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Registered number: 02127866










DUNE GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 27 JANUARY 2024

 
DUNE GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
Daniel Rubin 
Anne Rubin 
Debra Bloom 
Alice Arnold 
Andrew Grainger 
Nigel Darwin 




Secretary
Alice Arnold



Company number
02127866



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 GROUP LIMITED
 

CONTENTS



Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditors' report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 37


 
DUNE GROUP 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
 
The Company achieved growth in the period, both overall and Like for Like (LFL), reflecting good progress on the key growth platforms of omnichannel in the UK market and category development, particularly Accessories and Men’s.
During the period the Company opened five full price stores and implemented operational improvements to the Dune London e-commerce platform to enhance the customer experience.
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 has also had a significant impact on profitability. 
Consequently, the Company’s earnings before interest, tax, depreciation, amortisation (EBITDA) and exceptional costs during the period were a loss of £0.5m (2023: profit of £2.7m).
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.
There will be further investment in online operations and partnerships, with a particular focus on customer relationship management, to allow us to communicate with our customers in a more engaging and relevant way. 
We will also continue to open new stores in high footfall locations when we are able to secure attractive rental terms that allow us to make an acceptable return. 
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 marketplace opportunities, investment in our e-commerce platform to make it best in class and having an expanding UK store estate. At the same time, we will manage our costs and cash to improve our position and remain flexible in response to changing conditions.  
 

Page 1

 
DUNE GROUP LIMITED
 

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

Key performance indicators
 
In addition to turnover and EBITDA before exceptional costs, the principal key performance indicators that the directors use to assess performance are: (1) the size of our retail estate, (2) growth in Dune website sales and (3) like for like (LFL) retail sales, meaning sales achieved under circumstances comparable to the previous period. 
There were 50 stores and 73 concessions at period end (2023: 47 stores and 76 concessions). Sales through the Dune website grew +2.3% year on year (2023: +0%), and total ecommerce sales grew by +3.9% (2023: +10.8%). LFL Retail sales for the period were +1.4% (2023: +17.3%).  

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 fashion retailer 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 dependant 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 the Company holds.
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 GROUP LIMITED
 

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


Section 172 (1) Statement
 
This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its members as a whole.  We consider the Company's major stakeholders to be our customers, employees, partners, suppliers and shareholders.
Having regard to the likely consequences of any decision in the long term
The board is committed to strong corporate governance and holds regular meetings to ensure that the implications of its strategic decisions are carefully assessed. Day-to-day management and decision making is delegated to the executive management team, however the board sets the strategic direction and reviews performance closely to ensure that all key decisions are favourable to the long-term sustainable growth of the business.
Having regard to the interests of the Company’s employees
The Board considers our employees to be key to the success of the business and ensures that their interests are fully considered when strategic decisions are made. Communication with employees is made through update emails, bi-annual conferences and face-to-face meetings. Members of the Board are highly visible in the central support office and regularly visit stores and the distribution centre which effectively ensures that the Board stays alert to the views of the workforce. We support hybrid working and other flexible working arrangements and conduct regular surveys to ensure that people feel adequately supported. The executive management team have undertaken diversity and inclusion training during the year. The Board is committed to helping employees improve their skills and knowledge, and training and development is available across the business.
Having regard to the need to foster the Company’s business relationships with external stakeholders
The interests of customers are considered in key decisions relating to store openings and closures, website development, selection of product lines, pricing, selection and monitoring of suppliers to ensure quality, social compliance and safety standards.  We communicate with our customers through our Customer Experience Team, in stores, through social media and through post purchase surveys, and we discuss customer feedback in our weekly trade meetings. The business has longstanding relationships with many of its suppliers and we work collaboratively to address any issues that arise. When onboarding new suppliers, financial and non-financial factors are considered to ensure we are working with the right suppliers.  
Having regard to the impact of the Company’s operations on the community and the environment
The directors are committed to the Company being a responsible retailer by working towards lessening environmental impacts and taking care of the people that design, make and sell our products. The business has set ambitious targets for recycled, renewable and responsibly sourced materials. To reduce our carbon emissions we have moved to renewable electricity, we use sea transportation wherever possible and have made changes in store refits and in our central support office and distribution centre to reduce energy consumption.  We are members of both Sedex and AmforiBSCI, and through these ethical trading platforms we have visibility of the social audits of our supplier factories. We are a corporate partner of the charity Mental Health UK. As well as fundraising, we champion the work they do. In addition, we provide in-kind logistics support to the charity Goods for Good which sources products to be sent to communities in need around the world.




 
Page 3

 
DUNE GROUP LIMITED
 

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

Having regard to the desirability of the Company maintaining a reputation for high standards of business conduct
The directors recognise the importance of operating a strong corporate governance framework and are committed to conducting business in an ethical and transparent manner. We operate a number of employee and supplier policies which strengthen group and supplier awareness of our expectations. Our teams know that there are effective systems and measures in place to address any issues. The Audit Committee exercises strong oversight over the Company’s activities in these areas. We are in regular contact with our suppliers and monitor compliance to the required standards of quality and social conditions. 
Having regard to the need to act fairly as between members of the Company
The directors are aware of their responsibility to protect and manage its shareholders’ investment.  Long-term shareholder value is considered when making all strategic and impactful decisions.  


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



Daniel Rubin
Director

Date: 25 July 2024

Page 4

 
DUNE GROUP LIMITED
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 27 JANUARY 2024

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

Directors' responsibilities

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 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 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 loss for the period, after taxation, amounted to £5,484,326 (2023: profit £70,417).

No dividends were paid in the period (2023: £nil) to the parent company, Dune Topco Limited.

Directors

The following directors who served during the period were:

Daniel Rubin 
Anne Rubin 
Nilesh Karia (resigned 31 January 2024)
Zoe Brookes (resigned 31 December 2023)
Debra Bloom 
Alice Arnold 
Clara Eisenberg (resigned 30 November 2023)
Andrew Grainger 
Nigel Darwin 

Page 5

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

Employees 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. 
For further details on how the board has regard to the interests of the Company's employees, please refer to the s172(1) Statement in the Strategic Report.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as it has been provided within the consolidated accounts of the parent entity, Dune Topco Limited.

Corporate responsibility

For details on how the board has had regard to the impact of the Company's operations on the community and the environment, to the Company's business relationships with suppliers, customers and others and to maintaining a reputation for high standards of business conduct, please refer to the s172(1) Statement in the Strategic Report. 

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 6

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

Opinion


We have audited the financial statements of Dune Group 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 loss 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 related 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 7

 
DUNE GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUNE GROUP 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 of 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 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 8

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

Auditors' responsibilities for the audit of the financial statements
 

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


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

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 pension legislation 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 investments 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;
     -    review documentation relating to compliance with the regulations relating to health and safety
          including health and safety certificates; fire assessment reports and the Company's internal audit
          reports;
 
Page 9

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

     -    challenging assumptions made by management in their specific accounting policies and estimates, in
          particular in relation to depreciation of tangible fixed assets; impairment of investments; carrying value
          of stock; onerous lease provision; and deferred tax asset;
     -    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;
     -    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 correspondence with HMRC; 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 10

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

2024
2023
Notes
£
£

  

Turnover
 3 
94,994,642
92,929,763

Cost of sales
  
(38,353,166)
(36,381,689)

Gross profit
  
56,641,476
56,548,074

Administrative expenses
  
(61,096,271)
(57,720,654)

Exceptional administrative items
 6 
(2,130,609)
3,098,081

Operating (loss)/profit
 4 
(6,585,404)
1,925,501

Interest receivable and similar income
  
12,785
-

Interest payable and similar expenses
 7 
(1,153,561)
(689,569)

(Loss)/profit before tax
  
(7,726,180)
1,235,932

Tax on (loss)/profit
 8 
2,241,854
(1,165,515)

(Loss)/profit for the financial period
  
(5,484,326)
70,417

Other comprehensive income for the period
  

Net change in fair value of cash flow hedge
  

- Recycled to profit and loss
 27 
113,907
(152,398)

- At period end
 27 
(88,725)
(113,907)

Movement of deferred tax on other comprehensive income
 8 
(6,296)
57,432

Other comprehensive income/(loss) for the period
  
18,886
(208,873)

Total comprehensive loss for the period
  
(5,465,440)
(138,456)

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

Page 11

 
DUNE GROUP LIMITED


BALANCE SHEET
AS AT 27 JANUARY 2024

27 January
28 January
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 9 
8,430,633
7,772,260

Investments
 10 
887,829
887,829

  
9,318,462
8,660,089

Current assets
  

Stocks
 11 
19,665,822
18,664,675

Debtors: amounts falling due within one year
 12 
25,317,908
22,136,588

Cash at bank and in hand
 13 
32,902
690,300

  
45,016,632
41,491,563

Creditors: amounts falling due within one year
 14 
(44,326,874)
(35,103,940)

Net current assets
  
 
 
689,758
 
 
6,387,623

Total assets less current liabilities
  
10,008,220
15,047,712

Provisions for liabilities
  

Provisions
 15 
(759,090)
(333,142)

  
 
 
(759,090)
 
 
(333,142)

Net assets
  
9,249,130
14,714,570


Capital and reserves
  

Called up share capital 
 18 
5,000,000
5,000,000

Cashflow hedge reserve
 19 
(66,544)
(85,430)

Profit and loss account
 19 
4,315,674
9,800,000

  
9,249,130
14,714,570


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

The notes on pages 14 to 37 form part of these financial statements.

Page 12

 
DUNE GROUP LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 27 JANUARY 2024


Called up Share Capital
Cash flow hedge reserve
Retained Earnings
Total equity

£
£
£
£


At 30 January 2022
5,000,000
123,443
9,729,583
14,853,026


Period ended 28 January 2023

Profit for the period
-
-
70,417
70,417

Other comprehensive loss for the period
-
(208,873)
-
(208,873)
Total comprehensive income for the period
-
(208,873)
70,417
(138,456)



At 28 January 2023
5,000,000
(85,430)
9,800,000
14,714,570


Period ended 27 January 2024

Loss for the period
-
-
(5,484,326)
(5,484,326)

Other comprehensive profit for the period
-
18,886
-
18,886
Total comprehensive income for the period
-
18,886
(5,484,326)
(5,465,440)


At 27 January 2024
5,000,000
(66,544)
4,315,674
9,249,130


Page 13

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

1.


General information

Dune Group Limited is a company limited by shares 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

These financial statements have been prepared under the historic cost convention, unless otherwise specified in these accounting policies, and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The Company's functional currency and the presentational currency of these financial statements are sterling.
The Company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Dune Topco Limited, a company incorporated in England and Wales, and is included in the consolidated accounts of that company which are available to the public and may be obtained from 4th Floor, The White Building, 11 Evesham Street, London, W11 4AJ.
In these financial statements, the Company is considered to be a qualifying entity (for the purpose 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

Going Concern

The financial statements have been prepared on a going concern basis which assumes that the Company is able to meet its obligations as they fall due for the foreseeable future. In adopting the going concern basis for preparing the financial statements, the Directors have considered the business activities as well as the Company's principal risks and uncertainties.
Management has prepared forecasts to model the business including profit and cash projections for the next three years. They have also performed a formal review of the headroom against banking covenants. As a result of this process, the Directors believe that the group can generate sufficient profitability and has sufficient cashflow liquidity available to meet the covenant and all liabilities as they fall due for the next 12 months.
The Company therefore continues to adopt the going concern basis in the financial statements.

 
2.3

Foreign currency translation

Transactions in foreign currencies are translated to sterling 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 sterling 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.

Page 14

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

2.Accounting policies (CONTINUED)

 
2.4

Basic financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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. Equity instruments are any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Page 15

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

2.Accounting policies (CONTINUED)


2.4
Basic financial instruments (continued)

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

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

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

Other financial instruments

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

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, 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 16

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

2.Accounting policies (CONTINUED)

  
2.5

Other financial instruments

Cash flow hedges
Where the hedged risk is the foreign exchange risk in a firm commitment or a highly probable forecast transaction, the Company recognises the effective part of any gain or loss on the derivative financial instrument in other comprehensive income (OCI). Any ineffective portion of the hedge is recognised immediately in the profit and loss account.
The hedging gain or loss recognised in OCI is reclassified to profit or loss when the hedged item is recognised in the profit and loss account or when the hedging relationship ends.

 
2.6

Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment provisions. 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:

Long leasehold properties
-
Over 25 years
Land and buildings leasehold
-
Over the life of the lease
Computer equipment
-
Over 3 - 7 years
Fixtures, fittings & equipment
-
Over 3 - 5 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.

 
2.7

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.

Page 17

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

2.Accounting policies (CONTINUED)

  
2.8

Impairment excluding stocks and deferred tax asset

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 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.

Page 18

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

2.Accounting policies (CONTINUED)

  
2.9

Employee benefits

Short term 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. 

 
2.10

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 delivery of the goods to retail customers and on the date of shipment of goods to wholesale customers. E-commerce sales are recorded on despatch to the customer. 

  
2.11

Expenses

Operating lease 
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation, in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. 
Interest receivable and Interest payable 
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. 

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. 

Page 19

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

2.Accounting policies (CONTINUED)

 
2.13

Taxation

Tax on the profit or loss for the period comprises current and deferred 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. 
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries, branch, joint ventures to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. 
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. 
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

 
2.14

Exceptional administrative items

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

 
2.15

Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Where the effect of the time value of money is considered material, provisions are discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money.
Provisions for onerous leases are recognised when the Company believes that the unavoidable costs of meeting or exiting the lease obligations exceed the economic benefits expected to be received under the lease.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 20

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

2.Accounting policies (CONTINUED)

  
2.16

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 
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements: 
Onerous lease provision 
Determination of whether a loss is unavoidable requires areas of judgement such as consideration of potential future investment decisions, the possibility of sub-letting, local conditions which may be impacting on current performance and the opportunity to surrender a lease back to the landlord. Additionally, some estimation is required in determining the future EBITDA performance of each site and the potential to exit leases earlier than the expiry date. 
Impairment of assets 
Property, plant and equipment is reviewed tor impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount of an asset or a cash generating unit is determined based on value-in-use calculations prepared on the basis of management's assumptions and estimates in the period. Where the recoverable amount of the cash generating unit is negative, an impairment loss is recognised in the profit and loss account. 
Financial instruments 
The Company uses derivative financial instruments in the form of contracts for the forward purchase of US Dollars and Euros. These grant the Company the ability to buy foreign currency at a fixed price over the life of the contracts. The fair value of these contracts as at the balance sheet date has been calculated using an estimated forward rate as at that date. This forward rate has been calculated using the interpolated zero coupon rates based upon the then money market and swap interest rates for each currency pair as reported by ICE Benchmark Administration Limited and the Financial Times respectively. 
Deferred tax asset
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Management uses judgement in estimating whether there will be sufficient taxable profits in the future to recognise a deferred tax asset. Management will also need to make estimates about the expected timing of reversal of the deductible and taxable temporary differences when considering whether a deferred tax asset can be recognised. The timing of the reversal of deferred tax asset on capital allowance has been estimated based on the longevity of the business's operations.
Key sources of estimation uncertainty
The directors are of the view that there are no estimates or assumptions in addition to the above which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Page 21

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

3.


Turnover

The total turnover of the Company for the period has been derived from its principal activity.
The analysis by geographical area of the Company's turnover is set out as below:


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

Geographical Segment

United Kingdom
87,883,556
85,235,554

Rest of the World
7,111,086
7,694,209

94,994,642
92,929,763



4.


Operating profit

Operating profit is stated after charging:

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

Depreciation of tangible assets
3,977,831
3,904,520

Loss on disposal of tangible assets
7,617
3,715

Exceptional items - (Note 6)
2,130,609
(3,098,081)

Lease surrender income
-
(1,318,481)

Operating lease rentals:
-
-

- Plant and machinery
163,279
74,198

- Other assets
7,757,366
6,405,537

(Gain)/loss on translation of foreign currency balances
(209,470)
466,904

Page 22

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

5.


Auditors' Remuneration

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


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


Audit of the Company's annual accounts
38,200
37,000

Other services
1,800
1,750


6.


Exceptional items

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


Movement in provision for onerous leases
(936,644)
1,311,158

Redundancy costs
(1,193,965)
-

Strategic reorganisation
-
(105,718)

Gains on group restructure
-
1,892,641

Total exceptional (expenses)/income
(2,130,609)
3,098,081

a)Movement in provision for onerous leases are related to non-performing stores.
b) Redundancy costs relate to the restructuring of business operations.
c)  Professional fees associated with the voluntary arrangement that ended in the prior period. 
d)       Gains on transfer of intellectual property within the Group.


7.


Interest payable

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


Bank interest payable
1,129,410
651,830

Other loan interest payable
24,151
37,739

1,153,561
689,569

Page 23

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

8.


Taxation

Total tax expense recognised in profit and loss account, other comprehensive income and equity



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

Corporation tax


Foreign tax
21,921
29,942


21,921
29,942


Total current tax
21,921
29,942

Deferred tax


Origination and reversal of timing differences
(1,071,682)
281,593

Adjustments in respect of prior periods
(1,192,093)
756,978

Adjustments in respect of changes in tax rate
-
97,002

Total deferred tax
(2,263,775)
1,135,573


Tax on (loss)/profit
(2,241,854)
1,165,515
Page 24

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


Reconciliation of effective tax rate

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

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


(Loss)/profit on ordinary activities before tax
(7,726,180)
1,235,932


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 19%)
(1,931,545)
234,827

Effects of:


Non-deductible expenses
9,115
4,765

Depreciation on ineligible assets
41,770
191,989

Fixed asset (gain) / loss on disposal
(2,534)
(609,408)

Adjustments to previous periods
(1,192,093)
(279,764)

Foreign corporation tax adjustment
21,921
23,979

Group tax relief
824,494
467,653

Change in future tax rates
-
97,002

Group relief prior year
-
1,036,742

Capital gains
-
166,604

Other differences leading to an increase (decrease) in the tax charge
(12,982)
(168,874)

Total tax charge for the period
(2,241,854)
1,165,515

The company has estimated trading losses of £15,589,124 (2023: £10,484,646) available to carry forward against future trading profits. A deferred tax asset has been recognised in respect of these losses as shown in note 16.

Page 25

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

8.


Taxation (CONTINUED)

Current tax
Deferred tax
2024
Total tax
Current tax
Deferred tax
2023
Total tax
        £
        £
        £
        £
        £
        £

Recognised in Profit and loss account

21,921

(2,263,775)

(2,241,854)
 
29,942
 
1,135,573

1,165,515

Recognised in Other comprehensive income

-

6,296

-
 
-
 
(57,432)

(57,432)


21,921

(2,257,479)

(2,241,854)
 
29,942
 
1,078,141

1,108,083



9.


Tangible fixed assets







Short leasehold property
Computer equipment
Fixtures, fittings & equipment
Total

£
£
£
£



Cost or valuation


At 29 January 2023
1,943,239
20,149,752
21,003,093
43,096,084


Additions
61,918
2,736,952
1,844,950
4,643,820


Disposals
-
(24,867)
(68,858)
(93,725)



At 27 January 2024

2,005,157
22,861,837
22,779,185
47,646,179



Depreciation


At 29 January 2023
1,740,899
15,971,652
17,611,273
35,323,824


Charge for the period on owned assets
81,985
2,529,141
1,366,705
3,977,831


Disposals
-
(24,867)
(61,242)
(86,109)



At 27 January 2024

1,822,884
18,475,926
18,916,736
39,215,546



Net book value



At 27 January 2024
182,273
4,385,911
3,862,449
8,430,633



At 28 January 2023
202,340
4,178,100
3,391,820
7,772,260

Page 26

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

10.


Fixed asset investments








Shares in subsidiary undertakings

£



Shares in subsidiary undertakings
Cost


At 28 January 2023 and at 27 January 2024
887,829






Net book value



At 28 January 2023 and at 27 January 2024
887,829


Subsidiary undertakings


The company holds share capital in the following company:

Company

Country of registration or incorporation

Class of shares

      %

Dune Shoes Ireland Limited
Republic of Ireland
Ordinary
100


11.


Stock

27 January
28 January
2024
2023
£
£

Finished goods and goods for resale
19,665,822
18,664,675

19,665,822
18,664,675


Page 27

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

12.


Debtors

27 January
28 January
2024
2023
£
£


Trade debtors
2,889,191
3,298,914

Amounts owed by group undertakings
13,489,906
12,421,757

Other debtors
614,880
514,536

Deferred taxation (Note 16)
4,893,074
2,635,595

Prepayments and accrued income
3,412,351
3,265,039

Derivative financial instruments (Note 27)
18,506
747

25,317,908
22,136,588



13.


Cash and cash equivalents

27 January
28 January
2024
2023
£
£

Cash at bank and in hand
32,902
690,300

Less: bank overdrafts
(5,789,014)
(3,984,232)

(5,756,112)
(3,293,932)


Page 28

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

14.


Creditors: amounts falling due within one year

27 January
28 January
2024
2023
£
£

Bank loans and overdrafts
5,789,014
3,984,232

Trade creditors
21,920,717
19,935,108

Amounts owed to group undertakings
8,953,594
2,622,874

Other taxation and social security
3,909,949
3,805,634

Other creditors
134,891
43,270

Accruals and deferred income
3,511,478
4,598,168

Derivative financial instruments (Note 27)
107,231
114,654

44,326,874
35,103,940


The bank loans and overdrafts are secured by:
-    a fixed and floating charge over the assets of the Company;
-  an unlimited cross guarantee and set-off agreement given by the Company and its fellow group   undertakings to secure all liabilities of each other.
 



15.


Provisions

2024
Restated
2023
        £
        £

At 29 January 2023

333,142

974,692

Utilised in the period

(534,846)

(141,569)

Revaluation

936,644

(1,311,158)

Unwinding of the discount

24,150

36,576

Released in the period

-

774,601

At 27 January 2024

759,090

333,142


The above provisions are related to onerous leases. It is expected that £425,243 (2023: £166,187) of the provision will be utilised/unwound within one year, and the remainder between two and five years.

Page 29

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

16.


Deferred tax






2024


£






At beginning of year
2,635,595


Charged to profit or loss
2,263,775


Charged to other comprehensive income
(6,296)



4,893,074

The net reversal expected in the next reporting period in relation to deferred tax assets above is £90,177 (2023: £1,129,999) for capital allowances, carried forward losses, unpaid pension contributions and derivative financial instruments The net reversal expected in the next reporting period in relation to the deferred tax liabilities above is £12,204 (2023: £4,207) for roll over relief.

The deferred tax asset is made up as follows:

27 January
28 January
2024
2023
£
£


Capital Allowances
1,228,348
1,078,860

Tax losses carried forward
3,897,281
1,584,191

Unpaid pension contributions
38,173
29,964

Derivative financial instruments
22,181
28,477

Roll over relief
(292,909)
(85,897)

4,893,074
2,635,595


17.


Pension and other post-retirement benefit commitments

Defined contribution

27 January
28 January
2024
2023
£
£
Contributions payable by the Company for the period

547,624

413,439
 

Page 30

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

18.


Share capital

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



5,000,000 (2023: 5,000,000) Ordinary shares of £1.00 each
5,000,000
5,000,000



19.


Reserves

Called up share capital - represents the nominal value of shares that have been issued.
Cashflow hedge reserves - comprises the movement in fair value of derivatives on the balance sheet.
Retained earnings - includes all current and prior period retained profits and losses.


20.


Contingent liabilities

The Company together with its group entities, Dune Holdings Limited, Dune International Limited, Dune Brand Limited and Dune Topco Limited, have given a cross guarantee to its lender for group facilities and borrowings. At the period end, there are no borrowings in the other group entities (2023: £nil). 


21.


Financial commitments

At 27 January 2024 the Company had future minimum lease payments under non-cancellable operating leases as follows:


Land and
 
27 January
buildings
As restated
28 January
Other
 
27 January

28 January
2024
2023
2024
2023
£
£
£
£


Within one year
5,120,616
3,628,859
49,406
33,777

Between two and five years
9,267,150
2,282,606
92,569
52,851

In over five years
1,723,260
3,484,011
-
-

16,111,026
9,395,476
141,975
86,628

Page 31

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

22.


Directors' remuneration

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

2,223,791

1,886,331
 
Company pension contributions to defined contribution schemes

80,695

70,775
 
Compensation for loss of office

500,747

115,885
 
2,805,233

2,072,991
 

The total number of directors in the period was 9 (2023: 9).
The number of directors for whom retirement benefits accrued under defined contribution schemes amounted to 8 (2023: 8).
Remuneration disclosed above include the following amounts paid to the highest paid director:

27 January
2024
28 January
2023
        £
        £

Remuneration for qualifying services

648,667

623,719


Page 32

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

Page 33

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

23.


Employees

Staff costs were as follows:

27 January
2024
28 January
2023
        £
        £

Wages and salaries

19,529,159

18,708,240

Social security costs

1,843,362

1,662,133

Other pension costs

547,624

413,439


21,920,145

20,783,812


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

27 January
2024
28 January
2023
        £
        £

Management and administration

223

207

Sales

625

570

Distribution

96

109


944

886


An average of 36 (2023: 41) employees within the management and administration line are employed by Dune Group Limited whose salary costs are fully recharged to Dune International Limited, a fellow subsidiary of Dune Topco Limited.


24.


Control

The immediate parent 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 34

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

25.


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.
At the previous balance sheet date, the Company had the following balances and transactions with an undertaking that was jointly controlled by the parent company. During the current period, the Group acquired the remaining 50% share capital making it a wholly owned subsidiary at the year end. 

28 January 
2023
£
Trade debtor balance

618,446

Management charges received

196,427


During the period £nil (2023: £5,703) was paid to a director in respect of rent.


26.


Financial assets and liabilities

27 January
2024
28 January
2023
£
£

Financial assets


Financial assets measured at amortised cost
16,993,974
16,235,206

Financial assets measured at fair value
18,506
747

17,012,480
16,235,953


Financial liabilities


Financial liabilities measured at amortised cost
(39,624,212)
(26,847,454)

Financial liabilities measured at fair value
(107,231)
(114,654)

(39,731,443)
(26,962,108)


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


Financial liabilities measured at amortised cost comprise bank and other loans and overdrafts, trade creditors, intercompany trading balances, other creditors, accruals and deferred income.


Financial assets and liabilities measured at fair value comprise derivative financial instruments (note 27).



Page 35

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

27.


Derivatives and other instruments

The majority of the Company's supplies are sourced overseas. These purchases are priced in Sterling, US dollars and Euros. The Company's policy is to eliminate the majority of currency exposures on purchases through forward foreign currency contracts.
Carrying amount of financial instruments
The carrying amounts of the financial assets and liabilities relating to derivative financial instruments include:

27 January
2024
28 January
2023
£
£
Assets measured at fair value through OCI

18,506

747
 
Liabilities measured at fair value through OCI

(107,231)

(114,654)
 
(88,725)

(113,907)
 

Financial instruments measured at fair value
The Company uses derivative financial instruments in the form of contracts for the forward purchase of US Dollars and Euros. These grant the Company the ability to buy foreign currency at a fixed price over the life of the contracts. The fair value of these contracts as at the balance sheet date has been calculated using an estimated forward rate as at that date. This forward rate has been calculated using the interpolated zero coupon rates based upon the then money market and swap interest rates for each currency pair as reported by ICE Benchmark Administration Limited and the Financial Times respectively.
Hedge accounting
For cash flow hedges: the amount of the change in fair value of the hedging instrument recognised in other comprehensive income for the period, the amount (if any) that was reclassified from equity to profit or loss for the period; and the amount (if any) of any excess of the fair value of the hedging instrument over the change in the fair value of the expected cash flow that was recognised in profit or loss for the period. 

Page 36

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

27.

Derivatives and other instruments (CONTINUED)

The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur as required by FRS 102.12.29(a) for the cash flow hedge accounting models:


2024
2023

Carrying amount
£
Expected cash flows
£
< 1 year
£
> 1 year
£
Carrying amount
£
Expected cash flows
£
< 1 year
£

Forward exchange swaps

Assets
1,301
592,215
592,215
-
747
969,171
969,171

Liabilities
(18,390)
6,128,732
6,128,732
-
(2,548)
1,495,492
1,495,492

Forward exchange contracts

Assets
17,205
2,339,669
2,339,669
-
-
-
-

Liabilities
(88,841)
4,805,212
3,192,893
1,612,319
(112,106)
5,446,633
5,446,633

(88,725)
13,865,828
12,253,509
1,612,319
(113,907)
7,911,296
7,911,296


The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to affect the profit and loss account:


2024
2023

Carrying amount
£
Expected cash flows
£
< 1 year
£
> 1 year
£
Carrying amount
£
Expected cash flows
£
< 1 year
£

Forward exchange swaps

Assets
1,301
94,346
94,346
-
747
121,758
121,758

Liabilities
(18,390)
841,005
841,005
-
(2,548)
123,556
123,556

Forward exchange contracts

Assets
17,205
387,604
387,604
-
-
-
-

Liabilities
(88,841)
649,334
603,579
45,755
(112,106)
917,003
917,003

(88,725)
1,972,289
1,926,534
45,755
(113,907)
1,162,317
1,162,317

Page 37