Registered number:
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
COMPANY INFORMATION
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SEALSKINZ LIMITED
CONTENTS
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SEALSKINZ LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their Strategic Report for the year ended 30 June 2024.
The directors report steady performance for the year ended 30 June 2024. Turnover was £13.1 million, reflecting a slight decrease of 2.5% compared to the prior year (£13.4 million). Gross profit was 32.1% for the year, an increase of 49bps. This increase was driven by increased sales volume on higher margin channels, improved carriage rates, and reduced light heat and power rates. There was also a one-off benefit of a duty refund of £70k which is offset against freight and duty costs.
The key highlights for the year were as follows: • Retail on our Sealskinz.com site saw a +17.5% increase in turnover. • Our new clothing range, Vitae, launched in the UK and the US. The response so far has been gradual and positive as we build momentum. • We launched a pop-up shop as a market test, and it exceeded our expectations. The strong response from customers validated our concept and provided valuable insights for future growth and permanent store options. • During the financial year, we have fully outsourced our warehouse operations to a third-party logistics provider. This strategic decision was necessitated by the company's significant growth in product development, which led to an increase in inventory and operational requirements. Our existing warehouse facilities were no longer sufficient to accommodate this growth. Partnering with a specialised logistics provider allows us to enhance efficiency, scalability, and focus on our core business activities. The reported loss before tax was £17,172 (2023: profit (excluding exceptional benefits from sale) of £28,926.
Overview
The Company’s principal financial risks and mitigation strategies include: 1. Currency Risk: Exposure to foreign exchange risk is managed by utilizing forward exchange contracts and matching currency-denominated liabilities with corresponding assets. 2. Credit Risk: The Company actively monitors trade debtor balances and enforces credit limits informed by payment history, market insights, and third-party references.
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SEALSKINZ LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
The Company tracks various performance metrics, including both financial, operational, and commercial indicators. Operational and commercial statistics include sales orders, despatches, returns, yields, productivity, stock, and debtors.
For the year ended 30 June 2024, key metrics included: • Turnover: £13.1 million (2023: £13.4 million) • Operating Profit: £212,629 (2023: £224,930 (excluding exceptional benefits from sale) • Shareholders’ Deficit: £1.9 million (2023: £1.9 million) • Turnover per Employee: £155k (2023: £134k)
The directors remain focused on the following strategic priorities for the upcoming year:
• Development of new products, including seasonal ranges for spring and summer. • Continued expansion into new customer markets and geographic regions. • Investment in new IT and systems to improve efficiency. • Improved cost controls to enhance gross margins and long-term profitability.
The directors have identified key risks that could impact the business:
• Inflation and Cost Pressures: The rising cost of raw materials, utilities, and freight poses challenges. • Currency Volatility: Exposure to currency fluctuations is actively managed through hedging strategies. • Economic Environment: While inflation, interest rates, and consumer confidence are monitored closely, pre-orders provide a buffer against adverse impacts. Outlook: The directors are excited about the future as the Company achieves a record level of pre-orders and strategically invests in new product development. With these strong foundations, alongside the potential of opening of a new permanent store, the Company is poised for sustained growth across all markets and channels in 2024/25. While short-term profitability will reflect these investments, the directors are confident in the significant medium- and long-term gains they will deliver. Post Balance Sheet Events: Subsequent to the balance sheet date, the company has taken the strategic decision to close its manufacturing operations in King’s Lynn. This move is part of a broader initiative to improve cost efficiencies and enhance our competitive positioning. Manufacturing operations will be transitioned to a third-party factory in Bulgaria, which offers significant cost advantages while maintaining product quality and supply chain reliability. The closure of the King’s Lynn facility will be managed in a phased approach to ensure minimal disruption to operations and stakeholders.
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SEALSKINZ LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
This report was approved by the board and signed on its behalf.
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SEALSKINZ LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
The directors who served during the year were:
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
waterproof and breathable accessories comprising socks, gloves, and hats to retailers, distributors, and consumers.
The loss for the year, after taxation, amounted to £48,022 (2023 - profit £789,862).
No dividends were paid during the year (2023: £nil).
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SEALSKINZ LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
The directors have considered the factors that impact the Group's future development, performance, cash flows
and financial position along with Group's current liquidity in forming their conclusion on the applicability of the going concern basis.
There have been no significant events other than those disclosed in the Strategic Report affecting the Company
since the year end.
The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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SEALSKINZ LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED
We have audited the financial statements of Sealskinz Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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SEALSKINZ LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial 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.
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.
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SEALSKINZ LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, our procedures included the following: • We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006. • We obtained an understanding of how the Group is complying with those legal and regulatory frameworks by making enquiries of management. • We challenged assumptions and judgments made by management in its significant accounting estimates. We did not identify any key audit matters relating to irregularities, including fraud.
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.
Despite the company earning a loss during the year and being in a net deficit position, we have comfort that the company can operate as a going concern for a period of at least the next 12 months from the balance sheet date.
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SEALSKINZ LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
101 New Cavendish Street
1st Floor South
W1W 6XH
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SEALSKINZ LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
REGISTERED NUMBER: 04925632
BALANCE SHEET
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 25 form part of these financial statements.
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Sealskinz Limited (the "Company") is a private Company incorporated and registered in England and Wales in The UK. The registered number is 04925632 and the registered address is 36 Oldmedow Road, Hardwick Industrial Estate, Kings Lynn, Norfolk, PE30 4PP.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The Company is exempt from the requirement to prepare Group accounts in accordance with section 400 of the Companies Act 2006 by virtue of the fact it is a wholly owned subsidiary of its immediate parent undertaking, Sealskinz Holdings Limited, a Company incorporated in England. The Company's ultimate parent undertaking, That NewCo Limited includes the Company in its consolidated financial statements. The consolidated financial statements of That NewCo Limited are available to the public and may be obtained from 36 Oldmedow Road, Hardwick Indusfrial Estate Kings Lynn, Norfolk, PE30 4PP.
In these statemens, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures: • Reconciliation of the number of shares outstanding from the beginning to end of the period; • Cash Flow Statement and related notes; and • Key Management Personnel compensation. As the consolidated financial statements of That NewCo Limited include the disclosures equivalent to those required by FRS 102, the Company has also taken exemptions available in respect of the following disclosures: • Certain disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragaph 36(4) of Schedule 1. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
The following principal accounting policies have been applied:
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Notwithstanding net current liabilities, the directors have prepared the financial statements on a going concern basis which they consider to be appropriate.
The directors have considered the factors that impact the Group's future development, performance, cash flows and financial position along with the Group's current liquidity in forming their conclusion on the applicability of the going concern basis. Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and have prepared the financial statements on a going concern basis.
Functional and presentation currency
Transactions and balances
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
There debts are invoice discounted the presentation of the gross debt is included within trade debtors with the advances received from invoice discounting being shown as a liability.
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The turnover is attributable to the principal activities of the Company, being the design manufacture and supply of waterproof and breathable clothing, which is considered to be single class of turnover.
Analysis of turnover by country of destination:
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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 £123,545 (2023 - £128,792) . Contributions totalling £17,431 (2023 - £17,884) were payable to the fund at the balance sheet date and are included in creditors.
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SEALSKINZ LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The Company is a subsidiary undertaking of Sealskinz Holdings Limited.
The largest Group in which the results of the Company are consolidated is that headed by That Newco Limited, 36 Oldmedow Road, Hardwick Industrial Estate Kings Lynn, Norfolk, PE30 4PP. No other Group financial statements include the results of the Company. The consolidated financial statements of this group is available to the public and may be obtained from 32 Hampstead High Street, London, England, NW3 1JQ.
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