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REGISTERED NUMBER: 03863347 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

FOR

B.M.FASHIONS (U.K.) LIMITED

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


B.M.FASHIONS (U.K.) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2024







Directors: M S Mattu
G S Mattu





Secretary: N K Mattu





Registered office: 11 St Georges Way
Leicester
Leicestershire
LE1 1SH





Registered number: 03863347 (England and Wales)





Auditors: Haines Watts Audit EM Limited
1 Merus Court
Meridian Business Park
Leicester
LE19 1RJ

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

The directors present their strategic report for the year ended 31 July 2024.

Review of business
Whilst sales have increased, profit has decreased this year compared with last year. However, the Balance Sheet
remains strong.

Staff morale and well-being continue to be at the forefront of management actions.


Key performance indicators

2024 2023
£ £

Turnover 101,161,173 92,261,006
Gross profit 14,725,226 15,342,717
Net assets 7,049,373 11,802,079

Principal risks and uncertainties
Our sourcing offices continue to work closely with all local manufacturing and logistics suppliers to ensure
quality, compliance and delivery standards are maintained. The offices also ensure that local government and environmental standards are adhered to by all associated with our supply and delivery.

The reliance on overseas production means the company purchases and sells products in different
currencies. In general both purchases and sales are in the same currency, thus minimising risk but exchange rate exposure, where it does arise, is limited by utilising systems which minimise risk.


B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Section 172(1) statement
Each director of the company continues to be mindful of their statutory duty to promote the success of the company for the benefit of the members as a whole and, in so doing having regard (amongst other matters) to those factors set out in section 172(1)(a)-(f) of the Companies Act 2006.

The company constantly liaises with suppliers, customers and Licensors to maintain close working relationships to monitor both current and future developments for the benefit of all parties.


STREAMLINED ENERGY AND CARBON REPORTING (SECR)

Reporting period
1st August 2023 to 31st July 2024

Energy and Carbon calculation

Type of emission Activity kWh tCO2e % of total

Scope 1 Natural gas 343,367 62.80 54.48%
Vehicle fleet - - 0%

Scope 2 Electricity 234,424 48.54 42.11%

Scope 3 Grey fleet 16,286 3.93 3.41%

Total gross consumption and emissions 549,077 115.27 100%


Metric used - Employee headcount - 202.00
Intensity ratio -Tonnes of CO2e per employee headcount - 0.57

GHG emissions and energy consumption

This is the third year of SECR reporting for B.M. Fashions (U.K.) Limited.

- B.M. Fashions (U.K.) Limited operate 5 company cars, none of which accrued business mileage during the data period.

- Natural gas consumption increased markedly from July 2023 to July 2024. This increase is due to gas consumption at the Loughborough site, occupied from 1/5/2023 onwards. The previous report captured just 3 months' gas consumption, 26,108 kWh. This report captures an entire year of increased consumption, 311,950 kWh. In addition, gas-powered units at this site (two gas powered drying machines (to cure print on garments), and five gas heaters used to heat the warehouse areas) are now fully operational.

- The net effect of the above was to increase tCO2e per employee from 0.45 to 0.57, despite an increase in staff headcount from 146 to 202.

Intensity ratio

It was decided that the most meaningful intensity metric (i.e. one which would allow stakeholders to quantify B.M. Fashions (U.K.) Limited's environmental impact relative to a given amount of goods and/or services provided) would be one based on average employee headcount during the reporting period. The resulting intensity ratio of tCO2e per employee will best illustrate improvements in real energy efficiency over time.

Efficiency narrative

The company continues to monitor its energy usage and take all necessary actions to minimise use and work as efficiently as possible.

Quantification and Reporting Methodology

The methodology used in this report is The GHG Protocol Corporate Accounting and Reporting Standard combined with 2013 UK Government Environmental Reporting Guidelines (updated March 2019). We have used the DESNZ (Department for Energy Security & Net Zero) GHG conversion factors for Company Reporting and Chartered Institution of Building Services Engineers ('CIBSE') 2021 conversion factors where metered energy consumption was not available.

The energy efficiency narrative methodology has been created based on energy management best practice.

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024


Organisational boundary

We have defined the organisational boundary based upon operational control.

Third-party oversight

Based upon data and commentary provided by B.M. Fashions (U.K.) Limited staff, this report was compiled by Auditel, an independent carbon consultancy.

Research and development
The company continues to invest in design and researching innovative ways to present products to our customers. This includes investing in new Licenses for our brand portfolio.

On behalf of the board:





M S Mattu - Director


27 February 2025

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2024

The directors present their report with the financial statements of the Company for the year ended 31 July 2024.

Principal activity
The principal activity of the Company in the year under review was the design and manufacture of licensed apparel.

Dividends
Total dividends declared for the year ended 31 July 2024 amounted to £5,733,747 (2023: £1,061,270).

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

Directors
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

M S Mattu
G S Mattu

Financial instruments
The company utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail in the Strategic Report.

Political donations and expenditure
No political donations were made during the year (2023: £nil).

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2024


Auditors
The auditors, Haines Watts Audit EM Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





M S Mattu - Director


27 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
B.M.FASHIONS (U.K.) LIMITED

Opinion
We have audited the financial statements of B.M.Fashions (U.K.) Limited (the 'Company') for the year ended 31 July 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the Company's affairs as at 31 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
B.M.FASHIONS (U.K.) LIMITED


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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:


-
Enquiry of management and those charged with governance around actual, potential or suspected litigation,
claims, non-compliance with applicable laws and regulations and fraud.

-
Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of
noncompliance with laws and regulations.


-
Performing audit work over the risk of management override, including testing of journal entries and other
adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal
course of business and reviewing accounting estimates for bias.

-
Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.

-
Discussions with the engagement team in relation to how and where fraud might occur in the financial
statements and any potential indicators of fraud.
- Reviewing any minutes for meetings during the year.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely to involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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

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




Shiran Wynter (ACA) (Senior Statutory Auditor)
for and on behalf of Haines Watts Audit EM Limited
1 Merus Court
Meridian Business Park
Leicester
LE19 1RJ

27 February 2025

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 JULY 2024

2024 2023
Notes £ £

Turnover 101,161,173 92,261,006

Cost of sales 86,435,947 76,918,289
Gross profit 14,725,226 15,342,717

Administrative expenses 13,280,683 11,818,013
Operating profit 5 1,444,543 3,524,704

Interest receivable and similar income 77,005 50,271
1,521,548 3,574,975

Interest payable and similar expenses 7 192,100 251,172
Profit before taxation 1,329,448 3,323,803

Tax on profit 8 348,428 734,089
Profit for the financial year 981,020 2,589,714

Other comprehensive income - -
Total comprehensive income for the year 981,020 2,589,714

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

BALANCE SHEET
31 JULY 2024

2024 2023
Notes £ £
Fixed assets
Tangible assets 10 1,110,924 1,308,949
Investments 11 10,804 8,217
1,121,728 1,317,166

Current assets
Stocks 12 6,973,434 5,123,160
Debtors 13 28,740,791 28,726,231
Cash at bank and in hand 4,809,738 3,613,075
40,523,963 37,462,466
Creditors
Amounts falling due within one year 14 (34,363,791 ) (26,690,882 )
Net current assets 6,160,172 10,771,584
Total assets less current liabilities 7,281,900 12,088,750

Provisions for liabilities 16 (232,527 ) (286,671 )
Net assets 7,049,373 11,802,079

Capital and reserves
Called up share capital 17 121 100
Retained earnings 18 7,049,252 11,801,979
Shareholders' funds 7,049,373 11,802,079

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2025 and were signed on its behalf by:





M S Mattu - Director


B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 August 2022 100 10,273,535 10,273,635

Changes in equity
Dividends - (1,061,270 ) (1,061,270 )
Total comprehensive income - 2,589,714 2,589,714
Balance at 31 July 2023 100 11,801,979 11,802,079

Changes in equity
Issue of share capital 21 - 21
Dividends - (5,733,747 ) (5,733,747 )
Total comprehensive income - 981,020 981,020
Balance at 31 July 2024 121 7,049,252 7,049,373

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1. STATUTORY INFORMATION

B.M.Fashions (U.K.) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

After reviewing the Company's financial position and forecasts, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of B M Fashions (Holdings)
Limited. as at 31 July 2024 and these financial statements may be obtained from 11 St Georges Way, Leicester, LE1 1SH.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported. These estimates and judgements are continually
reviewed and are based on experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.

Turnover
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.

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - at varying rates on cost
Plant and machinery - 20% on cost and 20% on reducing balance
Fixtures and fittings - 25% on cost and 25% on reducing balance
Motor vehicles - 20% on cost
Computer equipment - 33% on cost and 33% on reducing balance

Tangible fixed assets are initially recorded at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. 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.

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES - continued

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference
between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful
economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic, utilisation and the physical condition of the assets.

(ii) Stock provisioning

The Company continues to design and manufacture of licensed apparel and is exposed to changes in the market prices of clothing. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated saleability of finished goods and future use of raw materials.

(iii) Impairment of assets

The Company makes an estimate of the recoverable value of trade and other debtors. When
assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iv) Accruals provisioning

The Company provides for liabilities in proportion to the risk that they are exposed to.

4. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 6,433,252 5,587,886
Social security costs 663,949 426,558
Other pension costs 98,209 81,081
7,195,410 6,095,525

The average number of employees during the year was as follows:
2024 2023

Production 108 95
Administration and support 36 34
Sales, marketing and distribution 15 15
Directors 2 2
161 146

2024 2023
£ £
Directors' remuneration 39,632 21,632

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£ £
Hire of plant and machinery 16,837 2,615
Other operating leases 255,981 209,061
Depreciation - owned assets 430,140 214,500
Loss on disposal of fixed assets 34,307 -
Auditors' remuneration 17,500 11,000
Auditors' remuneration for non audit work 4,000 2,500
Foreign exchange differences 48,961 (487,644 )

6. EXCEPTIONAL ITEMS
2024 2023
£ £
Close company debt write off - (1,941,022 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank interest 44 -
Other interest - 343
Interest payable 192,056 250,829
192,100 251,172

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax 402,573 601,343

Deferred tax (54,145 ) 132,746
Tax on profit 348,428 734,089

UK corporation tax has been charged at 25% (2023 - 25%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
Profit before tax 1,329,448 3,323,803
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

332,362

830,951

Effects of:
Expenses not deductible for tax purposes 394,478 253,886
Income not taxable for tax purposes (77,005 ) (50,271 )
Capital allowances in excess of depreciation (247,262 ) (508,264 )
Adjustments to tax charge in respect of previous periods - 75,041
Deferred tax movement (54,145 ) 132,746
Total tax charge 348,428 734,089

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

9. DIVIDENDS
2024 2023
£ £
Ordinary shares of 0.01 each
Equity dividends on ordinary shares 5,733,747 1,061,270

10. TANGIBLE FIXED ASSETS
Fixtures
Improvements Plant and and
to property machinery fittings
£ £ £
Cost
At 1 August 2023 226,477 674,939 302,405
Additions - 58,074 17,459
Disposals - (7,281 ) (600 )
At 31 July 2024 226,477 725,732 319,264
Depreciation
At 1 August 2023 - 233,583 188,387
Charge for year 14,975 108,998 36,300
Eliminated on disposal - (4,850 ) (6 )
At 31 July 2024 14,975 337,731 224,681
Net book value
At 31 July 2024 211,502 388,001 94,583
At 31 July 2023 226,477 441,356 114,018

Motor Computer
vehicles equipment Totals
£ £ £
Cost
At 1 August 2023 106,012 880,154 2,189,987
Additions 2,540 191,032 269,105
Disposals - (33,984 ) (41,865 )
At 31 July 2024 108,552 1,037,202 2,417,227
Depreciation
At 1 August 2023 65,595 393,473 881,038
Charge for year 22,548 247,319 430,140
Eliminated on disposal - (19 ) (4,875 )
At 31 July 2024 88,143 640,773 1,306,303
Net book value
At 31 July 2024 20,409 396,429 1,110,924
At 31 July 2023 40,417 486,681 1,308,949

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
Cost
At 1 August 2023 8,217
Additions 2,587
At 31 July 2024 10,804
Net book value
At 31 July 2024 10,804
At 31 July 2023 8,217

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Fashion UK for Recycling Ltd
Registered office: Egypt
Nature of business: Recycling waste fabric materials
%
Class of shares: holding
Ordinary 1.00

Fashion UK Turkey Limited
Registered office: Turkey
Nature of business: Supply of licensing clothing.
%
Class of shares: holding
Ordinary 100.00

12. STOCKS
2024 2023
£ £
Stocks 6,973,434 5,123,160

A stock provision of £1,774,625 (2023: £2,653,884) was provided in the year due to slow-moving and obsolete stock.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 17,065,738 15,314,299
Amounts owed by group undertakings 4,494,131 6,826,432
Other debtors 3,997,347 3,165,758
Tax 86,552 -
VAT - 206,439
Prepayments 3,097,023 3,213,303
28,740,791 28,726,231

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 15,746,415 6,987,904
Amounts owed to group undertakings 1,896,655 180,733
Tax - 569,080
Social security and other taxes 152,903 141,943
VAT 49,020 -
Other creditors 157,185 36,982
Other borrowings 2,315,870 1,425,849
Directors' current accounts 360,474 -
Accrued expenses 13,685,269 17,348,391
34,363,791 26,690,882

There is a fixed and floating charge over all assets or undertaking of the company.

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£ £
Within one year 130,370 115,000
Between one and five years 72,846 28,750
203,216 143,750

16. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Deferred tax 232,527 286,671

Deferred tax
£
Balance at 1 August 2023 286,671
Credit to Statement of Comprehensive Income during year (54,144 )
Balance at 31 July 2024 232,527

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
12,125 Ordinary 0.01 121 100

18. RESERVES
Retained
earnings
£

At 1 August 2023 11,801,979
Profit for the year 981,020
Dividends (5,733,747 )
At 31 July 2024 7,049,252

B.M.FASHIONS (U.K.) LIMITED (REGISTERED NUMBER: 03863347)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024

19. ULTIMATE PARENT COMPANY

B M Fashions (Holdings) Limited is regarded by the directors as being the company's ultimate parent company.

The largest and smallest group in which the results of the Company are consolidated is that headed by B M Fashions (Holdings) Limited.

The directors do not consider there to be an ultimate controlling party in the current year.

20. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year the company was charged rent of £117,583 (2023: £108,333) by the close family of the directors for use of the business premises. At the year end the company owed the supplier £19,167 (2023: £33,250).

During the year the company incurred graphic design costs of £757,915 (2023: £665,451) from a company with shareholders in common.

During the year the company purchased goods totalling £543,241 (2023: £14,266) and made sales
totalling £2,834,359 (2023: £3,573,436) with a company with a close family connection to the the shareholders. At the year end the supplier owed the company £3,840,001 (2023: £3,167,105).

During the year, the company purchased goods totalling £586 (2023: £3,732) from another company with a close family connection to the shareholders. At the year end the company owed the supplier £Nil (2023: £3,732).

At the year end, the company owed the directors £360,474 (2023 - £Nil) in the form of a director's loan account. The loan is interest free and has no fixed repayment terms.

During the year, a total of key management personnel compensation of £789,929 (2023: £707,717) was paid.

21. POST BALANCE SHEET EVENTS

On 15 November 2024, the company acquired 100% of the share capital of Mattu Garments Private Limited, a company incorporated and registered in India, for a total consideration of £613,909.