Company registration number 04303095 (England and Wales)
GEOX UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
GEOX UK LIMITED
COMPANY INFORMATION
Directors
A Zamuner
P Ferro
Company number
04303095
Registered office
4th Floor
62 Cornhill
London
EC3V 3NH
Auditor
BKL Audit LLP
Chartered Accountants
5 Fleet Place
London
EC4M 7RD
GEOX UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 22
GEOX UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activity
Geox UK Limited ("Geox UK") is a fully owned subsidiary, engaged in the distribution for the UK market, of Geox S.p.A, which is the holding operative company of the Geox Group.
The Geox Group creates, produces, promotes and distributes Geox-brand footwear and apparel, the main feature of which is the use of innovative and technological solutions that can guarantee the ability to breathe and remain waterproof at the same time.
The success that Geox has achieved is due to the technological characteristics of its shoes and apparel. Thanks to a technology that has been protected by different patents "Geox" products ensure technical characteristics that improve foot and body comfort in a way that consumers are able to appreciate immediately.
Geox's innovation stems essentially from the creation and development of special outsoles: thanks to a special membrane that is permeable to vapour but impermeable to water, rubber outsoles are able to breathe and leather outsoles remain waterproof. In the apparel sector the innovation increases the expulsion of body’s internal humidity thanks to hollow spaces and aerators.
Business Review
The year 2024 is characterised by a good performance of sales in the direct channels, both physical and digital (+9%), and a lower performance of sales in the multi-brand channel (-3%).
The increase in sales in the direct channel is also related to the opening of a new shop (Brent Cross, London) in August 2024. The comparable sales, excluding such shop was still positive of 7%.
The performance of the multi-brand channel in 2024 is in line with the evidence of sales campaigns in recent months, reflecting the complex market conditions affecting operators in our sector. These results were achieved in a complex macroeconomic situation, characterized by strong geopolitical tensions, high interest rates and high inflation, which led to great uncertainty among consumers and, consequently, a cautious attitude towards consumption.
Key performance indicators
Turnover: 2024: £21,821,141; 2023: £20,578,331; 6% increase.
Operating profit: 2024: £602,451; 2023: £646,374; 6.8% decrease.
Store traffic: 19.2% increase versus 2023.
Net assets: 2024: £3,839,265; 2023: £3,380,620; 13.5% increase.
GEOX UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
In terms of business risks, Geox UK is exposed to:
the impact of the macroeconomic, political and social environment, in terms of changes in the purchasing power of consumers, their level of confidence and their propensity to consume. Geox UK’s ability to develop its business also depends, to an extent, on the economic situation in UK. The introduction by national or supranational bodies of restrictions on the movement of people between different countries, as a consequence, for example, of international crises or pandemics, can have an impact on revenues;
changes in national and international regulations: Geox UK operates in a complex international environment and is subject to rules and regulations which are constantly monitored, especially for all matters relating to the health and safety of workers, environmental protection, rules around manufacturing of products and their composition, consumer protection, the protection of intellectual and industrial property rights, competition rules, fiscal and customs rules, and, in general, all relevant regulatory provisions;
changes in customers' tastes and preferences: Geox UK is monitoring through targeted marketing and communication strategies; and
risks related to availability of finished products: Geox UK purchases 100% of its finished products from Geox S.p.A. while the products are produced mainly in the Far East and in the Mediterranean Basin. Political and social tensions could lead to procurement difficulties with negative consequences on the Group's economic results. The Group is constantly monitoring this continuously evolving situation, striking a careful balance between the need to reduce purchases, where possible, in order to mitigate risk and the need to take account of the social impact of suddenly pulling out of said production sources.
In terms of cyber risks, Geox UK is exposed to:
Geox UK is using the Geox Group infrastructure for IT services and cyber risk management. Geox Group is carefully monitoring the increasing cases of cyber attacks and is fully aware of the growing level of danger that such attacks pose to business continuity.
These circumstances led the Group to define an action plan and governance structure aimed at both preventing and defending against potential attacks, while also strengthening the measures to combat this phenomenon and restore normal operations.
In terms of financial risks, Geox UK is exposed to:
Credit risk: Geox UK tends to minimize the risk of insolvency on the part of its customers by adopting credit policies designed to concentrate sales on reliable and creditworthy customers. In particular, the credit management procedures implemented by the Group, which involve the use of contracts with major credit insurance companies, the evaluation of available information on customer solvency, the use of credit limits for each customer and strict control over compliance with the terms of payment, making it possible to reduce credit concentration and the related risk.
Risks connected to fluctuations in exchange rates: Geox UK operates its business in the UK and purchases the products in GBP from the parent company. Consequently the fluctuation of the exchange rates is not a material risk for the company.
Liquidity risk: This risk can arise when a company is unable to obtain the financial resources it needs to support its operational activities in a timely manner and at reasonable economic conditions. Funding requirements and liquidity of the Company are granted by the Geox Group, monitored at the central level under the control of the Group treasury to ensure effective and efficient management of financial resources. The directors do not believe that the effects of the aforementioned events are such as to undermine the Company’s ability to fulfill its payment commitments, taking into consideration the lines of credit that are currently available but have not yet been used, including the funding support provided by the parent company.
GEOX UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Future Developments
In analysing the prospects for the current year, it is essential to analyse and pay particular attention to the main variables that characterise the macroeconomic context, the specific dynamics of the reference market in which Geox operates and the evolution of the international geopolitical situation over the coming months.
The central banks' efforts to boost the performance of the main economies, helping to reduce inflationary pressures, are struggling in the short term to influence market dynamics and consumer behaviour. This has had a strong impact on market dynamics and consumer behaviour, both for the period just ended and for projections up to 2025.
As already mentioned, the results for 2024, although supported by the encouragement of comparable sales (LFL) in physical and direct digital shops (DOS), are still strongly influenced by the difficulties in the multi-brand segment. 2025 is expected to be similar to 2024, both in terms of market dynamics and expected performance. However, these forecasts of future performance are, by their very nature, subject to considerable uncertainty, given the current geopolitical context and macroeconomic scenario.
Impact of International Tensions
The international macroeconomic environment continues to present a high level of uncertainty, significantly influencing the main variables in our target market and, more generally, in the consumer durables market. Looking at the European footwear market, the value of consumer purchases decreased in 2024 compared to 2023. Similarly, Italian exports have recorded double-digit declines in both value and quantity over the last 12 months (source: Assocalzaturifici). The climate of international tension, generated by the Russian-Ukrainian conflict and the Israeli-Palestinian conflict, remains extremely high. The continuation of this serious situation of instability is having repercussions at a humanitarian and social level, with strong impacts primarily on the living conditions of the populations of these countries, but also on internal economic activities and trade in these areas. In the countries involved in these conflicts, the Geox Group's activities are carried out mainly through third parties, multi-brand and franchising, and can be considered negligible in Ukraine, Israel and Palestine. The subsidiary Geox UK is not directly involved in these countries but could be affected by the Group's supply chain.
P Ferro
Director
20 March 2025
GEOX UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Zamuner
L Libralesso
(Resigned 1 March 2024)
P Ferro
F Spolaor
(Resigned 29 February 2024)
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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; and
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.
Strategic report
The company has chosen to set out in the company's strategic report information in respect of the principal activities of the company.
GEOX UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
P Ferro
Director
20 March 2025
GEOX UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEOX UK LIMITED
- 6 -
Opinion
We have audited the financial statements of Geox UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including 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 December 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.
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 Auditor's 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 entity'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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
GEOX UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEOX UK LIMITED (CONTINUED)
- 7 -
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 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, 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.
Auditor's 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 auditor's 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:
Capability of the audit in detecting irregularities, including fraud:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates.
GEOX UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEOX UK LIMITED (CONTINUED)
- 8 -
Audit procedures performed by the auditors included:
Discussions with the directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Assessing managements significant judgements and estimates in particular those relating to the provision for returns and discounts.
Identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's 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.
Aron Kleiman ACA
Senior Statutory Auditor
For and on behalf of BKL Audit LLP
Chartered Accountants and Statutory Auditor
5 Fleet Place
London
EC4M 7RD
20 March 2025
GEOX UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
21,821,141
20,578,331
Cost of sales
(13,684,307)
(12,984,226)
Gross profit
8,136,834
7,594,105
Administrative expenses
(7,535,770)
(6,949,110)
Other operating income
1,387
1,379
Operating profit
4
602,451
646,374
Investment income
7
142,179
103,673
Finance costs
8
(126,618)
(153,732)
Profit before taxation
618,012
596,315
Tax on profit
9
(159,367)
(139,385)
Profit for the financial year
458,645
456,930
Retained earnings brought forward
1,330,620
873,690
Retained earnings carried forward
1,789,265
1,330,620
GEOX UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
926,464
692,699
Current assets
Inventories
11
2,849,317
3,103,226
Trade and other receivables
12
7,356,102
5,168,859
Cash and cash equivalents
240,499
373,267
10,445,918
8,645,352
Current liabilities
13
(7,148,030)
(5,698,076)
Net current assets
3,297,888
2,947,276
Total assets less current liabilities
4,224,352
3,639,975
Provisions for liabilities
Provisions
14
385,087
259,355
(385,087)
(259,355)
Net assets
3,839,265
3,380,620
Equity
Called up share capital
16
1,050,000
1,050,000
Share premium account
1,000,000
1,000,000
Retained earnings
1,789,265
1,330,620
Total equity
3,839,265
3,380,620
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
P Ferro
Director
Company Registration No. 04303095
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Geox UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, 62 Cornhill, London, EC3V 3NH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Geox SpA. These consolidated financial statements are available from its registered office, Via Feltrina Centro 16, Biadene di Montebelluna Trevisio, 31030, Italy.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Turnover is made up of the following items:
Sales of goods directly through Geox shops, concessions or e-commerce channel is recognised upon receipt of the goods by the consumer at the retail location or at their address. The relevant consideration is usually received at the time of the delivery. Any advance payments or deposits from customers are not recognised as revenue until the product is delivered. Sales through the e-commerce channel are recognised at the moment in which the customer obtains control of the asset upon delivery.
Revenue from the sale of goods through wholesale is recognised when control of the asset is transferred to the buyer, i.e. when the asset arrives at the customer's warehouse in accordance with contractual provisions, and when the customer acquires the ability to direct the use of and obtain substantially all of the benefits from the asset.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the lower of the useful life of the improvements and the residual duration of the lease
Fixtures and fittings
5% - 25% Straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
At the end of each season all unsold stock is returned to the parent company. Consequently no provisions for impairment are made.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include trade and other receivables, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through the statement of income, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of income.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) that have had the most significant effect on amounts recognised in the financial statements are as follows:
Provisions for liabilities and charges
The recognition of a provision is based on directors' best estimate when an outflow of resources is probable to settle the obligation and the amount can be reliably estimated.
The company is subject to returns made on sales within one month of the year end. Management calculate the expected returns on sales made based on information on actual returns in the past. The provision for returns is based on a one month return period. The corresponding effect on cost of sales is also calculated to ensure gross profit remains in line.
An estimated provision for discounts given to wholesale clients post year end is calculated. The discount is based on historic discounts given and commercial terms with each customer.
The company is also subject to dilapidations costs at the end of its tenancies. Management calculate the expected costs of dilapidations based on actual dilapidations costs incurred in the past. The expected costs are included within fixed assets and released as depreciation over the term of the lease.
Inventories
Certain categories of stock can be subject to some degree of estimation in valuation, particularly where they are held by third parties or are in transit. The number shown in the financial statements in Note 11 is management’s best estimate of these categories of stock.
The company makes provision for slow-moving and obsolete stock. The provision is based on historic data and future forecasts and is subject to uncertainties by its nature.
3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Shop and e-commerce sales
11,958,854
10,860,073
Wholesale and concession revenue
9,862,287
9,718,258
21,821,141
20,578,331
All turnover during the year arose in the UK.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
6,376
5,601
Fees payable to the company's auditor for the audit of the company's financial statements
68,000
68,483
Depreciation of owned property, plant and equipment
185,589
134,119
Operating lease charges
1,679,242
1,268,187
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
5
5
Administrative
2
2
Management
1
1
Retail shops
57
57
Total
65
65
2024
2023
£
£
Wages and salaries
1,498,145
1,532,482
Social security costs
171,946
166,933
Pension costs
32,912
26,230
1,703,003
1,725,645
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
57,081
261,115
Company pension contributions to defined contribution schemes
220
1,321
57,301
262,436
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
261,115
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for this year.
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
756
1,290
Interest receivable from group companies
141,423
102,383
Total income
142,179
103,673
8
Finance costs
2024
2023
£
£
Interest payable to group undertakings
126,618
153,732
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
154,503
136,895
Adjustments in respect of prior periods
4,864
2,490
Total current tax
159,367
139,385
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
618,012
596,315
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
154,503
140,134
Tax effect of expenses that are not deductible in determining taxable profit
1,101
4,529
Adjustments in respect of prior years
4,864
2,490
Change in unrecognised deferred tax liabilities
(32,959)
(19,090)
Capital items expensed
7,728
3,024
Permanent differences on fixed assets
20,989
13,953
Capitalised revenue expenditure
(943)
Other differences
3,141
(4,712)
Taxation charge for the year
159,367
139,385
10
Property, plant and equipment
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
2,478,879
653,421
3,132,300
Additions
273,626
145,728
419,354
At 31 December 2024
2,752,505
799,149
3,551,654
Depreciation and impairment
At 1 January 2024
1,955,627
483,974
2,439,601
Depreciation charged in the year
118,146
67,443
185,589
At 31 December 2024
2,073,773
551,417
2,625,190
Carrying amount
At 31 December 2024
678,732
247,732
926,464
At 31 December 2023
523,252
169,447
692,699
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
11
Inventories
2024
2023
£
£
Finished goods and goods for resale
2,849,317
3,103,226
12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,891,102
1,547,998
Amounts owed by group undertakings
4,858,171
3,116,760
Other receivables
18,576
7,188
Prepayments and accrued income
500,174
405,709
7,268,023
5,077,655
2024
2023
Amounts falling due after more than one year:
£
£
Other receivables
88,079
91,204
Total receivables
7,356,102
5,168,859
Amounts owed by parent company and other group undertakings are interest free and repayable on demand.
13
Current liabilities
2024
2023
£
£
Trade payables
513,540
615,932
Amounts owed to group undertakings
4,006,194
3,081,187
Corporation tax
154,503
136,895
Other taxation and social security
555,704
527,790
Other payables
9,766
12,862
Accruals and deferred income
1,908,323
1,323,410
7,148,030
5,698,076
Amounts owed to the parent company and other group undertakings are unsecured, interest free and repayable on demand.
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
14
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
164,700
100,700
Returns provision
78,143
83,688
Wholesale provision
142,244
74,967
385,087
259,355
Movements on provisions:
Dilapidations provision
Returns provision
Wholesale provision
Total
£
£
£
£
At 1 January 2024
100,700
83,688
74,967
259,355
(Release of) /increase in provision
64,000
(5,545)
67,277
125,732
At 31 December 2024
164,700
78,143
142,244
385,087
The company operates a returns policy on store and e-commerce revenue lines of 28 days and 14 days respectively. Rebates are also provided to wholesale customers. The company has entered in to operating lease agreements as a lessee, for which dilapidations are provided. The provisions reflect managements best estimate of the expected outflows.
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,912
26,230
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,050,000
1,050,000
1,050,000
1,050,000
The ordinary shares have attached to them full voting, dividend and capital distribution rights.
The company's other reserves are as follows:
GEOX UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Land and buildings
Plant and machinery
2024
2023
2024
2023
£
£
£
£
Within one year
1,369,486
1,096,676
13,859
25,656
Between two and five years
3,807,859
3,284,041
7,038
20,897
In over five years
1,747,919
6,925,264
4,380,717
20,897
46,553
18
Ultimate controlling party
The company is a wholly owned subsidiary of Geox SpA, a company registered in Italy, whose registered address is Via Feltrina Centro 16, Biadene di Montebelluna Trevisio, 31030, Italy. The ultimate parent company is LIR Srl, which is also registered in Italy, whose registered address is the same as Geox SpA. The smallest group in which the results of the company are consolidated is that headed by Geox SpA and the largest group in which the results of the company are consolidated is that headed by LIR Srl. Geox SpA's group accounts are available to the public from http://geox.biz.
19
Related party transactions
The company has taken advantage of the exemption available in accordance with Section 33.1A of Financial Reporting Standard 102 whereby it has not disclosed transactions entered into between two or more members of a group, as the parent company wholly owns the subsidiary undertakings in which the company is party to the transactions.
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