REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 10 |
Balance Sheet | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
OVERVIEW |
Trotters (Childrenswear & Accessories) Limited (the Company) was founded in 1990 with the opening of its first shop on King's Road in Chelsea. Today, the Company operates nine stores, including concessions in Harrods, Liberty of London, and Selfridges, alongside a strong online presence and partnerships with leading retail platforms worldwide. The Company has become a go-to brand for beautifully designed, high-quality children's clothing, footwear, and gifts, offering a unique in-store hairdressing service for children with the aim of creating childhood memories through every interaction. |
REVIEW OF BUSINESS |
Despite a challenging retail landscape, the Company has had another record year in terms of both sales and profit before tax. Sales increased from £18.4m to £19.0m (3.3%), driven by 21% growth from partners. During the year, the Company opened new concessions within Selfridges, both in the Trafford Centre and in London. |
The Company was approached by Hasbro in 2022 to create an exclusive collaboration for Peppa Pig's birthday. This resulted in a limited edition range designed with Liberty fabrics, generating positive sales and introducing a new customer base to the Company. |
Since the year-end, the Company has expanded its retail space, doubling the footage in Liberty of London, with plans to do the same in Selfridges London in early 2025. A new hairdressing service will also be launched in Selfridges London to further enhance the customer experience. |
While costs rose, the Company managed its spend efficiently, allowing operating profit to remain relatively stable at 6.7%, compared to 6.8% last year. The Company benefitted from high interest rates, earning £100k, leading to a 7.3% profit before tax (up from 6.8%). |
Net assets increased to £4.95m (a 0.5% increase), and cash balances remained strong, increasing by £388k (9.4%). |
KEY PERFORMANCE INDICATORS (KPIS) |
The Directors monitor the performance of the business on a regular basis using a number of key financial and other performance indicators. |
2024 | 2023 | Change % |
Turnover | £18,983,895 | £18,383,094 | 3.3% |
Gross profit | £10,002,764 | £9,740,747 | 2.7% |
Adjusted EBITDA | £1,548,474 | £1,419,610 | 9% |
Liquidity | 3.0 | 3.0 | - |
PRINCIPAL RISKS AND UNCERTAINTIES |
The retail landscape remains challenging. Like all retailers, the Company faces significant cost pressures, including the increase in employment taxes announced in the Autumn Budget and the rise in the London Living Wage. These costs, alongside other ongoing increases, exceed general price inflation. However, the Company remains in a strong financial position and is actively pursuing new opportunities for growth. |
The Directors understand the need for robust risk management and continue to monitor risks on a regular basis so that they can react quickly to mitigate them. The main risks facing the company are as follows: - |
Economic risks |
High inflation and weak consumer confidence continue to impact the retail sector. Despite this, the Company's positioning as an aspirational children's brand helps mitigate these risks. |
Management of Supply Chain |
The Company is committed to reviewing and managing its suppliers to ensure their capacity to meet future growth. |
Financial instrument risks |
These are kept to a minimum, with a forward commitment to buy €1m at a rate of 1.18 at the year-end. Cash instrument risks are limited, and the Company has sufficient working capital to avoid liquidity risks. The exposure to currency fluctuations in Euros has been managed by increasing prices where necessary to protect margins. |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
STRATEGIC REPORT |
for the Year Ended 30 June 2024 |
OUTLOOK |
The retail landscape remains challenging. The Company faces rising costs, including the increase in employment taxes announced in the Autumn Budget and the rise in the London Living Wage. These cost pressures, which exceed general price inflation, are being carefully managed. Despite these challenges, the Company remains committed to paying the London Living Wage to all employees, reflecting its dedication to supporting its workforce. |
The Directors are confident in the Company's strong financial position and its ability to navigate the current environment. The Company continues to seek new opportunities for growth, including expanding its presence in key retail locations and strengthening its partnerships, while maintaining a focus on innovation and customer engagement. |
ON BEHALF OF THE BOARD: |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of retail and online sales of children's clothing and accessories. |
DIVIDENDS |
Interim dividends totalling £1,000,000 were paid in the year (2023 - £1,000,000). The directors do not recommend the payment of a final dividend (2023 - £nil). |
FUTURE DEVELOPMENTS |
A statement is included in the Strategic Report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
A statement is included in the Strategic Report. |
THIRD-PARTY INDEMNITY INSURANCE |
The Company has purchased and maintained throughout the financial year, at its expense, third-party indemnity insurance for the benefit of its directors. This insurance in respect of certain losses or liabilities which the directors may incur to third parties in the course of performing their duties. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Oury Clark Chartered Accountants, are deemed to be re-appointed under Section 487 (2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
Opinion |
We have audited the financial statements of Trotters (Childrenswear & Accessories) Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 12 months and 1 day 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 section of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, and the Strategic Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be misstated. If we identify such inconsistencies or apparent 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
Matters on which we are required to report by exception |
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any matters in the Strategic Report or the Report of the Directors that are inconsistent with our overall view of the financial statements. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
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 a Report of the Auditors 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: |
Identifying and assessing potential irregularities, including fraud |
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: |
- | Considering the nature of the industry, sector, control environment and current business activities, including possible performance targets and subsequent remuneration; |
- | Enquiring of management concerning policies and procedures relating to: |
1. | Complying with laws and regulations and whether there were any instances of non compliance; |
2. | Mitigating, detecting and responding to fraud risk and whether there has been any actual or possible instances of fraud. |
- | Discussing within the engagement team where necessary regarding how and where fraud may occur in the financial statements along with the possible indicators of fraud. We identified the following areas most likely to be susceptible to fraud: |
1. | Management override |
2. | Revenue recognition |
3. | Misappropriation of stock |
- | Discussing within the engagement team where necessary the legal and regulatory framework in which the company operates and in particular those which would have an impact on the financial statements. The key laws and regulations considered were the Companies Act 2006, UK tax legislation and UK employment law. |
Audit response to the risks identified |
As noted above, we identified management override, revenue recognition and misappropriation of stock as the matters that would most likely be susceptible to fraud. Our procedures to respond to these risks included the following: |
- |
Review of the nominal ledger and journals posted in the year to ensure there was no evidence of management override; |
- | Review a sample of sales transactions to ensure sales are legitimate, recognised in the correct accounting period and are in line with the applicable accounting standards; |
- | Detailed testing over the stock balances held at the year end and discussions with management. |
Further, we also identified compliance with the Companies Act 2006, UK tax legislation and UK employment law as being key areas where there may be possible non-compliance. Our procedures to respond to these risks included the following: |
- | Review the financial statement disclosures with completion of a disclosure checklist and testing disclosures to supporting documentation to assess compliance with the Companies Act 2006; |
- | Safeguard review of the accounts by a qualified accountant not associated with the audit team, and of the corporation tax by a Chartered Tax Adviser, not associated with the audit team; |
- | Review the corporation tax return to ensure it complies with UK tax legislation. |
- | We have checked a sample of compliance with right to work checks and reviewed legal fees for indications of material issues arising out of non-compliance with employment law. |
The above matters and identified laws and regulations and potential fraud risks were communicated to all engagement team members and internal specialists where necessary, in order to enable the team to have the ability to identify such risks. The whole team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED |
There are inherent limitations in the audit procedures described above and the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 7 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
BALANCE SHEET |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
CASH FLOW STATEMENT |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Interest received |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 412,000 | 442,306 |
Movement in intercompany balances | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
3,910,035 |
Cash and cash equivalents at end of year | 2 | 4,540,742 | 4,152,328 |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
30.6.24 | 30.6.23 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance income | (99,730 | ) | - |
Taxation |
1,449,723 | 1,419,611 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 4,540,742 | 4,152,328 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 4,152,328 | 3,910,035 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,152,328 | 388,414 | 4,540,742 |
4,152,328 | 4,540,742 |
Total | 4,152,328 | 388,414 | 4,540,742 |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Trotters (Childrenswear & Accessories) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period in excess of twelve months and one day from the date of the audit report on these financial statements. Therefore, the directors continue to adopt the going concern basis in preparing the financial statements. |
The Statement of Cash Flow has been prepared using the indirect method. |
Preparation of consolidated financial statements |
The company has taken advantage of the exemption from preparing consolidated financial statements contained in Section 402 of the Companies Act 2006 on the basis that its subsidiaries are excluded from consolidation on the grounds that their inclusion is not material for the purpose of giving a true and fair view. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
They key sources of estimation uncertainty in the current year are: |
1. Depreciation and amortisation. Management are required to estimate the useful life of assets and the rate at which the value of the asset reduces. |
2. Stock provision. Management are required to estimate the possible loss arising due to slow moving or damaged stock. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied, excluding discounts, rebates, value added tax and other sales taxes. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Turnover from store sales is recognised when the sale is made. Turnover from hairdressing is recognised when the service is performed. Turnover from online sales is recognised upon delivery. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost net of value added tax and are reviewed annually for signs of impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life: |
Short leasehold | -over remaining term of lease |
Plant and machinery | -straight line over 5 years |
Fixtures and fittings | -straight line over 10 years |
Motor vehicles | -straight line over 7 years |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairments. |
Stocks |
Stocks are goods held for resale and are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
Stocks are measured on the FIFO basis. |
Allowances are made for slow-moving or obsolete items of stock based on the season code of the stock. An additional allowance is made for stock held at online partner distribution centres, where an item is no longer advertised for sale and it is impractial to recover the stock for sale via internal channels. |
Financial instruments |
Basic financial instruments as covered by Section 11 of FRS 102 are measured at amortised cost. |
Other financial instruments relate to forward currency contracts and are accounted for in accordance with Section 12 of FRS 102. Forward currency contracts are initially measured at fair value on the date the contract is entered into and are subsequently remeasured to their fair value through profit or loss at the end of each reporting period. The fair value of the financial asset or financial liability is determined by the differential between the exchange rate of the underlying asset at the balance sheet date and the price agreed in the forward currency contract. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
30.6.24 | 30.6.23 |
£ | £ |
United Kingdom |
Rest of World | 1,537,294 | 1,578,665 |
4. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Distribution Staff | 16 | 18 |
Administrative Staff | 32 | 32 |
Management Staff | 5 | 5 |
Sales Staff | 106 | 116 |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.24 | 30.6.23 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Patents and licences amortisation |
Computer software amortisation |
Auditors' remuneration |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 20.50%). |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Deferred taxation | (10,144 | ) | (5,807 | ) |
Total tax charge | 354,221 | 256,715 |
The corporation tax rates that will be applicable to the Company in future periods are determined by the UK government and are subject to change based on legislation enacted by the government. As a result, the actual tax rates and the resulting tax liabilities for future periods may differ from the rates used in the preparation of the tax return and financial statements for the year ended 30 June 2024. |
7. | DIVIDENDS |
30.6.24 | 30.6.23 |
£ | £ |
Ordinary shares of £0.005 each |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Tangible fixed assets |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.06.24 | 30.06.23 |
£ | £ |
Aggregate capital and reserves | - | - |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Registered office: 3 Gorst Road, London, United Kingdom, NW10 6LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
11. | STOCKS |
30.6.24 | 30.6.23 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' loan accounts | 871,976 | 459,976 |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
15. | SECURED DEBTS |
A floating charge is held by R Ross and S Mirman as an obligation for the company to repay the directors loan account outstanding at any point in time. |
16. | FINANCIAL INSTRUMENTS |
As at the balance sheet date the Company had entered into a forward currency contract to purchase €1 million at an exchange rate of 1.18 in September 2024. There was no such commitment as at 30 June 2023. |
TROTTERS (CHILDRENSWEAR & ACCESSORIES) |
LIMITED (REGISTERED NUMBER: 02481498) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 June 2024 |
17. | PROVISIONS FOR LIABILITIES |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax | 93,714 | 103,858 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 30 June 2024 |
A temporary taxable timing difference has arisen as a result of accelerated capital allowances which has given rise to the deferred tax liability. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary | £0.00 | 5 | 14,000 | 14,000 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
20. | OTHER FINANCIAL COMMITMENTS |
As at the balance date the Company had made commitments to purchase stock totalling £3,326,244 (2023: £3,625,642) in the first half of the following financial year. These purchases will be funded out of the Company's working capital and through ongoing trading activities. |
21. | ULTIMATE CONTROLLING PARTY |
In the opinion of the Directors, Mr R. P. Ross and Ms S. Mirman, who effectively control 75% (2022 - 75%) of the shares of Trotters (Childrenswear and Accessories) Limited, are the Company's ultimate controllers (2023 - Mr R. P. Ross and Ms S. Mirman). |