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Registered number: 11074230









Vogue Sourcing Limited









Annual Report and Financial Statements

For the Year Ended 31 December 2023

 
Vogue Sourcing Limited
 
 
Company Information


Directors
A Mehan 
R Abrol 
J Hartley 




Registered number
11074230



Registered office
3rd Floor, Oakland House
Talbot Road

Old Trafford

Manchester

M16 0PQ




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
HSBC UK
110 Grey Street

Newcastle upon Tyne

NE1 6JG





 
Vogue Sourcing Limited
 

Contents



Page
Strategic Report
 
1 - 7
Directors' Report
 
8 - 12
Independent Auditors' Report
 
13 - 16
Statement of Comprehensive Income
 
17
Balance Sheet
 
18
Statement of Changes in Equity
 
19
Notes to the Financial Statements
 
20 - 35

 
Vogue Sourcing Limited
 
 
Strategic Report
For the Year Ended 31 December 2023

Introduction
The directors present their Strategic Report and audited financial statements for the year ended 31 December 2023.
Principal activities
The Company’s principal activity is to design, source and sell clothing in the fashion sector B2B. At the heart of our success in the fashion sector lies our commitment to design excellence providing the consumer high-end quality products at a competitive price. There have been no changes in the principal activities. 
Our talented and creative design teams have consistently delivered innovative and stylish collections that resonate with our target audience. We will continue to prioritise design innovation as a core aspect of our business strategy, ensuring that our products remain at the forefront of fashion trends.
Business review
As we reflect on the financial year ending on December 31, 2023, it is key to evaluate the performance and financial standing of our company. 
2023 saw a decline in sales due to the loss of a manufacturer led account. Sales for the year totalled £95.7m, down 11% year on year, although our FOB (Free On Board) sales achieved a 24% year on year growth, this reflects the trust and confidence that our partners and customers have in our products and services.
We have consistently invested in our systems, reinforcing our commitment to staying at the forefront of the industry. These investments have not only enhanced our operational efficiency but have also enabled us to explore new opportunities, positioning us for continued growth in a rapidly changing business environment.
Revenue
Current year turnover is split between the two revenue streams; FOB sales of £83m (2022: £67m) and Manufacturer-Led sales of £12.7m (2022: £40.5m).
Increased FOB revenue of £16m, this is a combination of successfully diversifying into new areas throughout menswear and non-clothing. Throughout the year, we have witnessed growth in sales and profits across all key departments. This underlines our ability to adapt the FOB products to the changing market, expand our product offerings, and deliver exceptional value to our customers. 
During the year, we identified that we will be losing a key revenue stream due to the discontinuation of a manufacturer led agreement with our key customer. This revenue stream has been an important contributor to our financial performance, and its loss is not something we take lightly.
• 
Financial Impact: This revenue stream contributed approximately 40% of our total revenue. We have conducted a   thorough assessment to understand the implications for our overall financial health.
• 
Operational Adjustments: We are evaluating how to best reallocate resources that were previously tied to this    revenue stream. This may include adjusting our budget, optimising operations, and potentially restructuring certain    aspects of the business.
Our Response Strategy
We are already taking proactive steps to mitigate the impact of this loss:
• 
New opportunities: We are exploring new opportunities by entering new departments for our current FOB business.
• 
Innovation and Improvement: We are committed to innovating within our existing offerings to better meet market   demands and strengthen our competitive position.
• 
Cost Management: We are reviewing our expenses to identify areas where we can improve efficiency and reduce    costs without compromising our core operations. 
 
Page 1

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Business review (continued)
Gross profit
Gross profits were £12m for the year ended 31 December 2023 (2022: £13.7m) and Operating profit totalled £1.4m (2022: £4.5m). Despite an overall increase in FOB revenue, gross profits have reduced due to a change in sales mix caused by the loss of our manufacturer led account. Administrative expenses increased by £1.5m as we invest in resource to penetrate new FOB departments for our current customer base.
EBITDA
EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) totalled £1.6m (2022: £4.7m), reflecting a year where FOB sales grew whilst manufacturer-led revenue decreased (as noted above), and investments were made within the business to help generate future growth. The combination of FOB sales growth and forward-looking investment positions us for continued prosperity in the years ahead.
Sourcing and Investment
The Company has continued to invest throughout 2023 for the future growth plans. A strong team in the UK and globally is
essential for implementing our growth strategy, and we are committed to empowering our employees with the resources and
support necessary for their success.
Efficient and strategic sourcing has been pivotal in maintaining our competitive edge. The directors view responsible sourcing as essential to the company's sustainable growth. Year on year we have strengthened our relationships with suppliers and manufacturers that uphold our values of quality, sustainability, and ethical production.
Acquisition by Vogue Sourcing Holdings
On June 12, 2023 Vogue Sourcing Limited was acquired by Vogue Sourcing Holdings Ltd, following the decision of one of
the shareholders to exit the business. The acquisition was structured to facilitate a smooth transition of ownership whilst
ensuring the continued growth and stability of Vogue Sourcing Limited.
The acquisition has led to several changes in the ownership and governance structure of Vogue Sourcing Limited:
•  
Ownership Structure: Vogue Sourcing Ltd is now a wholly-owned subsidiary of Vogue Sourcing Holdings Ltd.
•  
Management Team: The existing management team will continue to lead the business, ensuring continuity and    stability.
The financial implications of the acquisition were as follows:
•  
Purchase Consideration: The acquisition was completed for a total consideration of £16.8m, which was funded    through cash totalling £3m, with a share for share exchange totalling £13.7m, plus legal costs of £0.1m.
Vogue Sourcing Limited is expected to continue its growth trajectory, with plans to expand into new markets and launch new products.
 
Page 2

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Global Territories
We source across six territories worldwide, each at different stages of development. The varying economic conditions in these regions have a direct impact on our UK-based business. As a UK business, our success is closely tied to the economic health of these diverse markets for sourcing, requiring us to adapt our strategies to each region's unique economic landscape.
Some of the territories have been under significant economic stress, resulting in increased operational costs and tighter profit margins. As a business we have had to reassess our pricing strategies and optimise resource allocation.
Turkey 
In 2023, Turkey's economy faced significant challenges and shifts. The country faced high inflation, reaching rates above 40% driven by unorthodox monetary policies and a depreciating lira in the year. Our Turkey office was a large contributor to our manufacturer led business, which has now stopped. With regards to our FOB business, revenue associated with clothing sourced from this territory has reduced to £7.5m in 2023 (£9.5m: 2022) with further reductions in revenue predicted in the following financial year.
Morocco
Ongoing investments have been made during 2023 in our Morocco office, which provides a different handwriting (CMT product) for our customer base. This territory operates on a CMT (Cut, Make & Trim) basis compared to FOB which requires more attention due to its complexities around sourcing of materials. We are now achieving necessary sales associated with sourcing product from this territory to sustain future growth. Due to the decline in Turkey, this office has become more important as a short-lead offering.
Bangladesh factory unrest 
Bangladesh has seen a wave of factory protests, particularly within the garment industry, which is a crucial sector for the country's economy. These protests are largely driven by demands for higher wages, better working conditions, and the timely payment of salaries and bonuses. As a result of this, a proportion of Vogue Sourcing sales forecasted for November and December 2023 slipped into the following financial year.

Key performance indicators
 
Our KPIs are essential metrics that guide our decision-making and help us assess our progress towards our strategic objectives. Our directors and senior management team diligently monitor these KPIs on a regular basis to ensure that we stay on course and continue to excel in our industry. 
• 
Sales Growth - This KPI measures our year-over-year sales performance, offering effective insights into our ability        to increase revenue, expand our current customer base, and capture new market opportunities. It also reflects the 
 business effectiveness in driving sales initiatives and adapting to market trends. Despite overall sales reducing, our
  main revenue-driving division has increased.
• 
Gross Profit Margin - Our FOB profit margin KPI helps us assess the efficiency of our operations by tracking the 
 percentage of profit earned from our revenue. It reflects our ability to manage costs effectively. The Company 
 achieved a gross profit margin of 13% in 2023 (2022: 13%). 
 Customer Satisfaction - This is a crucial KPI, serving as a key indicator of our ability to meet and surpass our
  customers' needs and expectations effectively. The improvement of our customer service is monitored through on    time delivery which has increased due to investment in the quality team. Quality has declined due to wrong factory    choice and we are now consolidating the supply base.
• 
Market Share - This KPI examines our share of the market compared to competitors. It allows us to assess our 
 position in the industry and identify opportunities for growth. In 2023, the Company sold to 54 department of our    main customer, an increase of 38% on 2022 (2022: 39 departments).

Page 3

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Future Developments
 
As we look back on the past years, it’s just as important to chart our course for the future by identifying the critical priorities that will fuel the business strategy and progress in the coming year. These priorities will play a vital role in shaping our business strategy and directing our initiatives. By dedicating our energy to these key areas, we are set to drive sustained growth, provide outstanding value to our customers, and reinforce our leadership position in the market.
• 
Market Expansion: Continuously seeking new opportunities to develop our presence globally by utilising resource   and expertise overseas. We will continue to pursue new departments within current customers, combined with    attracting new business through our quality driven innovative approach. In 2023, we have expanded into Morocco    for another short lead time territory, and India to bring a different product offering. 
• 
Sourcing Expansion: Investment in IT and infrastructure to enhance our current overseas existence, enabling us to   provide a seamless customer experience. We have also explored new territories that will strengthen our offering to    the customers.
• 
Product Innovation: Staying ahead of fashion trends and introducing new innovative product lines to meet the     evolving needs and preferences of our customers, while maintaining the high-quality standards for which we are    known.
• 
Staff Development: Investing in their growth and development is paramount. In the coming year, we will focus on    several aspects of staff development and implement initiatives that promote a positive workplace culture.
Cost of Living Crisis
 
As we move forward, it is essential to acknowledge the significant challenges posed by the ongoing cost of living crisis in the UK. The past year has seen unforeseen factors affecting households, creating financial strains for many. We have been closely monitoring the impact on people and their coping mechanisms during these turbulent times.
As we navigate these challenging times, discussions and collaboration are essential. We encourage our employees, shareholders, and partners to share their insights, ideas, and feedback. Together, we can work towards creating a positive impact and supporting those affected by these economic challenges.
We continuously monitor the situation as our customers will amend their pricing strategies based on the current economy. We remain flexible to satisfy partners at various pricing levels. This is an opportunity to become diverse in providing stylish fashion driven products at a variety of prices.

Systems Implementation
 
Enhancing our inhouse systems (UK and Globally) is an important process for our organisation. The aim being to enhance efficiency, streamline operations, and leverage technology for growth.
The prior year was a transitional year implementing various systems. This year we undertook significant enhancements to the systems and infrastructure, focusing on maximising efficiency and optimising output throughout the business. These investments were designed to support our growing operations, enabling us to deliver higher quality results with greater speed and precision.
Protex: We have continued to advance the build and development of Protex throughout the year, considerably enhancing its reporting capabilities across our global operations. This expansion has provided senior management with greater visibility and consistency in our data, ensuring that information is accessible and comparable across all regions.

Page 4

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Principal risks and uncertainties
 
On a quarterly basis, the board reviews the principal risks and uncertainties facing the company. These assessments are key in helping us proactively manage potential challenges and make informed strategic decisions. Here are the key risks identified:
Concentration Risk
Our proactive approach to diversification across sectors and supply bases underscores our commitment to mitigating concentration risk. We believe that this strategy positions us well to navigate the intricacies of the business environment and seize new opportunities for growth.
Currency risk
The primary foreign currencies in which the Company has exchange rate fluctuation exposure are the U.S. Dollar. The Company has cash inflows and outflows in these currencies and therefore managed the risk primarily through natural hedging. Currency risk is a significant consideration in our global operations.
Our approach to managing currency risk primarily revolves around natural hedging. Natural hedging involves aligning our foreign currency revenues and expenses in such a way that they naturally offset each other. By doing so, we reduce our exposure to exchange rate fluctuations and minimise potential financial losses.
 
Competition risk
The Company collaboratively works with the highly experienced overseas teams and skilled suppliers to ensure the design team are bringing modern and fashionable products whilst remaining continuously competitive. We value the contributions of every team member and partner involved in this process.
Financial Instability
The global economic landscape remains uncertain, and financial instability can impact our business. We are focused on maintaining strong financial management, diversifying revenue streams, and identifying opportunities for cost savings.
Talent and Workforce
Attracting and retaining top talent is essential for our success. Talent shortages, skill gaps, and employee well-being are areas of concern. We are working on staff retention, competitive compensation packages, and initiatives to promote a healthy work environment.
Supply Chain 
Disruptions
Global supply chain disruptions continue to pose challenges, impacting the availability of materials, components, and logistics. We are actively working to enhance our supply chain resilience through strategic partnerships, alternative sourcing, and improved supplier relationships. 
Quality
It has been a challenging year for the Company in terms of quality control. Uncharacteristically, we have experienced more quality failures than our internal KPI limit. We believe addressing these issues is crucial to regaining customer trust and improving our sales figures. Focusing on improving fabric & factory sourcing alongside more robust internal processes will improve service to our customers.

Page 5

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Conclusion
 
As we reflect on the remarkable journey we have undertaken as a company - it has been a year marked by significant achievements, robust revenue growth, and the strengthening of vital relationships with our valued customers and suppliers. These accomplishments are a testament to the dedication and hard work of the entire Vogue Sourcing team.
Revenue Growth: Our financial performance this year has seen substantial revenue growth in FOB, as we expand into new categories and countries that reflects our market strength and the trust our customers place in us.  
Customer and Supplier Relationships: Our commitment to building strong relationships with both our customers and suppliers has yielded remarkable results. These partnerships are the foundation of our success, and we are grateful for the trust and collaboration that define them.
Throughout 2024 and as we trade into 2025, we are confident in our ability to capitalise on new opportunities and maintain our position as a leading player in the sourcing industry. Together, we will continue to reach new heights, overcome challenges, and create a business that inspires.

Directors' statement of compliance with duty to promote the success of the Company
The Directors of the Company, as those of all UK companies, must act in accordance with set of general duties. One of these duties, commonly referred to as the ‘s172 duty’, is ‘to promote the success of the company’. Part 1 of that duty requires directors to do so ‘for the benefit of its members as a whole’, and in doing so, to have regard to the following six factors:
• the likely consequences of any decisions in the long term;
• the interests of the company’s employees;
• the need to foster the company’s business relationships with suppliers, customers and others;
• the impact of the company’s operations on the community and the environment;
• the reputation for a high standard of business conduct; and
• the need to act fairly as between members of the company.
The following paragraphs summarise how Directors fulfil their duties:
Risk Management
Vogue Sourcing continuously seek to increase long-term shareholder value by promoting sustainable growth and resilience in the sourcing practices. This involves reducing risks associated with environmental damage, labour exploitation, and supply chain disruption, which can impact profitability.
For details of other principal risks please see page 5.
Our People
Our employees are our biggest asset. Having people who bring a diverse range of talents and perspectives, and who feel engaged in their roles is of paramount importance to Vogue’s long-term success.
We are making sure that all employees are engaged in building the future of the company via monthly meetings where performance is reviewed and clear communication on future plans.  We operate thorough induction plans and training for new team members and continuous staff development.
Vogue is investing in wellbeing events for all staff which foster a positive work environment that encourages retention and satisfaction among employees.  Salary sacrifice schemes have been introduced to all employees.   We encourage regular feedback and suggestions from our employees and this is to be reviewed and considered at board meetings.
 
Page 6

 
Vogue Sourcing Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Business Relationships
Vogue Sourcing Limited specializes in sourcing high-quality fashion products and materials for global markets. The Company’s operational success relies heavily on strategic business relationships with key suppliers, and manufacturers. These relationships are central to ensuring supply chain efficiency, product quality, and timely delivery. These business relationships are integral to our company’s ability to deliver value to stakeholders. While they enhance operational efficiency and market competitiveness, the company acknowledges and actively manages associated risks to maintain long-term resilience and profitability.
Engagement with customers
Our customers are critical to the ongoing performance of the Company.  Our team builds lasting relationships with current and potential customers, to understand their objectives and requirements. We monitor our customer relationships closely and request feedback on our performance and quality of the product that we design and arrange manufacture of, and quality of the relationship. 
The feedback we receive from our customers feeds into our management decision making and informs our corporate strategy.
Community and Environment
Vogue Sourcing recognizes its responsibility to support the communities where it operates and to minimize its environmental footprint. This commitment is integral to the company’s business strategy, fostering long-term sustainability and social impact. The company prioritises the procurement of environmentally friendly materials, such as organic cotton, recycled polyester, and low-impact dyes. We have implemented systems and processes to reduce paper waste in the headquarters. The company supports multiple local charities by donating unwanted clothes, making financial donations and also in national charity days encouraging the employees to take part.  
Stakeholders
The board remains focused on ensuring all decisions align with the Company’s strategic goals and values, and in the best interests of the Company and its stakeholders. We continue to drive innovation and sustainability, support employee wellbeing and growth, and reduce our environmental impact. We remain committed to upholding the principles of Section 172(1) as part of our governance framework.


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


A Mehan
Director

Date: 30 January 2025
Page 7

 
Vogue Sourcing Limited
 
 
 
Directors' Report
For the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

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

Results and dividends

The profit for the year, after taxation, amounted to £1,006,560 (2022 - £3,710,474).

The Directors do not recommend a payment of a final dividend.

Directors

The directors who served during the year were:

A Mehan 
R Abrol 
S Haswell (resigned 18 July 2024)
J Hartley 
M Vadhera (resigned 12 June 2023)

Page 8

 
Vogue Sourcing Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Future developments

Market Expansion: Continuously seeking new opportunities to develop our presence globally by utilising resource    and expertise overseas. We will continue to pursue new departments within current customers combined with    attracting new business through our quality driven innovative approach. 
• Sourcing Expansion: Investment in IT and infrastructure to enhance our current overseas existence, enabling us to    provide a seamless customer experience. We have also explored new territories that will strengthen our offering to    the customers.
• Product Innovation: Staying ahead of fashion trends and introducing new innovative product lines to meet the    evolving needs and preferences of our customers, while maintaining the high-quality standards for which we are    known.
• Staff Development: Investing in their growth and development is paramount. In the coming year, we will focus on    several aspects of staff development and implement initiatives that a positive workplace culture.
Our People
2023 witnessed the remarkable quality of our team shining through. Their dedication, resilience, and unwavering commitment have been the driving force behind our successes. As we navigate challenges and embrace opportunities, it is the strength of our team that continues to inspire confidence and drive us forward. Together, we are achieving excellence and continuing to build on our USP. 
We would like to take this opportunity to thank the teams for unwavering dedication and hard work. The commitment and efforts have been instrumental in our success, especially during these challenging times. Together, we will continue to achieve our business goals and set new milestones for our organisation.
Outlook 
As we look ahead, our confidence in the future of our business remains firm. We are confident about the opportunities that lie ahead, and we are committed to building on our successes. With a strong team, a clear vision, and a dedication to excellence, we are poised for continued growth and success. 
We are dedicated to the careful management of our business. Our commitment to prudent financial practices, responsible decision-making, and strategic planning will remain steady. By diligently managing our resources and operations, we aim to ensure the sustained growth and stability of our company.  

Page 9

 
Vogue Sourcing Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Financial instruments

The principal financial instruments utilised by Vogue Sourcing encompass trade debtors, bank balances, bank loans, and trade creditors. These financial instruments play a fundamental role in funding and facilitating the company's day-to-day operations and financial activities.
The company's financial instruments are essential tools for managing its financial affairs, supporting operations, and achieving its strategic objectives. Proper management and oversight of these instruments are critical to the company's financial health and sustainability.
Debtors
The Company maintains strong relationships with all its key clients and has established credit control parameters. We work closely with our clients to agree upon appropriate credit terms, which we diligently manage. This commitment to credit control not only safeguards our financial stability but also fosters trust and transparency in our client relationships. 
Cashflow and liquidity
The objective is to ensure continuity of funding and cash levels sufficient to meet the ongoing needs of the business. The policy is to smooth the cash management of the business and to arrange funding ahead of requirements, should it be needed.
The Company finances its operations by a combination of equity, working capital and a bank loan. The Company undertakes short-term cash forecasting to monitor its expected cash flows against its cash availability and finance facilities. In addition to short-term financial planning, the group engages in comprehensive longer-term cash forecasting. This essential practice allows us to proactively monitor and assess our expected funding requirements, ensuring alignment with our current business plan.

Research and development activities

At Vogue Sourcing, our dedication to innovation remains unwavering. We are committed to investing in research and development initiatives with the primary goal of adopting new product development. This strategic investment not only drives our competitiveness, but also propels us into the future of our industry. By employing the power of R&D, we aim to create beautiful, stylish products that meet the evolving market demands, exceed customer expectations, and position us as leaders in our field. 

Engagement with suppliers, customers and others

A summary of how the directors have had regard to the need to foster the Company's business relationships with suppliers, customers and others, and the effect of that regard, including on the principal decisions taken by the Company during the financial year, is included in the Strategic Report.

Branches outside the United Kingdom

The Company has liaison offices in Bangladesh, Turkey, Morocco and China.

Page 10

 
Vogue Sourcing Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption are as follows:


2023
2022

Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
24.9
21.3

Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
3.3
1.4

Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh
124,289
95,852

Energy and emissions data have been calculated using the following:
- The Greenhouse Gas Protocol standard
- UK Government’s 2023 GHG conversion factors for company reporting
Includes activities relating to design, sourcing and logistics within the UK where applicable.
The Company has taken measures to improve energy efficiency and reduce energy consumption through various projects including:
-         New printer network to reduce the amount of unnecessary printing and encourage a culture of  'think before we print';  users must enter a code on the printer before any documents are printed.
-           Cycle to work scheme and room share incentives are available.

Intensity Ratio
We have calculated our emissions intensity ratio based on turnover, providing a measure of emissions relative to our economic activity. This will allow us to track year on year improvements and measure the effectiveness of new energy efficiency initiatives.
The intensity ratio of tonnes CO2e per £m sales revenue is 0.3 (Year to 31 December 2022: 0.21).

Disclosure of information to auditors

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

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

Post balance sheet events

There were no significant post balance sheet events.

Page 11

 
Vogue Sourcing Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Auditors

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

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


A Mehan
Director

Date: 30 January 2025
Page 12

 
Vogue Sourcing Limited
 
 
 
Independent Auditors' Report to the Members of Vogue Sourcing Limited
 

Opinion


We have audited the financial statements of Vogue Sourcing Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 13

 
Vogue Sourcing Limited
 
 
 
Independent Auditors' Report to the Members of Vogue Sourcing Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial 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.


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 14

 
Vogue Sourcing Limited
 
 
 
Independent Auditors' Report to the Members of Vogue Sourcing Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's:
• Understanding of, and practical experience with audit engagements of a similar nature and complexity through    appropriate training and participation;    
• Knowledge of the industry in which the entity operates;
• Understanding of the legal and regulatory requirements specific to the entity.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of management, including whether management was aware of any instances of non-   compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged   fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
    - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or    which had a fundamental effect on the operations of the Company, including General Data Protection requirements,   and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws  and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.

 
Page 15

 
Vogue Sourcing Limited
 
 
 
Independent Auditors' Report to the Members of Vogue Sourcing Limited (continued)


We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to    identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or   error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of    business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.


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


Use of our report
 

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


Anthony Woodings (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

30 January 2025
Page 16

 
Vogue Sourcing Limited
 
 
Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
95,711,126
107,468,013

Cost of sales
  
(83,678,180)
(93,797,199)

Gross profit
  
12,032,946
13,670,814

Administrative expenses
  
(10,655,989)
(9,133,021)

Operating profit
 5 
1,376,957
4,537,793

Interest receivable and similar income
 9 
20,000
-

Interest payable and similar expenses
 10 
(32,986)
(35,925)

Profit before tax
  
1,363,971
4,501,868

Tax on profit
 11 
(357,411)
(791,394)

Profit for the financial year
  
1,006,560
3,710,474

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 20 to 35 form part of these financial statements.
Page 17

 
Vogue Sourcing Limited
Registered number: 11074230

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
595,647
557,695

  
595,647
557,695

Current assets
  

Stocks
 13 
943,537
3,936,107

Debtors: amounts falling due within one year
 14 
18,433,407
13,636,355

Cash at bank and in hand
 15 
3,344,394
4,939,635

  
22,721,338
22,512,097

Creditors: amounts falling due within one year
 16 
(14,282,689)
(15,052,518)

Net current assets
  
 
 
8,438,649
 
 
7,459,579

Total assets less current liabilities
  
9,034,296
8,017,274

Provisions for liabilities
  

Deferred tax
 18 
(143,609)
(133,147)

Net assets
  
8,890,687
7,884,127


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account
 20 
8,890,587
7,884,027

  
8,890,687
7,884,127


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

A Mehan
J Hartley
Director
Director


Date: 30 January 2025

The notes on pages 20 to 35 form part of these financial statements.
Page 18

 
Vogue Sourcing Limited
 

Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
100
7,884,027
7,884,127


Comprehensive income for the year

Profit for the year
-
1,006,560
1,006,560
Total comprehensive income for the year
-
1,006,560
1,006,560


At 31 December 2023
100
8,890,587
8,890,687


The notes on pages 20 to 35 form part of these financial statements.


Statement of Changes in Equity
For the Year Ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
100
4,173,553
4,173,653


Comprehensive income for the year

Profit for the year
-
3,710,474
3,710,474
Total comprehensive income for the year
-
3,710,474
3,710,474


At 31 December 2022
100
7,884,027
7,884,127


The notes on pages 20 to 35 form part of these financial statements.

Page 19

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

The company is a private company limited by shares, registered in England and Wales with company number 11074230. The address of the registered office is 3rd Floor, Oakland House, Talbot Road, Old Trafford, Manchester, M16 0PQ. 
The Company’s principal activity is to design, source and sell clothing in the fashion sector B2B.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Vogue Sourcing Holdings Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'Administrative expenses'.

Page 20

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The Company sells goods under Free on Board ('FOB') terms or under Manufacturer-led contracts with retailers. 
FOB sales 
Under these terms, the Company clears the goods for export and ensures that are delivered to and loaded onto the vessel for transport at the named port of departure. The Company recognises revenue at the point when the goods are loaded onto the transport vessel at the point of departure, which is the point at which the buyer takes over risk and costs.
Manufacturer led sales 
The Company has manufacturer-led contracts with specific retailers, and in substance, acts as 'Principal' in such arrangements. The Company sets the 'Selling price' for which goods are sold for in-store and online, and recognises revenue based on the Selling price of each item sold. Revenue is recognised at the point at which the goods are sold in-store or delivered by retailers to the end consumer, taking into account that products despatched but then subsequently returned by consumers to retailers are not considered to be sold. The Company has inventory risk before or after the customer purchase, during shipping or on return.
Under the terms of the contracts, the retailers are entitled to commission as a percentage of the price for which the associated products are sold for. Commission is accounted for as an expense within Cost of Sales. 

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

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

 
2.6

Interest income

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

Page 21

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.7

Finance costs

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

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

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

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

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

Page 22

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Fixtures and fittings
-
25%
Office equipment
-
25%
Computer equipment
-
25%

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

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

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.15

Creditors

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

Page 23

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

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

 
2.17

Financial instruments

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

Basic financial assets

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

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

Impairment of financial assets

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

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

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

Financial liabilities

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

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

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

Page 24

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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

Derecognition of financial instruments

Derecognition of financial assets

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

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions.
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amount of the assets and liabilities within the next financial year.

Page 25

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

FOB sales turnover
83,066,906
67,005,711

Manufacturer led sales turnover
12,644,220
40,462,302

95,711,126
107,468,013


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
94,292,245
107,093,811

Rest of the world
1,418,881
374,202

95,711,126
107,468,013



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
288,280
(98,934)

Other operating lease rentals
417,427
205,324


6.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
41,300
37,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 26

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
5,603,192
5,024,067

Social security costs
562,042
658,841

Cost of defined contribution scheme
72,953
53,147

6,238,187
5,736,055


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


        2023
        2022
            No.
            No.







Administrative staff
70
64



Liaison office staff
97
78

167
142


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
1,411,853
1,416,578

Company contributions to defined contribution pension schemes
21,044
5,283

1,432,897
1,421,861


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £558,532 (2022 - £442,550).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,504 (2022 - £1,320).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
20,000
-

Page 27

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
32,986
35,925


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
346,949
820,628

Adjustments in respect of previous periods
-
(80,130)


Total current tax
346,949
740,498

Deferred tax


Origination and reversal of timing differences
10,462
50,896

Total deferred tax
10,462
50,896


Taxation on profit on ordinary activities
357,411
791,394
Page 28

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,363,971
4,501,868


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
340,993
855,355

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
39,836
14,954

Capital allowances for year in excess of depreciation
3,391
(24,758)

Adjustments to tax charge in respect of prior periods
-
(80,131)

Other timing differences leading to an increase (decrease) in taxation
(4,986)
-

Change in corporation tax rate
(21,823)
-

Change in deferred tax rate
-
25,974

Total tax charge for the year
357,411
791,394


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 29

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

12.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
-
503,256
293,268
61,451
857,975


Additions
45,632
95,339
28,757
109,567
279,295



At 31 December 2023

45,632
598,595
322,025
171,018
1,137,270



Depreciation


At 1 January 2023
-
176,450
122,922
908
300,280


Charge for the year on owned assets
7,605
128,730
72,487
32,521
241,343



At 31 December 2023

7,605
305,180
195,409
33,429
541,623



Net book value



At 31 December 2023
38,027
293,415
126,616
137,589
595,647



At 31 December 2022
-
326,806
170,346
60,543
557,695


13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
943,537
3,936,107


The carrying value of stocks is stated net of impairment losses totalling £459,795 (2022: £226,652). Impairment losses totalling £233,143 (2022: £70,643) were recognised in profit and loss.

Page 30

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Debtors

2023
2022
£
£


Trade debtors
8,167,767
9,497,124

Amounts owed by group undertakings
3,090,265
-

Other debtors
6,124,587
3,712,462

Prepayments and accrued income
897,737
347,906

Tax recoverable
153,051
78,863

18,433,407
13,636,355



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,344,394
4,939,635

Less: bank overdrafts
-
(432,472)

3,344,394
4,507,163



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
432,472

Bank loans
-
844,779

Trade creditors
11,916,499
9,586,933

Corporation tax
-
820,628

Other taxation and social security
261,537
755,559

Other creditors
1,266
25,106

Accruals and deferred income
2,103,387
2,587,041

14,282,689
15,052,518


The bank loans and overdraft are secured by way of a fixed charge over the Company's assets.

Page 31

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
-
844,779


The Company had a bank loan with £844,779 outstanding at 31 December 2022, repayable by 8 monthly instalments in 2023. The interest rate on this loan is 3% above the base rate. The balance was repaid in full at 31 December 2023.


18.


Deferred taxation




2023


£






At beginning of year
(133,147)


Charged to profit or loss
(10,462)



At end of year
(143,609)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(143,926)
(139,424)

Pension
317
6,277

(143,609)
(133,147)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100


Page 32

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

20.


Reserves

Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.


21.


Contingent liabilities

The Company has contingent liabilities at 31 December 2023 totalling £4,536,850 (2022 - £10,013,401), in relation to letters of credit.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £74,234 (2022 - £47,864). Contributions totalling £1,266 (2022 - £25,106) were payable to the fund at the balance sheet date and are included in creditors.


23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
134,744
76,677

Later than 1 year and not later than 5 years
21,439
7,240

156,183
83,917

Page 33

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

24.


Transactions with directors

For the Year Ended 31 December 2023, the directors entered into the following advances and credits with the company:

Balance brought forward - owed by/(owed to) director
Advances /(credits) to the directors
Repayments
Balance o/standing
        £
        £
        £
        £

Director 1

-

1,712,105

(948,272)
 
763,833
 
Director 2

-

139,317

(139,317)
 
-
 
Director 3

-

36,000

(36,000)
 
-
 
Director 4

6,667

(6,667)

-
 
-
 

6,667

1,880,755

(1,123,589)
 
763,833
 

For the Year Ended 31 December 2022, the directors entered into the following advances and credits with the company:

Balance brought forward - owed by/(owed to) director
Advances /(credits) to the directors
Balance o/standing
        £
        £
        £

Director 1

(12,000)

12,000

-
 
Director 2

(12,000)

12,000

-
 
Director 3

(12,000)

12,000

-
 
Director 4

15,833

(9,166)

6,667
 

(20,167)

26,834

6,667
 
Page 34

 
Vogue Sourcing Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

25.


Related party transactions

In preparing these financial statements, the directors have taken advantage of the exemptions available under section 33 paragraph 1A of the Financial Reporting Standard 102, and have not disclosed transactions entered into between wholly owned group undertakings.
During the year, the Company entered into transactions with parties controlled by the controlling party or by close members of the controlling shareholders' family. Transactions entered into with these parties during the year, and balances outstanding at 31 December 2023, were as follows:

2023
2022
£
£



Purchases
62,239
357,324

Creditor
(60,729)
(191,234)

Rent payable
-
62,894

Interest receivable
20,000
-

Sales
-
3,718

Debtors
6,130,899
3,473,230

Related party loans
Loans to entities controlled by directors totalling £4,938,288 (2022: £3,218,216) are included within Other debtors at 31 December 2023 (and within Debtors shown in the table above), of which £4,378,288 of these loans are interest-free and repayable on demand. A £560,000 loan had an interest rate of 7% per annum and £20,000 interest was accrued at the reporting date - this loan was due to be repaid on 31 December 2023 and was ultimately repaid in January 2024.
An additional loan totalling £500k was made to an entity controlled by a close member of a director's family during the year, and this was repaid during the year along with interest totalling £4,167 (applicable rate being 10% per annum).
Key management personnel compensation
Key management personnel includes those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including directors. Amounts paid to key management remuneration during the year totalled £1,432,897 (2022: £1,409,711).


26.


Controlling party

At 1 January 2023, the company was controlled by A. Mehan, being the majority shareholder.
In June 2023, the entire share capital of the Company was acquired by Vogue Sourcing Holdings Limited, company number 14823320. The registered office of Vogue Sourcing Holdings Limited is 3rd Floor Oakland House, Talbot Road, Old Trafford, Manchester, M16 0PQ.
Consolidated financial statements are available for Vogue Sourcing Holdings Limited and may be obtained from Companies House.
The ultimate controlling party remains A. Mehan. 
 
Page 35