Registered number:
FOR THE PERIOD ENDED 30 MARCH 2024
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 MARCH 2024
The directors present the Strategic Report of 1994 Inc Ltd (the "Company") for the period ended 30 March 2024.
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.
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.
The Directors measure the performance of the Company by reference to the following key financial performance
indicators: 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.
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
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.
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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The 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).
The directors who served during the period were:
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
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.
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
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.
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 auditors, MHA, will 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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 1994 INC LTD
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 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).
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.
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)
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 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.
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.
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.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 1994 INC LTD (CONTINUED)
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.
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 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.
for and on behalf of
London, United Kingdom
Date:
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 MARCH 2024
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
REGISTERED NUMBER: 07296567
BALANCE SHEET
AS AT 30 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
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
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:
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)
Functional and presentation currency
Transactions and balances
such that significant risks and rewards of ownership have transferred to them. 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.
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
2.Accounting policies (continued)
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
2.Accounting policies (continued)
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:
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.
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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)
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
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.
The whole of the turnover is attributable to the sale of goods.
Analysis of turnover by country of destination:
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
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
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1994 INC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 MARCH 2024
Profit and loss account
the form of distributable reserves.
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
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
|