Company registration number 13228752 (England and Wales)
SPORTSSHOES.COM GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
SPORTSSHOES.COM GROUP LIMITED
COMPANY INFORMATION
Director
Brett Bannister
Company number
13228752
Registered office
1 The Park
Jubilee Way
Shipley
West Yorkshire
BD18 1QG
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
SPORTSSHOES.COM GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 6
Director's responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
SPORTSSHOES.COM GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The director presents the strategic report for the year ended 29 February 2024.

Fair review of the business

The group’s principal activity during the period was direct to consumer e-commerce sales of premium performance sports footwear, apparel and accessories from 150 global brands.

Mission-led

The group’s mission is to help improve people’s lives and wellbeing through sport and outdoor fitness and the group is committed to attracting and retaining a loyal customer base.

We do this by becoming actively involved with our communities, ranging from individuals wanting to keep fit to elite athletes, and by seeking to innovate and excite in all we do for our customers’ benefit.

Turnover for the year exceeded £90m, up 11% on last year, whilst operating profit reached £2.9m, representing an increase of 99% on the previous year.

Investment returns

The group’s significant increase in IT, operations and marketing investment, as identified last year, started to return value during FY24.

Our IT strategy, which continues to deliver powerful transformational change, contributed significantly through the release of our new web platform. This enabled the launch of our new European web shops which delivered revenue growth of 32% year-on-year during the period.

We also increased our investment in marketing and buying to fuel further commercial opportunities. This, in part, enabled us to focus more on our primary running categories and ignite our developing Outdoor category during the period, which outperformed UK market trends.

Continued growth

The Director believes the group is well positioned to meet our expanding customer base’s expectations and remains confident the business will continue to grow its revenues and profitability.

Principal risks and uncertainties

The group’s principal risk and uncertainties for FY-24 were supply chain stability and customer demand volatility.

Regularity of supply, as expected, returned to previous levels.

Supply chain

The group benefits from long established relationships with most key suppliers, this helped mitigate supply chain risk during the period.

Customer demand

The group constantly follows market indicators from various sources to maximise insight on future customer demand, this coupled with a good understanding of its customer needs helps mitigate demand risk.

Other risks associated with; Environmental, Political, Social, Technological and liquidity were monitored and managed accordingly.

SPORTSSHOES.COM GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

Financial Risks

Liquidity Risk

To maintain enough liquidity the company utilises operational cashflows with minimal short-term debt. This source of funds is enough to service working capital demands and investments.

There is scope to increase short-term borrowing but the company avoids this source of funding.

Credit Risk

The group perceives any credit risk to be low, any bad debt risk from card purchases (charge backs) are historically low and remain so, this is through an effective revenue protection team who work with the payment providers to reduce incidence of potential fraud, using various fraud prevention tools.

Other Risks

Competitor Activity

The retail environment for the group’s sector is highly competitive to changing customer trends and new product entrants. The Group counters any competitor threat through excellent customer engagement and website content, further technology investment will help the group continually improve in this area.

Economic Risk

The group recognises that economic conditions and uncertainty affect customer sentiment and buying decisions. Continued development of the retail offering to diverse markets (UK and EU) mitigates the risk from any particular market.

Supplier Risk

The group values and invests in strong brand-partner-relationships, without which would impair the company’s ability to grow.

Reputational Risk

The group is protective over its online brand and recognises the reputational risk as with any customer-focused brand.

Political Risk

The group recognises the risk from departing the EU and works tirelessly to adapt its delivery model to ensure minimal cost and customer service impact.

Key performance indicators

The Directors monitor an array of KPI’s both financial and non-financial to monitor business performance.

Extract of some key KPIs:

Financial KPIs

SPORTSSHOES.COM GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Promoting the success of the company

As the board of Sportsshoes.com Group Limited, we have a legal responsibility under section 172 of the companies Act 2006 to act in the way we consider to be most likely to promote the group’s success for the benefit of its members as a whole, and to have regard to the long term effect of our decisions on the group and its stakeholders. This statement addresses the ways in which we as a board carry out this responsibility.

The board of directors of the group consider that as a board and individually they have acted in good faith to promote the success of the business for its members and stakeholders, having regard to the matters set out in section 172 (1) (a) to (f) of the Act including:

 

The above paragraphs and following Directors’ report disclose how the directors fulfilled their duties within the context of the marketplace during year ended 29 February 2024.

On behalf of the board

Brett Bannister
Director
28 November 2024
SPORTSSHOES.COM GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -

The director presents his annual report and financial statements for the year ended 29 February 2024.

Principal activities

The group's principal activity through the period was direct to consumer e-commerce sales of premium performance sports footwear and apparel along with other accessories.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £345,600. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Brett Bannister
Business review

The Group’s strong performance during the period is testimony to our belief that there is no fun standing still and our mission to help people live happier, healthier lives through running and fitness.

As ever, the continued support of our brand partners has underpinned our growth. This enabled us to deliver a number of successful running shoe launches during the period - including Nike Vaporfly 3, Nike ZoomX Ultrafly, Asics Nimbus 26 and Hoka Clifton 9 - and a series of high impact activation initiatives.

Trusted partnerships

During FY24, we also announced an exclusive retail partnership with community event network parkrun. Supporting more than nine million registered parkrunners across 23 countries, this marks the biggest retail partnership we have ever secured.

In total, the Group (trading as SportsShoes.com) was involved in more than 350 physical activation events over the 12 month period both in the UK and internationally.

This approach enables us to have a physical presence globally as a digital retailer which included having activations at the Tokyo, New York, Boston and Paris marathons.

As an indication of our positive standing with customers, we now have more than 70,000 reviews on Trustpilot with an average score of 4.6 which is an ‘excellent’ rating. This makes us the highest rated online retailer in our category.

Athletic ambition

We also had success with our athlete ambassadors. These include British distance runner, Emile Cairess, who made his Olympic debut in Paris, and triathlete Hayden Wilde who won silver at the Games. We also support Imogen Boddy who broke the National Three Peaks Challenge record that stood for 45 years in May 2024.

We want to build upon the positive outcomes of our product launches and activation events for both elite and community runners. A great example of this was our hugely successful inaugural Podium Festival which we held in Leicester in March 2024 that was attended by 1,000 runners.

More than 50 per cent of runners at the Festival achieved personal bests and it also witnessed the fasted 5k road run on British soil, set by Ethiopia’s Hagos Gebrewitt who won in 13:19.

SPORTSSHOES.COM GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 5 -

Invested in growth

We are also expanding our international sales, and despite a consolidation of distribution channels, we still experienced growth through our core channels, particularly in France, Germany, Spain and Italy, and feel there is a clear opportunity to establish a premium online retail brand in our space in Europe and beyond.

 

To enable our growth, SportsShoes.com has invested in its people, processes, technologies and facilities.

 

This includes the opening in May 2023 of a £2.5m, 10,750 sq ft creative and tech hub called U2. Located adjacent to our warehouse facilities, it is home to 224 SportsShoes.com employees.

 

We promote wellbeing for our employees, which includes regular run club activity promoting ‘couch to 5k’ along with other weekly mixed ability running sessions including an elite group. Sportsshoes.com also regularly hosts employee events at U2, including Q&A sessions with high profile people within the running community.

 

In addition, during the 12 month period, SportsShoes.com replatformed its UK and European websites to provide customers with a range of online retail features and benefits. These include enhanced user journeys with increased levels of personalisation across both product discovery and product advice.

 

 

Future foundations

Our investments have been made to provide the foundations for ongoing sustainable profitable growth. We are also always looking at inventive ways we can innovate in all parts of the business, whether it’s a product launch, brand activation or sales promotion.

 

We know that if we continue to deliver fresh and exciting ideas for our people, customers and brand partners, the sales will look after themselves.

Auditor

BHP LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Going concern

The company and group's business activities, together with the factors likely to affect its future development, performance and position are set out in the fair review of the business which forms part of the strategic report.

 

The Director has reviewed the financial position of the group and company, including uncertainties arising from the current difficult economic environment and the potential impact of this trading and financing. The Director has a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the group and company continues to adopt the going concern basis in preparing the financial statements.

 

Energy and carbon report

The group sets out below their energy consumption and emissions, which includes its subsidiary results for the entire financial year for comparative purposes:

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
81,447
99,846
- Electricity purchased
274,691
292,155
356,138
392,001
SPORTSSHOES.COM GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
14.90
18.26
- Fuel consumed for owned transport
10.16
0.16
25.06
18.42
Scope 2 - indirect emissions
- Electricity purchased
56.30
60.50
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
81.36
78.92
Intensity ratio
Tonnes CO2e per employee
0.36
0.36
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

Sportsshoes.com recognises the importance of energy use and carbon reduction. The company remains engaged with a third-party specialist to help meet and exceed carbon targets with an offset plan spanning 40 years covering the businesses conception back in the 1980s.

 

The Company recently engaged with the ‘Jog-on’ campaign, an initiative to keep used running shoes out of landfill, this also involves a partnership with the leading logistics experts – EVRI.

 

The company is also developing its energy mix through the use of its recently acquired solar panels.

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.

On behalf of the board
Brett Bannister
Director
28 November 2024
SPORTSSHOES.COM GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

SPORTSSHOES.COM GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPORTSSHOES.COM GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of Sportsshoes.com Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 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).

In our opinion the financial statements:

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 group and parent 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 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 director 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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

SPORTSSHOES.COM GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPORTSSHOES.COM GROUP LIMITED
- 9 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the parent company or to cease operations, or has 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.

 

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations, relevant to the group, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of group minutes and legal expenses. There are inherent limitations in the audit procedures described 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.

 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

SPORTSSHOES.COM GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPORTSSHOES.COM GROUP LIMITED
- 10 -

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.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
28 November 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
SPORTSSHOES.COM GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
90,241,248
81,197,521
Cost of sales
(72,560,845)
(66,818,562)
Gross profit
17,680,403
14,378,959
Administrative expenses
(14,817,957)
(12,940,390)
Operating profit
4
2,862,446
1,438,569
Interest receivable and similar income
7
9,993
-
0
Interest payable and similar expenses
8
(479,291)
(402,747)
Profit before taxation
2,393,148
1,035,822
Tax on profit
9
(1,101,573)
(558,522)
Profit for the financial year
1,291,575
477,300
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

There are no recognised gains and losses other than those recognised through the profit and loss account.

SPORTSSHOES.COM GROUP LIMITED
GROUP BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
29 February 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
33,905,571
35,820,171
Tangible assets
12
1,781,651
1,530,795
Investments
13
84
84
35,687,306
37,351,050
Current assets
Stocks
15
30,103,111
27,979,850
Debtors
16
2,470,436
2,929,832
Cash at bank and in hand
2,250,729
49,152
34,824,276
30,958,834
Creditors: amounts falling due within one year
17
(24,166,122)
(19,647,273)
Net current assets
10,658,154
11,311,561
Total assets less current liabilities
46,345,460
48,662,611
Creditors: amounts falling due after more than one year
18
(3,660,716)
(6,989,900)
Provisions for liabilities
Deferred tax liability
20
314,567
248,509
(314,567)
(248,509)
Net assets
42,370,177
41,424,202
Capital and reserves
Called up share capital
22
10,000
10,000
Merger reserve
39,990,000
39,990,000
Profit and loss reserves
2,370,177
1,424,202
Total equity
42,370,177
41,424,202
The financial statements were approved and signed by the director and authorised for issue on 28 November 2024
28 November 2024
Brett Bannister
Director
SPORTSSHOES.COM GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
63,097,590
63,097,590
Current assets
Debtors
16
73,047
135,651
Cash at bank and in hand
500
500
73,547
136,151
Creditors: amounts falling due within one year
17
(18,747,686)
(14,680,022)
Net current liabilities
(18,674,139)
(14,543,871)
Total assets less current liabilities
44,423,451
48,553,719
Creditors: amounts falling due after more than one year
18
(3,660,716)
(6,989,900)
Net assets
40,762,735
41,563,819
Capital and reserves
Called up share capital
22
10,000
10,000
Merger reserve
39,990,000
39,990,000
Profit and loss reserves
762,735
1,563,819
Total equity
40,762,735
41,563,819

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £455,484 (2023 - £1,595,217 profit).

The financial statements were approved and signed by the director and authorised for issue on 28 November 2024
28 November 2024
Brett Bannister
Director
Company Registration No. 13228752
SPORTSSHOES.COM GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
10,000
39,990,000
992,502
40,992,502
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
477,300
477,300
Dividends
10
-
-
(45,600)
(45,600)
Balance at 28 February 2023
10,000
39,990,000
1,424,202
41,424,202
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
1,291,575
1,291,575
Dividends
10
-
-
(345,600)
(345,600)
Balance at 29 February 2024
10,000
39,990,000
2,370,177
42,370,177
SPORTSSHOES.COM GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
10,000
39,990,000
14,202
40,014,202
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
1,595,217
1,595,217
Dividends
10
-
-
(45,600)
(45,600)
Balance at 28 February 2023
10,000
39,990,000
1,563,819
41,563,819
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
(455,484)
(455,484)
Dividends
10
-
-
(345,600)
(345,600)
Balance at 29 February 2024
10,000
39,990,000
762,735
40,762,735
SPORTSSHOES.COM GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,688,281
4,086,358
Interest paid
(479,291)
(402,747)
Income taxes paid
(1,033,493)
(1,099,905)
Net cash inflow from operating activities
5,175,497
2,583,706
Investing activities
Purchase of business
-
(101,170)
Purchase of tangible fixed assets
(747,499)
(1,198,100)
Interest received
9,993
-
0
Net cash used in investing activities
(737,506)
(1,299,270)
Financing activities
Proceeds from borrowings
-
2,500,000
Repayment of bank loans
(1,741,072)
(4,642,855)
Dividends paid to equity shareholders
(345,600)
(45,600)
Net cash used in financing activities
(2,086,672)
(2,188,455)
Net increase/(decrease) in cash and cash equivalents
2,351,319
(904,019)
Cash and cash equivalents at beginning of year
(100,590)
803,429
Cash and cash equivalents at end of year
2,250,729
(100,590)
Relating to:
Cash at bank and in hand
2,250,729
49,152
Bank overdrafts included in creditors payable within one year
-
(149,742)
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 17 -
1
Accounting policies
Company information

Sportsshoes.com Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 The Park, Jubilee Way, Shipley, West Yorkshire, BD18 1QG.

 

The group consists of Sportsshoes.com Group Limited and all of its subsidiaries, as noted in note 13.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

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

 

All financial statements are made up to 29 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 and group's business activities, together with the factors likely to affect its future development, performance and position are set out in the fair review of the business which forms part of the strategic report.

 

The Director has reviewed the financial position of the group and company, including uncertainties arising from the current difficult economic environment and the potential impact of this on trading and financing. The Director has prepared cashflows and forecasts for the next two years and the Director has a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the group and company continues to adopt the going concern basis in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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 considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is twenty years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. 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.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10 Yr Straight Line
Fixtures and fittings
4 Yr / 10 Yr Straight Line
Computers
3 Yr Straight Line
Motor vehicles
3 Yr Straight Line

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.

1.8
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, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
1.12
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.

Basic financial assets

Basic financial assets, which include 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 23 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

 

Useful lives of property, plant and equipment

Property, plant and equipment is depreciated over its useful life. Useful lives are based on management's estimates of the periods within which the assets will generate revenue and which are periodically reviewed for continued appropriateness. Changes to judgements can result in significant variations in the carrying value and amounts charged to the Statement of Comprehensive Income.

Stock

Management estimates the net realisable values of stock, taking into account the most reliable evidence available at each reporting date. The future realisation of these stocks may be affected by future technology or other market-driven changes that may reduce future selling prices.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
90,241,248
81,197,521
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
76,785,486
66,830,253
Europe
12,653,882
13,272,239
Rest of World
801,880
1,095,029
90,241,248
81,197,521
2024
2023
£
£
Other revenue
Interest income
9,993
-
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
72,126
(138,060)
Depreciation of owned tangible fixed assets
496,643
292,341
Amortisation of intangible assets
1,914,600
1,914,600
Operating lease charges
672,216
640,821
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,525
8,120
Audit of the financial statements of the company's subsidiaries
34,135
32,510
42,660
40,630
For other services
Taxation compliance services
4,780
4,560
All other non-audit services
4,890
4,660
9,670
9,220
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
1
1
-
-
Management
7
6
-
-
Sales and administration
207
213
-
-
Total
215
220
-
0
-
0
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,478,419
6,659,708
-
0
-
0
Social security costs
678,909
630,345
-
-
Pension costs
129,204
116,919
-
0
-
0
8,286,532
7,406,972
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
9,993
-
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
479,291
401,348
Other interest
-
1,399
Total finance costs
479,291
402,747
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,036,659
425,013
Adjustments in respect of prior periods
(1,144)
-
0
Total current tax
1,035,515
425,013
Deferred tax
Origination and reversal of timing differences
66,058
133,509
Total tax charge
1,101,573
558,522
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
9
Taxation
(Continued)
- 27 -

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

2024
2023
£
£
Profit before taxation
2,393,148
1,035,822
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
586,082
196,806
Tax effect of expenses that are not deductible in determining taxable profit
511,549
365,039
Adjustments in respect of prior years
(1,144)
-
0
Deferred tax adjustment
(5,055)
(428)
Capital allowances in excess of depreciation
3,312
(35,040)
Remeasurement of deferred tax for changes in tax rates
1,445
32,145
Under/ (over) provided in current year
5,384
-
Taxation charge
1,101,573
558,522
10
Dividends
2024
2023
2024
2023
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary A shares
Final paid
4.94
0.65
345,600
45,600
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 29 February 2024
38,372,971
Amortisation and impairment
At 1 March 2023
2,552,800
Amortisation charged for the year
1,914,600
At 29 February 2024
4,467,400
Carrying amount
At 29 February 2024
33,905,571
At 28 February 2023
35,820,171
The company had no intangible fixed assets at 29 February 2024 or 28 February 2023.
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 28 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
662,790
2,030,952
985,557
-
0
3,679,299
Additions
-
0
41,302
625,924
80,273
747,499
At 29 February 2024
662,790
2,072,254
1,611,481
80,273
4,426,798
Depreciation and impairment
At 1 March 2023
602,380
909,429
636,695
-
0
2,148,504
Depreciation charged in the year
31,679
304,441
158,293
2,230
496,643
At 29 February 2024
634,059
1,213,870
794,988
2,230
2,645,147
Carrying amount
At 29 February 2024
28,731
858,384
816,493
78,043
1,781,651
At 28 February 2023
60,410
1,121,523
348,862
-
0
1,530,795
The company had no tangible fixed assets at 29 February 2024 or 28 February 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
84
84
63,097,590
63,097,590
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
84
Carrying amount
At 29 February 2024
84
At 28 February 2023
84
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
63,097,590
Carrying amount
At 29 February 2024
63,097,590
At 28 February 2023
63,097,590
14
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
B-Sporting Limited
1 The Park, Jubilee Way, Shipley, England, BD18 1QG
Ordinary
100.00
-
B-Sporting Sportsshoes Limited
29 The Rise, Mount Merrion, Co. Dublin, A94 F544 Ireland
Ordinary
-
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
30,103,111
27,979,850
-
0
-
0
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,437,407
1,652,373
-
0
-
0
Other debtors
9,855
119,449
-
0
-
0
Prepayments and accrued income
1,023,174
1,158,010
73,047
135,651
2,470,436
2,929,832
73,047
135,651
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,741,072
2,802,702
1,741,072
2,652,960
Trade creditors
11,931,969
10,740,549
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
14,439,490
11,916,233
Corporation tax payable
68,860
66,838
-
0
-
0
Other taxation and social security
776,119
143,678
-
-
Other creditors
3,861,363
1,086,832
2,500,000
-
0
Accruals and deferred income
5,786,739
4,806,674
67,124
110,829
24,166,122
19,647,273
18,747,686
14,680,022

Amounts due to group companies are interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,160,716
1,989,900
1,160,716
1,989,900
Other borrowings
19
2,500,000
2,500,000
2,500,000
2,500,000
Other creditors
-
0
2,500,000
-
0
2,500,000
3,660,716
6,989,900
3,660,716
6,989,900
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,901,788
4,642,860
2,901,788
4,642,860
Bank overdrafts
-
0
149,742
-
0
-
0
Other borrowings
2,500,000
2,500,000
2,500,000
2,500,000
5,401,788
7,292,602
5,401,788
7,142,860
Payable within one year
1,741,072
2,802,702
1,741,072
2,652,960
Payable after one year
3,660,716
4,489,900
3,660,716
4,489,900

The bank loans are secured by fixed and floating charge over the undertakings land and assets both present and future, including plant and machinery, goodwill, uncalled capital, stocks, shares and other securities in any subsidiaries and all intellectual property and licenses.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
19
Loans and overdrafts
(Continued)
- 31 -

In January 2023 the group's £10 million loan was re-financed until April 2025, incurring an interest rate of 3% over base rate.

 

The other loan attracts interest of £10,000 per month and is repayable in full (not by instalments) in May 2025.

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
317,927
250,997
Tax losses
(3,360)
(2,488)
314,567
248,509
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
248,509
-
Charge to profit or loss
66,058
-
Liability at 29 February 2024
314,567
-

£121,000 of the deferred tax liability set out above is expected to reverse within 12 months.

SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 32 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
129,204
116,919

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.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 10p each
70,000
70,000
7,000
7,000
Ordinary B shares of 10p each
25,000
25,000
2,500
2,500
Ordinary C shares of 10p each
5,000
5,000
500
500
100,000
100,000
10,000
10,000

For Ordinary Shares A, B & C - the shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

23
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
£
£
£
£
Within one year
473,560
473,560
-
-
Between two and five years
477,750
951,310
-
-
951,310
1,424,870
-
-
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
259,144
-
-
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 33 -
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties, under common control and on an arm's length basis:

Rent of property and management services
2024
2023
£
£
Bannister Investments Limited
473,560
436,833

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Bannister Investments Limited
-
4,560
26
Ultimate controlling party

The ultimate controlling party is the company director (Brett Bannister).

27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,291,575
477,300
Adjustments for:
Taxation charged
1,101,573
558,522
Finance costs
479,291
402,747
Investment income
(9,993)
-
0
Amortisation and impairment of intangible assets
1,914,600
1,914,600
Depreciation and impairment of tangible fixed assets
496,643
292,341
Movements in working capital:
Increase in stocks
(2,123,261)
(4,515,898)
Decrease in debtors
459,396
262,427
Increase in creditors
3,078,457
4,694,319
Cash generated from operations
6,688,281
4,086,358
SPORTSSHOES.COM GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 34 -
28
Analysis of changes in net debt - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
49,152
2,201,577
2,250,729
Bank overdrafts
(149,742)
149,742
-
0
(100,590)
2,351,319
2,250,729
Borrowings excluding overdrafts
(7,142,860)
1,741,072
(5,401,788)
(7,243,450)
4,092,391
(3,151,059)
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