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Registration number: 08068948

Vogacloset Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Vogacloset Limited

Contents

Company Information

1

Strategic Report

2 to 6

Directors' Report

7 to 8

Statement of Directors' Responsibilities

9

Independent Auditor's Report

10 to 13

Profit and Loss Account

14

Statement of Comprehensive Income

15

Balance Sheet

16

Statement of Changes in Equity

17

Statement of Cash Flows

18

Notes to the Financial Statements

19 to 27

 

Vogacloset Limited

Company Information

Directors

N Kassem

Mrs H I I Hamarneh

F Zaghloul

Company secretary

Mrs H I I Hamarneh

Registered office

9 Berners Place
London
W1T 3AD
 

Holding Company

FAS Lab Holding

Bankers

Barclays Bank Plc
East and South East Reg 1
1 Churchill Place
Canary Wharf
London
E14 5HP
 

Auditors

Mehta & Tengra
Chartered Accountants
Statutory Auditors
9 Berners Place
London
W1T 3AD

 

Vogacloset Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the company is a UK- based online fashion platform, utilising the latest e-commerce technology and best in class processes, to sell to customers in the Middle East and North Africa (MENA)
region. The company, through its own name website offers the latest women, men and kids trends and beauty products for the young outgoing generation, in its target markets. The company product range comprises more
than 200,000 unique products at any point in time.New products are added daily to the vogacloset.com website.

The great majority of the goods sold on vogacloset.com are sourced and supplied from UK and Europe. The website offers the online MENA shoppers a convenient, enjoyable and efficient shopping experience, from
browsing, to order, to delivery, with the same convenience and return policy that is enjoyed by shoppers in Western countries. The company offers a diverse choice of localised payment and delivery options to suit the
markets where it sells its products.

Review of business
The results for the period and financial position of the company are as shown in the annexed financial statement.
The company has grown its sales rapidly over the years, and vogacloset.com has continued to grow into a well-established and recognisable brand amongst online shoppers in the Middle East. The focus on cost optimisation and innovation in operations helped Vogacloset maintain profitability.
Its customer base in the various target countries has expanded with the number of new visitors to the website steadily growing and more new customers acquired.

The company continued to maintain a strong focus on acquiring new customers and retaining existing customers to significantly expand its market share across the Middle East and North Africa region.
 

 

Vogacloset Limited

Strategic Report for the Year Ended 31 March 2024

Synopsis Of Results:
Turnover £92,679,992
Cost of sales (£71,819,665)
Gross Profit £20,860,327
Administrative expenses (£18,618,768)
Depreciation and amortisation (£993,031)
Foreign currency gains & losses £235,139
Interest receivable £1,666
Net Profit 1,485,333

Despite the challenging economic climate globally, Vogacloset managed to turn profitable for the year in question. This was mainly driven by:

Improved logistics capabilities: where the company managed to optimise its fulfilment and delivery costs and managed to roll back many of the extra costs imposed by the logistics companies due to Covid19 restrictions and disruptions.

Effective discount control measures: where the amount and frequency of discounts offered to clients were tightly managed. Additionally, Vogacloset worked closely with its suppliers to coordinate the discount campaigns to better benefit from the suppliers discounts.

Improved buying power: due to the Vogacloset increased volume of sales, and its growing ability to reach and convert customers, the platform gained in attractiveness to the suppliers in Europe and elsewhere. This translated into better discount rates offered by many of the suppliers to Vogacloset for the sale of their products. This, in turn, allowed Vogacloset to be able to offer its customers more attractive deals, thus generating additional sales.

Improved marketing efficiency: the company continued to focus its efforts on better data analysis and became more adept at utilising better data analysis tools to identify, with finer granularity, the effectiveness of each of its marketing channels. This led to significant optimisation of the marketing spend and delivered higher return on marketing investment.
 

 

Vogacloset Limited

Strategic Report for the Year Ended 31 March 2024

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Gross profit to turnover

%

22.51

21.80

Profit/(loss) before tax to turnover

%

1.60

1.60

Current assets to current liabilities

times

1.13

1.11

Receivable turnover ratio

days

21.00

15.00

Stock to cost of sales

%

.25

.33

Net cash balances

£m

19.00

14.00

Suppliers confidence
The company maintains a long-standing good relationship with all its suppliers.It works closely with them to coordinate campaigns and offers.

Customer Satisfaction
The company employs a strong customer service team to ensure that all customer complaints are taken seriously and resolved in an efficient and timely manner to the satisfaction of the customer. The directors endeavour to always maintain a culture of focus on customer satisfaction amongst the Vogacloset employees. The over-arching objective is to keep all customers satisfied.

Gender diversity of the workforce
Vogacloset is a female founded company and is extremely supportive of gender diversity. More than 75% of the company's workforce are female.

Employee relationship
The company operates non-discriminatory policies in the employment and welfare of its staff. Health and safety policies are strictly adhered to. The employee/manager relationship and complaint procedures are regularly reviewed by management. The company also maintains an open, healthy and productive relationship with its employees.

Company policy on payment of creditors
The company current policy concerning the payment to trade creditors is always reasonable and director always have a good relation with them.On average the company obtains 2 to 3 weeks of credit.








 

 

Vogacloset Limited

Strategic Report for the Year Ended 31 March 2024

Principal risks and uncertainties

The principal risks and uncertainties are:

Management risks
The management of the company is tightly controlled by its three directors who have divided various activites amongst themselves and conduct these with the assistance of unit managers on a day-to-day basis. Strategic matters and future development decisions are discussed and approved by the board of directors and carried out by the management team.

Credit risks
The credit risk is minimum because the majority of payments are collected on or before delivery. The majority of the undelivered, unpaid for items are returned to suppliers for full refund.

Currency risk
The Company has a significant exposure to foreign currency movements. Regular reviews are undertaken to mitigate against any potential currency volatility, and an appropriate level of hedging instruments are in place to mitigate the effect of currency swings.

Regulatory
The Company 's activities are subject to certain regulations around health and safety. The Company has detailed policies and training plans in place for employees to ensure compliance with regulations.

Financial risks
See Financial Instruments note in the Directors Report.

Cyber Security Risks
The Company 's priority is the security of its technology platform and data. It continuously updates and adapts its defences against potential cyber security threats. Vogacloset has in place very robust processes, technology and protections to counter the evolving cyber-security risks and to mitigate their impact if they materialise.

 

Vogacloset Limited

Strategic Report for the Year Ended 31 March 2024

Section 172(1) statement

The directors of Vogacloset Limited consider, that they have acted in the way 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 (having regard to the stakeholders and matters set out in S172 (1)(a-f) of the Act) in the decision taken during the period ended 31 March 2024.

- Our plan was designed to have a long-term beneficial impact on the company and to contribute to its success in delivering a better quality, more reliable product to its customer.
- Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations.
- Our plan took into account the impact of the company’s operations on the community and environment and our wider societal responsibilities, and in particular how we impact the region. Several of the proposed performance measures will deliver environment improvements.

- As the directors, our intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business. The intention is to nurture our reputation that reflects our responsible behaviour.
- As the directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so they too may benefit from the success of the business.

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mrs H I I Hamarneh
Company secretary and director

 

Vogacloset Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors of the company

The directors who held office during the year were as follows:

N Kassem

Mrs H I I Hamarneh - Company secretary and director

F Zaghloul

Financial Instruments
The company's principal financial instruments comprise bank balances, trade debtors and trade creditors.
The main purpose of these instruments is to provide finance for its day to day operations.
The trade creditors liquidity risks are managed by ensuring sufficient funds are available to meet the amounts due.The trade debtors liquidity risks are managed by ensuring the prompt collection of outstanding receivables.

Future developments
The company expects to maintain its highly successful relationship with its suppliers and the loyalty of its customers and hopes to continue its hitherto escalating growth pattern. The company continues to always expand its suppliers' base, and to explore selling in new markets.

Dividends
All profits and cash generated by the business are re-invested in the business to accelerate its growth. Hence, no dividends will be distributed for the period ended 31 March 2024.

Related party transactions
The director did not have any other material interests at any time during the year in any contracts of significance in relation to the business of the company except as stated in Note 21 to the financial statements.

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

Fixed assets
The changes in fixed assets are given in notes 11 and 12 to the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Mehta & Tengra as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

 

Vogacloset Limited

Directors' Report for the Year Ended 31 March 2024

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mrs H I I Hamarneh
Company secretary and director

 

Vogacloset Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

Vogacloset Limited

Independent Auditor's Report to the Members of Vogacloset Limited

Opinion

We have audited the financial statements of Vogacloset Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Vogacloset Limited

Independent Auditor's Report to the Members of Vogacloset Limited

Opinion on other matter 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.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 9], 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 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.

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

 

Vogacloset Limited

Independent Auditor's Report to the Members of Vogacloset Limited

In identifying and assessing risks of material misstatements in respect of irregularities, including fraud and
non-compliance and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets.
- results of our enquiries of management about their own identification and assessment of the risks and
irregularities;
- any matters we identified having obtained and reviewed the company's documentation of their policies and
procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified that greatest potential for fraud is revenue recognition. In common with all
audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in,
focusing on provisions of those laws and regulations that had a direct effect on the determination of material
amounts and disclosures in the financial statements. The key laws and regulations we considered in this context
include the UK Companies Act, pension legislation and tax legislation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

 

Vogacloset Limited

Independent Auditor's Report to the Members of Vogacloset Limited

......................................
P Tengra (Senior Statutory Auditor)
For and on behalf of Mehta & Tengra, Statutory Auditor

Statutory Auditors
9 Berners Place
London
W1T 3AD

17 September 2024

 

Vogacloset Limited

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

92,679,992

85,245,318

Cost of sales

 

(71,819,665)

(66,659,283)

Gross profit

 

20,860,327

18,586,035

Administrative expenses

 

(19,611,799)

(17,687,918)

Operating profit

4

1,248,528

898,117

Other interest receivable and similar income

5

1,666

68

Interest payable and similar expenses

6

235,139

469,166

   

236,805

469,234

Profit before tax

 

1,485,333

1,367,351

Tax on profit

10

(334,476)

(56,634)

Profit for the financial year

 

1,150,857

1,310,717

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Vogacloset Limited

Statement of Comprehensive Income for the Year Ended 31 March 2024

2024
£

2023
£

Profit for the year

1,150,857

1,310,717

Total comprehensive income for the year

1,150,857

1,310,717

 

Vogacloset Limited

(Registration number: 08068948)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

18,162

20,787

Tangible assets

12

4,683,285

4,268,048

 

4,701,447

4,288,835

Current assets

 

Stocks

13

176,308

221,762

Debtors

14

8,033,077

5,788,794

Cash at bank and in hand

 

19,245,615

14,399,735

 

27,455,000

20,410,291

Creditors: Amounts falling due within one year

16

(24,260,364)

(18,288,376)

Net current assets

 

3,194,636

2,121,915

Total assets less current liabilities

 

7,896,083

6,410,750

Provisions for liabilities

17

(942,900)

(608,424)

Net assets

 

6,953,183

5,802,326

Capital and reserves

 

Called up share capital

153,931

153,931

Share premium reserve

10,577,615

10,577,615

Retained earnings

(3,778,363)

(4,929,220)

Shareholders' funds

 

6,953,183

5,802,326

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mrs H I I Hamarneh
Company secretary and director

 

Vogacloset Limited

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 April 2023

153,931

10,577,615

(4,929,220)

5,802,326

Profit for the year

-

-

1,150,857

1,150,857

At 31 March 2024

153,931

10,577,615

(3,778,363)

6,953,183

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 April 2022

153,931

10,577,615

(6,239,937)

4,491,609

Profit for the year

-

-

1,310,717

1,310,717

At 31 March 2023

153,931

10,577,615

(4,929,220)

5,802,326

 

Vogacloset Limited

Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,150,857

1,310,717

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

993,032

803,586

Finance income

5

(1,666)

(68)

Finance costs

6

-

5,499

Corporation tax expense

10

334,476

56,634

 

2,476,699

2,176,368

Working capital adjustments

 

Decrease/(increase) in stocks

13

45,454

(28,036)

Increase in trade debtors

14

(2,244,284)

(689,856)

Increase in trade creditors

16

5,971,987

3,395,862

Cash generated from operations

 

6,249,856

4,854,338

Income taxes received

10

-

25,816

Net cash flow from operating activities

 

6,249,856

4,880,154

Cash flows from investing activities

 

Interest received

5

1,666

68

Acquisitions of tangible assets

(1,406,593)

(1,524,533)

Acquisition of intangible assets

11

950

(560)

Net cash flows from investing activities

 

(1,403,977)

(1,525,025)

Cash flows from financing activities

 

Interest paid

6

-

(5,499)

Net increase in cash and cash equivalents

 

4,845,879

3,349,630

Cash and cash equivalents at 1 April

 

14,399,736

11,050,105

Cash and cash equivalents at 31 March

 

19,245,615

14,399,735

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.Vogacloset limited registered a foreign non-operating company in Jordan with the ministry of trade and industry under registration number (2888) on December 28, 2017 as a representative for the head office.The results of the representative are also include in the financial statements.Vogacloset limited (Jordan) is audited by KPMG (Amman - Jordan).
 

The address of its registered office is:
9 Berners Place
London
W1T 3AD
United Kingdom

The principal place of business is:
Vogacloset Limited
Unit 2 Flostream
Blackthorne Crescent
Poyle
SL3 0DA

These financial statements were authorised for issue by the Board on 17 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue is recognised upon delivery of goods and collection of cash from customers for 'Cash on Delivery' orders.
Revenue is recognised upon order placement and receipt of full prepayment from customers for Prepaid' orders.
Returns received for invoices raised during the year are accounted for by reducing sales for the accounting period.Items need to be returned within 30 days, and the return process may take up to three weeks.
When store credits are issued for returns, the store credit is recognised as a liability and sales reduced.When the store credit is utilised, the liability is reduced and sales recognised.
Loyalty points issued are reflected as a cost in the profit and loss account and a liability in the balance sheet. When redeemed, the loyalty bonus is recognised as sales and the liability is reduced.If not redeemed within its shelf life, the expired points are written back by reducing the cost.

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Website development cost

12.5% on cost

Computer equipment

33.33% on cost

Sub domian website development

12.5% on cost

Intangible assets

Intangible assets are initially measured at cost.After initial recognition,intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Trade Mark is amortised at 12.5% based on a life of 8 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.Stock represents fashion clothes and accessories returned by customers which are unable to be returned to the suppliers,but available for sale to customers.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions
Provisions are recognised when the company has a present legal or constructive obligation arising as a
result of a past event, it is probable that an outflow of economic benefits will be required to settle the
obligations and a reliable estimate can be made

Hire purchase and leasing commitments

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

2024
£

2023
£

Sale of goods

114,641,944

102,385,577

Returns

(21,961,952)

(17,140,259)

92,679,992

85,245,318

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

989,456

800,012

Amortisation expense

3,575

3,574

5

Other interest receivable and similar income

2024
£

2023
£

Other finance income

1,666

68

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

5,499

Foreign exchange losses

(235,139)

(474,665)

(235,139)

(469,166)

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,977,402

3,323,303

Social security costs

190,920

180,065

Other short-term employee benefits

-

133

Pension costs, defined contribution scheme

19,820

20,850

Other employee expense

41,162

2,585

3,229,304

3,526,936

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

93

67

93

67

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

365,674

683,650

Contributions paid to money purchase schemes

-

3,200

365,674

686,850

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

12,500

18,500

Other fees to auditors

All other non-audit services

6,000

9,000


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

-

(25,816)

Deferred taxation

Arising from changes in tax rates and laws

334,476

82,450

Tax expense in the income statement

334,476

56,634

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Intangible assets

Trade Mark
 £

Total
£

Cost or valuation

At 1 April 2023

29,120

29,120

Additions acquired separately

950

950

At 31 March 2024

30,070

30,070

Amortisation

At 1 April 2023

8,333

8,333

Amortisation charge

3,575

3,575

At 31 March 2024

11,908

11,908

Carrying amount

At 31 March 2024

18,162

18,162

At 31 March 2023

20,787

20,787

12

Tangible assets

Sub-domain Website Development Cost
£

Website Development Cost
£

Computer and Office Equipment
£

Total
£

Cost or valuation

At 1 April 2023

735,829

5,830,719

426,236

6,992,784

Additions

-

1,416,062

81,703

1,497,765

Transfers

-

-

(93,071)

(93,071)

At 31 March 2024

735,829

7,246,781

414,868

8,397,478

Depreciation

At 1 April 2023

481,843

2,107,514

135,379

2,724,736

Charge for the year

91,979

808,532

88,946

989,457

At 31 March 2024

573,822

2,916,046

224,325

3,714,193

Carrying amount

At 31 March 2024

162,007

4,330,735

190,543

4,683,285

At 31 March 2023

253,986

3,723,205

290,857

4,268,048

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Stocks

2024
£

2023
£

Fashion clothes and accessories

176,308

221,762

14

Debtors

Current

2024
£

2023
£

Trade debtors

5,221,392

3,566,828

Prepayments and costs relating to accrued returns

732,945

341,063

VAT

1,801,463

778,890

Other debtors

166,690

423,788

Amount due from related companies

110,587

678,225

 

8,033,077

5,788,794

15

Cash and cash equivalents

2024
£

2023
£

Cash at bank

19,245,615

14,399,735

16

Creditors

2024
£

2023
£

Due within one year

Trade creditors

19,921,919

14,316,021

Social security and other taxes

7,442

7,596

Other creditors

288,006

680,091

Accruals

962,538

642,623

Accruals - Returns

1,906,630

1,822,731

Store credits and loyalty points liabilities

1,173,829

819,314

24,260,364

18,288,376

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2023

608,424

608,424

Provided during the year

334,476

334,476

At 31 March 2024

942,900

942,900

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £19,820 (2023 - £20,850).

19

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £1 each

153,931

153,931

153,931

153,931

       

20

Secured debts

Security:
Charge over credit balance dated 13/01/2021.
Other Facilities:
Foreign Exchange - (Marginal Risk) facility of GBP 1,000,000.
Bonds,Guarantees,Indemnities & Standby LC's facility of GBP89,000.
Company Barclays card facility of GBP20,000.

21

Related party transactions

Summary of transactions with entities with joint control or significant interest

The directors are also directors of three companies, one based in Egypt and the other two in UAE.
 

Summary of transactions with subsidiaries

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

 

 

Vogacloset Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Loans to related parties

2024

Entities with joint control or significant influence
£

Total
£

At start of period

678,225

678,225

Repaid

(37,164)

(37,164)

Expenses recognised as bad debt

530,474

530,474

At end of period

1,171,535

1,171,535

2023

Entities with joint control or significant influence
£

Total
£

At start of period

238,775

238,775

Advanced

439,450

439,450

At end of period

678,225

678,225

22

Parent company

The company's parent is FAS Lab Holding, incorporated in KSA.
 

23

Ultimate controlling party

There is no ultimate controlling party.