Company registration number 06836989 (England and Wales)
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
COMPANY INFORMATION
Directors
E Brigham
M E Brigham
R E Brigham
Company number
06836989
Registered office
47 Brunel Avenue
Salford
Manchester
United Kingdom
M5 4BE
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 22
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Principal activities
The company’s principal activities continued to be the retail of outdoor and winter sports clothing, equipment, and accessories.
Results
The profit for the year and the company’s financial position at the end of the year are shown in the financial statements on pages 8 to 9.
Operating review
Although turnover was up over 10% to a record high, Gross Profit was almost stagnant and, such has been the growth in the costs of doing business, the Net Profit for the year was down. Though we did see some price inflation this year, it was much less significant than the previous year and most of the increase in sales is due to hard work by all our teams: those on the sales floor and those behind the scenes, to ensure our customers’ needs were met.
The cost of being a retailer continues to rise, with the cost of employing people the most significant of the increases. Through the year we continued to work to the “Real Living Wage” for all our employees who passed their probation, to attract and keep good people. The package we offer is well rounded and enables our people to afford the increased cost of living brought about by the turbulent, global economy.
Besides our workforce, we have continued our investment in infrastructure, specifically IT and our online presence. We started work on new websites for The Snowboard Asylum and Ellis Brigham, which launched well after Year end and are performing well.
All considered, making any kind of profit in the current environment can be considered a success.
Current Scenario
Since the financial year end, we have had to look hard at our retail estate and have made the tough decision to close one of our oldest stores whose location was no longer suited to us. With the retail landscape so expensive, and our niche so competitive, we cannot afford to rest on our laurels, and we must always look to act when we know a situation will not work out for us. That being said, we must also look for opportunities.
This constant cycle of improvement in our stores, our infrastructure and our online presence will keep us ahead of the competition and make sure our resources are put to the best use.
Despite store closures and bedding in new websites the group is still trading very well, and we are currently working toward our eighth record turnover quarter in a row, though we now look at growth as a necessity to pay increasing costs, rather than a pleasant success.
Key Performance Indicators
In managing a portfolio of 24 stores nationwide across the wider Ellis Brigham Group (with further stores set to open), we utilise a suite of KPIs, the primary ones being Sales, Gross Profit percentage, and Overheads relative to sales. Relevant financial information is set out in the Primary Statements of the financial statements.
The Directors have prepared these financial statements on a going concern basis, which is further discussed in Note 1.2. The company continues to maintain a capital base which will provide a stable platform for future growth.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Outlook
Looking forward we can see continued cost increases particularly, but not solely, around employing people. Increases in National Insurance payments will be a particularly bitter pill to swallow when we are already trying to do the best we can for our people. As with most retailers we will be trying to do more with less and concentrate on working with only the best people to ensure our customers receive the best possible service. However, we won’t employ as many people as we have in the past, and it will be a real challenge to meet the customers’ expectations.
We will need to keep refreshing and investing in our retail estate to ensure it is relevant and performing to its best if we are to operate profitably. Also, we must make the most of our investment into our online presence and, most importantly, the seamless integration between the online and “bricks and mortar” experience.
The continued presence of war in Ukraine and Isreal/Gaza has had a detrimental effect on British consumer appetite. Although we have seen peaks and troughs that have not necessarily corresponded to escalations in conflict or the knock-on effect to costs of fuel and energy in the UK, there is certainly a sombre and cautious approach to spending. Although Winter Sports continues to be a challenging area, with uncertain conditions and price increases for British enthusiasts to get to and enjoy the mountains, we continue to perform robustly, and long may that continue.
The fashion for outdoor and functional clothing is maturing but by no means stagnant. The growth in new entrants to the market seems to be abating though as the fashion set move on to new things, leaving the dedicated enthusiasts and a lot of new customers to enjoy and benefit from the great outdoors.
Section 172 Companies Act 2006 Statement
The Group aims to generate profits in a sustainable way to ensure the long-term viability of the business. The Group has a rich heritage and was established by Frederick Ellis Brigham in 1933. We started in a small shop on Conran Street in Harpurhey, Manchester; and quickly established ourselves as the place to visit to have boots expertly made and fitted.
Over the years, Ellis Brigham shops have always been the first to sell the latest innovations, seeing waterproof garments move from being constructed with Ventile, to neoprene coated nylon and then to GORE-TEX fabrics. Footwear soon lost the nails and grew Vibram soles whilst leather uppers became suede and nylon and incorporated GORE-TEX liners.
As a business, Ellis Brigham is still going strong and is still proudly family owned. We have got the world’s best brands and amazing products that will make time spent in the mountains even more rewarding. Across the UK we now have many fantastic shops with friendly, knowledgeable staff who are all enthusiastic about the outdoors and understand our customers’ needs implicitly. Our shops really do bring the spirit of the mountains to the high street.
We are family owned, and proudly managed by the 3rd generation. Under the governance framework of the Group, day to day decision making is delegated to Robert Ellis Brigham. The management team provide updates and reports to the Trustees in order to provide them with assurance that appropriate consideration has been given to stakeholder interest in decision making. The Group adopts the same culture of engagement with other stakeholders, such as customers, employees and its supply chain.
R E Brigham
Director
21 March 2025
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be the retail of mountain and winter sports clothing, equipment and accessories.
Results and dividends
The results for the year are set out on page 8.
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:
E Brigham
M E Brigham
R E Brigham
Financial instruments
The company’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. These risks are being managed using the company’s policies approved by the Board of Directors, which provide written principles on the effective management of risks.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to cash flow interest rate risk on cash deposits.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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;
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 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.
On behalf of the board
R E Brigham
Director
21 March 2025
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
- 5 -
Opinion
We have audited the financial statements of Ellis Brigham Mountain Sports Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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 30 June 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 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.
The directors are responsible for the other information. 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
- 6 -
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.
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.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, 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 indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Helen Davies
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
30,701,687
27,729,060
Cost of sales
(23,899,804)
(20,974,564)
Gross profit
6,801,883
6,754,496
Administrative expenses
(6,514,523)
(5,920,281)
Operating profit
4
287,360
834,215
Interest receivable and similar income
7
73,673
51,426
Interest payable and similar expenses
8
(166,544)
(61,202)
Profit before taxation
194,489
824,439
Tax on profit
9
(73,452)
(192,807)
Profit for the financial year
121,037
631,632
Retained earnings brought forward
6,820,867
6,189,235
Retained earnings carried forward
6,941,904
6,820,867
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
13,200
14,800
Other intangible assets
10
313,413
51,677
Total intangible assets
326,613
66,477
Tangible assets
11
511,569
511,915
838,182
578,392
Current assets
Stocks
12
10,285,840
9,090,052
Debtors
13
4,718,276
4,187,274
Cash at bank and in hand
1,970,611
1,809,143
16,974,727
15,086,469
Creditors: amounts falling due within one year
14
(10,737,687)
(8,792,087)
Net current assets
6,237,040
6,294,382
Total assets less current liabilities
7,075,222
6,872,774
Provisions for liabilities
Deferred tax liability
15
133,317
51,906
(133,317)
(51,906)
Net assets
6,941,905
6,820,868
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
21
6,941,904
6,820,867
Total equity
6,941,905
6,820,868
The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
R E Brigham
Director
Company Registration No. 06836989
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information
Ellis Brigham Mountain Sports Limited is a private company limited by shares incorporated in England and Wales. The registered office is 47 Brunel Avenue, Salford, Manchester, United Kingdom, M5 4BE.
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 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
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’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are included in the consolidated financial statements of Ellis Brigham Holdings Limited as at 30th June 2024 and these financial statements may be obtained from Companies House, Maindy Way, Cardiff, CF14 3UZ
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis with the charge being included in administrative expenses in the profit and loss account over its useful economic life of 10 years.
1.5
Intangible fixed assets other than goodwill
Amortisation 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:
Website development costs
5 years
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 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 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
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Leasehold improvements
Straight line over 5 years
Fixtures and fittings
15% reducing balance
Computers
33.3% reducing balance
Motor vehicles
25% reducing balance
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
1.8
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
The company owns and holds all stock for the Ellis Brigham group (other than for Wisdom & Effort Limited who hold their own stock). Ownership of the stock only transfers to other group companies at the point of sale.
1.9
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.
1.10
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 balance sheet 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 debtors 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.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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 profit or loss.
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 profit or loss.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 creditors 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 creditors 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.
1.11
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.
1.12
Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 profit and loss account, 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.
Deferred tax balances are not discounted.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.16
Foreign exchange
Functional and presentation currency
The Company's functional and presentational currency is GBP.
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 the profit and loss account.
1.17
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock Provision
The directors have applied their knowledge of the operations of the business when reviewing the stock listing at the balance sheet date, and have made appropriate provision for any items deemed to be slow moving or obsolete. The charge to the profit and loss account is recognised in cost of sales.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Retail sales
30,701,687
27,729,060
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
£
£
Other revenue
Interest income
73,673
51,426
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
28,012
114,530
Research and development costs
4,147
49,364
Fees payable to the company's auditor for the audit of the company's financial statements
75,475
65,025
Depreciation of owned tangible fixed assets
138,458
111,578
Profit on disposal of tangible fixed assets
(1,200)
(2,546)
Amortisation of intangible assets
53,277
84,470
Operating lease charges
492,844
484,076
In the current and previous year, the company bore the audit cost of the other companies in the group headed by Ellis Brigham Holdings Limited.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and distribution staff
92
88
Administration staff
42
42
Total
134
130
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,210,601
2,603,189
Social security costs
295,524
234,446
Pension costs
177,139
127,363
3,683,264
2,964,998
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
334,740
307,100
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
117,424
113,142
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
73,673
51,426
8
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
166,408
61,202
Interest on finance leases and hire purchase contracts
136
-
166,544
61,202
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
152,662
Adjustments in respect of prior periods
(7,959)
Total current tax
(7,959)
152,662
Deferred tax
Origination and reversal of timing differences
79,663
40,145
Adjustment in respect of prior periods
1,748
Total deferred tax
81,411
40,145
Total tax charge
73,452
192,807
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 18 -
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
194,489
824,439
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
48,622
169,010
Tax effect of expenses that are not deductible in determining taxable profit
7,323
7,776
Tax effect of income not taxable in determining taxable profit
(184)
Adjustments in respect of prior years
(7,959)
Effect of change in corporation tax rate
7,233
Group relief
5,561
(608)
Depreciation on assets not qualifying for tax allowances
13,928
9,396
Other permanent differences
4,413
Deferred tax adjustments in respect of prior years
1,748
Taxation charge for the year
73,452
192,807
10
Intangible fixed assets
Goodwill
Website development costs
Total
£
£
£
Cost
At 1 July 2023
78,000
459,351
537,351
Additions
313,413
313,413
At 30 June 2024
78,000
772,764
850,764
Amortisation and impairment
At 1 July 2023
63,200
407,674
470,874
Amortisation charged for the year
1,600
51,677
53,277
At 30 June 2024
64,800
459,351
524,151
Carrying amount
At 30 June 2024
13,200
313,413
326,613
At 30 June 2023
14,800
51,677
66,477
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
200,242
723,618
103,248
414,681
1,441,789
Additions
37,795
31,668
70,445
139,908
Disposals
(20,500)
(20,500)
At 30 June 2024
200,242
761,413
134,916
464,626
1,561,197
Depreciation and impairment
At 1 July 2023
163,914
398,919
98,559
268,482
929,874
Depreciation charged in the year
18,164
54,464
12,118
53,712
138,458
Eliminated in respect of disposals
(18,704)
(18,704)
At 30 June 2024
182,078
453,383
110,677
303,490
1,049,628
Carrying amount
At 30 June 2024
18,164
308,030
24,239
161,136
511,569
At 30 June 2023
36,328
324,699
4,689
146,199
511,915
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
10,285,840
9,090,052
An decrease in the stock provision of £92,530 (2023: decrease of £323,941) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock.
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
90,055
16,064
Corporation tax recoverable
28,742
Amounts owed by group undertakings
3,870,910
3,833,963
Prepayments and accrued income
728,569
337,247
4,718,276
4,187,274
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,775,996
1,556,560
Amounts owed to group undertakings
7,048,446
5,523,504
Corporation tax
20,381
Other taxation and social security
795,098
435,998
Other creditors
759,807
908,239
Accruals and deferred income
358,340
347,405
10,737,687
8,792,087
Within amounts due to fellow group undertakings £6,636,778 (2023: £5,441,704) is secured by a fixed and floating charge over the undertaking and all property and assets, present and future, of the company.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
151,912
73,377
Losses and other deductions
(15,722)
(15,722)
Short term timing differences
(2,873)
(5,749)
133,317
51,906
2024
Movements in the year:
£
Liability at 1 July 2023
51,906
Charge to profit or loss
81,411
Liability at 30 June 2024
133,317
The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances that are expected to mature within the same period.
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
177,139
127,363
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
18
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:
2024
2023
£
£
Within one year
460,521
474,000
Between two and five years
708,000
734,630
In over five years
177,970
1,168,521
1,386,600
ELLIS BRIGHAM MOUNTAIN SPORTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Related party transactions
Transactions with related parties
Transactions with other related companies within the Ellis Brigham Holdings Limited group are not disclosed as consolidated accounts are prepared for the group and the company has taken advantage of the exemption under FRS102 para. 33.2.
At the balance sheet date the following amounts were owed by group companies:
Ellis Brigham Limited £1,544,582 (2023: £1,072,291)
EB 2003 Limited £286,475 (2023: £43,963)
EB2092 Limited £405,320 (2023: £82,523)
Ellis Brigham ONC 28 Limited £97,195 (2023: £72,014)
Ellis Brigham Leases Limited £241,271 (2023: £179,897)
Ellis Brigham (Meadowhall) Limited £9,960 (2023: £69,734)
Ellis Brigham Tamworth Limited £5,263 (2023: £23,430)
Outsiders Store Limited £537,130 (2023: £219,121)
Outsiders Store CDY Limited £136,967 (2023: £40,336)
Wisdom & Effort Limited £579,732 (2023: £2,028,142)
Wisdom & Effort Retail Limted £35,667 (2023: £2,513)
At the balance sheet date the following amounts were owed to group companies:
Ellis Brigham Holdings Limited £6,636,778 (2023: £5,441,704)
Ellis Brigham Property Holdings Limited £391,938 (2023: £81,800)
Ellis Brigham Limited £19,730 (2023: £nil)
20
Ultimate controlling party
At the current and previous year ends the company's parent company was Ellis Brigham Holdings Limited . There is no ultimate controlling party.
The consolidated financial statements of the group are available to the public and may be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff CF4 3UZ.
21
Reserves
Profit & loss account
The profit and loss account represents accumulated trading profits less equity dividends paid.
22
Guarantees
The company's parent undertaking, Ellis Brigham Holdings Limited, holds a debenture dated 25 June 2009 securing all monies due, or become due, from the company to Ellis Brigham Holdings Limited under a fixed and floating charge over the undertakings and all property and assets.
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