Company registration number 11910595 (England and Wales)
REFORMATION UK, LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
REFORMATION UK, LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
REFORMATION UK, LTD
BALANCE SHEET
AS AT
30 DECEMBER 2023
30 December 2023
- 1 -
30 December 2023
25 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,906,107
1,501,227
Current assets
Stocks
929,192
1,029,087
Debtors falling due after more than one year
4
312,000
312,000
Debtors falling due within one year
4
852,627
431,326
Cash at bank and in hand
795,157
1,902,764
2,888,976
3,675,177
Creditors: amounts falling due within one year
5
(3,176,251)
(3,756,199)
Net current liabilities
(287,275)
(81,022)
Total assets less current liabilities
1,618,832
1,420,205
Creditors: amounts falling due after more than one year
6
(1,334,336)
(935,766)
Net assets
284,496
484,439
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
284,396
484,339
Total equity
284,496
484,439
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
Jennifer MacLellan
Director
Company registration number 11910595 (England and Wales)
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Reformation UK, Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Tower Bridge House, c/o Reynolds Porter Chamberlain LLP, St Katherine's Way, London, UK, E1W 1AA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has received undertakings from its parent undertaking that they will not seek repayment of their loan until such time as the company is a in a position to be able to repay it. Furthermore, the parent has provided an undertaking to provide financial support for a period of at least twelve months from the date of approval of these financial statements.
As a result the directors have adopted the going concern basis in preparing the financial statements.
1.3
Turnover
Proceeds from the sale of goods to final customers are recognised when the customer makes the purchase. Revenue is recognised by the value of the consideration received. Sales returns, actual and anticipated, are considered part of the total price of each sale transaction. The amount of the provision for expected refunds at the closing of the financial year is not relevant in the accompanying profit and loss statement.
It is the company's policy to sell its products to the retail customer with a right to return within 14 days. The company uses the expected value method to estimate the value of goods that will be returned because this method best predicts the amounts of variable consideration to which the company will be entitled.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Lesser of asset useful life or lease term
Fixtures and fittings
7-10 years straight line
Computers
5 years straight line
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
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 profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
58
50
3
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 25 December 2022
1,115,477
573,464
1,688,941
Additions
537,159
176,395
713,554
At 30 December 2023
1,652,636
749,859
2,402,495
Depreciation and impairment
At 25 December 2022
91,901
95,813
187,714
Depreciation charged in the year
160,640
148,034
308,674
At 30 December 2023
252,541
243,847
496,388
Carrying amount
At 30 December 2023
1,400,095
506,012
1,906,107
At 24 December 2022
1,023,576
477,651
1,501,227
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 6 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
414,928
126,144
Amounts owed by group undertakings
7,271
7,271
Other debtors
430,428
297,911
852,627
431,326
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
312,000
312,000
Total debtors
1,164,627
743,326
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,783
133,617
Amounts owed to group undertakings
1,347,401
2,853,229
Corporation tax
2,422
Other taxation and social security
975,034
269,532
Other creditors
847,033
497,399
3,176,251
3,756,199
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
1,334,336
935,766
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
REFORMATION UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 7 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Matthew Eade
Statutory Auditor:
Bright Grahame Murray
Date of audit report:
31 December 2024
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
10,227,957
11,289,167
10
Related party transactions
Included within creditors is a loan of £1,233,523 (2022: £2,827,197 ) due to the company's immediate parent company, LYMI LA, Inc, £113,618 (2022: £25,842) due to a fellow group undertaking, Hey Bui LLC, £260 (2022: £170) due to a fellow group undertaking, Big Lady LLC, and £Nil (2022: £20) due to a fellow group undertaking, Unicorn Kiss LLC. These loans are interest free, unsecured and repayable on demand.
Included within debtors is a loan of £7,257 (2022: £7,257) due from a fellow group undertaking, Reformation Canada Inc. and £14 (2022: £14) due from a fellow group undertaking. Reformation Madison LLC.
11
Parent company
The company is a wholly owned subsidiary of LYMI Inc, a company incorporated in the United States of America. LYMI Inc's registered office is 2263 East Vernon Avenue, Vernon, CA 90058.