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Registered number: 03258763










DUNE INTERNATIONAL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 JANUARY 2024

 
DUNE INTERNATIONAL LIMITED
 
 
COMPANY INFORMATION


Directors
Daniel Rubin 
Alice Arnold 
Nigel Darwin 




Secretary
Alice Arnold



Company number
03258763



Registered office
4th Floor
The White Building

11 Evesham Street

London

W11 4AJ




Statutory auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
DUNE INTERNATIONAL LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 24


 
DUNE INTERNATIONAL LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 27 JANUARY 2024

The directors present their annual report and financial statements for the 52 week period ended 27 January 2024 (2023: 52 week period ended 28 January 2023).

Business review
 
During the period the Company has continued to invest in growth, opening stores and concessions in conjunction with our franchise partners in the Middle East, Australia, Chile, Libya and Nigeria. We also have grown both existing and new wholesale accounts in the UK and overseas. 
This growth was against the backdrop of a challenging and unpredictable trading environment, with the impact of the rising cost of living, unseasonal weather and geopolitical instability, affecting demand for fashion footwear and accessories and accentuating consumer focus on newness and value. Cost inflation and an increased mix of franchise sales compared with wholesale has also had an impact on profitability. 
Consequently, the Company’s earnings before interest, tax, depreciation, amortisation (EBITDA) and exceptional costs during the period were a profit £1.8m (2023: £6.2m).
In response to this, the Company has implemented certain internal restructuring measures to simplify operations and rationalise its cost base.

Future developments
 
The Company has a clear strategy for future growth that concentrates on the strategic pillars of brand elevation, focus on the customer, digital capability and making Dune London a truly global brand.
The Company will continue to elevate the brand through enhanced product and brand marketing and by offering a premium customer shopping experience. The Company is also making important strides in making its product, supply chain and operations more sustainable. 
International expansion is a key strategic focus, and we plan for further growth, in particular in the Middle East in conjunction with our franchise partner. Despite facing significant headwinds during the period, we are encouraged by the strong foundations that we have established.
Category development, in particular in Accessories and Men’s, offers a key platform for growth, as we drive awareness of our brand in these categories and strengthen our elevated product offering in Accessories. We will also further develop our product collections to allow the brand to optimise distribution opportunities across markets and channels. 
Overall, we see considerable opportunity to continue to grow the Dune London brand and improve profitability through new wholesale opportunities. At the same time, we will manage our costs and cash to improve our position and remain flexible in response to changing conditions. 

Key performance indicators
 
In addition to EBITDA before exceptional costs, the principal key performance indicator that the directors use to assess performance is the development of our retail outlets globally. 
During the period we saw continued development of our retail presence in our international markets, where the number of stores and concessions increased to a total of 93 stores and 42 concessions at the period end (2023: 89 stores and 33 concessions). 

Page 1

 
DUNE INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 JANUARY 2024

Principal risks and uncertainties

The directors acknowledge their responsibility for the Company’s systems of internal control, and for identifying, evaluating and managing the risks faced by the business. The principal risks and uncertainties are detailed below:
Uncertain trading environment 
The business continues to operate in an environment impacted by an increasingly complex set of external factors. Ongoing cost of living challenges, cost of goods inflation, energy price volatility and increased interest rates, along with the potential for further global geopolitical and economic instability, have combined to create a difficult and unpredictable trading environment which could negatively impact performance. The Company is mindful that there may be an adverse impact on demand and prioritises focus and discipline across the business on cost, range and availability.
Product
A primary challenge as a wholesaler and international franchiser is to produce an attractive product range which is distinctive, relevant and affordable. The business has invested consistently in design and development to ensure that it delivers a range that is fashionable, comfortable and of excellent quality. There is also a focus on transitional products that are less dependent on seasonal weather changes. The buying team has developed long term relationships with a broad network of suppliers to ensure the product meets these goals and that the supply chain is robust and reliable.
People
The Company’s employees are a key differentiator in delivering outstanding product ranges and providing excellent customer service. The business is dedicated to attracting, developing and retaining high quality people to achieve these goals.  
IT risk
The Company is reliant on a suite of IT systems to manage and control the business. There are policies and procedures in place in order to safeguard the hardware, software and the data we hold.
Data privacy and cyber security
The Company is GDPR compliant and processes have been established to review the data protection implications of any new projects. The Board provides an ongoing review of cyber security essentials and ensures that our IT security infrastructure is appropriately implemented, tested, reviewed and improved.
Liquidity
The Company manages working capital very closely in order to maximise free cash flow available to invest in the future of the business. The Company’s debt position, available liquidity and cashflow projections are monitored and reported to the Board on at least a monthly basis.  
Treasury
The business is exposed to foreign exchange transactional risk as it sources the majority of its stock from overseas suppliers in US Dollars and Euros. The Company’s policy is to hedge against the risk of adverse movements in exchange rates through the use of forward contracts.

 
Page 2

 
DUNE INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 JANUARY 2024


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



Daniel Rubin
Director

Date: 25 July 2024

Page 3

 
DUNE INTERNATIONAL 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 (2023: 52 week period ended 28 January 2023).

Directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


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

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Principal activities

The principal activity of the Company is the sale of footwear and accessories in the UK and internationally.

Results and dividends

The profit for the period, after taxation, amounted to £1,657,297 (2023: £6,096,208).

The directors do not recommend payment of an ordinary dividend.

Directors

The directors who served during the period were:

Daniel Rubin 
Alice Arnold 
Nilesh Karia (resigned 31 January 2024)
Nigel Darwin 

Page 4

 
DUNE INTERNATIONAL LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 JANUARY 2024

Employee and disabled persons

Applications for employment are considered based on the aptitudes and abilities of prospective applicants, regardless of any personal disability. Continued training and support are given to all employees throughout their career with the Company, including specific provision for any employees with existing disabilities or who become disabled whilst employed at the Company. 
 
The Company's policy is to consult and discuss with employees matters likely to affect employees' interests. Information on matters of concern to employees is given through information bulletins and face-to-face meetings with management. Information on the Company's performance is maintained through a regular newsletter and bi-annual conferences. The Performance and Development Review process ensures employees are made aware of their individual contribution to the business.
The employees of the Company are contractually those of a fellow group subsidiary, Dune Group Limited. These policies therefore apply to the group as a whole.

Corporate responsibility

The Company has continued to adopt policies and procedures which take account of the need to preserve and protect the environment. The directors are committed to compliance with environmental best practice in all aspects of the business.  
The Company is committed to ethical sourcing, ensuring our supply chain complies with acceptable standards with regards to employment conditions and the environment.

Statement of disclosure to auditors

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

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

Auditor

Simmons Gainsford LLP, the previous auditors, have transferred their audit business to Sumer Auditco Limited
who will be deemed to have been reappointed pursuant to section 487 (2) of the Companies Act 2006 and
continue in office.

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





................................................
Daniel Rubin
Director

Date: 25 July 2024

Page 5

 
DUNE INTERNATIONAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUNE INTERNATIONAL LIMITED
 

Opinion


We have audited the financial statements of Dune International Limited for the period ended 27 January 2024, which comprise the Profit and loss account and other comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 27 January 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 6

 
DUNE INTERNATIONAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUNE INTERNATIONAL LIMITED (CONTINUED)

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of Directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
DUNE INTERNATIONAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUNE INTERNATIONAL LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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


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

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered: 

the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the Company, including its management structure and control systems (including the opportunity for management to override such controls); 
management's incentives and opportunities for fraudulent manipulation of the financial statements including the Company's remuneration and bonus policies and performance targets; and 
the industry and environment in which it operates. 

We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.

Based on this understanding we identified the following matters as being of significance to the entity:

laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax, and distributable profits legislation;
the timing of the recognition of commercial income;
management bias in selecting accounting policies and determining estimates;
recoverability of debtors; and
the requirement to impair its stocks and the amount of any such impairment.

We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: 

enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls during the period;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the period;
Page 8

 
DUNE INTERNATIONAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUNE INTERNATIONAL LIMITED (CONTINUED)

review documentation relating to compliance with the regulations relating to health and safety including health and safety certificates; fire assessment reports and the Group's internal audit reports;
challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to carrying value of stock;
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
challenging key assumptions made by management in their assessment of any impairment to the carrying values of stock;
reviewing the financial statements for compliance with the relevant disclosure requirements; 
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing the minutes of board meetings; and
evaluating the underlying business reasons for any unusual transactions.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Shilen Manek ACA, FCCA (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

25 July 2024
Page 9

 
DUNE INTERNATIONAL LIMITED
 
 
PROFIT AND LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 27 JANUARY 2024

Period ended 27 January 2024
Period ended 28 January 2023
Notes
£
£

  

Turnover
 3 
36,477,446
43,481,345

Cost of sales
  
(30,576,344)
(33,823,043)

GROSS PROFIT
  
5,901,102
9,658,302

Administrative expenses
  
(4,118,594)
(3,436,663)

Exceptional administrative expenses
 6 
(14,812)
-

OPERATING PROFIT
  
1,767,696
6,221,639

Tax on profit
 7 
(110,399)
(125,431)

PROFIT FOR THE FINANCIAL PERIOD
  
1,657,297
6,096,208

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Page 10

 
DUNE INTERNATIONAL LIMITED


BALANCE SHEET
AS AT 27 JANUARY 2024

27 January
28 January
2024
2023
Note
£
£

  

CURRENT ASSETS
  

Stocks
 9 
4,006,818
6,897,133

Debtors: amounts falling due within one year
 10 
15,961,852
11,032,953

  
19,968,670
17,930,086

Creditors: amounts falling due within one year
 11 
(4,274,039)
(3,892,752)

NET CURRENT ASSETS
  
 
 
15,694,631
 
 
14,037,334

TOTAL ASSETS LESS CURRENT LIABILITIES
  
15,694,631
14,037,334

  

NET ASSETS
  
15,694,631
14,037,334


CAPITAL AND RESERVES
  

Called up share capital 
 12 
100
100

Profit and loss account
 13 
15,694,531
14,037,234

  
15,694,631
14,037,334


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




Daniel Rubin
Director

Date: 25 July 2024

Page 11

 
DUNE INTERNATIONAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
AS AT 27 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 30 January 2022
100
7,941,026
7,941,126


Period ended 28 January 2023

Profit for the period
-
6,096,208
6,096,208



At 28 January 2023
100
14,037,234
14,037,334


Period ended 27 January 2024

Profit for the period
-
1,657,297
1,657,297


At 27 January 2024
100
15,694,531
15,694,631


Page 12

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

1.


GENERAL INFORMATION

Dune International Limited is a company limited by shares and incorporated in England and Wales. The registered office and principal trading address is 4th Floor, The White Building, 11 Evesham Street, London, W11 4AJ.

2.Accounting policies

 
2.1

Basis of preparation

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 Company's parent undertaking, Dune Topco Limited, includes the Company in its consolidated financial statements. The consolidated financial statements of Dune Topco Limited are available to the public and may be obtained from 4th Floor, The White Building, 11 Evesham Street London, W11 4AJ, United Kingdom. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:
- Cash Flow Statement and related notes; and
- Key Management Personnel compensation.
The accounting policies set out below, unless otherwise stated, have been applied consistently to all periods presented in these financial statements.

 
2.2

Foreign currency translation

Transactions in foreign currencies are translated at the system rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. 

 
2.3

Basic financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Page 13

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

2.Accounting policies (CONTINUED)


2.3
Basic financial instruments (continued)

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. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables 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.
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.



Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expires, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 14

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

2.Accounting policies (CONTINUED)

 
2.4

Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and any impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. 

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value based on prices prevailing at the date of acquisition, of each asset evenly over its expected useful life, as follows:

Computer equipment
-
Over 3 years to 7 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

 
2.5

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks and other costs in bringing them to their existing location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in profit or loss.

  
2.6

Impairment excluding stocks

Financial assets (including trade and other debtors)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. 
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment, an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the profit and loss account.
Non-financial assets
The carrying amounts of the Company's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the profit and loss account. Impairment
Page 15

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

2.Accounting policies (CONTINUED)

losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply. 
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

  
2.7

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. 
Defined contribution plans and other long term employee benefits 
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
Termination benefits 
Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an Offer made to encourage voluntary redundancy. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value. 

 
2.8

Turnover

Turnover comprises sales of goods to customers less an appropriate deduction for actual and expected returns and is stated net of VAT and trade discounts. Turnover is recognised when the significant risks and rewards of ownership have been transferred to the customer. This is normally on the date of the shipment of goods to customers.
Turnover also includes royalty income received from overseas franchise partners. This is calculated as a percentage of retail sales and is recognised in line with sales.

Page 16

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

2.Accounting policies (CONTINUED)

 
2.9

Taxation

Tax on the profit or loss for the period comprises of current tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous periods. Taxable profit differs from net profit as reported in the profit and account because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible.  

  
2.10

Judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 
Critical judgements 
No critical judgements have been made during the preparation of these financial statements.
Key sources of estimation uncertainty
The directors are of the view that there are no estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

 
2.11

Exceptional items

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

Page 17

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

3.


Turnover

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


Period ended
27 January
2024
Period ended
28 January
2023
£
£

Sale of goods
35,535,948
42,241,911

Royalties
941,498
1,239,434

36,477,446
43,481,345


Analysis of turnover by country of destination:

Period ended
27 January
2024
Period ended
28 January
2023
£
£

United Kingdom
14,329,138
17,208,844

Europe, Middle East and Africa
16,661,115
18,487,952

Rest of the world
5,487,193
7,784,549

36,477,446
43,481,345



4.


Operating profit

Period ended
27 January
2024
Period ended
28 January
2023
£
£
Operating profit is stated after charging:

Loss / (gain) on translation of foreign currency balances

294,751

(724,907)
 
Movement in bad debt expense

8,625

(9,166)
 
Exceptional items - (Note 6)

14,812

-
 

Page 18

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

5.


Auditors' remuneration

Period ended
27 January
2024
Period ended
28 January
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's annual accounts
8,300
14,375

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


6.


Exceptional items

Period ended
27 January
2024
Period ended
28 January
2023
£
£


Redundancy costs
14,812
-

14,812
-

Redundancy costs relate to the restructuring of business operations.


7.


Taxation


Period ended
27 January
2024
Period ended
28 January
2023
£
£

CORPORATION TAX


UK corporation tax
110,399
125,431


TOTAL CURRENT TAX

110,399
125,431


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
110,399
125,431
Page 19

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024
 
7.Taxation (CONTINUED)


Reconciliation of effective tax rate

The tax assessed for the period is lower than (2023: lower than) the standard rate of corporation tax in the UK of25% (2023:19%). The differences are explained below:

Period ended
27 January
2024
Period ended
28 January
2023
£
£


Profit on ordinary activities before tax
1,767,696
6,221,639


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 19%)
441,924
1,182,111

EFFECTS OF:


Non-deductible expenses
3,807
1,305

Capital allowances for period in excess of depreciation
(135)
(125)

Unutilised foreign tax credits
1,118
26,504

Group tax relief
(336,315)
(1,084,364)

TOTAL TAX CHARGE FOR THE PERIOD
110,399
125,431





Page 20

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

8.


Tangible fixed assets







Computer equipment

£



Cost or valuation


At 29 January 2023
12,429



At 27 January 2024

12,429



Depreciation


At 29 January 2023
12,429



At 27 January 2024

12,429



Net book value



At 27 January 2024
-



At 28 January 2023
-


9.


Stock

27 January
28 January
2024
2023
£
£

Finished goods and goods for resale
4,006,818
6,897,133

4,006,818
6,897,133


Page 21

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

10.


Debtors

27 January
28 January
2024
2023
£
£


Trade debtors
6,298,176
7,920,458

Amounts owed by group undertakings
9,248,345
2,912,866

Other debtors
374,592
180,176

Prepayments and accrued income
40,739
19,453

15,961,852
11,032,953



11.


Creditors

27 January
28 January
2024
2023
£
£

Trade creditors
126,891
1,016,474

Amounts owed to group undertakings
3,778,465
2,054,350

Corporation tax
31,653
27,185

Taxes and social security costs
265,435
624,170

Accruals and deferred income
71,595
170,573

4,274,039
3,892,752



12.


Share capital

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



100 Ordinary shares of £1.00 each
100
100



13.


Reserves

Called up share capital - represents the nominal value of shares that have been issued.
Retained earnings - includes all current and prior period retained profits and losses.

Page 22

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

14.


Contingent liabilities

The Company together with its group entities, Dune Holdings Limited, Dune Group Limited, Dune Brand Limited and Dune Topco Limited, have given a cross guarantee to its lender for group facilities and borrowings. In Dune Group Limited, the total bank loan and overdrafts is £5,789,014 (2023: £3,984,232).


15.


Directors' remuneration

27 January
28 January
2024
2023
£
£
Remuneration for qualifying services

66,436

63,641
 
66,436

63,641
 

The number of directors for whom retirement benefits accrued under defined contribution schemes amounted to 1 (2023: 1).
Except for the directors there were no other key management personnel.


16.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,474,010
1,590,605

Social security costs
153,696
180,934

Cost of defined contribution scheme
45,717
47,076

1,673,423
1,818,615


An average of 36 (2023: 41) employees are contractually employed by Dune Group Limited. Employee salary costs are fully recharged to Dune International Limited.


17.


Control

At the period end the immediate parent undertaking is Dune Topco Limited, a company registered in England and Wales and the ultimate controlling parties are Daniel and Anne Rubin, directors.
The largest group in which the results of the Company are consolidated is that headed by Dune Topco Limited. The consolidated financial statements of the group are available to the public and may be obtained from 4th Floor, The White Building, 11 Evesham Street London, W11 4AJ.

Page 23

 
DUNE INTERNATIONAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 JANUARY 2024

18.


Financial assets and liabilities

2024
2023
£
£


Financial assets measured at amortised cost
15,921,113
11,013,500

Financial liabilities measured at amortised cost
(3,976,951)
(3,241,397)




Financial assets measured at amortised cost comprise trade debtors, intercompany trading balances and other debtors.


Financial liabilities measured at amortised cost comprised trade creditors, intercompany trading balances and accruals and deferred income.


19.


Related party transactions

The Company has taken advantage of the exemption available in accordance with FRS 102, paragraph 33.1.A 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the Company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

Page 24