week financial period ending 27 January 2024 decreased by £14.1m or 9.3% to £137.5m. 
The business traded strongly and remained focused on the high levels of service offered in our stores. The online business benefitted from a platform upgrade along with continued expansion of the casual wear ranges. All this was achieved whilst rebranding the business to MOSS to better reflect our future brand focus as well as our heritage.  
Along with the wider retail sector, the business faced exceptional market uncertainty and cost inflation, yet despite this, the EBITDA (Earnings before interest, tax, depreciation and amortization including impairment of intangible and tangible assets) for the year is £25.1m.  Whilst this is down on the  prior year it is still a creditable performance and yields a substantial EBITDA margin of 18.2%. The Group continues to be  highly cash generative and has no debt.
The Company monitors a range of key performance indicators (KPIs) on a regular basis to manage the business, enable timely decision making and to react quickly to a rapidly changing environment. Particular attention is paid to weekly KPIs and trading information with variances to budget and forecasts for individual product ranges and sales channels being reviewed. The primary KPIs reviewed regularly are turnover, gross margin and EBITDA.
Despite widespread difficulties across the UK retail sector, our performance is indicative of the resilience of a certain segment of UK consumers and their willingness to buy products which offer exceptional quality at reasonable price points. Although we are careful not to deviate too far from our core, we believe the MOSS brand appeals to an increasingly broad customer base and is capable of further expansions.
A high focus and attention has been given to improve the expansion and enhancement of our store estate whereby we have relocated in 5 stores and refurbished 1 store as well as opening 3.  We also focus on cost controls across all areas of the business and continuous improvement in our product range to ensure it stays relevant to our core customers.
 
Page 1

 
Moss Bros Group Limited
 

Strategic report (continued)
For the period ended 27 January 2024


Current trading and outlook
The business continues to trade strongly and the Directors expect the strong trading performance to continue into the year ending 25 January 2025.
Whilst uncertainty remains around the external environment, the Directors are confident about the trading outlook and expect the demand for weddings and other events, together with store portfolio and online developments, to sustain the strong financial performance of the business.
We are committed to our strategy of “styling individuals for the moments that matter to them”. As well as providing unrivalled in-store service levels in our sector, the Group has diversified its product ranges by stretching into smart casual wear which complements the other formal products and is focused on providing value to our customers by selling exceptional quality at affordable price points. We have continued to control stock levels tightly and trade with minimal promotional discounting to drive sales at full price.

Going concern
 
The Company’s business activities, factors likely to affect its future development, performance and position are set out in the principal activities and business review on page 1.
The main financial risks arising from the activities of the Company are set out in this report below, together with the policies and processes to manage these risks.
The Directors have reviewed the Company’s forecasts. As described in the current trading and outlook section above, the outlook for the company is expected to be positive for the following year. These forecasts show that the company should be able to operate within its existing working capital facilities.
The  Directors  have  a  reasonable  expectation  that  the  Company has  adequate  resources  to  continue  in operational existence for the foreseeable future. The Directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements for the Company.

Principal risks and uncertainties
 
Moss Bros is an established brand which has successfully re-branded to MOSS, maintaininga loyal customer following. However, we acknowledge, measure and mitigate the following risks:
Economy - impact on retail
Almost all of the Group’s revenue is generated in the UK. A deterioration in the strength of the UK economy would be likely to reduce consumer demand for discretionary items. This could materially and adversely affect the financial position of the Group. The Group is currently funded from its own cash reserves and any prolonged downturn may impact these.
We continually focus on maintaining our product quality, customer service and supplier relationships, which will help us retain our competitive position and retain customers.
The business has the flexibility to adjust its capital expenditure plans, restrict dividends and review operational expenditure to reduce or defer unnecessary expenditure. These measures will conserve cash and maintain the strength of our balance sheet.
Property leases have short remaining lives allowing flexibility to reduce fixed overhead costs should the need arise.
The Group is debt free and highly cash generative. 
Supply chain
Any disruption to supplier continuity or interruptions to the supply chain may have a significant impact on our ability to meet demand in store and online. As we increase the volume of garments sourced directly from supplier factories we must ensure that the supply chain critical path is closely monitored and proactively managed.
 
Page 2

 
Moss Bros Group Limited
 

Strategic report (continued)
For the period ended 27 January 2024

The diversification of product buying across a range of suppliers limits the Group’s over reliance upon any individual supplier. We have implemented controls which enable us to identify early any potential deviations from product and supply chain critical paths. In addition, we continuously review the supply base to mitigate potential single source supply issues through a dual sourcing strategy.
Foreign currency exposure, principally the US Dollar, is mitigated through the use of forward contracts, typically for expected currency requirements 6 to 9 months in advance.
Brand image
Maintaining  our  store  presentation  is  important  for  attracting  customers  and  growing  our  brand  and  we continually seek to improve the look and feel of our in store environment and online offering to deliver an improved customer experience.

S172 Statement
 
How the Board of Directors has promoted the success of the Group for the benefit of its members as a whole; whilst having regard to the matters set out in Section 172 of the Companies Act 2006
The Board is mindful of all stakeholders when making decisions of strategic performance. Stakeholder engagement is central to the formulation and execution of the strategy and critical in achieving long term success. The needs of our stakeholders as well as the consequences of any decision on the long term are well considered by the Board.
A description of the key stakeholders, their engagement and how this influences our decision making is set out below.

Stakeholder engagement
 
CUSTOMERS
Our customers are at the heart of everything we do. We seek to understand more about them to ensure our products and services meet their expectations and we deliver a seamless shopping experience whichever channel they choose to shop with us, whether online, in store or via our contact centre.
We constantly review whether we are achieving our customer centric aims and ambitions by measuring customer growth and getting feedback via surveys, ratings, and occasional focus groups as well as through our various contact channels.
We have regular meetings to review any issues impacting the customer experience and put actions in place to resolve them as quickly as possible. The customer continues to be our focus at all levels in the organization and we have many initiatives on the horizon to adapt to changing requirements, shopping preferences and lifestyle.
SHAREHOLDERS
The Directors engage with their principal shareholders on a regular basis involving them in all significant decisions and providing regular updates on performance.
EMPLOYEES
We remain committed to employment policies that do not discriminate between employees or potential employees on the grounds of gender, colour, race, nationality, ethnic origin, national origin, religion, religious beliefs, sexual orientation, disability or age. In line with the change in legislation, we continue to focus on ensuring opportunities are open and fair for both women and men.
We continually engage with our employees and have been focused on employee safety, wellbeing and morale throughout the pandemic. MOSS also engages with their employees through a workplace intranet, head office, retail communications, and online training module.
 
Page 3

 
Moss Bros Group Limited
 

Strategic report (continued)
For the period ended 27 January 2024

GOVERNMENT/REGULATORS
We are committed to doing business responsibly and regularly have meetings/briefings, consultations, dialogue with trade bodies and specialist advisors to help proactively monitor new regulations and compliance requirements.
COMMUNITY
The community and wider society are concerned with charitable donations, environmental impact and sustainability
We operate across the UK and so have a presence in many different communities. We do not have a specific social policy, but MOSS actively looks for and has taken part in a number of initiatives, at both a national and a local level. Taking part in such initiatives can help promote our brand and mitigates our brand risk as shown on page 3. We have been involved with promotion of charitable initiatives, and we have also supported Prostate Cancer UK in raising awareness and funds.
We provide our excess products free of charge to a charity that offers smart formal wear to homeless men seeking employment.
MOSS also engages by having work/school placements.
ENVIRONMENT
We do not operate in a sector that creates significant pollution, but our products, logistical operations and stores all impact on the environment to some extent. Whilst we do not have a specific environmental policy, we do strive to minimise our environmental impacts as much as possible and we comply with all applicable environmental laws and regulations. We are continually looking for ways to reduce carbon emissions and to improve the efficiency of our operations, by reducing waste and consolidating deliveries as much as possible.
All our recyclable packaging is recycled where commercially viable and our surplus or end of life IT equipment is disposed of via an accredited recycling provider, to help minimise the amount of our waste ending up at landfill sites. We continually monitor our packaging options to seek a reduction in the amount of materials used.
We are constantly seeking to reduce our impact and we are committed to closing the loop and moving towards sustainable manufacturing processes. We have increased the use of recycled polyester and Bio degradable polyester in our ranges. We are is still using natural fibres such as wool and linen and we are growing the volume of sustainably sourced cotton across our product range. We continue to use a selection of trims that have been consciously chosen for their low impact on the environment and it is manufactured sustainably without compromising quality.
MOSS monitors carbon emissions and engages with suppliers to ensure our product is as sustainable as possible. 
 
Page 4

 
Moss Bros Group Limited
 

Strategic report (continued)
For the period ended 27 January 2024

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Page 5

 
Moss Bros Group Limited
 

Strategic report (continued)
For the period ended 27 January 2024


SUPPLIERS
It is our policy to maintain the highest standards of ethics, honesty and integrity. To ensure this, we have a zero tolerance approach to bribery and corruption and policies are in place that define the expected standards of our employees and suppliers.
We provide guidance to our employees around the giving and receiving of gifts, hospitality and entertainment. Anyone who suspects, is offered or asked to make a bribe is required to report such an incident or concern to the Company Secretary. There have been no incidents of bribery or corruption identified or notified to the Board in the year. The significant gift register is reviewed by the Board of Directors annually.
The Company aims to conduct all its business relationships with integrity and courtesy, and to honour all business agreements. We work closely with producers and our supply chain and have taken measures to prevent modern slavery.



This report was approved by the board and signed on its behalf.



David William Adams
Director

Date: 10 October 2024

Page 6

 
Moss Bros Group Limited
 

 
Directors' report
For the period ended 27 January 2024

The directors present their report and the financial statements for the period ended 27 January 2024.

Directors' responsibilities statement

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the period, after taxation, amounted to £14m (2023 - £27m).

Dividends totalling £10.25m were paid by the Company to the Parent company (2023: £6.75m).

Directors

The directors who served during the period were:

David William Adams 
Brian Denis Brick 
Warren Edmond Flick jr 
Jeffery Owen Spiegel 
Sheila Marie Geraghty 
Menoshi Shina 

Page 7

 
Moss Bros Group Limited
 

 
Directors' report (continued)
For the period ended 27 January 2024

Stakeholder engagement statement

The way in which the Board engages with its Stakeholders is set out in the s172 Statement on pages 3 - 6 of the Strategic Report.
Corporate social responsibility
The MOSS family includes people in our shops, our head office, and extends to our customers, our suppliers, our charities and our local communities.
Employee engagement and development
We pride ourselves at MOSS with a culture of having a transparent and open dialogue with our colleagues, and over the past few years having been building up a rhythm of engagement activities which have helped to influence and shape some of our most strategic decisions as a company.
We use listening groups, anonymous feedback platforms, as well as employee surveys as tools to engage with colleagues. This includes participation of the Chief Executive Officer as well as other directors. We remain committed to the personal development of our colleagues, and continually look at new and innovative ways to ensure personal development of everyone who works for us.
We have continued to conduct and publish our Gender pay analysis and have carried out an equal pay review to ensure equity or pay across similar roles.
Diversity and inclusion
Whilst Corporate Social Responsibility, sustainability, diversity and equal opportunities have always been a part of the MOSS culture, we are now increasing our focus on ensuring diversity and inclusion as a natural part of the working experience at MOSS. While we already have robust supporting policies in place, we are focusing on all the different aspects of where we can improve and how we can embed meaningful and lasting diversity and inclusion values in our day to day working experience. It is not our intention to make bold, unrealistic statements, but rather to drive a steady grassroots awareness and improvement across the business.

Employees with disabilities

Applications for employment by persons with disabilities are always fully and fairly considered, focusing on the aptitudes and abilities of the applicant concerned. In the event of an employee becoming disabled during their employment, every effort is made to ensure that their employment with the Company continues and that where appropriate, reasonable adjustments are made and relevant training and education of the wider team is arranged to adjust to continued employment. It is the policy of the Company that the training, career development and promotion or persons with disabilities should, as far as possible, be identical with that of other employees.

Page 8

 
Moss Bros Group Limited
 

 
Directors' report (continued)
For the period ended 27 January 2024

Suppliers

All product suppliers who join the MOSS family must follow our Ethical Code of Conduct before we do business with them. Our code covers all aspects or Health and Safety and Labour and Wages which is based on a code covering:
• General principles
• Non discrimination
• Forced labour
• Child labour
• Wages and hours
• Working conditions
• Environment
• Freedom or association
In line with UK legislation, we publish our annual Modern Slavery Statement which explains the steps we have taken so far to address this issue across our business. Our ongoing training programs continue with our key factories, to train our supplier compliance teams how to ethically audit their own supply base which has helped to increase visibility of our end to end supply chain further down the tiers.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsKreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





David William Adams
Director

Date: 10 October 2024

Page 9

 
Moss Bros Group Limited
 

 
Independent auditors' report to the members of Moss Bros Group Limited
 

Opinion


We have audited the financial statements of Moss Bros Group Limited (the 'Company') for the period ended 27 January 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 27 January 2024 and of its profit for the period 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 10

 
Moss Bros Group Limited
 

 
Independent auditors' report to the members of Moss Bros Group Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 7, 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 11

 
Moss Bros Group Limited
 

 
Independent auditors' report to the members of Moss Bros Group Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. 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, Statement of Recommended Practice, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 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 to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
• Discussions with management and assessment of known or suspected instances of non-compliance with   laws and regulations (including health and safety) and fraud; and
• Assessment of identified fraud risk factors; and
• Challenging assumptions and judgements made by management in its significant accounting estimates;    and
• Confirmation of related parties with management, and review of transactions throughout the period to    identify any previously undisclosed transactions with related parties outside the normal course of     business; and
• Reading minutes of meetings of those charged with governance; and
• Identifying and testing journal entries, in particular any entries made at the year end for financial statement  preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Page 12

 
Moss Bros Group Limited
 

 
Independent auditors' report to the members of Moss Bros Group Limited (continued)


Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Tracey Becker (Senior statutory auditor)
  
for and on behalf of
Kreston Reeves LLP
 
Chartered Accountants
Statutory Auditor
  
London

11 October 2024
Page 13

 
Moss Bros Group Limited
 

Statement of comprehensive income
For the period ended 27 January 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
137,508
151,579

Cost of sales
  
(47,040)
(50,872)

Gross profit
  
90,468
100,707

Shop's selling, marketing and distribution costs
  
(62,057)
(61,166)

Administrative expenses
  
(12,340)
(7,623)

Operating profit
 5 
16,071
31,918

Disposal of dormant subsidiaries
  
-
1,277

Interest receivable and similar income
 10 
624
5

Interest payable and similar expenses
 11 
(14)
(5)

Profit before tax
  
16,681
33,195

Tax on profit
 12 
(3,050)
(6,454)

Profit for the financial period
  
13,631
26,741

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
Moss Bros Group Limited
Registered number: 00134995

Balance sheet
As at 27 January 2024

27 January
As restated
28 January
2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
23
2,270

Tangible assets
 15 
6,118
5,752

  
6,141
8,022

Current assets
  

Stocks
 16 
14,503
14,337

Debtors: amounts falling due within one year
 17 
31,579
31,432

Cash and cash equivalents
 18 
26,236
18,274

  
72,318
64,043

Creditors: amounts falling due within one year
 19 
(31,841)
(28,550)

Net current assets
  
 
 
40,477
 
 
35,493

Total assets less current liabilities
  
46,618
43,515

Provisions for liabilities
  

Other provisions
 22 
(4,649)
(4,927)

  
 
 
(4,649)
 
 
(4,927)

Net assets
  
41,969
38,588


Capital and reserves
  

Called up share capital 
 23 
5,119
5,119

Share premium account
 24 
8,674
8,674

Acquisition reserve
 24 
4,370
4,370

Profit and loss account
 24 
23,806
20,425

  
41,969
38,588


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




David William Adams
Director

Date: 10 October 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
Moss Bros Group Limited
 

Statement of changes in equity
For the period ended 27 January 2024


Called up share capital
Share premium account
Acquisition reserve
Profit and loss account
Total equity

£000
£000
£000
£000
£000


At 29 January 2022
5,119
8,674
4,370
434
18,597



Profit for the period
-
-
-
26,741
26,741

Dividends: Equity capital
-
-
-
(6,750)
(6,750)



At 28 January 2023
5,119
8,674
4,370
20,425
38,588



Profit for the period
-
-
-
13,631
13,631

Dividends: Equity capital
-
-
-
(10,250)
(10,250)


At 27 January 2024
5,119
8,674
4,370
23,806
41,969


The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

1.


General information

Moss Bros Group Limited is a private company limited by shares and is incorporated in England and Wales with the company number 00134995. The address of the registered office and principal place of business is 8 St Johns Hill, Clapham Junction, London, SW11 1SA. 
The principal activity of the company consists of the retail, hire, subscription service and the offer of custom made formal wear for men along with a complementary smart casual range, predominately in the UK.  
These financial statements are for the 52 week period ended 27 January 2024. The comparative financial statements were prepared for the 52 week period ended 28 January 2023. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006. 
The financial statements are rounded to the nearest round thousand.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Moss Bros Group Holdings Limited as at 27 January 2024 and these financial statements may be obtained from 8 St Johns Hill, Clapham Junction, London, SW11 1SA.

Page 17

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The Directors have reviewed management forecasts, sensitivities and mitigating actions available to management which take into account possible changes in trading. These forecasts show that the Company should be able to operate within the existing working capital facilities.
The liquidity requirements of the Company have been assessed by the directors and believe them to be adequate for a period of at least 12 months from the date of signing these financial statements and therefore have adopted the going concern basis in preparation of the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'interest receivable and similar income' and 'interest payable and similar expenses'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 18

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Revenue comprises sales to third parties (excluding VAT) and is derived from the retail sale and hire of clothing and ancillary goods. For store retail purchases, revenue is recognised on exchange of goods. For the hire of clothing, the performance obligations are met when the hire clothing and ancillary goods are collected for use by the customer. For Tailor Me, the exchange of goods occurs upon collection. 
Deposits and advances taken in relation to Hire and Tailor Me create contract liabilities until the performance obligations are satisfied at the collection date. E-commence revenue is recognised at despatch date as this is the point where the performance obligations are met. Upon despatch the courier company becomes responsible for successful delivery. 
The Company offers a full refund on retail sales within 28 days. For online returns the company must be informed of intention to return goods within 14 days of the receipt. The estimated value of consideration relating to refunds is excluded from retail revenue. Management estimates the refund liability by considering the products expected to be returned. The liability creates a refund asset and a refund liability, and the cost of the estimated refunds is reflected in cost of sales. 

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 19

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
See below
Hire inventory
-
2 -7 years
Fixtures, vehicles and equipment
-
5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Leasehold improvements are written off over the shorter of the period of the lease or the useful economic life of the assets on a straight-line basis. Location premiums are paid to enter a property which is in a desirable location, stated at cost, net of depreciation and any provision of impairment.
Depreciation is calculated on location premiums over the useful economic life on a straight-line basis. Where assets of a store are required to be impaired leasehold improvements are treated as part of the cash-generating unit for impairment. 
Hire inventory is held as a fixed asset and depreciated over its estimated useful life. The classification differs from other stock held as the assets are retained by the Company and hired to customers on a short-term basis.

Page 21

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.13

Intangible assets

Computer software and the directly related development costs that are not an integral part of the related hardware are classified as an intangible asset and stated at cost less accumulated amortisation. Capitalised software costs include external direct costs of goods and services, as well as internal payroll-related costs for employees who are directly associated with capital projects. For both internally generated and other intangibles, amortisation is charged on a straight-line basis over three to five years. 
In accordance with FRS 102, internal development costs are only recognised when the Group is able to demonstrate all of the following:
 -  the technical feasibility of completing the intangible asset so that it will be available for use or
  sale.
 -  its intention to complete the intangible asset and use or sell it.
 -  its ability to use or sell the intangible asset.
 -  how the intangible asset will generate probable future economic benefits. Among other
  things, the entity can demonstrate the existence of a market for the output of the intangible
  asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
  intangible asset. 
 - the availability of adequate technical, financial and other resources to complete the
  development and to use or sell the intangible asset.
 -  the ability to measure reliably the expenditure to the intangible asset during its development. 
The inhouse software developed by the Group is used internally to improve operating procedures, creating probable future economic benefits for the Group. The development software includes costs to relating to the enhancement of the Group's e-commerce capabilities.

 
2.14

Impairment of fixed assets

At each reporting date, the Company reviews its carrying value of its property, plant and equipment, leasehold improvements and intangible assets to determine whether there is any indication that these assets are impaired. 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. 
For property, plant and equipment, the Company considers all the assets of a particular store to be one cash generating unit for the purposes of impairment review. 
Recoverable amount is the higher of fair value less costs to sell and the value in use. In assessing value in use of a store cash generating unit, the estimated cash flows are discounted to their present value. 
If the recoverable amount of a cash generating unit is estimated to be less than its carrying amount, the carrying amount of the cash generating unit is reduced to the recoverable amount. An impairment loss is recognised as an expense immediately. 

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 22

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.16

Stocks

Stock includes all costs of purchases and costs incurred in bringing inventories to their present location and condition. Costs of purchase comprise the purchase price, other taxes and transport costs. These costs are recognised as cost of sales upon the sale of stock. Stock write downs are included in the cost of sales when incurred. 
Retail inventory is valued at the lower of cost (weighted average by season) and estimated net realisable value (estimated selling price less costs to be incurred in selling and distribution). Cost includes all direct expenditure and other attributable costs incurred in bringing stock to their present location and condition. 
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
 
 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 23

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the reporting date, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows. 
Provisions for onerous property lease contracts are recognised when the Company believes that the
unavoidable costs of meeting the lease obligations exceed the economic benefits to be received
under the lease. 
Provisions for dilapidations for store operating leases are recognised when the Company believes
that the likelihood of incurring costs to rectify the store is probable, due to a contractual obligation
when vacating premises at lease expiry, and a reliable estimate can be made for the obligation.
Estimates are derived through negotiations, reliable third-party opinion or comparable historical
information.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Increases in provisions are charged as an expense to profit or loss.
 
2.21

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into. 
 
Page 24

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.


Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable.

Page 25

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the period. The nature of estimation is such though that actual outcomes could differ significantly from those estimates. 
In preparing these financial statements, the Directors have made the following judgements:
Tangible fixed assets
The Company has recognised tangible fixed assets with a carrying value of £6,118,000 (2023: £5,752,000) at the reporting date (see note 15). These assets are stated at their cost less provision for depreciation and impairment. The Company's accounting policy sets out the approach to calculating depreciation for assets and for subsequent additions. The Company determines at acquisition reliable estimates for the useful life of the asset and its residual value. These estimates are based upon such factors as the expected use of the acquired assets and market conditions. At subsequent reporting dates the Directors consider whether there are any factors such as technological advances or changes in market conditions that indicate a need to reconsider the estimates used. 
Where there are indicators that the carrying value of tangible assets may be impaired the Company undertakes tests to determine the recoverable value of assets. Recoverable value assessments include consideration of issues such as future market conditions, the remaining life of the asset and disposal values. 
Useful economic lives of tangible/intangible assets
The annual depreciation/ammortisation charge for tangible/intangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the condition of the assets. See notes 14 and 15 for the carrying amount of the tangible and intangible fixed assets.
Lease commitments
The Company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires Directors to consider whether the terms and conditions of each leases are such that the Company has acquired the risks and rewards associated with the ownership of the underlying assets. 
The following are the Company's key sources of estimation uncertainty:
Store impairment
At the end of each reporting period an impairment review is carried out to identify any indicators of impairment for each cash generating unit ("CGU"). Where indicators of impairment are present, the recoverable amount is calculated and an impairment loss recognised to reduce the carrying value of the asset to its recoverable amount. 
The Company has identified each store to be a separate CGU. The total number of stores at 27 January 2024 was 108 (2023: 107). At CGU level, the assets that are identified for determining the CGU's carrying amount comprises all classes of property, plant and equipment and leasehold improvements, including associated intangibles. 
The estimate that is considered to give rise to the most significant risk of material misstatement within the discounted cash flow model is budgeted sales for 2024/25. A decrease in budgeted sales of 1% would give rise to an impairment of £nil (2023: £3k). 

 
Page 26

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

3.Judgements in applying accounting policies (continued)


The Company notes that there is subjectivity around the discount rate applied in determining a store's recoverable amount. The Company's policy is to use weighted average cost of capital to determine the discount rate, which is based on several assumptions including the estimation of the Company's appropriate cost of debt in absence of debt within the Company. However, the Company has comfort that movement in the discount rate of five percentage points would not result in a material difference to the financial statements. 
Other assumptions that are not considered to be key estimates and do not give significant risk of material misstatement in the next financial period are in relation to future sales growth rates, future gross margin growth rates and cost increases in future years. 
Based on the results of this analysis, an impairment charge of £nil (2023: £248,000) has been recognised across 0 stores (2023: 3 stores), 0 of which are due for closure (2023: 2). 
There has also been an impairment reversal of £90,000 (2023: £338,000) recognised across 1 store (2023: 12 stores).
Management will continue to closely monitor trading performance of each store to ensure appropriate assets values are impaired at the earliest point, if required. 
Provision for dilapidations
Provisions for dilapidations for store operating leases are recognised when the Company believes the likelihood of incurring costs to rectify the store is probable, due to a contractual obligation when vacating premises at lease expiry, and a reliable estimate can be made for the obligation. 
The provision as at 27 January 2024 is £3,718,000 (2023: £3,505,000) which relates to 106 (2023: 103) locations, see note 22. 
Estimates for dilapidation provisions are based on accurate settlement history against past provisions. The average cost of previous settlements has then been applied to the 106 (2023: 103) locations.

Page 27

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Retail
123,828
131,784

Hire
13,680
19,795

137,508
151,579


Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
132,363
144,959

Republic of Ireland
3,007
3,771

Rest of the world
2,138
2,849

137,508
151,579



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Exchange differences
(976)
2,165

Profit/(Loss) on disposal of property, plant and equipment
(92)
(185)

Rent paid contingent on turnover
(1,968)
(3,944)


6.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
73
66

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 28

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£000
£000

Wages and salaries
23,496
22,067

Social security costs
1,950
1,917

Pension costs
501
435

25,947
24,419


The average monthly number of employees, including the directors, during the period was as follows:


        2024
        2023
            No.
            No.







Distribution
12
11



Selling and marketing
934
876



Administration
148
153

1,094
1,040


8.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
1,268
893

1,268
893


The highest paid director received remuneration of £733,000 (2023 - £446,000).


9.


Disposal of dormant subsidiaries

27 January
28 January
2024
2023
£000
£000
Forgiveness of intercompany loan

-

(10,779)
 
Disposal of investments

-

9,502
 
-

(1,277)
 

Page 29

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

10.


Interest receivable

2024
2023
£000
£000


Other interest receivable
624
5

624
5


11.


Interest payable and similar expenses

2024
2023
£000
£000


Other interest payable
14
5

14
5


12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
4,501
5,310

Adjustments in respect of previous periods
(1,065)
312


3,436
5,622


Total current tax
3,436
5,622

Deferred tax


Origination and reversal of timing differences
(386)
832

Total deferred tax
(386)
832


Taxation on profit on ordinary activities
3,050
6,454
Page 30

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024
 
12.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
16,681
33,195


Profit on ordinary activities multiplied by the effective rate of corporation tax in the UK of 24.03% (2023 - 19%)
3,952
6,307

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
35
8

Capital allowances for period in excess of depreciation
189
(28)

Remeasurement of deferred tax for changes in tax rates
(17)
-

Other timing differences leading to an increase (decrease) in taxation
-
276

Non-taxable income
(54)
-

Adjustment in respect of prior period
(1,065)
312

Income taxed at different rates on foreign jurisdictions*
(137)
(184)

Deferred tax not recognised
84
(468)

Group relief claimed
(5)
(2)

Other differences leading to an increase (decrease) in the tax charge
-
112

Foreign taxes (Ireland)
68
121

Total tax charge for the period
3,050
6,454

* Income taxed at different rates on foreign jurisdictions relates to the profit for the period of the Company's Irish stores taxed at 12.5%.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

27 January
28 January
2024
2023
£000
£000


Dividends paid
10,250
6,750

10,250
6,750

Page 31

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

14.


Intangible assets






Computer software

£000



Cost


At 29 January 2023
4,977


Additions
2,655



At 27 January 2024

7,632



Amortisation


At 29 January 2023
2,707


Charge for the period on owned assets
1,115


Impairment charge
3,787



At 27 January 2024

7,609



Net book value



At 27 January 2024
23



At 28 January 2023
2,270



Page 32

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

15.


Tangible fixed assets







Leasehold Improvements
Hire Inventory
Fixtures, vehicles and equipment
Total

£000
£000
£000
£000



Cost or valuation


At 29 January 2023
2,930
7,429
47,731
58,090


Additions
233
1,138
3,203
4,574


Disposals
(198)
(1,302)
(2,438)
(3,938)



At 27 January 2024

2,965
7,265
48,496
58,726



Depreciation


At 29 January 2023
2,428
6,101
43,811
52,340


Charge for the period on owned assets
183
1,288
1,878
3,349


Disposals
(198)
(1,210)
(2,438)
(3,846)


Impairment charge
131
-
634
765



At 27 January 2024

2,544
6,179
43,885
52,608



Net book value



At 27 January 2024
421
1,086
4,611
6,118



At 28 January 2023
502
1,329
3,921
5,752

Leasehold improvements relate to leasehold buildings as the element of land contained in these leases is minimal.
An impairment of leased properties of £nil (2023: £91,000) was recognised in the period.


16.


Stocks

27 January
28 January
2024
2023
£000
£000

Retail stock
14,503
14,337

14,503
14,337


Page 33

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

17.


Debtors

27 January
28 January
2024
2023
£000
£000


Trade debtors
484
1,091

Amounts owed by group undertakings
24,077
24,306

Other debtors
368
478

Prepayments and accrued income
3,588
3,262

Corporation tax recoverable
1,032
652

Deferred taxation
2,030
1,643

31,579
31,432



18.


Cash and cash equivalents

27 January
28 January
2024
2023
£000
£000

Cash at bank and in hand
24,530
18,274

Cash held under deposit
1,706
-

26,236
18,274



19.


Creditors: Amounts falling due within one year

27 January
28 January
2024
2023
£000
£000

Trade creditors
8,148
9,332

Amounts owed to group undertakings
7
7

Other taxation and social security
3,274
3,405

Other creditors
3,951
4,501

Accruals and deferred income
15,317
10,161

Financial instruments
1,144
1,144

31,841
28,550


HSBC Bank plc is secured by a fixed and floating charge over the assets of the company. There are no outstanding liabilities at the year end.

Page 34

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

20.


Financial instruments

27 January
28 January
2024
2023
£000
£000



Financial liabilities


Other financial liabilities measured at fair value through profit or loss - derivative open contracts
1,144
1,144


21.


Deferred taxation






2024


£000






At beginning of year
1,643


Charged to profit or loss
387



At end of year
2,030

The deferred tax asset is made up as follows:

27 January
28 January
2024
2023
£000
£000


Fixed asset timing differences
2,332
2,196

Short term timing differences
10
9

Capital gains
(312)
(562)

2,030
1,643

Page 35

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

22.


Provisions






CVA Profit Distribution provision
Dilapidation provision
Total

£000
£000





At 29 January 2023
1,422
3,505
4,927


Charged to profit or loss
(491)
213
(278)



At 27 January 2024
931
3,718
4,649

The dilapidations provision at 27 January 2024 of £3,717,874 (2023: £3,504,952) is the estimated future cost of the Company's dilapidation costs and is expected to be utilised within the end of the lease term for the stores. 
The CVA Profit Distribution arrangement provision at 27 January 2024 is £931,000 (2023: £1,422,000). The company will pay into the Profit Share Fund 10% of the amount by which the Profit Before Tax of the company for the period is in excess of £5m. The charge is adjusted where settlements have been negotiated with creditors since the CVA estimated at £237,000. 


23.


Share capital

27 January
As restated
28 January
2024
2023
£000
£000
Allotted, called up and fully paid



102,380,353 (2023 - 102,380,353) Ordinary shares of £0.05 each
5,119
5,119



24.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares issued by the company. Share premium may only be utilised to write-off any expenses incurred or commissions paid on the issue of those shares, or to pay up new shares to be allotted to members as fully paid bonus shares.

Acquisition reserve

This reserve represents the assets of those companies purchased by the entity.

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. 

25.


Prior year adjustment

A prior period adjustment has been made to reflect historically issued share capital with a nominal value of £76,024. The corresponding adjustment is to the profit and loss reserve. 

Page 36

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

26.


Capital commitments


At 27 January 2024 the Company had capital commitments as follows:

27 January
28 January
2024
2023
£000
£000


Contracted for but not provided in these financial statements
423
546

423
546


27.


Pension commitments

The company currently operates a defined contribution scheme. As at 27 January 2024 there was £89,000 outstanding relating to the defined contribution scheme (2023: £78,000). The charge for the period was £583,000 (2023: £435,000).


28.


Commitments under operating leases

At 27 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

27 January
28 January
2024
2023
£000
£000


Not later than 1 year
9,019
7,617

Later than 1 year and not later than 5 years
14,512
9,942

Later than 5 years
-
3

23,531
17,562


29.


Related party transactions

The Company is exempt from disclosing related party transactions with other companies that are wholly owned within the group. The following are related parties outside of the group:


27 January
28 January
2024
2023
£000
£000

Purchases from entities controlled by key management personnel
531
867
Amounts due to entities controlled by key management personnel
42
59

The total compensation paid to key management personnel of the company amounted to £3,461,565 (2023: £2,535,419).

Page 37

 
Moss Bros Group Limited
 

 
Notes to the financial statements
For the period ended 27 January 2024

30.


Controlling party

The Company's immediate parent is Moss Bros Group Holdings Ltd. The consolidated financial statements for this company can be obtained from 8 St Johns Hill, Clapham Junction, London, SW11 1SA.
In the opinion of the Directors there is no ultimate controlling party.


Page 38