Company registration number 04120969 (England and Wales)
UK DISTRIBUTORS (FOOTWEAR) LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2024
UK DISTRIBUTORS (FOOTWEAR) LIMITED
COMPANY INFORMATION
Directors
D P Marlow
G W Marlow
C A Brown
S M Dudley
(Appointed 2 January 2024)
Secretary
D P Marlow
D A Marlow
Company number
04120969
Registered office
Marlow House
Churchill Way
Fleckney
Leicester
LE8 8UD
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
UK DISTRIBUTORS (FOOTWEAR) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
UK DISTRIBUTORS (FOOTWEAR) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
The principal activity of the company continues to be that of wholesale footwear distributors.
We aim to present a balanced and comprehensive review of the development and performance of the company during the year and of its position at the year end. Our review is consistent with the size and non-complex nature of the company and is written in the context of the risks and uncertainties we face.
The principal risks and uncertainties faced by the company comprise market uncertainty, the continuity of supply from manufacturers and the level of market competition. The continued success of the company depends on our ability to continue to supply a wide range of stock lines to customers which meet consumer demands.
The company continues to distribute family footwear, work/industrial footwear and hiking and rambling footwear. We consider that our key financial performance indicators are those which communicate the financial performance and strength of the company as a whole, being turnover and gross profit margin. During the year turnover decreased by 9.24% whilst the gross profit margin increased from 23.46% in 2023 to 24.16% in 2024.
Operating profit has decreased to £428,680 (2023 - £583,410). Profit before tax has increased to £724,105 (2023 - £709,845). Operations have increased capital and reserves by £515,769 during the year.
During the year ending 30th April 2024, we saw another decline in turnover that can only be put down to the challenging economic climate.
Due to high interest rates on mortgages and inflation, the consumer has less disposable income in the UK. Also, after speaking to many suppliers around the world the consensus is most of the world trade is slowing down, certainly as far as footwear is concerned, whether it be factories or suppliers from China, India and Europe, and the immediate future does not look any brighter.
Once again freight charges have Yo-Yo ’ed but never really come down to levels before the pandemic, so much so it is no longer viable to ship 20ft containers and we are now consolidating goods from different suppliers in India and China to ensure we remain as competitively priced as we can be, but this does cause delays in shipping.
Stock levels remain the same level today as 30/04/24, but due to the noticeable decline in turnover since the end of the year, there is still more work to be done getting goods down to realistic levels.
With business’s seeing an increase in overheads, such as National insurance, Minimum wage, Corporation tax and Energy prices increasing, our net margin is slowly being eroded.
UKD remains in a strong position to ride out these challenges, due to the prudence of the Directors and Management.
D P Marlow
Director
6 December 2024
UK DISTRIBUTORS (FOOTWEAR) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their report and financial statements for the year ended 30 April 2024.
Results and dividends
The results for the year are set out on page 7.
An interim ordinary dividend was paid amounting to £15,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D P Marlow
G W Marlow
C A Brown
S M Dudley
(Appointed 2 January 2024)
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of important events occurring since the year end.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
On behalf of the board
D P Marlow
Director
6 December 2024
UK DISTRIBUTORS (FOOTWEAR) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UK DISTRIBUTORS (FOOTWEAR) LIMITED
- 4 -
Opinion
We have audited the financial statements of UK Distributors (Footwear) Limited (the 'company') for the year ended 30 April 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year 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.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK DISTRIBUTORS (FOOTWEAR) LIMITED
- 5 -
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
obtaining an understanding of the legal and regulatory framework applicable to the company by considering the nature of the industry in which the company operates and enquiring of management; and
identifying the key laws and regulations considered to have a direct impact on the financial statements including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax legislation; and
assessing how the company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the company's control environment regarding compliance with regulations and fraud prevention; and
UK DISTRIBUTORS (FOOTWEAR) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK DISTRIBUTORS (FOOTWEAR) LIMITED
- 6 -
assessing the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the company’s accounting systems and controls and how these were monitored by management. Performance related targets and bonuses were also considered. Where the risk of material misstatement was considered to be higher in certain areas, further audit procedures were designed to address this increased risk; and
discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
enquiry of management, those charged with governance and other relevant parties around actual and potential litigation claims; and
reviewing supporting documentation regarding actual and potential litigation claims; and
reviewing minutes of meetings of those charged with governance; and
performing audit work over the risk of 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; and
performing audit work over revenue recognition including substantive tests of detail of a sample of revenue transactions; and
communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Barnett FCCA
Senior Statutory Auditor
For and on behalf of Newby Castleman LLP
9 December 2024
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
UK DISTRIBUTORS (FOOTWEAR) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,125,803
14,462,053
Cost of sales
(9,954,243)
(11,069,231)
Gross profit
3,171,560
3,392,822
Distribution costs
(458,016)
(524,270)
Administrative expenses
(2,312,770)
(2,408,504)
Other operating income
27,906
123,362
Operating profit
4
428,680
583,410
Interest receivable and similar income
7
295,425
126,446
Interest payable and similar expenses
8
(11)
Profit before taxation
724,105
709,845
Taxation
9
(193,336)
(149,900)
Profit for the financial year
530,769
559,945
The profit and loss account has been prepared on the basis that all operations are continuing operations.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1
1
Tangible assets
12
1,568,295
1,631,894
Investment properties
13
645,000
645,000
Investments
14
92,658
92,658
2,305,954
2,369,553
Current assets
Stocks
15
4,708,504
6,138,718
Debtors
16
1,113,492
1,028,804
Cash at bank and in hand
10,563,800
8,385,395
16,385,796
15,552,917
Creditors: amounts falling due within one year
17
(1,448,069)
(1,182,008)
Net current assets
14,937,727
14,370,909
Total assets less current liabilities
17,243,681
16,740,462
Provisions for liabilities
Deferred tax liability
18
14,211
26,761
(14,211)
(26,761)
Net assets
17,229,470
16,713,701
Capital and reserves
Called up share capital
20
230,549
230,549
Fair value reserve
21
49,530
49,530
Capital redemption reserve
21
138,164
138,164
Profit and loss reserves
21
16,811,227
16,295,458
Total equity
17,229,470
16,713,701
The financial statements were approved by the board of directors and authorised for issue on 6 December 2024 and are signed on its behalf by:
D P Marlow
Director
Company Registration No. 04120969
UK DISTRIBUTORS (FOOTWEAR) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Fair value reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
230,549
49,530
138,164
15,750,513
16,168,756
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
559,945
559,945
Dividends
10
-
-
-
(15,000)
(15,000)
Balance at 30 April 2023
230,549
49,530
138,164
16,295,458
16,713,701
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
-
-
530,769
530,769
Dividends
10
-
-
-
(15,000)
(15,000)
Balance at 30 April 2024
230,549
49,530
138,164
16,811,227
17,229,470
UK DISTRIBUTORS (FOOTWEAR) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
2,075,134
(34,031)
Interest paid
(11)
Income taxes paid
(140,703)
(259,964)
Net cash inflow/(outflow) from operating activities
1,934,431
(294,006)
Investing activities
Purchase of tangible fixed assets
(49,630)
(81,461)
Proceeds from disposal of tangible fixed assets
13,179
10,001
Interest received
295,425
126,446
Net cash generated from investing activities
258,974
54,986
Financing activities
Dividends paid
(15,000)
(15,000)
Net cash used in financing activities
(15,000)
(15,000)
Net increase/(decrease) in cash and cash equivalents
2,178,405
(254,020)
Cash and cash equivalents at beginning of year
8,385,395
8,639,415
Cash and cash equivalents at end of year
10,563,800
8,385,395
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
UK Distributors (Footwear) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Marlow House, Churchill Way, Fleckney, Leicester, LE8 8UD.
1.1
Basis of preparation
These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods supplied in the course of the company's trade (net of VAT). Turnover is recognised on the date that goods are despatched as this is the point that all risks and rewards are deemed to be transferred.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal instalments over its estimated useful economic life.
1.5
Tangible fixed assets
Tangible fixed assets are measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Straight line over 50 years
Fixtures, fittings & equipment
Straight line over 10 years
Motor vehicles
33.33% reducing balance
No depreciation is provided in respect of freehold land.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises all costs of purchase and other costs in bringing the stocks to their location. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.10
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.12
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account .
1.16
The financial statements present information about the company as an individual entity and not about its group. The results of the subsidiary undertaking are immaterial to the group. The company has therefore taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
Provision is made for damaged, obsolete and slow moving stock where appropriate. This requires the estimation of anticipated future sales of finished goods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover
Sale of goods
13,125,803
14,462,053
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 14 -
Other revenue
Interest income
295,425
126,446
Grants received
-
20,475
Turnover analysed by geographical market
2024
2023
£
£
United Kingdom
12,641,525
13,834,645
EC Countries
453,019
587,710
Other Countries
31,259
39,698
13,125,803
14,462,053
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange loss/(gain)
(4,238)
(99,637)
Government grants
-
(20,475)
Fees payable to the company's auditor for the audit of the company's financial statements
20,667
20,071
Depreciation of owned tangible fixed assets
109,097
121,852
Profit on disposal of tangible fixed assets
(9,047)
(3,142)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and distribution
28
32
Administration
14
15
Total
42
47
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
5
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,312,487
1,399,672
Social security costs
144,923
156,051
Pension costs
79,563
72,538
1,536,973
1,628,261
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
393,722
342,678
Company pension contributions to defined contribution schemes
62,000
44,000
455,722
386,678
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
154,956
151,379
Company pension contributions to defined contribution schemes
24,000
24,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
295,367
126,303
Other interest income
58
143
Total income
295,425
126,446
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
295,367
126,303
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
11
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
205,886
140,645
Deferred tax
Origination and reversal of timing differences
(12,550)
9,255
Total tax charge
193,336
149,900
From 1 April 2023, the UK corporation tax rate increased from 19% to 25%. The prior year rate is pro-rated accordingly.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
724,105
709,845
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
181,026
138,349
Tax effect of expenses that are not deductible in determining taxable profit
337
231
Depreciation on assets not qualifying for tax allowances
11,973
9,334
Change in deferred tax rate
2,062
Super deduction
(76)
Taxation charge for the year
193,336
149,900
10
Dividends
2024
2023
£
£
Ordinary paid
15,000
15,000
15,000
15,000
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
1
Amortisation and impairment
At 1 May 2023 and 30 April 2024
Carrying amount
At 30 April 2024
1
At 30 April 2023
1
12
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
2,427,070
419,523
234,179
3,080,772
Additions
440
65,190
65,630
Disposals
(64,411)
(64,411)
At 30 April 2024
2,427,070
419,963
234,958
3,081,991
Depreciation and impairment
At 1 May 2023
1,018,312
303,346
127,220
1,448,878
Depreciation charged in the year
51,072
17,135
40,890
109,097
Eliminated in respect of disposals
(44,279)
(44,279)
At 30 April 2024
1,069,384
320,481
123,831
1,513,696
Carrying amount
At 30 April 2024
1,357,686
99,482
111,127
1,568,295
At 30 April 2023
1,408,758
116,177
106,959
1,631,894
13
Investment property
2024
£
Fair value
At 1 May 2023 and 30 April 2024
645,000
The investment properties have been valued on a fair value basis by the directors. On a historical cost basis, these properties would have been included at an original cost of £582,191 (2023: £582,191).
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
22
92,658
92,658
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
4,708,504
6,138,718
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
877,844
856,142
Other debtors
16,844
950
Prepayments and accrued income
218,804
171,712
1,113,492
1,028,804
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
547,271
372,159
Amounts due to subsidiary undertakings
92,658
92,658
Corporation tax
205,828
140,645
Other taxation and social security
354,792
287,227
Other creditors
1,045
24,822
Accruals and deferred income
246,475
264,497
1,448,069
1,182,008
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
6,932
13,482
Retirement benefit obligations
(6,000)
-
Investment property
13,279
13,279
14,211
26,761
2024
Movements in the year:
£
Liability at 1 May 2023
26,761
Credit to profit or loss
(12,550)
Liability at 30 April 2024
14,211
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,563
72,538
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
£
£
Issued and fully paid
212,788 Ordinary Shares of £1 each
212,788
212,788
17,761 A Ordinary Shares of £1 each
17,761
17,761
230,549
230,549
Both classes of share rank equally in all respects except that the A Ordinary shares do not carry any voting rights.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
21
Reserves
Fair value reserve
The fair value reserve comprises fair value gains on investment property less the deferred tax on those gains.
Capital redemption reserve
This reserve comprises the nominal value of shares repurchased by the company.
Profit and loss reserves
Retained earnings comprises retained profits and losses for the current and prior periods.
22
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking and country of
Nature
Class of
% Held
incorporation or residency
of business
shareholding
Direct
Indirect
W Marlow & Sons (Footwear) Limited
England and Wales
Dormant
Ordinary
100.00
0
The registered office address of W Marlow & Sons (Footwear) Limited is Marlow House, Churchill Way, Fleckney, Leicester, LE8 8UD.
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividends totalling £7,168 (2023 - £4,587) were paid to a close family member of key management personnel.
24
Directors' transactions
Dividends totalling £7,832 (2023 - £10,413) were paid in the year in respect of shares held by the company's directors.
25
Ultimate controlling party
The company is under the control of Mr GW Marlow by virtue of his shareholding in the company.
UK DISTRIBUTORS (FOOTWEAR) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
26
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
530,769
559,945
Adjustments for:
Taxation charged
193,336
149,900
Finance costs
11
Investment income
(295,425)
(126,446)
Gain on disposal of tangible fixed assets
(9,047)
(3,142)
Depreciation and impairment of tangible fixed assets
109,097
121,852
Movements in working capital:
Decrease/(increase) in stocks
1,430,214
(701,194)
(Increase)/decrease in debtors
(84,688)
137,443
Increase/(decrease) in creditors
200,878
(172,400)
Cash generated from/(absorbed by) operations
2,075,134
(34,031)
27
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
8,385,395
2,178,405
10,563,800
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