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Registered number: 06818077
Mitchell & Ness International Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Contents
Page
Strategic Report 1
Directors' Report 2—3
Independent Auditor's Report 4—6
Statement of Income and Retained Earnings 7
Balance Sheet 8
Statement of Cash Flows 9
Notes to the Statement of Cash Flows 10
Notes to the Financial Statements 11—15
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
Turnover has reduced by 16% to £16,261,146 and gross margins have also reduced from 23% to 18%. 
There continues to be a strong demand for our product range although we are impacted by issues that affect the global economy.
With the company’s retained reserves, strong cash position and support from the parent company, we can capitalise on our commercial strengths and take future expansion opportunities as they may arise. 
Principal Risks and Uncertainties
Given the nature of the business, the principal risks and uncertainties are economic and operational.
Economic
The economic risk is based on risk of inflation, a downturn in the economy, increased costs in overheads and foreign exchange risk due to a large percentage of product being imported from outside the UK. These risks are managed by a continued focus on cost reduction and control and maintaining good currency management to mitigate risk.
Operational
Being able to supply stocked items and deliver on time is fundamental to our business.  
Procedures are in place to deliver product on time through our distributor network. 
Key Performance Indicators
The key performance indicators that the board monitor with regard to financial performance are as follows:
2023
2022
£
£
Turnover
16,261,146
19,453,563
Gross Profit
2,914,078
4,505,811
Gross Profit Margin
18%
23%
EBITDA Margin
7%
16%
The directors will aim to continue to enhance performance by making use of KPI’s, in addition to monitoring non-financial matters including health and safety, staff retention, and customer service.
On behalf of the board
E Kumekpor
Director
9th October 2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The company's principal activity continues to be that of wholesale and distribution of sports related accessories and apparel.
Directors
The directors who held office during the year were as follows:
G Schiffman
E Kumekpor Appointed 31/12/2023
D Mack Resigned 31/12/2023
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Lancasters (Accountants) Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
E Kumekpor
Director
9th October 2024
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Mitchell & Ness International Limited for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2—3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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.
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: 
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
  • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 5
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Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Richard V Griggs (Senior Statutory Auditor)
for and on behalf of Lancasters (Accountants) Limited , Statutory Auditor
9th October 2024
Lancasters (Accountants) Limited
Chartered Accountants & Registered Auditor
Manor Courtyard
Aston Sandford
Bucks
HP17 8JB
Page 6
Page 7
Statement of Income and Retained Earnings
2023 2022
Notes £ £
TURNOVER 3 16,261,146 19,453,563
Cost of sales (13,347,068 ) (14,947,752 )
GROSS PROFIT 2,914,078 4,505,811
Administrative expenses (1,756,605 ) (1,444,050 )
OPERATING PROFIT 4 1,157,473 3,061,761
Interest payable and similar charges 8 (101 ) -
PROFIT BEFORE TAXATION 1,157,372 3,061,761
Tax on Profit 9 (236,378 ) (295,176 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 920,994 2,766,585
RETAINED EARNINGS
As at 1 January 2023 2,422,634 (343,951 )
As at 31 December 2023 3,343,628 2,422,634
The notes on pages 10 to 15 form part of these financial statements.
Page 7
Page 8
Balance Sheet
Registered number: 06818077
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 10 190,174 34,541
190,174 34,541
CURRENT ASSETS
Stocks 11 3,737,340 3,363,368
Debtors 12 5,242,563 6,149,752
Cash at bank and in hand 646,115 4,305,572
9,626,018 13,818,692
Creditors: Amounts Falling Due Within One Year 13 (6,272,464 ) (11,230,499 )
NET CURRENT ASSETS (LIABILITIES) 3,353,554 2,588,193
TOTAL ASSETS LESS CURRENT LIABILITIES 3,543,728 2,622,734
NET ASSETS 3,543,728 2,622,734
CAPITAL AND RESERVES
Called up share capital 14 200 200
Share premium account 199,900 199,900
Profit and Loss Account 3,343,628 2,422,634
SHAREHOLDERS' FUNDS 3,543,728 2,622,734
On behalf of the board
E Kumekpor
Director
9th October 2024
The notes on pages 10 to 15 form part of these financial statements.
Page 8
Page 9
Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash (used in)/generated from operations 1 (2,807,611 ) 618,009
Interest paid (101 ) -
Tax paid (295,176 ) -
Net cash (used in)/generated from operating activities (3,102,888 ) 618,009
Cash flows from investing activities
Purchase of tangible assets (178,587 ) (6,274 )
(Decrease)/increase in cash and cash equivalents (3,281,475 ) 611,735
Cash and cash equivalents at beginning of year 2 4,305,572 3,644,208
Foreign exchange (losses)/gains on cash and cash equivalents (377,982 ) 49,629
Cash and cash equivalents at end of year 2 646,115 4,305,572
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash (used in)/generated from operations
2023 2022
£ £
Profit for the financial year 920,994 2,766,585
Adjustments for:
Tax on profit 236,378 295,176
Interest expense 101 -
Depreciation of tangible assets 22,954 18,473
Foreign exchange losses/(gains) 377,982 (49,628)
Movements in working capital:
Increase in stocks (373,972 ) (1,411,810 )
Decrease/(increase) in trade and other debtors 907,189 (3,801,994 )
(Decrease)/increase in trade and other creditors (4,899,237 ) 2,801,207
Net cash (used in)/generated from operations (2,807,611 ) 618,009
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 646,115 4,305,572
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 4,305,572 (3,659,457) 646,115
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Notes to the Financial Statements
1. General Information
Mitchell & Ness International Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06818077 . The registered office is Building 1000 Westcott Venture Park, Westcott, Aylesbury, Buckinghamshire, HP18 0XB.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 10% Straight line
Plant & Machinery 20% Reducing balance
Fixtures & Fittings 25% Straight line
Computer Equipment 20% Straight line
2.4. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.5. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.6. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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2.7. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.8. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3. Turnover
Analysis of turnover by geographical market is as follows:
2023 2022
£ £
United Kingdom 4,114,901 7,495,579
Rest of the world 12,146,245 11,957,984
16,261,146 19,453,563
4. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Bad debts 178,355 130,300
Depreciation of tangible fixed assets 22,954 18,473
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 35,725 18,000
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6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 822,192 691,361
Social security costs 86,826 67,512
Other pension costs 55,833 43,038
964,851 801,911
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 7 4
Sales, marketing and distribution 5 4
Directors 2 2
Warehouse 5 3
19 13
8. Interest Payable and Similar Charges
2023 2022
£ £
Other finance charges 101 -
9. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 25.0% 19.0% 236,378 295,176
Total tax charge for the period 236,378 295,176
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 1,157,372 3,061,761
Tax on profit at 25% (UK standard rate) 289,343 581,735
Expenses not deductible for tax purposes 11,574 2,423
Tax losses utilised - (322,223 )
Capital allowances (8,277 ) 1,782
Difference in tax rates (14,868 ) -
Changes in tax provisions due to legislation (41,394 ) 31,459
Total tax charge for the period 236,378 295,176
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10. Tangible Assets
Land & Property
Leasehold Plant & Machinery Fixtures & Fittings Computer Equipment Total
£ £ £ £ £
Cost
As at 1 January 2023 - 61,711 85,962 72,290 219,963
Additions 153,655 15,245 9,687 - 178,587
As at 31 December 2023 153,655 76,956 95,649 72,290 398,550
Depreciation
As at 1 January 2023 - 53,197 80,261 51,964 185,422
Provided during the period 2,457 3,412 2,627 14,458 22,954
As at 31 December 2023 2,457 56,609 82,888 66,422 208,376
Net Book Value
As at 31 December 2023 151,198 20,347 12,761 5,868 190,174
As at 1 January 2023 - 8,514 5,701 20,326 34,541
11. Stocks
2023 2022
£ £
Stock 3,737,340 3,363,368
12. Debtors
2023 2022
£ £
Due within one year
Trade debtors 4,523,199 5,965,253
Amounts owed by group undertakings 659,146 43,516
Other debtors 60,218 140,983
5,242,563 6,149,752
13. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 510,816 1,127,970
Amounts owed to group undertakings 4,272,118 8,999,622
Other creditors 1,181,020 651,783
Corporation tax 236,378 295,176
Taxation and social security 26,714 39,442
Accruals and deferred income 45,418 116,506
6,272,464 11,230,499
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14. Share Capital
2023 2022
Allotted, called up and fully paid £ £
200 Ordinary Shares of £ 1.00 each 200 200
15. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2023 2022
£ £
Not later than one year 343,720 87,100
Later than one year and not later than five years 1,206,378 181,458
1,550,098 268,558
16. Controlling Parties
Mitchel & Ness LLC, a Delaware limited liability company incorporated in the United States, is the immediate parent company. Their address is 235 S 17th Street, Philadelphia, PA 19103.
The company's ultimate parent company is Fanatics Commerce Holdco Inc , registered in the United States.
During the year, the company made sales of £1,617,998 (2022: £1,393,054) to Fanatics (International) Ltd.
During the year, the company made purchases of £4,717,812 (2022: £4,925,436) from Mitchell & Ness LLC.
Included in debtors is £659,146 (2022: £43,516) owed by Fanatics (International) Ltd.
Included in creditors is £4,272,118 (2022: £8,999,622) owed to Mitchell & Ness LLC.
The above transactions took place in the normal course of business and on an arms length basis.
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