Registered number: 12260782
Moss Bros Group Holdings Limited
Annual report and financial statements
For the period ended 27 January 2024
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Moss Bros Group Holdings Limited
Company Information
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Chartered Accountants & Statutory Auditor
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168 Shoreditch High Street
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Moss Bros Group Holdings Limited
Contents
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Independent auditors' report
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Consolidated statement of comprehensive income
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Consolidated balance sheet
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated statement of cash flows
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Notes to the financial statements
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Moss Bros Group Holdings Limited
Group strategic report
For the period ended 27 January 2024
The directors present their strategic report together with the audited financial statements for the 52 week period ended 27 January 2024.
Principal activities
Moss Bros Group Holdings 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 £14.5m or 9.6% to £136.1m.
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 18.4%. The Group continues to be highly cash generative and has no debt.
The Group 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
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Moss Bros Group Holdings Limited
Group 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.
The Group’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 Group are set out in this report below, together with the policies and processes to manage these risks.
The Directors have reviewed the Group’s forecasts. As described in the current trading and outlook section above, the outlook for the group is expected to be positive for the following year. These forecasts show that the group should be able to operate within its existing working capital facilities.
The Directors have a reasonable expectation that the Group 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 Group.
Page 2
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Moss Bros Group Holdings Limited
Group strategic report (continued)
For the period ended 27 January 2024
Principal risks and uncertainties
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Moss Bros is an established brand which has successfully re-branded to MOSS, maintaining a 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.
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.
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.
Page 3
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Moss Bros Group Holdings Limited
Group strategic report (continued)
For the period ended 27 January 2024
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.
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.
Page 4
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Moss Bros Group Holdings Limited
Group strategic report (continued)
For the period ended 27 January 2024
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.
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Moss Bros Group Holdings Limited
Group strategic report (continued)
For the period ended 27 January 2024
Page 6
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Moss Bros Group Holdings Limited
Group 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 Group 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.
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Moss Bros Group Holdings 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
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The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £12,931,000 (2023 - £25,683,000 ).
Dividends totalling £10m were paid by the Company to the shareholders (2023: £4.5m).
The directors who served during the period were:
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Moss Bros Group Holdings Limited
Directors' report (continued)
For the period ended 27 January 2024
Stakeholder engagement statement
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The way in which the Board engages with its Stakeholders is set out in the s172 Statement on pages 4 - 8 or 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 group.
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.
Whilst Corporate Social Responsibility, sustainability, diversity and equal opportunities have always been 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.
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Moss Bros Group Holdings Limited
Directors' report (continued)
For the period ended 27 January 2024
Employees with disabilities
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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 Group 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 Group that the training, career development and promotion or persons with disabilities should, as far as possible, be identical with that of other employees.
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
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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 and the Group'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 and the Group's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Group since the year end.
The auditors, Kreston Reeves LLP, will 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.
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Moss Bros Group Holdings Limited
Independent auditors' report to the members of Moss Bros Group Holdings Limited
We have audited the financial statements of Moss Bros Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 27 January 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity 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, 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 Group's and of the parent Company's affairs as at 27 January 2024 and of the Group's 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.
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 Group 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
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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 Group's or the parent 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.
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Moss Bros Group Holdings Limited
Independent auditors' report to the members of Moss Bros Group Holdings Limited (continued)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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
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In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set out on page 8, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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Moss Bros Group Holdings Limited
Independent auditors' report to the members of Moss Bros Group Holdings Limited (continued)
Auditors' responsibilities for the audit of the financial statements
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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 Group 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 judgment 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.
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Moss Bros Group Holdings Limited
Independent auditors' report to the members of Moss Bros Group Holdings 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.
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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
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Moss Bros Group Holdings Limited
Consolidated statement of comprehensive income
For the period ended 27 January 2024
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Profit on disposal of dormant subsidiaries
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial period
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Profit for the period attributable to:
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Owners of the parent Company
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 22 to 44 form part of these financial statements.
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Moss Bros Group Holdings Limited
Registered number: 12260782
Consolidated balance sheet
As at 27 January 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 44 form part of these financial statements.
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Moss Bros Group Holdings Limited
Registered number: 12260782
Company balance sheet
As at 27 January 2024
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Profit and loss account brought forward
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Other changes in the profit and loss account
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Profit and loss account carried forward
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 44 form part of these financial statements.
Page 17
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Moss Bros Group Holdings Limited
Consolidated statement of changes in equity
For the period ended 27 January 2024
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Contributions by and distributions to owners
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Dividends: Equity capital
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Shares issued during the period
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Comprehensive income for the period
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Dividends: Equity capital
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The notes on pages 22 to 44 form part of these financial statements.
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Page 18
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Moss Bros Group Holdings Limited
Company statement of changes in equity
For the period ended 27 January 2024
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Contributions by and distributions to owners
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Dividends: Equity capital
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Shares issued during the period
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Comprehensive income for the period
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Dividends: Equity capital
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The notes on pages 22 to 44 form part of these financial statements.
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Page 19
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Moss Bros Group Holdings Limited
Consolidated statement of cash flows
For the period ended 27 January 2024
Cash flows from operating activities
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Profit for the financial period
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Amortisation of intangible assets
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Depreciation of tangible assets
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Impairments of fixed assets
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Loss on disposal of tangible assets
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Increase/(decrease) in creditors
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(Decrease)/increase in provisions
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of investment loans
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Net cash used in financing activities
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Page 20
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Moss Bros Group Holdings Limited
Consolidated statement of cash flows (continued)
For the period ended 27 January 2024
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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Page 21
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
Moss Bros Group Holdings Limited is a private company limited by shares and is incorporated in England & Wales with the company number 12260782. 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 is that of a holding company. The principal activity of the group 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
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Basis of preparation of financial statements
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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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The financial statements are rounded to the nearest thousand pounds.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 26 January 2019.
Page 22
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
The Directors have a reasonable expectation that the Group 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 Group should be able to operate within the existing working capital facilities.
The liquidity requirements of the Group has 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.
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Foreign currency translation
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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 Consolidated 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 23
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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-commerce 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 Group 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.
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Operating leases: the Group as lessee
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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, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
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.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.
Page 24
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
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Current and deferred taxation
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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 and the Group operate and generate 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;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
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.
Page 25
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. Following each acquisition, it is the Group's policy that the underlying businesses continue to trade and operate in the same markets as individual business units. The Group therefore considers the useful economic life of goodwill acquired to be ten years.
Other intangible fixed 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 Company 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.
Page 26
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
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.
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:
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Fixtures, Vehicles and equipment
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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.
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.
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Impairment of fixed assets and goodwill
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At each reporting date, the Group reviews the 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 Group 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.
Page 27
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks 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 (weighed 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.
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.
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Cash and cash equivalents
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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.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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 28
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Group 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 Group believes that the unavoidable costs of meeting the lease obligations exceed the economic benefits to be reviewed under the lease.
Provisions for dilapidations for store operating leases are recognised when the Group 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.
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 Group'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 and equity instruments are classified according to the substance of the contractual arrangements entered into.
Page 29
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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 Group's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable.
Page 30
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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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:
Goodwill
The Group has recognised goodwill arising from business combinations with a carrying value of £4,336,000 (2023: £5,012,000) at the reporting date (see note 14). On acquisition, the Group determines a reliable estimate of the useful economic life of goodwill based upon factors such as the expected use of the acquired business, forecasts of expected future results and cash flows and any legal, regulatory or contractual provisions that can limit useful life. At each subsequent reporting date the Directors consider whether there have been any factors such as technological advances or changes in market conditions that indicate a need to reconsider the useful life of goodwill.
Tangible fixed assets
The Group has recognised tangible fixed assets with a carrying value of £6,121,000 (2023: £5,754,000) at the reporting date (see note 15). These assets are stated at their cost less provision for depreciation and impairment. The Group's accounting policy sets out the approach to calculating depreciation for assets and for subsequent additions. The Group 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.
Useful economic lives of tangible/intangible assets
The annual depreciation/amortisation 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 and 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.
Where there are indicators that the carrying value of tangible assets may be impaired the Group 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.
Lease commitments
The Group 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 Group has acquired the risks and rewards associated with the ownership of the underlying assets.
The following are the Group'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.
Page 31
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
3.Judgments in applying accounting policies (continued)
The Group 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: £3,125).
The Group notes that there is subjectivity around the discount rate applied in determining a store's recoverable amount. The Group'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 Group's appropriate cost of debt in absence of debt within the Group. However, the Group 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).
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 Group 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 cab 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 24.
Estimates for dilapidation provisions are based on accurate settlement history against past provisions.
Page 32
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Profit/(Loss) on disposal of property, plant and equipment
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Rent paid contingent on turnover
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During the period, the Group obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
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Fees payable to the Company's auditors and their associates in respect of:
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Audit of subsidiary undertakings
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Preparation of the financial statements
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Page 33
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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There are no employee costs, including directors' remuneration, under the company due to this being recharged from Moss Bros Group Limited.
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The average monthly number of employees, including the directors, during the period was as follows:
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Other interest receivable
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Interest payable and similar expenses
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Interest payable on loans
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Page 34
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Profit on disposal of dormant subsidiaries
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Disposal of dormant subsidiaries
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During the prior year, the Group struck off a number of its dormant subsidiaries. The amount above represents the net assets at the date of disposal less the associated negative goodwill.
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Page 35
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
11.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by the effective rate of corporation tax in the UK of 24.03% (2023 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for period in excess of depreciation
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Other timing differences leading to an increase (decrease) in taxation
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Adjustment in respect of prior periods
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Income taxed at difference rates on foreign jurisdictions*
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Deferred tax not recognised
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Other differences leading to an increase (decrease) in the tax charge
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Remeasurement of deferred tax for change in rates
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Total tax charge for the period
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* 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%.
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
Page 36
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Parent company profit for the year
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the period was £10,227,000 (2023 - £6,358,000).
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Charge for the period on owned assets
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Amortisation charges in relation to Computer software are recorded within shop's selling and marketing costs.
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Page 37
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Fixtures, vehicles and equipment
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Charge for the period on owned assets
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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.
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Page 38
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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Retail, hire and the offer of custom made formal wear for men
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The aggregate of the share capital and reserves as at 27 January 2024 and the profit or loss for the period ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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Page 39
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Prepayments and accrued income
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Corporation tax recoverable
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Page 40
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Amounts owed to group undertakings comprise loans arising from the company's acquisition. The loans have no fixed repayment date.
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Other financial liabilities measured at fair value through profit or loss - derivative open contracts
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Charged to profit or loss
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Page 41
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
23.Deferred taxation (continued)
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Fixed asset timing differences
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Short term timing differences
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CVA Profit Distribution provision
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Charged to profit or loss
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The dilapidations provision at 27 January 2024 of £3,717,874 (2023: £3,504,952) is the estimated future cost of the Group'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 group will pay into the Profit Share Fund 10% of the amount by which the Profit Before Tax of Moss Bros Group Limited 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.
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Allotted, called up and fully paid
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10,401 (2023 - 10,400) A Ordinary shares of £0.0001 each
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1,377 (2023 - 1,400) B Ordinary shares of £0.0001 each
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Page 42
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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.
Profit and loss account
The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
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At 27 January 2024 the Group and Company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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The Group 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).
Page 43
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Moss Bros Group Holdings Limited
Notes to the financial statements
For the period ended 27 January 2024
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Commitments under operating leases
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At 27 January 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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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 the group:
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Purchases from entities controlled by Key Management Personnel
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Dividends paid to Key Management Personnel and their close family
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Amounts due to entities controlled by Key Management Personnel
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The total compensation paid to key management personnel of the group amount to £3,461,565 (2023: £2,535,419).
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In the opinion of the Directors there is no controlling party.
Page 44
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