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Registered number: 04925632









SEALSKINZ LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
SEALSKINZ LIMITED
 
 
COMPANY INFORMATION


Directors
I N Blackman 
R S Kelvin 
R L Green 




Registered number
04925632



Registered office
36 Oldmedow Road
Hardwick Industrial Estate Kings Lynn

Norfolk

PE30 4PP




Independent auditors
Harris & Trotter LLP
Chartered Accountants & Statutory Auditors

101 New Cavendish Street

1st Floor South

London

W1W 6XH





 
SEALSKINZ LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Notes to the Financial Statements
12 - 25


 
SEALSKINZ LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their Strategic Report for the year ended 30 June 2024.

Business review
 
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.
 

Financial Risk Management Policies and Objectives
 
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.

Page 1

 
SEALSKINZ LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Key Performance Indicators
 
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)

Future Developments
 
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.
 

Principal Risks and Uncertainties
 
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.

Page 2

 
SEALSKINZ LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


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



I N Blackman
Director

Date: 31 January 2025

Page 3

 
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.

Directors

The directors who served during the year were:

I N Blackman 
R S Kelvin 
R L Green 

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;

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.

Principal activity

The principal activity of the Company during the year was that of the design, manufacture, and supply of
waterproof and breathable accessories comprising socks, gloves, and hats to retailers, distributors, and
consumers.

Results and dividends

The loss for the year, after taxation, amounted to £48,022 (2023 - profit £789,862).

No dividends were paid during the year (2023: £nil).

Political and charitable contributions

The Company made no political contributions or charitable donations during the year (2023: £Nil).

Page 4

 
SEALSKINZ LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Going Concern

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.

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 have been no significant events other than those disclosed in the Strategic Report affecting the Company
since the year end.

Auditors

The auditorsHarris & Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 January 2025 and signed on its behalf.
 





I N Blackman
Director

Page 5

 
SEALSKINZ LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED
 

Opinion


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 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 30 June 2024 and of its loss 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.


Page 6

 
SEALSKINZ LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED (CONTINUED)


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.


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 4, 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 7

 
SEALSKINZ LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ 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 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.


Other matters 
 

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. 


Page 8

 
SEALSKINZ LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEALSKINZ LIMITED (CONTINUED)


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.





Daniel Walters (Senior Statutory Auditor)
  
for and on behalf of
Harris & Trotter LLP
 
Chartered Accountants
Statutory Auditors
  
101 New Cavendish Street
1st Floor South
London
W1W 6XH

31 January 2025
Page 9

 
SEALSKINZ LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 3 
13,133,308
13,470,043

Cost of sales
  
(8,915,032)
(9,209,460)

Gross profit
  
4,218,276
4,260,583

Administrative expenses
  
(4,013,323)
(2,208,195)

Exceptional administrative expenses
  
(71,196)
(913,729)

Other operating income
 4 
78,872
-

Operating profit
 5 
212,629
1,138,659

Interest payable and similar expenses
 9 
(229,801)
(196,004)

(Loss)/profit before tax
  
(17,172)
942,655

Tax on (loss)/profit
 10 
(30,850)
(152,793)

(Loss)/profit for the financial year
  
(48,022)
789,862

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 25 form part of these financial statements.

Page 10

 
SEALSKINZ LIMITED
REGISTERED NUMBER: 04925632

BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
204,736
222,507

Investments
 13 
22,398
22,398

  
227,134
244,905

Current assets
  

Stocks
 14 
5,690,932
4,851,909

Debtors: amounts falling due within one year
 15 
1,491,250
1,679,498

Cash at bank and in hand
 16 
983,305
39,726

  
8,165,487
6,571,133

Creditors: amounts falling due within one year
 17 
(10,346,482)
(8,721,877)

Net current liabilities
  
 
 
(2,180,995)
 
 
(2,150,744)

Total assets less current liabilities
  
(1,953,861)
(1,905,839)

  

Net liabilities
  
(1,953,861)
(1,905,839)


Capital and reserves
  

Called up share capital 
  
1,200,000
1,200,000

Profit and loss account
  
(3,153,861)
(3,105,839)

  
(1,953,861)
(1,905,839)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2025.




I N Blackman
Director

The notes on pages 12 to 25 form part of these financial statements.
Page 11

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

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

 
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.

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:

Page 12

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.2

Going concern

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.

 
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 except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

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.

 
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.

 
2.6

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.

 
2.7

Borrowing costs

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

 
2.8

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 accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

  
2.9

Invoice discounting facility

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.

Page 14

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
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.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.12

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
-
5 years
Computer equipment
-
3 years

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.

Page 15

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

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. Work in progress and finished goods include labour and attributable overheads.

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.

Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.

 
2.15

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.

 
2.16

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

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.

 
2.18

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.

Page 16

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Turnover

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:

2024
2023
£
£

United Kingdom
9,759,164
8,372,554

Rest of Europe
1,661,769
2,452,374

Rest of the world
1,712,375
2,645,115

13,133,308
13,470,043



4.


Other operating income

2024
2023
£
£

Other Income
78,872
-

78,872
-



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets - owned by the company
(69,224)
71,321

Exchange differences
(31,737)
41,221

Other operating lease rentals - vehicles
107,349
48,614

Operating lease rentals - land and buildings
109,417
93,837


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,000
23,500

Page 17

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
3,011,765
3,078,204

Social security costs
297,123
284,327

Cost of defined contribution scheme
123,545
128,792

3,432,433
3,491,323


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


        2024
        2023
            No.
            No.







Production
40
55



Administration
45
46

85
101


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
279,180
219,795

279,180
219,795


The highest paid director received remuneration of £134,333 (2023 - £127,982).

The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
229,801
196,004

229,801
196,004

Page 18

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
30,850
152,793

Total deferred tax
30,850
152,793


Tax on (loss)/profit
30,850
152,793

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(17,172)
942,655


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(4,293)
235,664

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
(8,580)

Capital allowances for year in excess of depreciation
3,368
74,043

Utilisation of tax losses
(56,538)
-

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
57,450
-

Changes in provisions leading to an increase (decrease) in the tax charge
-
(148,334)

Other differences leading to an increase (decrease) in the tax charge
13
-

Deferred tax
30,850
-

Total tax charge for the year
30,850
152,793

Page 19

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Exceptional items

2024
2023
£
£


Exceptional items
71,196
913,729

71,196
913,729


12.


Tangible fixed assets





Plant and machinery
Computer equipment
Total

£
£
£



Cost or valuation


At 1 July 2023
795,878
402,581
1,198,459


Additions
1,550
53,897
55,447


Disposals
(3,995)
-
(3,995)



At 30 June 2024

793,433
456,478
1,249,911



Depreciation


At 1 July 2023
647,883
328,068
975,951


Charge for the year on owned assets
42,552
26,672
69,224



At 30 June 2024

690,435
354,740
1,045,175



Net book value



At 30 June 2024
102,998
101,738
204,736



At 30 June 2023
147,994
74,513
222,507

Page 20

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2023
22,398



At 30 June 2024
22,398







The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Sealskinz Inc*
United States
Supply of waterproof and breathable clothing
Ordinary $1 shares
100%
Sealskinz Digital Inc*
United States
Supply of waterproof and breathable clothing
Ordinary $1 shares
100%
Sealskinz GMBH*
Germany
Supply of waterproof and breathable clothing
Ordinary €1 shares
100%

* These subsidiaries were 100% owned subsidiaries of Sealskinz Limited.
The address of Sealskinz Inc and Sealskinz Digital Inc is 5023 W 12TH Avenue, #334, Broomfield, Colorado, 80020, USA. The address of Sealskinz GmbH is Rublandener Str. 3A, 91242 Ottensoos, Germany.


14.


Stocks

2024
2023
£
£

Raw materials and consumables
849,447
949,767

Work in progress
99,055
351,532

Finished goods
4,742,430
3,550,610

5,690,932
4,851,909


Raw materials, consumables and changes in finished goods and work in progress recognised as cost of sales in the year amounted to £6,306,059 (2023: £6,269,438).

Page 21

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Debtors

2024
2023
£
£


Trade debtors
482,236
680,658

Amounts owed by group undertakings
640,171
633,330

Other debtors
17,500
17,700

Prepayments and accrued income
197,688
167,496

Deferred taxation
149,464
180,314

Financial instruments
4,191
-

1,491,250
1,679,498



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
983,305
39,726

Less: bank overdrafts
(2,913,295)
(1,520,788)

(1,929,990)
(1,481,062)


Page 22

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans and overdrafts
2,913,295
1,520,788

Payments received on account
244,276
386,184

Trade creditors
817,035
805,277

Amounts owed to group undertakings
5,759,549
5,198,291

Other taxation and social security
271,597
499,016

Other creditors
60,074
100,572

Accruals and deferred income
280,656
182,769

Financial instruments
-
28,980

10,346,482
8,721,877


The amounts owed to goup undertakings relate to a combination of funding and trading balances held with other Group Companies. These are interest free and repayable on demand. No collateral is secured against these balances.
The Company has an invoice discounting agreement with HSBC Invoice Finance (UK) Limited who hold a first charge over the debtors ledger. Bank loans and overdraft facilities are with HSBC Bank Plc, who hold a debenture over all other assets of the Company.
The Company provided a cross guarantee to the secured loan note holders in Sealskinz Holdings Limited, the holding Company.
The holding Company, Sealskinz Holdings Limited, also provide cross guarantees relating to the Company's banking facilities.
The company have a net overdraft facility available across the 3 bank accounts it holds totalling £1m. During the year, the net overdraft drawn down amounted to £549,674.

Page 23

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Deferred taxation




2024
2023


£

£






At beginning of year
180,314
333,107


Charged to profit or loss
(30,850)
(152,793)



At end of year
149,464
180,314

The deferred tax asset is made up as follows:

2024
2023
£
£


Tax losses carried forward
200,490
150,577

Origination and reversal of timing differences
(51,026)
29,737

149,464
180,314


19.


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 £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.


20.


Commitments under operating leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
71,279
71,279

Later than 1 year and not later than 5 years
61,636
132,915

132,915
204,194

The Group has a lease on premises in King's Lynn which is on a rolling basis and which could be terminated at any time.

Page 24

 
SEALSKINZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Related party transactions

The Company has taken advantage of the exemption given within FRS 102 from disclosing transactions with other wholly owned members of the Group. As such there are no related related party transactions that require disclosure.


22.


Ultimate parent Company and parent Company of larger Group

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.

 
Page 25