Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-302023-05-262023-05-262024-03-30falseEuropean-wide retail of branded clothing known as Supreme supplied by its US parent company.332023-03-31false36falsefalse 07296567 2023-03-30 07296567 2023-03-31 2024-03-30 07296567 2022-04-02 2023-04-01 07296567 2024-03-30 07296567 2023-04-01 07296567 2022-04-02 07296567 c:Director1 2023-03-31 2024-03-30 07296567 c:Director2 2023-03-31 2024-03-30 07296567 c:Director2 2024-03-30 07296567 c:Director3 2023-03-31 2024-03-30 07296567 c:Director3 2024-03-30 07296567 c:Director4 2023-03-31 2024-03-30 07296567 c:Director4 2024-03-30 07296567 c:Director5 2023-03-31 2024-03-30 07296567 c:Director5 2024-03-30 07296567 c:RegisteredOffice 2023-03-31 2024-03-30 07296567 d:Buildings d:ShortLeaseholdAssets 2023-03-31 2024-03-30 07296567 d:Buildings d:ShortLeaseholdAssets 2024-03-30 07296567 d:Buildings d:ShortLeaseholdAssets 2023-04-01 07296567 d:FurnitureFittings 2023-03-31 2024-03-30 07296567 d:FurnitureFittings 2024-03-30 07296567 d:FurnitureFittings 2023-04-01 07296567 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-03-31 2024-03-30 07296567 d:ComputerEquipment 2023-03-31 2024-03-30 07296567 d:ComputerEquipment 2024-03-30 07296567 d:ComputerEquipment 2023-04-01 07296567 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-03-31 2024-03-30 07296567 d:OwnedOrFreeholdAssets 2023-03-31 2024-03-30 07296567 d:CurrentFinancialInstruments 2024-03-30 07296567 d:CurrentFinancialInstruments 2023-04-01 07296567 e:UnitedKingdom 2023-03-31 2024-03-30 07296567 e:UnitedKingdom 2022-04-02 2023-04-01 07296567 e:RestEuropeOutsideUK 2023-03-31 2024-03-30 07296567 e:RestEuropeOutsideUK 2022-04-02 2023-04-01 07296567 d:UKTax 2023-03-31 2024-03-30 07296567 d:UKTax 2022-04-02 2023-04-01 07296567 d:ShareCapital 2024-03-30 07296567 d:ShareCapital 2023-04-01 07296567 d:ShareCapital 2022-04-02 07296567 d:RetainedEarningsAccumulatedLosses 2023-03-31 2024-03-30 07296567 d:RetainedEarningsAccumulatedLosses 2024-03-30 07296567 d:RetainedEarningsAccumulatedLosses 2022-04-02 2023-04-01 07296567 d:RetainedEarningsAccumulatedLosses 2023-04-01 07296567 d:RetainedEarningsAccumulatedLosses 2022-04-02 07296567 d:AcceleratedTaxDepreciationDeferredTax 2024-03-30 07296567 d:AcceleratedTaxDepreciationDeferredTax 2023-04-01 07296567 d:TaxLossesCarry-forwardsDeferredTax 2024-03-30 07296567 d:TaxLossesCarry-forwardsDeferredTax 2023-04-01 07296567 c:OrdinaryShareClass1 2023-03-31 2024-03-30 07296567 c:OrdinaryShareClass1 2024-03-30 07296567 c:OrdinaryShareClass1 2023-04-01 07296567 c:FRS102 2023-03-31 2024-03-30 07296567 c:Audited 2023-03-31 2024-03-30 07296567 c:FullAccounts 2023-03-31 2024-03-30 07296567 c:PrivateLimitedCompanyLtd 2023-03-31 2024-03-30 07296567 d:Subsidiary1 2023-03-31 2024-03-30 07296567 d:Subsidiary1 1 2023-03-31 2024-03-30 07296567 d:Subsidiary2 2023-03-31 2024-03-30 07296567 d:Subsidiary2 1 2023-03-31 2024-03-30 07296567 d:Subsidiary3 2023-03-31 2024-03-30 07296567 d:Subsidiary3 1 2023-03-31 2024-03-30 07296567 d:WithinOneYear 2024-03-30 07296567 d:WithinOneYear 2023-04-01 07296567 d:BetweenOneFiveYears 2024-03-30 07296567 d:BetweenOneFiveYears 2023-04-01 07296567 d:MoreThanFiveYears 2024-03-30 07296567 d:MoreThanFiveYears 2023-04-01 07296567 2 2023-03-31 2024-03-30 07296567 6 2023-03-31 2024-03-30 07296567 f:PoundSterling 2023-03-31 2024-03-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 07296567










1994 INC LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 MARCH 2024

 
1994 INC LTD
 
 
COMPANY INFORMATION


Directors
S M Krim 
C J Craig (appointed 31 July 2023)
E G Lindsey (appointed 31 July 2023)
D Bailey (resigned 26 May 2023)
M M Miller (resigned 21 July 2023)




Registered number
07296567



Registered office
255-261 Horn Lane
Acton

London

W3 9EH




Independent auditors
MHA

6th Floor, 2 London Wall Place

London

EC2Y 5AU





 
1994 INC LTD
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 6
Independent Auditors' Report
7 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12
Notes to the Financial Statements
13 - 27


 
1994 INC LTD
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 MARCH 2024

Introduction
 
The directors present the Strategic Report of 1994 Inc Ltd (the "Company") for the period ended 30 March 2024.

Business review
 
The principal activity of the Company during the period continued to be the European-wide retail of branded clothing, known as Supreme, supplied by its US parent company.
The Company's objective for the period has been an increase in product-sell through and margin, together with building and developing the Supreme brand in Europe.
The directors are satisfied with the results for the period. The profit for the period, after taxation, amounted to £908,166 (period ended 1 April 2023: £543,418). The Company saw an improvement in turnover growth year on year, this is in part due to period ended 1 April 2023 (-13%) following the shortened 2022 tax year of 2 months. Therefore this turnover is reflective of a return to the performance the directors expect. Gross Profit Margin increased again, which reflects the companies drive to maximise sell through on key styles.

Principal risks and uncertainties
 
The Company has several risks which it monitors and can impact future performance. Specifically:

Foreign exchange risk as product costs are in USD, while revenues are in GBP and Euros. Significant movements in exchange rates can therefore impact Gross Profit Margin. The Corporate team monitors foreign exchange movements and have taken actions to minimise exposure of the same by utilising hedging activity where possible;

Fluctuation in freight costs and packaging requirements impacting the inbound costs and outbound costs for e-commerce sales. Working with its 3PL, the Company has mitigated this risk with standard packaging costs in its contract and utilising its parent company volumes for improved freight forwarder rates; and

The majority of the business is focused on direct sales to consumers through its stores and website which reduces the risk of receivable collections associated with a wholesale business.

Financial key performance indicators
 
The Directors measure the performance of the Company by reference to the following key financial performance
indicators:
 

Period ended 30 March 2024
Period ended 1 April 2023



Turnover growth (pro-rated)
17%
-13%
Gross profit margin
48%
42%
Operating profit margin
2%
1%

Additional KPIs reviewed include operating cash, which is reviewed weekly together with a monthly financial
review of the business to ensure it is in-line with the wider group's expectations for the UK company and its
subsidiaries.

Other key performance indicators
 
The Directors do not use any other key performance indicators.

Page 1

 
1994 INC LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024

Directors' statement of compliance with duty to promote the success of the Company
 
This section of the report shall act as the Section 172(1) Statement (the “Statement”) explaining how the Directors consider the interests of key stakeholders and other matters set out in s.172(1) of the Companies Act 2006 (“s.172") in the process of performing their duty to promote the success of the Company under s.172.
Generally, the Company's Directors consider interest of other stakeholders in a manner which takes into account the impact on the long-term success of the Company. The Directors of the Company are focused on ensuring the continued success of the Company, its brand image and the well-being of its employees in the UK and more broadly in Europe. This includes looking to the future footprint of the brand in Europe.
This statement includes explanation on how the Directors of the Company have worked to promote the success
of the Company in relation to:

the likely consequences of any decision in the long term;

the interests of the Company's employees;

the need to foster the Company's business relationships with suppliers, customers and others;

the impact of the Company's operations on the community and the environment;

the desirability of the Company maintaining a reputation for high standards of business conduct;

the need to act fairly as between members of the Company; and

principal Board decisions and how the Directors consider stakeholder views.
The likely consequences of any decision in the long term
The Directors of the Company have a sound understanding of the dynamic nature of the industry in which the Company operates, including the continued challenges caused by global market trends and the ongoing financial impact of high inflation during the financial year impacting customer spending power.
The interests of the Company’s employees
The Directors of the Company recognise that its employees are crucial to its continued success. In order to protect their interests the Directors have ensured that employees have the resources to be successful in their positions and are able to successfully provide a good service to its customers, all whilst adhering to appropriate laws and regulations.
The need to foster the Company’s business relationships with suppliers, customers, and others
The Directors of the Company are primarily focused on sustainable, long-term levels of profitable growth, which may mean lower levels of sales in some years as the Directors review business trends and the Company’s ability to handle growth’s impact on its systems, processes and people. Further, the Directors look to deepen these relationships through collaboration with the Company's existing warehouse 3rd party provider and investigating longer term planning solutions. The Company also enacted a change in last mile fulfilment in the UK to enable environmentally friendly and faster service delivery. 
The impact of the Company’s operations on the community and the environment
In order to promote the positive impact of the Company on the community and the environment the Directors have continued to work on improving the Company's standing with the council and residents of the area, around its retail location in London, increasing communication channels and trying to positively influence the neighbourhood.
 
Page 2

 
1994 INC LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024


The desirability of the Company maintaining a reputation for high standards of business conduct
In order to maintain the reputation and the Company’s high standards of business conduct, the Directors regularly review the procedures, the Company’s supply chain and the Company’s ethical standards and practices. The Directors and the Company asks its suppliers to maintain high ethical standards of business conduct through its terms and conditions and we review these via site visits throughout the year.

 

The need to act fairly as between members of the Company
The Directors of the Company keep the long term success of the Company in mind at all times and this has been reflected by their approach in creating a strategy that takes into consideration the impact on all stakeholders. In preparation of such strategy, the Directors act fairly towards all the Company’s members but are not always required to balance the stakeholders’ interests where they do not align with the long term success of the Company.
Principal Board decisions and how the directors considered stakeholders views
Board of dirctors decisions were issued this year to amend the company directors following the resignation of the former appointees. The new directors are employed in key positions to enable the continued success of the Company.
As a result of these activities, the Directors believe that they have demonstrated compliance with their legal duty
under s172(1) of the Companies Act 2006. 


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



C J Craig
Director

Date: 29 November 2024

Page 3

 
1994 INC LTD
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 MARCH 2024

The directors present their report and the financial statements for the period ended 30 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the period, after taxation, amounted to £908,166 (2023 - £543,418).

The directors have not recommended a dividend during the period ended 30 March 2024 (2023: £nil).

Directors

The directors who served during the period were:

S M Krim 
C J Craig (appointed 31 July 2023)
E G Lindsey (appointed 31 July 2023)
D Bailey (resigned 26 May 2023)
M M Miller (resigned 21 July 2023)

Engagement with suppliers, customers and others

Engagement with suppliers, customers and others is referenced in the Strategic Report.

Page 4

 
1994 INC LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company has followed the UK Government's environmental reporting guidance and has used the 2024 conversion factor of 0.207074 (2023: 0.207074) for electricity consumption. The results for the period to 30 March 2024 are as follows:
Scope 2
UK energy consumption used to calculate emissions (kWh): 53,855 (1 April 2023: 60,682)
Greenhouse gas emissions (metric tonnes CO2e): 11,152 (1 April 2023: 12,566)
Intensity ratio - Metric tonnes CO2e per employee: 310 (1 April 2023: 349)

All consumption is generated in the UK.

The Company has not identified material Scope 1 energy consumption.
There was no energy efficiency action taken during the period.

Matters covered in the Strategic Report

In accordance with Section 414c (ii) of the Companies Act 2006, the Directors have chosen to include the following items in the Strategic Report:

Principal activity and Business review

Principal risks and uncertainties

Future developments

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

On 17 July 2024, the ultimate beneficial owner of the Company, VF Corporation, announced the sale of the Supreme brand (including the relevant Company 1994 Inc Limited) to EssillorLuxittoca SA. The sale was completed on 1 October 2024 and the sole shareholder of the company became Essilor International SA. The directors have assessed these circumstances and have determined it to be a non-adjusting post balance sheet event.

Auditors

Following a rebranding exercise on 15 May 2023 the trading name of the Company’s independent auditor changed from MHA MacIntyre Hudson to MHA.

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 5

 
1994 INC LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 MARCH 2024

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




C J Craig
Director

Date: 29 November 2024

Page 6

 
1994 INC LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 1994 INC LTD
 

Opinion


We have audited the financial statements of 1994 Inc Ltd (the 'Company') for the period ended 30 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 March 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 7

 
1994 INC LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 1994 INC LTD (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 8

 
1994 INC LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 1994 INC LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and
claims;
Performing audit work over the risk and management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes and meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.


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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Stephen Poleykett BA(Hons) FCA
for and on behalf of
MHA, Statutory Auditor
London, United Kingdom

Date:
 
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
3 December 2024
Page 9

 
1994 INC LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 MARCH 2024

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023
Note

  

Turnover
 4 
57,869,427
49,210,190

Cost of sales
  
(30,214,540)
(28,729,019)

Gross profit
  
27,654,887
20,481,171

Distribution costs
  
(3,267,708)
(2,695,760)

Administrative expenses
  
(23,152,477)
(17,126,406)

Operating profit
 5 
1,234,702
659,005

Interest receivable and similar income
 8 
11,126
21,355

Interest payable and similar expenses
 9 
-
(94)

Profit before tax
  
1,245,828
680,266

Tax on profit
 10 
(337,662)
(136,848)

Profit for the financial period
  
908,166
543,418

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 27 form part of these financial statements.

Page 10

 
1994 INC LTD
REGISTERED NUMBER: 07296567

BALANCE SHEET
AS AT 30 MARCH 2024

30 March 2024
1 April 2023
Note

  

Fixed assets
  

Tangible fixed assets
 11 
184,300
177,334

Investments
 12 
6,388,327
6,388,327

  
6,572,627
6,565,661

Current assets
  

Stocks
 13 
8,694,584
7,021,700

Debtors
 14 
11,683,490
5,322,581

Cash at bank and in hand
 15 
4,790,457
11,846,507

  
25,168,531
24,190,788

Creditors: amounts falling due within one year
 16 
(18,712,756)
(18,569,830)

Net current assets
  
 
 
6,455,775
 
 
5,620,958

Total assets less current liabilities
  
13,028,402
12,186,619

  

Provisions for liabilities
  

Deferred taxation
 17 
(49,023)
(115,406)

  
 
 
(49,023)
 
 
(115,406)

  

Net assets
  
12,979,379
12,071,213


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account
 19 
12,979,279
12,071,113

  
12,979,379
12,071,213


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



C J Craig
Director

Date: 29 November 2024

The notes on pages 13 to 27 form part of these financial statements.

Page 11

 
1994 INC LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 MARCH 2024


Called up share capital
Profit and loss account
Total equity


At 3 April 2022
100
11,527,695
11,527,795


Comprehensive income for the year

Profit for the period
-
543,418
543,418



At 1 April 2023
100
12,071,113
12,071,213


Comprehensive income for the period

Profit for the period
-
908,166
908,166


At 30 March 2024
100
12,979,279
12,979,379


The notes on pages 13 to 27 form part of these financial statements.

Page 12

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

1.


General information

1994 Inc Ltd is a private company, limited by shares, incorporated in England and Wales within the United Kingdom. The Company's registered number is 07296567. The Company's registered office is 255-261 Horn Lane, Acton, London, W3 9EH. The Company's current year accounting period is for the period from 2 April 2023 to 30 March 2024. The prior year is presented for the period from 3 April 2022 to 1 April 2023.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company has taken the exemption from preparing consolidated financial statements offered by Section 401 of the Companies Act 2006 as the Company is part of a larger group that prepares consolidated financial statements. See Note 2.2 for details of where these consolidated financial statements are publically available.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these
financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47,
11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27,
12.29(a), 12.29(b) and 12.29A;
- the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21
and 26.23;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of V.F. Corporation as at 30 March 2024 and these financial statements may be obtained from the V.F. Corporation website,
www.vfc.com/investors/financial-information.

Page 13

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. The financial statements are rounded to the nearest £1.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Turnover is recognised when the Company has provided or dispatched the goods to the customer,
such that significant risks and rewards of ownership have transferred to them.

 
2.5

Operating leases: the Company as lessee

Operating leases are those leases where the Company has use of an asset but where the significant
risks and rewards of ownership remain with the lessor and the lease term is not expected to be a
significant portion of the useful life of the asset.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 15

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
12.5% straight line or over the lease period
Fixtures and fittings
-
12.5% to 25% straight line
Computer equipment
-
30% to 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Page 17

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

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

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 18

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the Directors are required to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include;
Critical management judgements in applying accounting policies
Determine whether leases entered into by the Company either as a lessor or a lessee are operating or lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Key sources of estimation uncertainty
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Stock is valued at the lower of average cost and net realisable value. The Directors assess the net realisable value of stock based on statistical analysis and industry experience and make provisions for obsolescent and slow moving stock where considered appropriate.


4.


Turnover

The whole of the turnover is attributable to the sale of goods.

Analysis of turnover by country of destination:

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023

United Kingdom
25,650,874
24,551,687

Rest of Europe
32,218,554
24,658,503

57,869,428
49,210,190


Page 19

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023

Depreciation of tangible fixed assets
42,841
53,569

Exchange differences
157,979
467,148

Operating lease rentals
210,054
143,074

Defined contribution pension cost
133,349
67,831

544,223
731,622


6.


Auditors' remuneration

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


2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
30,000
28,000

Fees payable to the Company's auditors and their associates in respect of:

Preparation of the Company's financial statements
15,000
13,350

Taxation compliance services
3,000
2,650

Page 20

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

7.


Employees

Staff costs were as follows:


2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023

Wages and salaries
1,932,249
2,446,729

Social security costs
318,615
310,991

Pension costs
133,349
67,831

2,384,213
2,825,551


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


2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023
            No.
            No.







Employees
33
36


8.


Interest receivable

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023


Interest receivable from group companies
11,126
21,355


9.


Interest payable and similar expenses

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023


Bank interest payable
-
94

Page 21

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

10.


Taxation


2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023

Corporation tax


Current tax on profits for the year
337,662
136,848


Total current tax
337,662
136,848


Tax on profit
337,662
136,848

Factors affecting tax charge for the period

The tax assessed for the period/period is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2 April 2023 to 30 March 2024
3 April 2022 to 1 April 2023


Profit on ordinary activities before tax
1,245,828
680,266


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
311,457
129,251

Effects of:


Other differences leading to an increase in the tax charge
26,205
7,597

Total tax charge for the period/period
337,662
136,848


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


Page 22

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

11.


Tangible fixed assets





Short-term leasehold property
Fixtures and fittings
Computer equipment
Total



Cost or valuation


At 31 March 2023
423,740
302,439
217,755
943,934


Additions
15,180
12,339
23,159
50,678


Disposals
(197,001)
(250,988)
(72,004)
(519,993)



At 30 March 2024

241,919
63,790
168,910
474,619



Depreciation


At 31 March 2023
276,654
292,639
197,307
766,600


Charge for the period
18,653
5,776
18,413
42,842


Disposals
(196,999)
(250,277)
(71,846)
(519,122)



At 30 March 2024

98,308
48,138
143,874
290,320



Net book value



At 30 March 2024
143,611
15,652
25,036
184,299



At 30 March 2023
147,086
9,800
20,448
177,334


12.


Fixed asset investments





Investments in subsidiary companies



Cost or valuation


At 1 April 2023
6,388,327



At 30 March 2024
6,388,327




Page 23

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Cherry SAS
Ordinary
100%
Kirsche GmbH
Ordinary
100%
Ciliegia S.r.l.
Ordinary
100%

The registered office address of Cherry SAS is 5 Rue Barbette, 75003, Paris, France. The registered office address of Kirsche GmbH is Torstasse, 10119, Berlin, Germany. The registered office address of Ciliegia S.r.l. is Via Montenapoleone 29 CAP 20121, Milan, Italy.
As per Note 2.1, the Company has taken the exemption from preparing consolidated financial statements
offered by Section 401 of the Companies Act 2006.


13.


Stocks

30 March 2024
1 April 2023

Finished goods and goods for resale
8,694,584
7,021,700


The difference between purchase price or production cost of stocks and their replacement cost is not
material.

Page 24

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

14.


Debtors


30 March 2024
1 April 2023

Due after more than one year

Amounts owed by group undertakings
764,802
2,149,652

Other debtors
103,928
139,803

868,730
2,289,455

Due within one year

Trade debtors
2,171,405
1,351,726

Amounts owed by group undertakings
2,278,910
374,537

Other debtors
6,115,803
986,692

Prepayments and accrued income
248,642
320,171

11,683,490
5,322,581



15.


Cash and cash equivalents

30 March 2024
1 April 2023

Cash at bank and in hand
4,790,457
11,846,507

Less: bank overdrafts
(3,952,951)
-

837,506
11,846,507



16.


Creditors: Amounts falling due within one year

30 March 2024
1 April 2023

Bank overdrafts
3,952,951
-

Trade creditors
955,369
1,031,524

Amounts owed to group undertakings
6,464,606
16,809,332

Corporation tax
6,072,947
-

Other taxation and social security
134,695
342,817

Other creditors
174,883
122,877

Accruals and deferred income
957,305
263,280

18,712,756
18,569,830


Page 25

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

17.


Deferred taxation




30 March 2024





At beginning of year
(115,406)


Charged to profit or loss
66,383



At end of year
(49,023)

The provision for deferred taxation is made up as follows:

30 March 2024
1 April 2023


Accelerated capital allowances
(50,593)
(116,976)

Tax losses carried forward
1,570
1,570

(49,023)
(115,406)


18.


Share capital

30 March 2024
1 April 2023
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100

Each share has full rights in the company with respect to voting, dividend and distributions.



19.


Reserves

Profit and loss account

The profit and loss account represents the accumulation of retained profits, net of dividends, which are in
the form of distributable reserves.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £133,349 during the period (1 April 2023: £67,831).
As at 31 March 2024 contributions totalling £9,730 (1 April 2023: £21,176) were payable to the fund and are included in creditors.

Page 26

 
1994 INC LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024

21.


Commitments under operating leases

At 30 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

30 March 2024
1 April 2023


Not later than 1 year
174,055
80,167

Later than 1 year and not later than 5 years
722,375
375,000

Later than 5 years
62,500
137,500

958,930
592,667


22.


Related party transactions

The Company has taken advantage of the exemption in Section 33.1A in FRS 102 from the requirement to disclose transactions entered into between wholly owned members of a group.
There were no other related party transactions during the period ended 30 March 2024 (1 April 2023: £Nil).


23.


Controlling party

As at 30 March 2024 the name of the parent company of the smallest group of undertakings for which group accounts are drawn up of which the Company is a member is Supreme Holdings, Inc., whose registered office is 62 King Street, New York, NY 10014, United States of America.
The ultimate parent company at that time was considered to be V. F. Corporation, a company incorporated in the United States of America. The registered office is 1551 Wewatta Street, Denver, Colarado, 80202. Copies of these financial statements are available to the public and may be obtained from the V.F. Corporation website, www.vfc.com/investors/financial-information.
Since the balance sheet date, the new ultimate parent company is EssillorLuxittoca SA, a company incorporated in France. The registered office is 147 rue de Paris, 94220, Charenton-Le-Pont, France.

 
Page 27