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REGISTERED NUMBER: 02167762 (England and Wales)






















Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Giant UK Ltd

Giant UK Ltd (Registered number: 02167762)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10


Giant UK Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: I J Beasant
J K H Koo
P Wang



SECRETARY: A Bargewell



REGISTERED OFFICE: Charnwood Edge
Syston Road
Cossington
Leicestershire
LE7 4UZ



REGISTERED NUMBER: 02167762 (England and Wales)



AUDITORS: Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
Alexandra House
43 Alexandra St
Nottingham
Nottinghamshire
NG5 1AY



SOLICITORS: Nelsons Solicitors LLP
Pennine House
8 Stanford Street
Nottingham
NG1 7BQ

Giant UK Ltd (Registered number: 02167762)

Strategic Report
for the Year Ended 31 December 2023

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

REVIEW OF BUSINESS
2023 was a challenging year for the UK bicycle market following the rise in trade during the COVID period. Lower numbers of new and lifestyle customers entering the market created a large global overstock and in turn heavy discounting by many brands as they sought to address the challenges faced. While Giant UK experienced these challenges in certain segments it performed ahead of the market, continuing to build its brand value, network and consumer reputation.

While Strong sales in the performance and fitness segment helped to underpin the business, in other segments the heavy discounting in the market placed pressure on Margin and profitability.

During 2023 Giant UK continued to expand its retail footprint as well as its programs on line and in store to support its retail channel. We introduced a number of new and relevant products as well as controlled actions to reduce stock.

The main challenge for the industry in 2024 will be addressing the remaining overstock in the market. The UK is being used as a solution for stock elsewhere and will experience genuine pressures from the heavy overstock of E bikes in mainland Europe. Giant UK will continue to improve its situation alongside launching a number of key new products and opening a number of additional stores. We will continue to provide a supportive position to our network building for the future.

PRINCIPAL RISKS AND UNCERTAINTIES
The overstock across the global market will bring the greatest challenge to the UK market as companies take actions necessary to reduce their own pressures. There is also a general election in the UK alongside a number of key sporting events that can impact consumer spending.

These pressure points will impact achievable retails and intern retail margins. It will be essential to balance stock levels early in 2024 and adjusting the business according to the new market levels. Consolidation of network will bring opportunity and advantage to Giant due its strength in network.

SECTION 172(1) STATEMENT
The directors of the company must act in accordance with a set of general duties, as detailed in section 172 of the UK Companies Act 2006. The directors fulfil these duties as follows:

Risk management
The company has a long-term strategic plan that effectively identifies, evaluates and mitigates the risks which it faces, ensuring they are sufficiently considered and, if applicable, hedged against for the future. The directors will invariably delegate day-to-day management and decision making to executive management, but will ensure that management is acting in accordance with the strategy and plans agreed by the board.

The interest of the company's employees
The board recognises that employees are central to the long-term success of the company. The company systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests.

Business relationships with suppliers, customers and others
The company employs dedicated relationship managers to foster these relationships which also ensures the board has a high degree of visibility to take stakeholder considerations into account.

Community and environment
The company's approach is to use its position of strength to ensure it is an asset to the communities and people with which it interacts. The company strives to create positive change in reducing the environmental impact of its business.

ANALYSIS OF KEY PERFORMANCE INDICATORS
While Giant UK saw a return to normal revenue levels and impact on profitability it continues to operate a lean and efficient model, it will ensure its stock levels return to better operational levels reducing provisions and costs.

ON BEHALF OF THE BOARD:





A Bargewell - Secretary


21 October 2024

Giant UK Ltd (Registered number: 02167762)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

I J Beasant
J K H Koo
P Wang

FINANCIAL INSTRUMENTS
The directors are of the opinion that an assessment of the company's assets, liabilities, financial position and profit/loss can be determined from the information contained within the accounts.

Details of the company's financial risk management objectives and policies and the exposure to price, credit, liquidity and cash flow risk have been documented within the company's Strategic Report.

PROFESSIONAL INDEMNITY INSURANCE
The company takes out indemnity insurance on behalf of the directors.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The company seeks to treat all supplier, customers and other stakeholders in a fair and reasonable manner in accordance with the company's culture. Payment terms for supplier payments are adhered to where these are consistent with the company's supplier payment processes.

The directors and management engage actively with suppliers, customer and other stakeholders on a regular basis to foster strong working relationships for the benefit of all parties.

STREAMLINED ENERGY AND CARBON REPORTING
The Directors are of the opinion that an accurate assessment of carbon and energy reporting is not possible due to the volume of overseas freight which is incurred with operating the business and sourcing materials from overseas.

The UK footprint of the company's carbon usage is small compared to the overseas contribution, which cannot be calculated.

The Directors actively implement initiatives within the UK operation to minimise energy consumption where ever possible.

DISCLOSURE IN THE STRATEGIC REPORT
The directors have prepared a review of the business, together with a summary of the principal risks and uncertainties affecting the company, and these are detailed within the Strategic Report. The report includes an explanation of the company's financial risk management policies.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable 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.


Giant UK Ltd (Registered number: 02167762)

Report of the Directors
for the Year Ended 31 December 2023

DIRECTORS' RESPONSIBILITIES STATEMENT - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



A Bargewell - Secretary


21 October 2024

Report of the Independent Auditors to the Members of
Giant UK Ltd

Opinion
We have audited the financial statements of Giant UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have not been prepared in accordance with applicable legal requirements as the Streamlined Energy and Carbon Reporting analysis, as required by The Streamlined Energy and Carbon Reporting Regulation, has been omitted.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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.

Report of the Independent Auditors to the Members of
Giant UK Ltd


Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on pages three and four, 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 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.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Our approach included obtaining an understanding of the legal and regulatory frameworks that are applicable to the company and we determined those that are most significant. Based on the results of our risk assessment we designed audit procedures to identify non-compliance with such laws and regulations. The specific procedures included enquiry of management and those charged with governance around actual and potential litigation and claims.

In addition, and based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. Specifically we considered the risk of fraud through management override that may lead to a misappropriation of assets or inappropriate financial reporting. In response, we performed audit work over the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Kevin Shaw BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
Alexandra House
43 Alexandra St
Nottingham
Nottinghamshire
NG5 1AY

21 October 2024

Giant UK Ltd (Registered number: 02167762)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 54,511,630 62,363,470

Cost of sales 42,722,056 50,418,765
GROSS PROFIT 11,789,574 11,944,705

Distribution costs 3,178,911 2,736,558
Administrative expenses 7,852,534 6,583,616
11,031,445 9,320,174
OPERATING PROFIT 5 758,129 2,624,531

Interest receivable and similar income - 1,555
758,129 2,626,086

Interest payable and similar expenses 6 1,314,610 427,637
(LOSS)/PROFIT BEFORE TAXATION (556,481 ) 2,198,449

Tax on (loss)/profit 7 - 158,590
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (556,481 ) 2,039,859

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(556,481

)

2,039,859

Giant UK Ltd (Registered number: 02167762)

Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 23,207 -
Tangible assets 9 1,866,015 1,764,652
Investments 10 - 1,000
1,889,222 1,765,652

CURRENT ASSETS
Stocks 11 33,312,887 39,928,979
Debtors 12 17,222,107 16,880,856
Cash at bank and in hand 742,222 296,007
51,277,216 57,105,842
CREDITORS
Amounts falling due within one year 13 36,173,782 41,322,357
NET CURRENT ASSETS 15,103,434 15,783,485
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,992,656

17,549,137

CAPITAL AND RESERVES
Called up share capital 17 200,000 200,000
Other reserves 18 1,784,700 1,784,700
Retained earnings 18 15,007,956 15,564,437
SHAREHOLDERS' FUNDS 16,992,656 17,549,137

The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2024 and were signed on its behalf by:





I J Beasant - Director


Giant UK Ltd (Registered number: 02167762)

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

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 January 2022 200,000 13,524,578 1,784,700 15,509,278

Changes in equity
Total comprehensive income - 2,039,859 - 2,039,859
Balance at 31 December 2022 200,000 15,564,437 1,784,700 17,549,137

Changes in equity
Total comprehensive income - (556,481 ) - (556,481 )
Balance at 31 December 2023 200,000 15,007,956 1,784,700 16,992,656

Giant UK Ltd (Registered number: 02167762)

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

1. STATUTORY INFORMATION

Giant UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal activity of the company in the year was the marketing and distribution of bicycles and gear to the retail sector.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £.

The company has taken advantage of exemption from the requirement to produce a statement of cash flows because its results are included in a parent company's consolidated financial statements.

Preparation of consolidated financial statements
The company is entitled to exemption under the Companies Act 2006 from the obligation to prepare group accounts on the grounds that its results are included within the consolidated accounts of a parent undertaking.

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

Stock valuations and recoverability of trading assets - these involve judgements as to the extent to which provisions are required to account for the risk of irrecoverability or obsolescence.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on cost
Fixtures and fittings - 20 - 33% on cost

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Investments in subsidiaries
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Giant UK Ltd (Registered number: 02167762)

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

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation
The taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In these cases, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to be payable or recoverable using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the income statement.

Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Giant UK Ltd (Registered number: 02167762)

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

2. ACCOUNTING POLICIES - continued

Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 48,831,174 54,926,200
Europe 5,680,456 7,437,270
54,511,630 62,363,470

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,650,950 1,808,577
Social security costs 198,574 180,654
Other pension costs 137,158 134,277
1,986,682 2,123,508

The average number of employees during the year was as follows:
2023 2022

Distribution 18 19
Management and administration 23 17
41 36

2023 2022
£    £   
Directors' remuneration 79,306 263,868
Directors' pension contributions to money purchase schemes 24,161 52,652

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Giant UK Ltd (Registered number: 02167762)

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

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 49,898 55,458
Depreciation - owned assets 525,100 369,081
Loss on disposal of fixed assets 341,086 -
Goodwill amortisation 279 -
Auditors' remuneration 15,000 15,000
Foreign exchange differences (1,251,277 ) 568,573
Impairment of trade debtors 835,331 (78,188 )
Operating lease rentals- property 398,087 209,381

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 1,314,610 427,637

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 158,590
Tax on (loss)/profit - 158,590

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (556,481 ) 2,198,449
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
21.380% (2022 - 19%)

(118,976

)

417,705

Effects of:
Expenses not deductible for tax purposes 74,422 133,342
Capital allowances in excess of depreciation - (372,979 )
Depreciation in excess of capital allowances 44,554 -
Group relief - (19,478 )
Total tax charge - 158,590

Giant UK Ltd (Registered number: 02167762)

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

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
Reclassification/transfer 536,179
At 31 December 2023 536,179
AMORTISATION
Amortisation for year 279
Reclassification/transfer 512,693
At 31 December 2023 512,972
NET BOOK VALUE
At 31 December 2023 23,207

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 January 2023 184,442 9,016,614 9,201,056
Additions - 623,865 623,865
Disposals (42,130 ) (2,451,545 ) (2,493,675 )
Reclassification/transfer - 20,887 20,887
At 31 December 2023 142,312 7,209,821 7,352,133
DEPRECIATION
At 1 January 2023 65,849 7,370,555 7,436,404
Charge for year 47,438 477,662 525,100
Eliminated on disposal (42,131 ) (2,451,545 ) (2,493,676 )
Reclassification/transfer - 18,290 18,290
At 31 December 2023 71,156 5,414,962 5,486,118
NET BOOK VALUE
At 31 December 2023 71,156 1,794,859 1,866,015
At 31 December 2022 118,593 1,646,059 1,764,652

10. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1 January 2023 1,000
Disposals (1,000 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 1,000

Giant UK Ltd (Registered number: 02167762)

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

11. STOCKS
2023 2022
£    £   
Finished goods 33,312,887 39,928,979

12. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 13,420,363 12,828,263
Amounts owed by group undertakings 1,334,845 1,067,834
Other debtors 303,832 49,954
VAT - 1,305,478
Prepayments 2,163,067 1,467,874
17,222,107 16,719,403

Amounts falling due after more than one year:
Trade debtors - 161,453

Aggregate amounts 17,222,107 16,880,856

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 22,293,813 26,854,396
Trade creditors 1,392,658 859,628
Amounts owed to group undertakings 9,475,209 12,069,073
Tax - 155,113
Social security and other taxes - 145,157
VAT 1,901,210 -
Accruals and deferred income 1,110,892 1,238,990
36,173,782 41,322,357

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,293,813 2,854,396
Bank loans 20,000,000 24,000,000
22,293,813 26,854,396

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 344,283 342,710
Between one and five years 1,280,870 1,354,748
In more than five years 789,813 837,200
2,414,966 2,534,658

Giant UK Ltd (Registered number: 02167762)

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

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 2,293,813 2,854,396
Bank loans 20,000,000 24,000,000
22,293,813 26,854,396

The bank holds as security a fixed charge over the company's book debts and a floating charge over all other assets.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
200,000 Ordinary share 1 200,000 200,000

18. RESERVES

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

Other reserves:
A capital contribution from the parent company.

19. PENSION COMMITMENTS

The amount recognised in profit or loss in relation to defined contribution plans was £137,158 (2022 - £134,277).

20. ULTIMATE PARENT COMPANY

Giant Manufacturing Company Limited (incorporated in Taiwan ) is regarded by the directors as being the company's ultimate parent company.

The smallest and largest parent undertakings which prepare group accounts are Giant Europe BV, incorporated in the Netherlands, and Giant Manufacturing Company Limited, incorporated in Taiwan, respectively. Group accounts can be obtained from the following address: Giant Europe BV, Pascallan 66, 8218 NJ Lelystad, The Netherlands.

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the current and previous year Mr I Beasant, a director, purchased goods on a commercial basis. At this year end and the previous, nothing was outstanding.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total remuneration paid to key management personnel for services provided to the company was £89,255 (2022 - £167,706).

23. CONTROLLING PARTY

The company is controlled by its directors.