Company Registration No. SC125327 (Scotland)
SCHUH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
SCHUH LIMITED
COMPANY INFORMATION
Directors
C Temple
D M Gillan-Reid
S E Becker
M E Vaughn
T A George
P Desai
Secretary
D M Gillan-Reid
Company number
SC125327
Registered office
1 Neilson Square
Deans Industrial Estate
Livingston
West Lothian
United Kingdom
EH54 8RQ
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
SCHUH LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 12
Directors' responsibilities statement
13
Independent auditor's report
14 - 17
Group statement of comprehensive income
18
Group balance sheet
19 - 20
Company balance sheet
21 - 22
Group statement of changes in equity
23
Company statement of changes in equity
24
Group statement of cash flows
25
Notes to the financial statements
26 - 52
SCHUH LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 1 -

The directors present the strategic report for the period ended 3 February 2024.

 

Principal activity

The principal activity of the group is the sale of footwear through its chain of retail stores and via on-line activities.

Business review

The principal companies within the Schuh Limited group ("Schuh group") were Schuh Limited and Schuh (ROI) Limited. At 3 February 2024, Schuh group operated 121 stores (2022: 122) across all territories, averaging approximately 5,041 square feet (2022: 5,041 square feet) for a main chain store and 2,826 square feet (2023: 2,826 square feet) for a standalone kids unit. These stores include both street-level, retail parks and mall locations in the United Kingdom, Channel Islands and the Republic of Ireland. The Schuh group closed three stores (2023: four) and opened two new stores (2023: four). The Schuh group also sells footwear through e-commerce operations with specific UK, EU, Irish and German website domains.

 

The financial statements cover a 53 week period with the comparative financial results covering a 52 week period. The group's key performance indicators are:

 

3 February 2024

28 January 2023

Change

 

£000

£000

%

Turnover

380,807

354,491

7.4

EBITDA

28,039

20,645

35.8

Profit before tax

21,043

13,422

56.8

Profit after tax

16,082

10,389

54.8

Equity shareholders’ funds

34,507

18,220

89.4

Tangible asset investment

9,152

7,898

15.9

Current assets as a % of current liabilities

258%

236%

9.3

Average number of employees

4,371

3,977

9.9

Customer footfall

49.373m

47.585m

3.8

 

Turnover increased by 7.4% and footfall increased by 3.8% in our stores. E-commerce performance continues to be strong, growing 10% like for like.

 

The asset investment is made up of UK fixed asset additions (£8,753k) plus the Schuh (ROI) fixed asset additions of (€470k) converted at an exchange rate of 1.18 to give total Schuh (ROI) additions of (£399k) and total group additions of £9,152k.

 

The carrying values of stores have been compared to their recoverable amounts, represented by their value in use to the group. No impairment was recognised in the current and prior periods.

 

While the retail environment continues to pose difficult trading conditions we will continue to review our store portfolio so to ensure we are best placed to adapt to this changing environment. We believe our continued investment in driving efficiency and operational improvements through technology will serve us well.

The balance sheet includes a figure within long term debt of £44m (2023: £50m) and represents an intercompany loan from Genesco Jersey Ltd. The loan expiry is April 2025, with an annual interest rate of 3.4% charged to Schuh Limited. This debt is listed on The International Stock Exchange.

More detailed analysis of performance can be found at www.genesco.com as part of our parent company's quarterly and annual U.S. SEC filings.

SCHUH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 2 -
Principal risks and uncertainties

The Board considers the following to be the main risks which could materially affect the business:

 

SCHUH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 3 -
Section 172 statement

The Directors are well aware of their duty under s172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regards (amongst other matters) to:

 

 

Two of the Directors have operational roles within the Company itself, who join their Director-designate colleagues in setting, approving and overseeing of the business strategy and related policies. Board meetings are held regularly involving all operational management where the Company’s activities are considered and decisions made. The non-operational Directors (of the Schuh entity), being Genesco Inc. board members (the parent Company) delegate authority for the day-to-day management to the Schuh operational team. All directors receive information to ensure that they have regard to section 172 when making relevant decisions.

 

In pursuant of the above duty the directors have put in place the following measures to engage with the wider stakeholder group to enable a decision making process that promotes the success of the Company for the benefit of its members as a whole.

Customers

We believe our first responsibility is to our customers who support the business by selecting Schuh as their destination of choice for fashion footwear. In return, we aim to offer the highest levels of customer service and care, whether our customers choose to buy in a store or online. Our commitment to service extends throughout the business and it is the duty of all employees, at any work location, to assist their colleagues in delivering the highest levels of service to our customers. Employees are empowered to take decisions which benefit service levels.

 

The following principal decisions made by the directors were made only after considering the input from engaging with customers;

 

Workforce

We recruit those with an enthusiasm for our products and our customers. We develop them through individual coaching and personal encouragement. We provide opportunities for training and development to those who wish to progress their career. We encourage loyalty and commitment to the business by ensuring that all employees treat each other with honesty and respect. We offer fair rewards, promote from within wherever possible and encourage teamwork.

 

The Company has maintained its policy of consulting with or informing employees on all matters of concern to them and of information relevant to the general performance of the company Company’s performance. For further information, please refer to the Employees section of the Directors’ Report on page 6.

 

Employees also participated in an approved Share Incentive Plan in the year to 3 February 2024 - see the note 24 on page 48.

 

In the year to 3 February 2024 the Company has continued to commit substantial resource to developing its employees, aiming to encourage every employee to achieve their full potential, which in turn helps the company to achieve its own objectives.

SCHUH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 4 -

Workforce (continued)

The following principal decisions made by the directors were made only after considering the input from engaging with employees:

 

After many years of in-house systems development for all HR, ancillary payroll, employee communication & engagement systems, Management have decided to replace these with a more technologically advanced all-encompassing external solution. The vendor has been chosen, with a large-scale implementation project taking place during FY25.

 

Suppliers

The Company seeks to act ethically, fairly and transparently and to create effective long standing relationships with suppliers that are mutually beneficial. The Company has continued to engage with key suppliers through regular contact with both the Buying and Quality Control teams and this has served to strengthen relationships and promote good business practice.

 

The following principal decisions made by the directors were made only after considering the input from engaging with suppliers;

 

 

Environment

The Company is committed to preventing pollution and minimising the impact of its operations on the environment.

 

We regard the conservation of energy, raw materials and water and reducing waste to be a high priority in our business. Through employee co-operation and efficient management procedures, the company undertakes to encourage sound environmental practices throughout the business.

 

The following principal decisions made by the directors were made only after considering the input from engaging with environmental agencies, suppliers and purpose groups;

 

Purpose

As a business we are committed to diversity and inclusion which is channelled through our Purpose Pillars (Mental Wellness, Sustainability, LGBT+, Racial Equality, Disability Equality), both with our charity partners as well as with our employees and suppliers.

 

The following principal decisions made by the directors were made only after considering the input from engaging with our internal and external purpose groups;

 

SCHUH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 5 -

On behalf of the board

D M Gillan-Reid
Director
1 November 2024
SCHUH LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 6 -

The directors present their annual report and financial statements for the period from 29 January 2023 to 3 February 2024.

Principal activities

The principal activity of the group is the sale of footwear through its chain of retail stores and via on-line activities.

Branches

The Company has 100% ownership of an Irish entity Schuh (ROI) Limited, registered in the Republic of Ireland. This subsidiary controls ten stores and a distribution centre within Ireland.

Results and dividends

The results for the period are set out on page 18.

No ordinary dividends were paid (2023: Nil). The directors do not recommend payment of a further dividend (2023: Nil).

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

C Temple
D M Gillan-Reid
S E Becker
M E Vaughn
T A George
P Desai
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force at the reporting date.

Research and development

Any research and development work would usually only be carried out by the IT function within the Company, the Notes to the Financial Accounts details a section under Accounting Policies which considers this IT development expenditure.

Employees

Applications for employment are considered based on the aptitude of prospective applicants, whether disabled or not. The group's policy is to, as far as possible, provide continued training and support to any member of staff who should become disabled but is still able to perform their job. Training and promotion opportunities for individuals will be unaffected by disability, provided they demonstrate the appropriate aptitude and ability. Schuh is an equal opportunities employer and has a Dignity at Work policy in place, which seeks to prevent any discrimination on the grounds of age; race; disability; gender reassignment; marriage or civil partnership; pregnancy and maternity; religion or belief; sex; or sexual orientation. The group consults with its employees on an annual basis at all locations and provides information to all employees on the financial and economic factors affecting the group's performance.

Political contributions
Neither the company nor any of its subsidiaries made any political donations or incurred any political expenditure during the period.

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 7 -
EU regulations

In line with the implementation of the European Directive regarding packaging waste regulations, Schuh (ROI) Limited is fully compliant through its membership of a Department of Environment approved collective compliance scheme.

Going concern

The company’s directors have assessed the group’s ability to continue as a going concern for the period to January 2026. The assessment period considered by the directors’ is 12 months from the date of signing the accounts. A longer-term assessment to January 2028 has also been carried out by the directors.

 

Using prudent projections the group has sufficient headroom in its cash and bank facilities to continue to operate as a going concern and can meet its banking covenants.

 

The group has a facility with Lloyds Bank of £19 million available to November 2025 with the option to extend for a further 12 months under the terms of the facility, with discussions underway to extend these for a further 3 years. This facility is backed by a guarantee provided by the group’s parent, Genesco Inc, to the bank. This facility will be used to manage working capital throughout the going concern period. The bank requires the group to comply with the following covenants every quarter:

 

 

In arriving at their conclusion on going concern management have considered the group’s ability to meet these covenants and are satisfied that all are met throughout the going concern period.

 

The directors have also taken the following factors into account in arriving at their conclusion:

 

 

Based on the above considerations the directors have concluded that it is appropriate to adopt the going basis in preparing the financial statements.

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 8 -
Auditor

In accordance with the company's articles, a resolution proposing that Johnston Carmichael LLP be reappointed as auditor of the group will be put at a General Meeting.

Corporate governance statement
Schuh Limited, as part of the US-listed group Genesco Inc., places a high regard for effective corporate governance in all areas. Under The Companies (Miscellaneous Reporting) Regulations 2018, Schuh has applied the Wates Corporate Governance Principles for large private companies as its framework for disclosure regarding its corporate governance arrangements.

 

Details of how the Company has applied the Wates Principles throughout the year are outlined below.


Principle 1 - Purpose and Leadership

Our culture and business principles - we have adopted a range of beliefs and values that underpin the culture at Schuh and form the basis of the business principles on which the organisation is built. These are found throughout the entire organisation and focus on all areas. We have also included some of the particular Customer and Workforce examples within the Section 172 statement within the Strategic Report.

 

 

Principle 2 - Board Composition

Our formal board of Directors is made up of both Schuh Operating Directors and those of our ultimate parent company, Genesco Inc., a US-listed company. We also have an operational board of seven Directors and Director-designates who are collectively responsible for the management and effective oversight of the Company’s business. The Leadership Team has a range of skills across the board, from relevant business degrees and professional qualifications to time-served in both the Schuh business and similar organisations in the past. We regularly review the make-up of this Leadership Team to ensure that all relevant skills are present, equally that we have a diverse and representative range of views on all operational matters, and that where a particular knowledge or experience gap may be identified this is remedied by either supplementing with advice from a group company or a skilled and relevant appointed third party.

 

The Managing Director leads this operational board and is responsible for ensuring that those making decisions on behalf of the company have access to all relevant information in order to inform decision-making. The operational board also has full unrestricted access to other senior management who may attend regular board meetings to update on specific areas of their expertise. They also have regular contact with the parent company operational management board, as well as access to all professional advice and services of third parties pertinent to their respective areas or to inform on best practice on general board decisions.

 

The board considers that its size and composition is appropriate to its function to oversee and manage the Company. There are three Directors who are also employees of the business and have operational management roles in the Company as well as an equal number of Directors who are employees in operational management roles within the parent entity. This team is then supplemented by another five Director-designates all in operational roles which between them covers all operational and business functions and areas.

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 9 -

Corporate governance statement (continued)

Principle 3 - Director Responsibilities

The Directors assume ultimate responsibility for all matters, and along with the senior Management Team are committed to maintaining a robust control framework as the foundation for the delivery of good governance, including the effective management of delegation through the Corporate Governance Framework.

 

The Board and Management Team are supported by both its parent company in all Corporate Governance matters (including an internal audit team) and other Senior Managers to make recommendations on various matters delegated to them under the Corporate Governance Framework. Management team/Board meetings are managed and controlled by the Managing Director and occur at least every four weeks if not more frequently, have formal agendas but also allow for open debate and for adequate time for all participants to consider any proposals put forward. The Finance Director and each Management Team member are collectively responsible for the provision of accurate and timely information for each and every meeting. Every meeting also allows for any other matters to be raised by all participants. Formal notes are taken at each meeting and circulated afterwards for everyone’s approval, with any key decisions being recorded.

 

Principle 4 - Opportunity and Risk

The Schuh operational board will regularly focus on what opportunities are being presented to the business and also regularly undertake risk reviews. There is an also an annual risk exercise undertaken as part of the internal audit process with its parent company; looking at risk for the entire group and on a global basis. We will regularly engage with relevant third parties both on exploring additional and relevant business opportunities but also to assess any unidentified risks and evaluate appropriate mitigation protocol. What we believe are the currently identifiable principal risks and uncertainties are detailed previously in the Strategic Report on page 2.

 

Principle 5 - Remuneration

The Company will always ensure that remuneration is reviewed on a regular basis and is commensurate with all applicable laws regarding national minimum and national living wages within each of the territories within which the business operates. The remuneration of the management team will be set in conjunction with the parent company, Genesco Inc. As well as a market view, this will also factor in Company performance and profitability.

 

Principle 6 - Stakeholder Relationships and Engagement

Within the Section 172 statement above as part of the overall Strategic Report, we have detailed there the business perspective on key stakeholders and areas of engagement; these being Customers, Workforce, Suppliers, Environment and Purpose.

 

Other stakeholder engagement

A statement on engagement with suppliers, customers and others in a business relationship with the company is included as part of the Section 172 statement; please see pages 3 and 4.

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 10 -
Energy and carbon report

Schuh Limited has continued the appointment with Carbon Footprint Ltd, a leading carbon and energy management company, to independently assess its Greenhouse Gas (GHG) emissions in accordance with the UK Government’s ‘Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance’.

 

The GHG emissions have been assessed following the ISO 14064-1:2018 standard and have used the 2020 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defra) and the Department for Business, Energy & Industrial Strategy (BEIS). The assessment follows the location-based approach for assessing Scope 2 emissions from electricity usage. The operational control approach has been used.

 

The table below summarises the GHG Market-Based emissions for reporting years: 1st February 2023 to 31st January 2024 and comparative 30th January 2022 to 28th January 2023.

 

Scope

Activity

2023/2024

Location-Based (tCO2e)

2023/2024

Market-Based (tCO2e)

Scope 1

Natural Gas

255.36

255.36

 

Site Diesel

1.57

1.57

 

Petrol

106.00

106.00

 

Diesel

54.90

54.90

 

Refrigerants

165.21

165.21

 

Scope 1 Sub Total

583.04

583.04

Scope 2

Electricity generation

1,963.97

0.00

 

Off-site EV charging

Scope 2 Sub Total

0.17

1,964.14

0.30

0.30

Scope 3.3

Scopes 1 and 2 WTT

520.92

85.30

 

Transmission & Distribution

208.24

0.00

 

Off-site EV charging

Upstream lorry freight

0.02

223.43

0.02

223.43

 

Upstream sea freight

215.92

215.92

 

Upstream air freight

0.42

0.42

Scope 3.6

Flights

599.09

599.09

 

Hotel stays

41.67

41.67

 

Rail

25.25

25.25

 

Taxi

15.54

15.54

 

Hire cars

11.07

11.07

 

Ferry

Bus

0.19

0.11

0.19

0.11

Scope 3.7

Home-working

72.62

72.62

 

Scope 3 Sub Total

1,934.49

1,290.62

 

Total tonnes of CO2e

4,481.67 (-9.8%)

1,873.96 (+14.5%)

 

Total tonnes of CO2e per employee

1.06 (-15.9%)

0.44 (+4.8%)

 

Total tonnes of CO2e per £m turnover

11.66 (-19.4%)

4.88 (+2.5%)

 

 

 

 

 

Prior period

 

 

 

Total tonnes of CO2e

4,971.05

1,636

 

Total tonnes of CO2e per employee

1.26

0.42

 

Total tonnes of CO2e per £m turnover

14.47

4.76

 

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 11 -

Energy Efficiency Actions
We have been able to decrease our overall greenhouse gas emissions again by 3.8% compared to 22/23. Although this a relatively small reduction compared with last year when we switched to a renewable energy provider, our electricity supply is now from 100% renewable sources across the estate.

 

We are continuing to operate a vehicle fleet made up of electric, hybrid and low emission vehicles and to conduct an ongoing program of further improvements to lighting, air-conditioning and heating to further improve our overall energy efficiency.

 

In addition, we are also working to improve the accuracy of our reporting system in areas such as business flights and accommodation, this process should allow us to move away from estimations towards verifiable data calculations in future.

 

As previously, following DEFRA guidelines, this year’s carbon assessment methodology includes scope 1, 2, and the following scope 3 categories: 3.3, 3.4, 3.6 and 3.7 (partially). The offset for our market-based emissions of 1,873.97 tonnes of carbon dioxide again includes well-to-tank emissions and an offset for the lifetime emissions associated with the manufacture, distribution and end-of-life recycling for our eCommerce mailbags, assessed using ISO 14047 methodology. Offsets will be carried out in FY25 via investment in two projects, which both focus on carbon removal:

 

 

As in previous years, we have been able to plant more trees; through our work with the World Land Trust Plant a Tree Programme we have planted another 7,750 trees and an additional 7,950 trees via Ecologi reforestation projects, to further help in the continuing process of removing more CO2 from the atmosphere.

 

Schuh has also raised significant funds that have been directed to the World Land Trusts Buy an Acre scheme; initial sales of a WLT branded tote bag have been used to protect 375 acres of threatened habitat.

 

With ongoing improvement in the measurement, reduction and offsetting of carbon emissions our business has maintained its Carbon Neutral Organisation status for the period to 3 February 2024.

Activity

2023/2024

2022/2023

Total energy consumed (kWh)

11,524,567

13,481,967

Total Gross Market-Based Emissions (tCO2e)

591

1,636

Carbon offsets (tCO2e)

591

1,636

Total Net Market-Based Emissions (tCO2e)

0.00

0.00

Strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013, a strategic report and the group's results, activities, objectives, policies and risks have been included on pages 1 to 5 of the financial statements.true

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

SCHUH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 12 -
On behalf of the board
D M Gillan-Reid
Director
1 November 2024
SCHUH LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 13 -

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

SCHUH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCHUH LIMITED
- 14 -
Opinion

We have audited the financial statements of Schuh Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 3 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Auditor responsibilities for the audit of the financial statements section of our report. During the year, we identified an inadvertent breach of the FRC's Ethical Standard due to the provision of a prohibited non-audit service. We satisfied ourselves and those charged with governance that appropriate safeguards were in place to maintain independence from the perspective of an objective, reasonable and informed third party, allowing us to continue with the audit. Subject to the above, we are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

SCHUH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHUH LIMITED
- 15 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 13, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group’s and parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 auditor’s 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

SCHUH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHUH LIMITED
- 16 -
Extent to which the audit is considered capable of detecting irregularities, including fraud

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.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance including management and those charged with governance of component entities where necessary. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the group’s and parent company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

SCHUH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHUH LIMITED
- 17 -

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Use of our report

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor’s 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
1 November 2024
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
SCHUH LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 18 -
53-week
52-week
period
period
ended
ended
3 February
28 January
2024
2023
Notes
£'000
£'000
Turnover
3
380,807
354,491
Cost of sales
(324,967)
(300,508)
Gross profit
55,840
53,983
Administrative expenses
(31,131)
(33,514)
Other operating income
110
176
Release of onerous lease
20
3,220
-
0
Earnings before interest, tax, depreciation, amortisation and impairments
28,039
20,645
Depreciation of tangible assets
(4,693)
(4,513)
Amortisation of intangible assets
(594)
(608)
Profit before interest and tax
4
22,752
15,524
Interest receivable and similar income
8
257
5
Interest payable and similar expenses
9
(1,966)
(2,107)
Profit before taxation
21,043
13,422
Tax on profit
10
(4,961)
(3,033)
Profit for the financial period
26
16,082
10,389
Other comprehensive income
Currency translation differences
54
(38)
Total comprehensive income for the period
16,136
10,351
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
SCHUH LIMITED
GROUP BALANCE SHEET
AS AT
3 FEBRUARY 2024
03 February 2024
- 19 -
3 February
28 January
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
11
33
87
Other intangible assets
11
945
874
Total intangible assets
978
961
Tangible assets
12
26,069
21,749
27,047
22,710
Current assets
Stocks
15
49,064
45,519
Debtors
16
31,079
31,652
Cash at bank and in hand
17,239
27,939
97,382
105,110
Creditors: amounts falling due within one year
17
(37,804)
(44,615)
Net current assets
59,578
60,495
Total assets less current liabilities
86,625
83,205
Creditors: amounts falling due after more than one year
18
(49,693)
(56,614)
Provisions for liabilities
Provisions
20
2,387
8,371
Deferred tax liability
21
38
-
0
(2,425)
(8,371)
Net assets
34,507
18,220
Capital and reserves
Called up share capital
25
206
206
Share premium account
26
124
124
Revaluation reserve
26
212
212
Capital redemption reserve
26
412
412
Contributed equity
26
1,091
940
Profit and loss reserves
26
32,462
16,326
Total equity
34,507
18,220
SCHUH LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
3 FEBRUARY 2024
03 February 2024
- 20 -
The financial statements were approved by the board of directors and authorised for issue on 1 November 2024 and are signed on its behalf by:
01 November 2024
D M Gillan-Reid
Director
SCHUH LIMITED
COMPANY BALANCE SHEET
AS AT 3 FEBRUARY 2024
03 February 2024
- 21 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
11
945
874
Tangible assets
12
25,083
20,918
Investments
13
17,273
3,046
43,301
24,838
Current assets
Stocks
15
42,734
39,990
Debtors
16
28,993
38,988
Cash at bank and in hand
17,062
25,421
88,789
104,399
Creditors: amounts falling due within one year
17
(36,066)
(41,405)
Net current assets
52,723
62,994
Total assets less current liabilities
96,024
87,832
Creditors: amounts falling due after more than one year
18
(49,570)
(56,476)
Provisions for liabilities
Provisions
20
2,343
8,284
Deferred tax liability
21
35
-
0
(2,378)
(8,284)
Net assets
44,076
23,072
Capital and reserves
Called up share capital
25
206
206
Share premium account
26
124
124
Revaluation reserve
26
8
8
Capital redemption reserve
26
412
412
Contributed equity
26
1,073
940
Profit and loss reserves
26
42,253
21,382
Total equity
44,076
23,072

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £20,871k (2023 - £12,208k profit).

SCHUH LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 3 FEBRUARY 2024
03 February 2024
- 22 -
The financial statements were approved by the board of directors and authorised for issue on 1 November 2024 and are signed on its behalf by:
01 November 2024
D M Gillan-Reid
Director
Company Registration No. SC125327
SCHUH LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 23 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Contributed equity
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 30 January 2022
206
124
212
412
940
5,975
7,869
Period ended 28 January 2023:
Profit for the period
-
-
-
-
-
10,389
10,389
Other comprehensive income:
Currency translation differences
-
-
-
-
-
(38)
(38)
Total comprehensive income for the period
-
-
-
-
-
10,351
10,351
Balance at 28 January 2023
206
124
212
412
940
16,326
18,220
Period ended 3 February 2024:
Profit for the period
-
-
-
-
-
16,082
16,082
Other comprehensive income:
Currency translation differences
-
-
-
-
-
54
54
Total comprehensive income for the period
-
-
-
-
-
16,136
16,136
Movement
-
-
-
-
151
-
151
Balance at 3 February 2024
206
124
212
412
1,091
32,462
34,507
SCHUH LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 24 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Contributed equity
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 30 January 2022
206
124
8
412
940
9,174
10,864
Period ended 28 January 2023:
Profit and total comprehensive income for the period
-
-
-
-
-
12,208
12,208
Balance at 28 January 2023
206
124
8
412
940
21,382
23,072
Period ended 3 February 2024:
Profit and total comprehensive income for the period
-
-
-
-
-
20,871
20,871
Movement
-
-
-
-
133
-
133
Balance at 3 February 2024
206
124
8
412
1,073
42,253
44,076
SCHUH LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 25 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
30
8,672
10,989
Income taxes paid
(3,428)
(636)
Net cash inflow from operating activities
5,244
10,353
Investing activities
Purchase of intangible assets
(611)
(513)
Purchase of tangible fixed assets
(9,152)
(7,898)
Proceeds on disposal of tangible fixed assets
120
59
Interest received
257
5
Net cash used in investing activities
(9,386)
(8,347)
Financing activities
Interest paid
(216)
(306)
Repayment of borrowings
(6,272)
-
Net cash used in financing activities
(6,488)
(306)
Net (decrease)/increase in cash and cash equivalents
(10,630)
1,700
Cash and cash equivalents at beginning of period
27,939
26,568
Effect of foreign exchange rates
(70)
(329)
Cash and cash equivalents at end of period
17,239
27,939
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 26 -
1
Accounting policies
Company information

Schuh Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 1 Neilson Square Deans Industrial Estate Deans, Livingston West Lothian EH54 8RQ, Scotland.

 

The group consists of Schuh Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention, modified to include certain tangible fixed assets carried at deemed cost. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102 and has taken advantage of the exemption available from the requirement to present a company only cash flow statement and related notes and disclosures.

1.2
Business combinations

The group recognises goodwill at the acquisition date as:

 

 

When the excess is negative, this is recognised and separately disclosed on the face of the balance sheet as negative goodwill. Consideration which is contingent on future events is recognised based on the estimated amount if the contingent consideration is probable and can be measured reliably. Any subsequent changes to the amount are treated as an adjustment to the cost of the acquisition.

 

Goodwill

Goodwill is stated at cost less any accumulated amortisation and accumulated impairment losses. Goodwill is allocated to cash-generating units or group of cash-generating units that are expected to benefit from the synergies of the business combination from which it arose.

 

Amortisation

Goodwill is amortised on a straight line basis over its deemed useful life of 20 years.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 27 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Schuh Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 3 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The company’s directors have assessed the group’s ability to continue as a going concern for the period to January 2026. The assessment period considered by the directors’ is 12 months from the date of signing the accounts. A longer-term assessment to January 2028 has also been carried out by the directors.

 

Using prudent projections the group has sufficient headroom in its cash and bank facilities to continue to operate as a going concern and can meet its banking covenants.

 

The group has a facility with Lloyds Bank of £19 million available to November 2025 with the option to extend for a further 12 months under the terms of the facility, with discussions underway to extend these for a further 3 years. This facility is backed by a guarantee provided by the group’s parent, Genesco Inc, to the bank. This facility will be used to manage working capital throughout the going concern period. The bank requires the group to comply with the following covenants every quarter:

 

 

In arriving at their conclusion on going concern management have considered the group’s ability to meet these covenants and are satisfied that all are met throughout the going concern period.

 

The directors have also taken the following factors into account in arriving at their conclusion:

 

 

Based on the above considerations the directors have concluded that it is appropriate to adopt the going basis in preparing the financial statements.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 28 -
1.5
Reporting period

The company prepares its financial year end to the Saturday closest to 31 January. For the current reporting period this has resulted in the financial statements being prepared for the period from 29 January 2023 to 3 February 2024. The comparative financial statements, prepared on the same basis, cover the period from 30 January 2022 to 28 January 2023 and as a result the comparative results (including related notes) are not directly comparable. The current period represents 53 week (2023: 52 week) trading period.

1.6
Turnover

Turnover represents the fair value of the consideration received or receivable for goods supplied in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.


Revenue recognition

Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. The following criteria must also be met before revenue is recognised.

 

Revenue from interest income is recognised as interest accrues using the effective interest method. Revenue from dividends is recognised when the group's right to receive payment is established.

 

Revenue represents the amounts (excluding value added tax) derived from the sale of goods to customers, net of discounts, during the period.

 

All turnover revenue relates to the sale of goods.

Other operating income - rental income

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in other income. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is allocated to cash-generating units or group of cash-generating units that are expected to benefit from the synergies of the business combination from which it arose.

 

Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Goodwill is amortised on a straight line basis over its deemed useful life of 20 years.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 29 -
1.8
Intangible fixed assets other than goodwill

Internally generated assets - Development expenditure

 

Development expenditure incurred on an individual projects is only capitalised if all of the following criteria are demonstrated:

 

Following the initial recognition of development expenditure, the cost is amortised over the estimated useful life of the asset created. Amortisation commences on the date that the asset is brought into use.

Software
3 years
1.9
Tangible fixed assets

Tangible fixed assets are stated at deemed cost less accumulated depreciation and accumulated impairment losses. Certain items of tangible fixed assets that had been revalued to fair value on or prior to the date of transition to FRS 102, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible assets, for example land is treated separately from buildings.

 

Leases in which the entity assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the min imum lease paymen ts at in ception of the lease, in cludin gan y in cremen talcosts directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. There were no leases considered as finance leases during the period (2023: none).

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows:

Land and buildings
10 to 40 years
Leasehold acquisition costs
shorter of remaining period of lease or 10 years
Furniture, fittings and equipment
5 to 10 years or remaining period of lease
Computer Equipment
4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 30 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

The carrying amounts of the entity's non-financial assets, other than stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is an 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 generate cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit"). The goodwill acquired in business combination, for the purpose of impairment testing is allocated to cash-generating units, or ("CGU") that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGU's or groups of CGU's on a non-arbitrary basis the impairment of goodwill is determined using the recoverable amount of the acquired entity, or if it has been integrated then the entire group of entities into which it has been integrated.

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 profit or loss. Impairment losses recognised in respect of CGU's 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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their location and condition.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and cash floats.

1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 31 -
Basic financial assets

Basic financial assets, which include certain debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors, bank loans, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 32 -
1.16
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

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 adjustments to tax payable in respect of previous periods.

Deferred tax

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 an d 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, 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 dis-allowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

 

Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an asset (other than goodwill) or liability is recognised in a business combination and the corresponding amount that can be deducted or assessed for tax. Goodwill is adjusted by the amount of such deferred tax.

 

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.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 33 -
1.17
Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

 

Where the parent company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability in its individual financial statements until such time as it becomes probable that the company will be required to make a payment under the guarantee.

 

Sales of stock returns provision

The provision for stock returns is based on the historical actual return dates and applied to goods sold within the last 12 months, based on Schuh group's return policy of 365 days.

 

Slow moving and obsolete stock provision

The provision is based on the cost plus attributable selling costs, this value is compared to the realisable value and the provision is made for future losses based on net realisable value less the adjusted cost price.

 

Onerous lease provision

Onerous lease provisions include provisions for leases on unprofitable stores (and vacated properties(if any)). These provisions are based on the least net cost of fulfilling or exiting the lease contract. The calculation of the value in use of the leased properties to the Group is based on the same assumptions for growth rates and expected changes to future cash flows as those for Group owned properties discounted at the appropriate risk free rate. The cost of exiting lease contracts is estimated as the present value of expected surrender premiums or deficits from subletting at market rents, assuming that the Group can sublet properties at market rents, based on discounting at the appropriate risk adjusted rate. Where a store operated out of a leased property has become lossmaking, an onerous lease provision is recognised only to the extent that the Group does not reasonably expect to recover its own remaining lease commitment by subletting the property or from projected future trading income.

1.18
Retirement benefits

A defined contribution plan is a post-employment benefit plan under which the group pays fixed contributions into a separate entity and will have no legal or constructive obligations 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.

1.19
Share-based payments

The group's parent issues equity settled share-based payments to certain employees which must be measured at fair value and recognised as an expense in the profit and loss account with a corresponding increase in equity (treated as a capital contribution from the parent company).

 

The fair values of these payments are measured at the dates of grant using pricing models, taking into account the terms and conditions upon which the awards are granted. The fair value is recognised over the period during which employees become unconditionally entitled to the awards subject to an estimate of the number of awards which will lapse, either due to employees leaving employment prior to vesting or due to non-market based performance conditions not being met.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 34 -
1.20
Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

In accordance with the requirements of FRS 102, lease incentives are recognised over the term of the lease.

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 the profit and loss account over the term of the lease as an integral part of the total lease expense.

 

Finance lease

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

1.21
Foreign exchange

Company

Transactions in foreign currencies are initially recorded in the entity’s functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

 

Group

Each entity in the group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

 

The assets and liabilities of overseas subsidiary undertakings are translated into the presentational currency at the rate of exchange ruling at the balance sheet date. Income and expenses for each statement of comprehensive income are translated at exchange rates at the dates of transaction.

 

All resulting exchange differences are recognised in other comprehensive income, in retained earnings.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 35 -
Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

IT development expenditure

IT development expenditure is capitalised in accordance with the accounting policy given below. Initial capitalisation of costs is based on management's judgement that development enhances the technical capabilities of the software and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalised management makes assumptions regarding the expected future cash generation of the assets and the expected period of benefits.

 

The directors consider in-house IT development expenditure more efficient and cost effective than outsourcing essential projects. The development of systems can be too time sensitive to risk competing for time and results with clients of an external IT development provider. The directors deem that this expenditure provides access to future economic benefits for three years, after which time they are considered obsolete as a stand-alone asset, or have been replaced by subsequent investment in improvements.

 

The carrying value included within these financial statements for IT developments which have been internally generated is £945k (2023: £874k).

 

IT developments costs which have been capitalised within the reporting period are in relation to the following key projects:

 

a) In store POS

Sales driven enhancements to the schuh EPOS system to incorporate a new payment provider, Web discount integration and improvements to user interface to allow more functionality.

 

b) Distribution Centre

During the year we installed an automated Mini Load Storage System at our primary warehouse. The integration of this system required significant development of our inventory management IT systems. This allows us not only to maximise the use of space at our warehouse but to benefit from improved efficiency of despatch and receipt of inventory.

 

c) Website Improvement - Checkout

In order to maximise checkout completion rate the user journey has been enhanced and refined delivering a more “on brand” experience. This project is expected to increase checkout completion and as a result sales.

 

d) Website Improvement - Navigation

Developed an introduced improved functionality to the existing website to drive better customer engagement and satisfaction. Improvements include category filtering of Kids product allowing customers the ability to view product by age category and a “postcode first” approach to present to customers only the appropriate delivery and collection options available for them.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 36 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Goodwill and intangible assets

The group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, growth rate, discount rate, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Impairment of non-financial assets

Where there are indicators of impairment of individual assets, the group performs impairment tests based on an value in use calculation. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the group is not yet committed to or significant future investments that will enhance the asset's performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as expected future cash flows and the growth rate used for extrapolation purposes. The discount rate used by the group in an impairment assessment is in line with that used by the wider Genesco group.The growth rates used for the stores in the model vary depending on store type (adult, kids etc) but these rates are in line with the assumptions made in long term (5 year planning) models.

Customer loyalty scheme accrual

The group has introduced a customer loyalty programme that allows customers to redeem points for discounts on future purchases. At the period end an estimate is made of the expected level of loyalty points that will be redeemed. Historical redemption rates are used in reaching this estimate. The redemption rate is most impacted by engagement with customers through the loyalty app and in-store customer service.

Sales returns

The group provides for returns on purchases for up to one year from the transaction date. At the period end an estimate is made of the expected returns from transactions in the period. Historic return rates, timescales and transactions data are used in reaching this estimate. The return estimate is most sensitive to changes in the timescale of customer returns. The sales return assumption is based on historical return rates from the prior financial year.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by class of business
Sales of footwear
380,807
354,491
2024
2023
£'000
£'000
Turnover analysed by geographical market
UK
356,057
328,247
Europe
24,750
26,244
380,807
354,491
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
3
Turnover and other revenue
(Continued)
- 37 -
2024
2023
£'000
£'000
Other significant revenue
Rent received
108
175
Other operating income
2
1
4
Operating profit
2024
2023
£'000
£'000
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
4,693
4,513
(Profit)/loss on disposal of tangible fixed assets
(4)
102
Amortisation of intangible assets
594
608
Stocks impairment losses recognised or (reversed)
17
395
Share-based payments
219
271
Operating lease charges
24,580
26,160
Release of onerous lease (note 20)
(3,220)
-
0
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
150
143
For other services
All other non-audit services
15
14
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration and support
359
328
357
327
Sales and distribution
4,004
3,641
3,617
3,300
Directors
6
6
6
6
Total
4,369
3,975
3,980
3,633
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
6
Employees
(Continued)
- 38 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
55,705
49,558
50,847
44,771
Social security costs
3,520
2,984
3,038
2,599
Pension costs
3,825
1,830
3,800
1,809
63,050
54,372
57,685
49,179

Wages and salaries costs include £219k (2023: £271k) in respect of share-based payment expenses.

7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
600
842
Company pension contributions to defined contribution schemes
26
24
626
866

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).

The number of directors who are entitled to receive shares under long term incentive schemes during the period was 2 (2023 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
380
454
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
257
5
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 39 -
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on bank overdrafts and loans
216
306
Interest payable to group undertakings
1,750
1,801
Total finance costs
1,966
2,107
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
3,501
1,071
Adjustments in respect of prior periods
(237)
(16)
Total current tax
3,264
1,055
Deferred tax
Origination and reversal of timing differences
1,413
1,824
Changes in tax rates
57
-
0
Adjustment in respect of prior periods
227
154
Total deferred tax
1,697
1,978
Total tax charge
4,961
3,033
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
10
Taxation
(Continued)
- 40 -

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£'000
£'000
Profit before taxation
21,043
13,422
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
5,057
2,550
Tax effect of expenses that are not deductible in determining taxable profit
1,224
489
Tax effect of income not taxable in determining taxable profit
(918)
(70)
Tax effect of utilisation of tax losses not previously recognised
-
0
1
Change in unrecognised deferred tax assets
292
299
Adjustments in respect of prior years
(237)
(16)
Effect of change in corporation tax rate
57
246
Group relief
(505)
(251)
Other permanent differences
-
0
49
Effect of overseas tax rates
(327)
(257)
Deferred tax adjustments in respect of prior years
227
154
Super deduction
(3)
(175)
Share options
94
14
Taxation charge
4,961
3,033

A change in the UK Corporation tax rate from 19% to 25% took effect from 1 April 2023.

 

The group will be impacted by the new global Pillar Two 15% minimum tax rules. The management is currently reviewing their processes and assessing the impact that the rules will have on the amount of tax assets and liabilities recognised.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 41 -
11
Intangible fixed assets
Group
Goodwill
Software
Total
£'000
£'000
£'000
Cost
At 29 January 2023
1,177
8,256
9,433
Additions - internally developed
-
0
611
611
At 3 February 2024
1,177
8,867
10,044
Amortisation and impairment
At 29 January 2023
1,090
7,382
8,472
Amortisation charged for the period
54
540
594
At 3 February 2024
1,144
7,922
9,066
Carrying amount
At 3 February 2024
33
945
978
At 28 January 2023
87
874
961
Company
Software
£'000
Cost
At 29 January 2023
8,256
Additions - internally developed
611
At 3 February 2024
8,867
Amortisation and impairment
At 29 January 2023
7,382
Amortisation charged for the period
540
At 3 February 2024
7,922
Carrying amount
At 3 February 2024
945
At 28 January 2023
874
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 42 -
12
Tangible fixed assets
Group
Land and buildings
Leasehold acquisition costs
Furniture, fittings and equipment
Total
£'000
£'000
£'000
£'000
Cost
At 29 January 2023
12,601
12,067
76,504
101,172
Additions
-
0
237
8,915
9,152
Disposals
-
0
-
0
(167)
(167)
Exchange adjustments
-
0
(16)
(193)
(209)
At 3 February 2024
12,601
12,288
85,059
109,948
Depreciation and impairment
At 29 January 2023
6,285
9,135
64,003
79,423
Depreciation charged in the period
201
553
3,939
4,693
Eliminated in respect of disposals
-
0
-
0
(51)
(51)
Exchange adjustments
-
0
(11)
(175)
(186)
At 3 February 2024
6,486
9,677
67,716
83,879
Carrying amount
At 3 February 2024
6,115
2,611
17,343
26,069
At 28 January 2023
6,316
2,932
12,501
21,749
Company
Land and buildings
Leasehold acquisition costs
Furniture, fittings and equipment
Total
£'000
£'000
£'000
£'000
Cost
At 29 January 2023
12,585
10,597
67,301
90,483
Additions
-
0
237
8,516
8,753
Disposals
-
0
-
0
(139)
(139)
At 3 February 2024
12,585
10,834
75,678
99,097
Depreciation and impairment
At 29 January 2023
6,282
7,862
55,421
69,565
Depreciation charged in the period
201
524
3,773
4,498
Eliminated in respect of disposals
-
0
-
0
(49)
(49)
At 3 February 2024
6,483
8,386
59,145
74,014
Carrying amount
At 3 February 2024
6,102
2,448
16,533
25,083
At 28 January 2023
6,303
2,735
11,880
20,918
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 43 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
14
-
0
-
0
17,273
3,046
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 29 January 2023
3,046
Additions
14,227
At 3 February 2024
17,273
Carrying amount
At 3 February 2024
17,273
At 28 January 2023
3,046

During the year, the company invested additional funds into Schuh (ROI) Limited. 1 Ordinary share of £1 (1.3 Euro) was issued by Schuh (ROI) Limited to the company for cash at a premium of £14.2m (16.6m Euro).

14
Subsidiaries

Details of the company's subsidiaries at 3 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Schuh (ROI) Limited
Unit 613, Kilshane Avenue, Northwest Business Park, Dublin, Dublin 15
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Finished goods and goods for resale
49,064
45,519
42,734
39,990

Group                

The stock provision loss included in profit and loss is £683k (2023: Loss of £696k). Included within the stock balance is a right of return asset of £360k (2023: £616k).

 

Company

The stock provision loss included in profit and loss is £594k (2023: Loss of £611k). Included within the stock balance is a right of return asset of £337k (2023: £571k).

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 44 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
5,801
6,097
5,529
5,898
Amounts owed by group undertakings
16,119
16,119
16,119
24,347
Other debtors
2,038
767
694
735
Prepayments and accrued income
7,121
7,010
6,651
6,344
31,079
29,993
28,993
37,324
Deferred tax asset (note 21)
-
0
1,659
-
0
1,664
31,079
31,652
28,993
38,988
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Trade creditors
14,418
17,610
13,510
15,379
Amounts owed to group undertakings
628
578
1,341
578
Corporation tax payable
469
633
469
587
Other taxation and social security
814
1,812
665
2,317
Deferred income
22
4,359
1,835
4,044
1,758
Other creditors
7,915
5,113
7,649
4,780
Accruals and deferred income
9,201
17,034
8,388
16,006
37,804
44,615
36,066
41,405
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Other borrowings
19
43,728
50,000
43,728
50,000
Deferred income
22
5,965
6,614
5,842
6,476
49,693
56,614
49,570
56,476
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 45 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Loans from group undertakings
43,728
50,000
43,728
50,000
Payable after one year
43,728
50,000
43,728
50,000

The group has had a £19m Revolving Credit Facility (RCF) with Lloyds Banking Group from 2nd November 2022. The RCF is a 3 year facility with an option to extend for a further two, one year periods and discussion are already underway with Lloyds to formalise an extension. Interest is charged is 2.35% plus the Bank of England SONIA (Sterling Overnight Index Average) rate and charged on a monthly basis.

The company has no outstanding drawing on the Lloyds facility at the balance sheet date.

 

On 14th April 2020, Genesco UK Limited refinanced its loan notes listed on the International Stock Exchange. During the year to January 2021, Schuh Limited declared a dividend distribution of £50,000,000 to Genesco UK Limited and Genesco UK Limited issued a new £36,461,107 note payable to Genesco Jersey Limited with an interest rate of 3.4% and a maturity date of April 2025. At the period end, the amount outstanding by Schuh Limited to Genesco Jersey Limited was £43,728,493 (2023: £50,000,000) and interest is charged on a monthly basis. The debt is listed on The International Stock Exchange.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Onerous leases
1,688
7,172
1,688
7,172
Retail returns
699
1,199
655
1,112
Total Provisions
2,387
8,371
2,343
8,284
Movements on provisions:
Onerous leases
Retail returns
Total
Group
£'000
£'000
£'000
At 29 January 2023
7,173
1,155
8,328
Reversal of provision
-
(456)
(456)
Utilisation of provision
(2,265)
-
(2,265)
Release of provision
(3,220)
-
(3,220)
At 3 February 2024
1,688
699
2,387
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
20
Provisions for liabilities
(Continued)
- 46 -
Onerous leases
Retail returns
Total
Company
£'000
£'000
£'000
At 29 January 2023
7,173
1,111
8,284
Reversal of provision
-
(456)
(456)
Utilisation of provision
(2,265)
-
(2,265)
Release of provision
(3,220)
-
(3,220)
At 3 February 2024
1,688
655
2,343

Onerous leases

The group recognises a provision for lease obligations where the trading income from the stores is not expected to fully cover the lease costs committed to.

 

The credit recognised in the income statement in respect of onerous lease provisions of £3,220k (2023: nil) represents a release of previously recognised losses following a projected improvement in the trading performance of impacted stores.

 

Retail returns
The group recognises a provision in relation to expected sales returns. The expected timing of outflow is within 3 months from the reporting date.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Assets
2024
2023
Group
£'000
£'000
Accelerated capital allowances
171
1,344
Short term timing differences
(133)
315
38
1,659
Liabilities
Assets
2024
2023
Company
£'000
£'000
Accelerated capital allowances
168
1,349
Short term timing differences
(133)
315
35
1,664
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
21
Deferred taxation
(Continued)
- 47 -
Group
Company
2024
2024
Movements in the period:
£'000
£'000
Asset at 29 January 2023
(1,659)
(1,664)
Charge to profit or loss
1,697
1,699
Liability at 3 February 2024
38
35

The group had estimated UK trade losses of £nil (2023: £nil) available for carry forward and offset against future trading profits.

22
Deferred income
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Other deferred income
10,324
8,449
9,886
8,234

Other deferred income is in respect of rent free period accruals. The deferred income is included in the financial statements as follows:

Current liabilities
4,359
1,835
4,044
1,758
Non-current liabilities
5,965
6,614
5,842
6,476
10,324
8,449
9,886
8,234
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
3,825
1,830

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 48 -
24
Share-based payment transactions

Scheme details and movements

 

Employee Restricted Stock

On 30 August 2016 certain employees were included within the Genesco Inc restricted stock plan. Restricted shares are allocated to Schuh employees as part of a long term incentive scheme. The shares can be exercised over a period between 3 to 4 years if the employee remains in service at each anniversary, with an equal amount exercised each year. The exercise price of the stock is equal to the average share price on the date of grant. There is no cash alternative.

 

Genesco Inc. set an average stock price (based on a 30-day period) in the run up to the annual vesting/granting date of the end of June each year. This share price (converted at the actual exchange rate as of that same date) is then used to value any grants, exercising and forfeitures/cancellations within that year. The outstanding value at the end of each year is therefore a weighted average of the opening position and a reflection of the movements within the year.

 

During the period, certain employees were included within the Genesco Inc performance share units plan. Performance share units are allocated to Schuh employees as part of a long term incentive scheme. The units can be exercised after a period of 3 years if the employee remains in service and divisional performance targets have been met. There is no cash alternative.

 

A reconciliation of the movement in share options during the period were as follows:

Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£'000
£'000
Outstanding at 29 January 2023
19,277
31,897
17.44
29.46
Granted
5,342
5,503
35.22
47.82
Forfeited
(4,080)
(4,669)
19.19
47.82
Exercised
(4,633)
(10,172)
19.19
47.82
Expired
(1,186)
(3,282)
19.19
47.82
Outstanding at 3 February 2024
14,720
19,277
22.51
17.44
Exercisable at 3 February 2024
-
-
-
-
SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
24
Share-based payment transactions
(Continued)
- 49 -
Company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£'000
£'000
Outstanding at 29 January 2023
19,277
31,897
17.44
29.46
Granted
5,174
5,503
35.22
47.82
Forfeited
(4,031)
(4,669)
19.19
47.82
Exercised
(4,574)
(10,172)
19.19
47.82
Expired
(1,186)
(3,282)
19.19
47.82
Outstanding at 3 February 2024
14,660
19,277
22.54
17.44
Exercisable at 3 February 2024
-
-
-
-
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Expenses recognised in the period
Arising from equity settled share based payment transactions
219
271
219
271

The expense recognised during the current and prior period relates to restricted shares. No share based payment expense was recognised during the period in relation to performance share units based on the projections for the performance targets.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
133,492
133,492
133
133
B Ordinary shares of £1.46 each
50,000
50,000
73
73
183,492
183,492
206
206

The holders of Ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. Both classes of shares have the same rights.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 50 -
26
Reserves

Share premium reserve

The share premium account represents the difference between the par value of the shares issued and the subscription or issue price.

 

Capital redemption reserve

The capital redemption reserve arose on the buy-back purchase of shares by the company in previous periods.

 

Profit and loss reserves

Retained earnings represent accumulated profits and losses less distributions and transfers from other reserves.

 

Revaluation reserve

The revaluation reserve is the remaining balance of a revaluation of Neilson Square on 30th March 1997 using the open market value basis.

 

Contributed equity

The contributed equity reserve represents the future liability of Schuh employee share options maturing and the expected issue price of the Genesco Inc shares.

27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
21,988
18,557
19,176
15,983
Between two and five years
59,195
59,181
50,804
51,922
In over five years
19,055
19,406
15,390
16,414
100,238
97,144
85,370
84,319

Group
The amount of non-cancellable operating lease payments recognised as an expense during the period was £24,580k (2023: £26,354k).

Company

The amount of non-cancellable operating lease payments recognised as an expense during the period was £21,539k (2023: £23,216k).

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
27
Operating lease commitments
(Continued)
- 51 -
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

 

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
-
129
-
129

Group and company

Total contingent rents recognised as income in the period are £108k (2023: £140k).

28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£'000
£'000
Aggregate compensation
2,370,073
3,428,214

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions or balances between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

29
Controlling party

The group is a subsidiary undertaking of Schuh Group Limited incorporated in Scotland. The financial statements of Schuh Group Limited are available to the public and may be obtained from Companies House or 1 Neilson Square, Deans Industrial Estate, Livingston, Scotland, United Kingdom.

 

Schuh Group Limited is a subsidiary undertaking of Genesco UK Limited which in turn is a subsidiary of Genesco Inc. which is the ultimate parent company. Genesco Inc. is incorporated in the United States and its most recent financial statements are available from its website on www.genesco.com.

SCHUH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 3 FEBRUARY 2024
- 52 -
30
Cash generated from group operations
2024
2023
£'000
£'000
Profit for the period after tax
16,082
10,389
Adjustments for:
Taxation charged
4,961
3,033
Finance costs
1,966
2,107
Investment income
(257)
(5)
(Gain)/loss on disposal of tangible fixed assets
(4)
102
Amortisation and impairment of intangible assets
594
608
Depreciation and impairment of tangible fixed assets
4,693
4,513
Equity settled share based payment expense
219
271
Decrease in provisions
(5,984)
(1,428)
Movements in working capital:
Increase in stocks
(3,545)
(13,512)
(Increase)/decrease in debtors
(1,086)
5,842
Decrease in creditors
(10,842)
(1,780)
Increase in deferred income
1,875
849
Cash generated from operations
8,672
10,989
31
Analysis of changes in net debt - group
29 January 2023
Cash flows
Exchange rate movements
3 February 2024
£'000
£'000
£'000
£'000
Cash at bank and in hand
27,939
(10,630)
(70)
17,239
Borrowings excluding overdrafts
(50,000)
6,272
-
(43,728)
(22,061)
(4,358)
(70)
(26,489)
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