Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-302024-06-302023-07-01falseNo description of principal activity11falsefalse 09061680 2023-07-01 2024-06-30 09061680 2022-07-01 2023-06-30 09061680 2024-06-30 09061680 2023-06-30 09061680 2022-07-01 09061680 1 2023-07-01 2024-06-30 09061680 d:CompanySecretary1 2023-07-01 2024-06-30 09061680 d:Director1 2023-07-01 2024-06-30 09061680 d:Director2 2023-07-01 2024-06-30 09061680 d:Director2 2024-06-30 09061680 d:RegisteredOffice 2023-07-01 2024-06-30 09061680 d:Agent1 2023-07-01 2024-06-30 09061680 c:CurrentFinancialInstruments 2024-06-30 09061680 c:CurrentFinancialInstruments 2023-06-30 09061680 c:CurrentFinancialInstruments c:WithinOneYear 2024-06-30 09061680 c:CurrentFinancialInstruments c:WithinOneYear 2023-06-30 09061680 c:UKTax 2023-07-01 2024-06-30 09061680 c:UKTax 2022-07-01 2023-06-30 09061680 c:ShareCapital 2024-06-30 09061680 c:ShareCapital 2023-06-30 09061680 c:ShareCapital 2022-07-01 09061680 c:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 09061680 c:RetainedEarningsAccumulatedLosses 2024-06-30 09061680 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 09061680 c:RetainedEarningsAccumulatedLosses 2023-06-30 09061680 c:RetainedEarningsAccumulatedLosses 2022-07-01 09061680 d:OrdinaryShareClass1 2023-07-01 2024-06-30 09061680 d:OrdinaryShareClass1 2024-06-30 09061680 d:OrdinaryShareClass1 2023-06-30 09061680 d:FRS102 2023-07-01 2024-06-30 09061680 d:Audited 2023-07-01 2024-06-30 09061680 d:FullAccounts 2023-07-01 2024-06-30 09061680 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 09061680 2 2023-07-01 2024-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09061680









2XU UK LIMITED









DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
2XU UK LIMITED
 
 
COMPANY INFORMATION


Director
Harry Markl 




Company secretary
Harry Markl



Registered number
09061680



Registered office
7 Bell Yard

London

England

WC2A 2JR




Independent auditors
Wisteria Audit Ltd
Chartered Accountants and Statutory Auditors

Pikes End

Pinner

London

HA5 2EX




Bankers
Santander
5th Floor Davidson House

Forbury Square

Reading

Berkshire

RG1 3EU





 
2XU UK LIMITED
 

CONTENTS



Page
Director's Report
1 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 18

 
2XU UK LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents his report and the financial statements for the year ended 30 June 2024.

Business review and principal activities

The principal activity of the Company during the year was sales to customers of sporting apparel.

The results for the Company show a loss before taxation of £4,682 (2023: £544,861 loss) for the year and turnover of £Nil (2023: £Nil). The Company has net liabilities of £1,669,509 (2023: £1,665,792). The Company's cost of sales includes a transfer pricing credit adjustment of £Nil in line with Group policy (2023: credit adjustment of £Nil).

Results and dividends

The loss for the year, after taxation, amounted to £3,717 (2023 - loss £544,861).

A dividend has not been proposed or paid during the year.

Directors

The directors who served during the year and up to the date of signing the financial statements were:

Harry Markl (appointed 2 April 2024)
O Ruzicka (resigned 2 April 2024)

Qualifying third party and pension scheme indemnity provisions

There is no qualifying third-party indemnity provision or qualifying pension scheme indemnity provision in place for the director of the Company through the financial year or at the date of approval of this Director's Report.

Going concern

The financial statements have been prepared on a going concern basis.
The director has prepared the financial statements on the going concern basis, having obtained a signed letter of financial support from the parent company for a period of at least 12 months from the date of signing these financial statements. The director has also assessed the financial ability of the parent company to be able to provide financial support for a period of at least 12 months from the date of signing these financial statements.
For this reason, the director continues to adopt the going concern basis for the preparation of the financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or the classification of assets and liabilities that would result if the company were unable to continue as a going concern.

Page 1

 
2XU UK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


Principal risks and uncertainties

2XU UK Limited relies on a related entity, the parent entity 2XU Holdings Pty Ltd, to supply product for trading activities along with marketing support.
2XU Holdings Pty Ltd has refinanced its borrowing arrangements to fund its capital growth and operating activities through a Shareholder loan with a term of 24 months.

Future developments

The director expects that the Company will continue to operate the business consistent with the current financial year.

Key performance indicator

The key performance indicator for this entity is total revenues. Revenue decline this year was 0% (2023: decline of 100%).
Management monitors both these key performance indicators as part of its management reporting process and continues to be heavily involved in the day to day operations of the entity.

Research and development activities

The Company did not undertake any research and development activities during the financial year, and there are no charges in the Income Statement in relation to Research and Development.

Branches outside the UK

There were no branches outside the UK throughout the financial year and up until the date of this report.

Page 2

 
2XU UK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Director's responsibilities statement

The director is responsible for preparing the Director's Report and the financial statements in accordance with applicable law and regulation..
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Disclosure of information to auditors

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

he 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.

Auditors

The auditorsWisteria Audit Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Small companies exemption

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Page 3

 
2XU UK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

This report was approved by the board on 7 March 2025 and signed on its behalf.
 





Harry Markl
Director

Page 4

 
2XU UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2XU UK LIMITED
 

Opinion


We have audited the financial statements of 2XU UK Limited (the 'Company') for the year ended 30 June 2024, which comprise; the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 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


We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.


In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
2XU UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2XU UK 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 director is 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.


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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Director's Report has 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 Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Director's Report and from the requirement to prepare a Strategic Report.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
2XU UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2XU UK 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.


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

We obtained an understanding of the legal and regulatory frameworks applicable to the Company, and sector in which they operate. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements such as: Financial Reporting Standard 102 Section 1A application in the UK and Republic of Ireland ('United Kingdom Generally Accepted Accounting Practice), Companies Act 2006 and taxations laws.
We understood how the Company are complying with those legal and regulatory frameworks through discussions with management and those charged with governance.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: 

°identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; 
°challenging assumptions and judgements made by management in its significant accounting estimates;
°identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
°assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item. 

Our procedures to obtain sufficient appropriate audit evidence in response to the assessment risks of material misstatement due to fraud included:

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;
Performing a detailed review of the company’s year-end adjusting entries;
Enquiring of management with regard to actual and potential litigation and claims;
Carrying out substantive testing of journal entries to assess whether they are appropriate, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; 
Performing a detailed review of key accounting estimates, including a respective review of outcomes against estimates included in the prior year’s financial statements and assessing whether the judgements made in arriving at the accounting estimates are indicative of potential bias; and 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit.

These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations.
Page 7

 
2XU UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 2XU UK LIMITED (CONTINUED)




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


Use of our report
 

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





Barry Au FCA (Senior Statutory Auditor)
for and on behalf of
Wisteria Audit Ltd
Chartered Accountants and Statutory Auditors
Pikes End
Pinner
London
HA5 2EX

7 March 2025
Page 8

 
2XU UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
  
-
-

Cost of sales
  
-
-

Gross profit
  
-
-

Distribution costs
  
-
(1,057)

Administrative expenses
  
(4,682)
(543,804)

Operating loss
 5 
(4,682)
(544,861)

Tax on loss
 9 
965
-

Loss for the financial year
  
(3,717)
(544,861)

  

Total comprehensive income for the year
  
(3,717)
(544,861)

The notes on pages 12 to 18 form part of these financial statements.
Page 9

 
2XU UK LIMITED
REGISTERED NUMBER: 09061680

BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

  

Current assets
  

Debtors
 10 
11,290,522
11,287,164

Cash at bank and in hand
 11 
6,001
10,542

  
11,296,523
11,297,706

Creditors: amounts falling due within one year
 12 
(12,966,032)
(12,963,498)

Net current liabilities
  
 
 
(1,669,509)
 
 
(1,665,792)

Total assets less current liabilities
  
(1,669,509)
(1,665,792)

  

Net liabilities
  
(1,669,509)
(1,665,792)


Capital and reserves
  

Called up share capital 
 13 
1,000
1,000

Profit and loss account
 14 
(1,670,509)
(1,666,792)

  
(1,669,509)
(1,665,792)


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 March 2025.




Harry Markl
Director

The notes on pages 12 to 18 form part of these financial statements.
Page 10

 
2XU UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
1,000
(1,121,931)
(1,120,931)


Comprehensive expense for the year

Loss for the year
-
(544,861)
(544,861)



At 1 July 2023
1,000
(1,666,792)
(1,665,792)


Comprehensive expense for the year

Loss for the year
-
(3,717)
(3,717)


At 30 June 2024
1,000
(1,670,509)
(1,669,509)


The notes on pages 12 to 18 form part of these financial statements.
Page 11

 
2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

2XU UK Limited (the "Company'') is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and registered in England and Wales. The address of the registered office is 7 Bell Yard, London, England, WC2A 2JR. The nature of the Company's operations and its principal activities are set out in the Director's Report.

2.


Statement of compliance

The financial statements have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3.Accounting policies

 
3.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 4).

The following principal accounting policies have been applied:

  
3.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of 2XU International Pty Ltd as at 30 June 2024 and these financial statements may be obtained from Level 6, 534 Church Street, Cremorne, VIC 3121, Australia.
 
Page 12

 
2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.Accounting policies (continued)

 
3.3

Going concern

The financial statements have been prepared on a going concern basis.
The director has prepared the financial statements on the going concern basis, having obtained a signed letter of financial support from the parent company for a period of at least 12 months from the date of signing these financial statements. The director has also assessed the financial ability of the parent company to be able to provide financial support for a period of at least 12 months from the date of signing these financial statements.
For this reason, the director continues to adopt the going concern basis for the preparation of the financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or the classification of assets and liabilities that would result if the company were unable to continue as a going concern.

 
3.4

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.

  
3.5

Employee benefits

Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

 
3.6

Interest income

Interest income is recognised using the effective interest method.

Page 13

 
2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.Accounting policies (continued)

 
3.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Current taxation is applied to taxable profits at the rates ruling in the United Kingdom. Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Deferred tax balances are not discounted unless the effects are considered to be material.

 
3.8

Debtors

Trade debtors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade debtors) is used when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

 
3.9

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

 
3.10

Operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

  
3.11

Share capital

Ordinary shares are classified as share capital.

 
3.12

Financial instruments

The entity has applied IFRS 9 in respect of recognition and measurement of financial instruments.
(i) Financial assets
Basic financial assets, including trade receivables and cash, are initially recognised at transaction price. Such assets are subsequently carried at cost using effective interest rate method. At the end of each reporting period financial assets are assessed for objective evidence of impairment. If there is an impairment loss, it is recognised in the income statement.
(ii) Financial liabilities
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price.
 
Page 14

 
2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.Accounting policies (continued)


3.12
Financial instruments (continued)

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are recognised as non-current liabilities.
(iii) Offsetting
Financial assets and financial liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to offset the recognised amounts and the intention is to settle on a net basis.


4.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company's accounting policies. There are no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements.


5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Exchange differences
(39,929)
308,379


6.


Employees

2024
2023
£
£

Wages and salaries
9,132
166,100

Social security costs
3,811
22,638

12,943
188,738


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


        2024
        2023
            No.
            No.







Directors & Employees
1
1

Page 15

 
2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Director's remuneration



The director received no remuneration for their service to the Company or the immediate parent entity, 2XU International Pty Ltd.


8.


Key management compensation

Key management includes directors and members of senior management. The compensation paid or payable to key management for employee services is shown below:


2024
2023
£
£



Salaries and other short term liabilities
-
156,657


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(965)
-

Total current tax
(965)
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(4,682)
(544,861)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(1,171)
(103,524)

Effects of:


Unrelieved tax losses carried forward
10,415
103,524

Expenses not deductible for tax purposes
738
-

Non-trade loan relationships
(9,982)
-

Other differences leading to an increase (decrease) in the tax charge
(965)
-

Total tax charge for the year
(965)
-

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2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Debtors

2024
2023
£
£


Amounts owed by group undertakings
11,290,342
11,286,964

Taxation and social security
180
200

11,290,522
11,287,164


Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.


11.


Cash at bank and in hand

2024
2023
£
£

Cash at bank and in hand
6,001
10,542



12.


Creditors: Amounts falling due within one year

2024
2023
£
£

Amounts owed to group undertakings
12,943,657
12,882,737

Other creditors
-
969

Accruals and deferred income
22,375
79,792

12,966,032
12,963,498


Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

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2XU UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Called up share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1,000
1,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.



14.


Reserves

Profit and loss account

Profit and loss account represents cumulative retained comprehensive (expense)/income.


15.


Capital and other commitments


At 30 June 2024 the Company had no capital commitments (2023: £Nil).



16.


Related party transactions

The Company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the Group.


17.


Post balance sheet events

There have been no significant events affecting the Company since the year end.


18.


Ultimate parent undertaking and controlling party

The Company's immediate parent company is 2XU International Pty Ltd, a company registered in Australia and the ultimate controlling party is Trivantage Holdings Pte Ltd.
The smallest group of undertakings for which the Company is a member of and consolidated financial statements are prepared is 2XU Holdings Pty Ltd, and the largest group is Trivantage Holdings Pte Ltd. Copies of the 2XU Holdings Pty Ltd consolidated financial statements can be obtained from the Company Secretary at 2XU Holdings Pty Ltd, Level 6, 534 Church Steet, Cremorne, VIC 3121, Australia.

Page 18