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Joe Browns Ltd

Registered number: 02540247
Annual report and
 financial statements
For the year ended 30 June 2024

 
JOE BROWNS LTD
 
 
COMPANY INFORMATION


Directors
D T Abbott 
S F Brown 
D M Bannerman (appointed 30 September 2024)
N A Reed (appointed 30 September 2024)




Company secretary
N A Reed



Registered number
02540247



Registered office
Kandy Works
Brown Lane East

Leeds

West Yorkshire

LS11 0BT




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

5th Floor

3 Wellington Place

Leeds

LS1 4AP





 
JOE BROWNS LTD
 

CONTENTS



Page
Strategic Report
 
1 - 5
Directors' Report
 
6 - 8
Independent Auditor's Report
 
9 - 12
Statement of Comprehensive Income
 
13
Statement of Financial Position
 
14
Statement of Changes in Equity
 
15
Notes to the Financial Statements
 
16 - 32


 
JOE BROWNS LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their Strategic Report and the audited financial statements for the year ended 30 June 2024.

Business review
 
The Statement of Comprehensive Income, which is set out on page 13 shows the business turnover decreasing from £48.3m to £40.6m. 
This fall was primarily in sales to its own customers and marketplace partners. Wholesale and retail remained in line with expectations.
Following a thorough review of the factors contributing to the fall in turnover, the Company believes that whilst the current market conditions and reduced consumer spending in the clothing sector were both factors, it was also driven by internal factors which could be changed:
 
a)The Company’s changed strategy in order to widen the product’s appeal. It believes this had an adverse effect on customer spend as diluting the individuality and handwriting of the product alienated the existing customer base.

b)Issues pertaining to the e-commerce platform led to inefficiencies during the fiscal year. This was despite efforts to increase sales and improve the customer experience. The various operational and technical challenges caused a suboptimal performance across key performance metrics.
 
The Company has redressed these issues and trading is returning to the levels experienced prior to last year’s fall.
During the year the business saw an increase in gross margin from 58.7% to 60.0%. This was the result of selling less discounted product.
Marketing expenditure decreased by £0.9m as the Company sought to market more efficiently to its customers. The Board believes this was the right strategy given the United Kingdom’s challenging macroeconomic environment, as evidenced by stagnant retail sales across the sector.
The Company did not copy the heavy discounting tactic used by many of the brand’s competitors to boost sales in response to the headwinds they faced. Instead, the Board took the view that continuing to invest in the brand would better serve the Company's long-term interests.
Employment costs rose £0.5m during the year as the Company continued to enhance its team, especially in e-commerce and buying. This aimed to improve the consumer’s online experience and enhance the depth and breadth of the range available to them.
Overheads rose by £1.2m. Most of this increase was due to a provision made for a commercial legal dispute, asset impairment coupled with increased Rent and Rates from an additional retail unit. The Company continues to monitor all aspects of expenditure and seeks to be as efficient as possible. 
Operating profit reduced by £3.7m in the financial year leading to a loss before tax of £1.6m, and EBITDA decreased by £3.4m.
The Company continued holding healthy cash reserves to exploit market opportunities and insure against business shocks.
 
- 1 -

 
JOE BROWNS LTD
 

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

Business environment
The Company continues to operate in a very competitive market. A wide array of brands provide consumers with clothing, homeware, and accessories through multiple channels. To insulate against market shifts, Joe Browns Limited constantly monitors its competitors and recognises the need to invest carefully in all areas of its business. This is especially important at the touchpoints the customers have with the label as this is where the most difference can be made to customer experience. 
Emphasis continues to be placed on product quality, range, and branding. The Company continues to invest in its website, and while paper marketing remains an important part of its strategy, it has embarked on a more e commerce-focused plan.
The Company also concentrated on sustainability, a key concern for its customers and the fashion industry. It has committed to minimising the negative environmental and social impacts associated with manufacturing, transporting, and packaging the goods it sells. 
Future developments
The Company will continue to invest in recruiting new customers and retaining existing ones. It believes that increasing the number of shoppers and keeping those already engaged with the brand offers the best opportunity to return to increased sales and profitability quickly.
The Company recognises that it should also strive to improve the efficiency of its operations through vigorous cost control and, where possible, cost elimination.

Principal risks and uncertainties
 
The Company's board has developed a framework for identifying risks and uncertainties that may impact its performance. It focuses on but is not limited to the following:

Changing consumer spending habits - this is managed by frequent analysis of external trends and closely monitoring its product sales and the behaviour of its competitors. 
 
Inflation - the Company recognises that despite inflation reducing during the financial year, its customers have seen a fall in their standard of living and that they will continue to have concerns about the cost of living. It realises that any future prolonged period of inflation will impact consumers’ purchasing habits again as real incomes suffer. 
 
Adverse exchange rate fluctuations - the Company is vulnerable to falls in the value of the GBP relative to the USD as many of its supplier's price in USD. To combat this, it purchases USD in advance of the applicable season. However, it recognises that this is a short-term measure and that long-term currency risk and the inherent pressure on prices are best managed by investment in the brand so that consumers’ desire to be associated with its products is as price-inelastic as possible.
 
Supplier failure - this is continually monitored, and any supplier considered at risk of collapse or suffering from issues that may cause severe delays is replaced. The Company maintains close relationships with several manufacturers with short lead times, so it can quickly assign replacement orders in the event of a supplier's failure to deliver.
 
- 2 -

 
JOE BROWNS LTD
 

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

Brand reputation - the Company constantly monitors its brand perception via customer interaction and social and traditional media. It also continually invests in the brand to maximise its resilience.
 
Financial risk - the Company maintains a large cash balance to insulate against significant financial shocks. This also ensures that it is not beholden to any lender for its short- or long-term financing requirements.
 
Environmental and social concerns - the Company has implemented systems to monitor environmental and social risks within its supply chain. It recognises that failing to manage these risks could severely damage the brand’s reputation.
 
Cybersecurity - the Company has implemented a comprehensive cybersecurity policy which addresses areas such as compliance, data safeguarding and maintaining digital assets.

Financial key performance indicators
 
Key performance indicators used by the directors to monitor the Company include the following:


2024
2023
Turnover (£m)
40.6
48.3
Gross margin as % of turnover
60.0%
58.7%
EBITDA (£m)
(1.1)
2.3


Statement of Compliance with Section 172 (1) Companies Act 2006
 
The board of directors of Joe Browns Limited consider that both individually and together for the year ended 30 June 2024 they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and having regard to the matters set out in s.172 (1) (a) to (f) as below:
a) The likely consequences of any decision in the long term;
b) The interests of the Company’s employees;
c) The need to foster the Company’s business relationships with suppliers, customers and others;
d) The impact of the Company’s operations on the community and the environment;
e) The desirability of the Company maintaining a reputation for high standards of business conduct; and
f) The need to act fairly between members of the Company.
(a) The likely consequences of any decision in the long term:
The directors acknowledge that all decisions should be based on the Company's and its stakeholders' long-term interests. The impact of any decision is discussed, and one of the factors weighed in that discussion is its lasting implications. The Company’s dividend policy reflects this. The effect of the timing and quantum of the dividend is balanced against the interests of the other parties, which are crucial to the sustainability of the business. This ensures that dividends are only paid when they will not detrimentally affect the stakeholders' current or future interests. For example, care is taken to ensure the Company retains enough funds to be able to take advantage of any profitable investments at a later date. 
 
- 3 -

 
JOE BROWNS LTD
 

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

(b) The interests of the Company’s employees:
The directors affirm that the business cannot function without its employees' goodwill, hard work and dedication. It knows that the key to maintaining this relationship is ensuring that the employee’s interests align with the Company’s. The Company regularly seeks the views of its staff. Its team members are formally interviewed on a routine basis, and the Company also conducts anonymous surveys. It hopes this mix of methods encourages an honest and forthright interaction between all employees. It provides weekly email updates detailing the Company’s performance to its employees. In addition, the directors visited the Company’s other locations where possible. This was done regularly to solicit the views of the staff based at its stores.
The Company also conducts frequent benchmarking exercises, measuring itself against other employers to ensure that it continues to be seen as an employer of choice by prospective candidates. These assignments examine the salaries and other benefits competitors offer in the same or similar labour markets. The Company then seeks to ensure that the packages it compensates its staff with retain and, where necessary, attract the best employees.
(c) The need to foster the Company’s business relationships with suppliers, customers and others:
The directors recognise that one of their core responsibilities is to encourage the development of its connections with suppliers and customers. Staff are instructed that part of their duties is to maintain good relationships with their partners outside the organisation and that this is crucial to the success of the Company. All the suppliers are regularly interacted with and visited to strengthen these bonds. The Company’s board knows it cannot successfully exist without engaging with its customers. To this end, they are regularly surveyed online and using focus groups. The business maintains various social media links and employs staff to generate, monitor and respond to posts. It also operates a customer-specific contact centre open 7 days a week. Interactions with this service are aggregated and reported upon so that significant problems are pre-empted. The aim is to create an association that generates a lasting willingness to purchase.

(d) The impact of the Company’s operations on the community and the environment:
The directors know the business is nested in its local community and relies on civic amenities to function. It also draws many of its staff from the local area, so it needs to maintain good community relations. The Company is investing in sustainability to reduce its environmental impact by incorporating more recycled material into its range and packaging. Furthermore, the Company continues to support local charities through clothing donations.
The Company also ensures that it complies with best practice where possible to minimise its environmental effect in all areas.
(e) The desirability of the Company maintaining a reputation for high standards of business conduct:
The directors of the Company recognise their essential duty to ensure that the Company complies with the laws and regulations in each of the jurisdictions in which it operates. This includes but is not limited to ensuring compliance with rules relating to forced and child labour use and guaranteeing, for example, that its products are safe to use. The directors understand that reputational damage is a significant risk to the Company and strive to ensure that the policies and practices to avoid and mitigate this risk are of the highest standard.
The Company also takes the need to pay its suppliers on time very seriously to maintain its standing in the industry.
 
- 4 -

 
JOE BROWNS LTD
 

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

(f) The need to act fairly between members of the Company:
The directors know that the Company needs to consider the interests of its members equally. It also recognises that there will be occasions when members' interests are in conflict and that any contest should be resolved to balance those competing interests. Member views are sought if such a situation arises. Any decision taken is documented and explained in an open and accountable way so that all the members can see what actions were taken to reach a settlement.


This report was approved by the board on 23 December 2024 and signed on its behalf.





D T Abbott
Director

- 5 -

 
JOE BROWNS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


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

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures being disclosed and explained in the financial statements; 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £1,418,095 (2023 - profit £1,549,779).

No dividends (2023: £2,000,000) were paid to ordinary shareholders during the year.
Going concern
The directors have considered the use of the going concern assumption appropriate in preparing these financial statements, including an exercise on the impairment of fixed assets and have not identified any factors that may give rise to uncertainty over the Company's ability to continue as a going concern.
Despite reduced Sales within the year, the gross margin has improved alongside reduced marketing costs and efficiencies in the cost of taking and dispatching of orders.
The Company continues to have a strong net current asset position at £13.1m (2023: £14.2m) and net asset position of £15.1m (2023: £16.5m). 
The Company’s healthy cash balance at the year-end gives it strength and flexibility, particularly in buying decisions. This, along with the other factors included within the Business Review and Future Developments section of the Strategic Report, supports the director's assessment that no factors give rise to a material uncertainty over the going concern assumption.

- 6 -

 
JOE BROWNS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Directors

The directors who served during the year were:

D T Abbott (resigned 30 September 2024, appointed 9 October 2024)
S F Brown 


Qualifying third party indemnity provisions

The Company has made qualifying third-party indemnity provisions for the benefit of its Directors which were made during the year and remain in force at the date of this Annual Report.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company is required to report its annual greenhouse gas emissions pursuant to the (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ("Regulations"). The 2018 regulations, known as Streamlined Energy and Carbon Reporting (SECR), came into effect on 1 April 2019, and the Company is required to report the emissions and energy consumption for this year to 30 June 2024 to coincide with the financial reporting period.

Following the location-based methodology, 429,888 kWh (2023: 400,727 kWh) of scope 2 energy and 222,759 kWh (2023: 215,120 kWh) of scope 1 natural gas has been consumed in relation to the Company's UK premises, resulting in 129,751 kgCO2e (2023: 122,332 kgCO2e). In addition, under scope 1, the energy consumption of 35,426 kgCO2e (2023: 38,126 kgCO2) resulted from transport usage. During the year, no specific steps were taken to lower energy consumption.

Emissions per employee have been considered to be an appropriate intensity ratio - average emissions per employee for the year were 913 kgCO2e (2023: 877 kgCO2e), and the Company aims to lower this where possible in future.

Matters covered in the Strategic report

Certain information is not shown in the Directors’ Report is shown in the Strategic Report instead in accordance with Section 414C (11) of the Companies Act 2006. The Strategic Report includes a business review, future developments and information on the Company's key performance indicators.

- 7 -

 
JOE BROWNS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and

the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

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

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 December 2024 and signed on its behalf.
 





D T Abbott
Director

- 8 -

 
JOE BROWNS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOE BROWNS LTD
 

Opinion

We have audited the financial statements of Joe Browns Limited (the ‘Company’) for the year ended 30 June 2024 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Company’s affairs as at 30 June 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

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 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.
- 9 -

 
JOE BROWNS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOE BROWNS LTD
 

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 the audit:
 
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

- 10 -

 
JOE BROWNS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOE BROWNS LTD
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 intend either 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
- 11 -

 
JOE BROWNS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOE BROWNS LTD
 

In addition, we evaluated the directors' and 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 manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to stock provisions, revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit 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.




Shaun Mullins (Senior Statutory Auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
5th Floor
3 Wellington Place
Leeds
LS1 4AP

23 December 2024
- 12 -

 
JOE BROWNS LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
40,563,291
48,277,883

Cost of sales
  
(16,217,375)
(19,933,077)

Gross profit
  
24,345,916
28,344,806

Distribution costs
  
(1,979,894)
(2,730,265)

Administrative expenses
  
(24,221,214)
(23,752,372)

Operating (loss)/profit
 5 
(1,855,192)
1,862,169

Interest receivable and similar income
 9 
220,092
109,216

(Loss)/profit before tax
  
(1,635,100)
1,971,385

Tax on (loss)/profit
 10 
217,005
(421,606)

(Loss)/profit for the financial year
  
(1,418,095)
1,549,779

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

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

The notes on pages 16 to 32 form part of these financial statements.

EBITDA for the current year was £(1,138,784) (2023: £2,305,993).

- 13 -

 
JOE BROWNS LTD
REGISTERED NUMBER: 02540247

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
2,332,674
2,510,578

  
2,332,674
2,510,578

Current assets
  

Stocks
 13 
5,322,159
7,524,520

Debtors
 14 
6,240,379
6,779,182

Cash at bank and in hand
 15 
7,341,437
7,223,430

  
18,903,975
21,527,132

Creditors: amounts falling due within one year
 16 
(5,762,155)
(7,358,872)

Net current assets
  
 
 
13,141,820
 
 
14,168,260

Total assets less current liabilities
  
15,474,494
16,678,838

Provisions for liabilities
  

Deferred tax
 17 
(246,334)
(134,373)

Other provisions
  
(101,790)
-

  
 
 
(348,124)
 
 
(134,373)

Net assets
  
15,126,370
16,544,465


Capital and reserves
  

Called up share capital 
 19 
11,230
11,230

Share premium account
 20 
359,190
359,190

Capital redemption reserve
 20 
1,266
1,266

Profit and loss account
 20 
14,754,684
16,172,779

  
15,126,370
16,544,465


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 December 2024.




D T Abbott
Director

The notes on pages 16 to 32 form part of these financial statements.

- 14 -

 
JOE BROWNS LTD
 

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


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022
11,230
359,190
1,266
16,623,000
16,994,686


Comprehensive income for the year

Profit for the year
-
-
-
1,549,779
1,549,779
Total comprehensive income for the year
-
-
-
1,549,779
1,549,779


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(2,000,000)
(2,000,000)


Total transactions with owners
-
-
-
(2,000,000)
(2,000,000)



At 1 July 2023
11,230
359,190
1,266
16,172,779
16,544,465


Comprehensive expense for the year

Loss for the year
-
-
-
(1,418,095)
(1,418,095)
Total comprehensive expense for the year
-
-
-
(1,418,095)
(1,418,095)


At 30 June 2024
11,230
359,190
1,266
14,754,684
15,126,370


The notes on pages 16 to 32 form part of these financial statements.

- 15 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Joe Browns Limited ("the Company") is a privately owned company, limited by shares, incorporated in England and Wales. The Company's registration number is 02540247. The address of its registered office and principal place of business is Kandy Works, Brown Lane East, Leeds, West Yorkshire, LS11 0BT.
The principal activity of the Company continues to be the sale of women's clothing, men's clothing, homeware and accessories under the Joe Browns brand via a mail order catalogue, its website and stores. The Company also operates a wholesale division which sells to a variety of other businesses ranging from public limited companies to small owner managed retail stores.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Kandy Works Properties Limited as at 30 June 2024 and these financial statements may be obtained from Companies House.

- 16 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Going concern

The directors have considered the use of the going concern assumption appropriate in preparing these financial statements, including an exercise on the impairment of fixed assets and have not identified any factors that may give rise to uncertainty over the Company's ability to continue as a going concern.
Despite reduced Sales within the year, the gross margin has improved alongside reduced marketing costs and efficiencies in the cost of taking and dispatching of orders.
The Company continues to have a strong net current asset position at £13.1m (2023: £14.2m) and net asset position of £15.1m (2023: £16.5m). 
The Company’s healthy cash balance at the year-end gives it strength and flexibility, particularly in buying decisions. This, along with the other factors included within the Business Review and Future Developments section of the Strategic Report, supports the director's assessment that no factors give rise to a material uncertainty over the going concern assumption.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

- 17 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Royalty income
Royalty income is recognised on an accruals basis in accordance with the substance of the agreements in place.

 
2.6

Operating leases: the Company as lessee

Payments under operating leases relate to the leases undertaken in respect of the three retail stores.

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

- 18 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
10%
per annum
Motor vehicles
-
33%
per annum
Fixtures & fittings
-
15%
per annum
Computer equipment
-
33%
per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

- 19 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.11

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

- 20 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

- 21 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

- 22 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The critical judgements that the directors have made in the process of applying the Company’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Stock provision
The Company estimates any required impairment to the carrying value of stock by assessing the amount and value of obsolete and slow-moving stock, using their judgement of the future sales value generated by those stock items. Refer to Note 13 for details of impairment losses recognised in stock.
Other sources of estimation uncertainty
Other sources of estimation uncertainty, that are not considered to give rise to an increased risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Royalty income recognition
The Company received royalty income over a period that is not co-terminus with the reporting date. For these periods the Company estimates whether the Company will achieve their targets that generate the royalties and the amount of income that should be recognised, using their judgement based on historical performance.
Determining residual values and useful economic lives of tangible assets
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. Judgement is also applied when determining the residual values for fixed assets. When determining the residual value, the directors have assessed the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.

- 23 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of goods
38,267,476
45,790,507

Royalties
2,295,815
2,487,376

40,563,291
48,277,883


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
39,551,737
47,258,458

Rest of Europe
956,303
959,004

Rest of the world
55,251
60,421

40,563,291
48,277,883



5.


Operating (loss)/profit

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

2024
2023
£
£

Depreciation of tangible fixed assets
716,408
444,095

Exchange differences
(16,730)
(18,532)

Other operating lease rentals
823,462
677,603


6.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
39,250
35,700

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

- 24 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
5,940,167
5,478,282

Social security costs
594,928
519,460

Cost of defined contribution scheme
109,382
100,638

6,644,477
6,098,380


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


        2024
        2023
            No.
            No.







Selling, distribution and office
143
143



Warehouse
38
42

181
185


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
279,218
278,766

Company contributions to defined contribution pension schemes
1,321
1,321

280,539
280,087


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £149,726 (2023 - £155,793).

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

- 25 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Interest receivable

2024
2023
£
£


Other interest receivable
220,092
109,216


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
5,501
432,670

Adjustments in respect of previous periods
(334,467)
(65,984)


Total current tax
(328,966)
366,686

Deferred tax


Origination and reversal of timing differences
109,192
402,519

Adjustment to tax charge in respect of previous periods
2,769
(347,599)

Total deferred tax
111,961
54,920


Taxation on (loss)/profit on ordinary activities
(217,005)
421,606
- 26 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(1,635,100)
1,971,385


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
(408,775)
404,134

Effects of:


Expenses not deductible for tax purposes
68,836
5,226

Fixed asset differences
117,085
(9,747)

Adjustments to tax charge in respect of prior periods
(334,467)
(65,984)

Movement in deferred tax not recognised
-
447,580

Remeasurement of deferred tax for changes in tax rates
-
(8,119)

Adjustment to tax charge in respect of previous periods - deferred tax
2,769
(347,599)

Losses carried back
333,079
-

Other differences leading to an increase / (decrease) in the tax charge
-
(3,885)

Group relief surrendered
4,468
-

Total tax charge for the year
(217,005)
421,606


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£

Ordinary


Dividend declared on ordinary shares
-
2,000,000

- 27 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Tangible fixed assets





Leasehold improvements
Motor vehicles
Fixtures & fittings
Computer equipment
Total

£
£
£
£
£



Cost


At 1 July 2023
1,666,417
24,830
1,502,820
2,102,624
5,296,691


Additions
33,150
-
288,524
470,870
792,544



At 30 June 2024

1,699,567
24,830
1,791,344
2,573,494
6,089,235



Depreciation


At 1 July 2023
40,635
24,830
1,123,500
1,597,148
2,786,113


Charge for the year
169,032
-
191,524
355,852
716,408


Impairment charge
-
-
217,970
36,070
254,040



At 30 June 2024

209,667
24,830
1,532,994
1,989,070
3,756,561



Net book value



At 30 June 2024
1,489,900
-
258,350
584,424
2,332,674



At 30 June 2023
1,625,782
-
379,320
505,476
2,510,578


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
5,322,159
7,524,520


During the year, a reversal of impairment of £50,263 (2023: reversal of impairment of £79,286) was recognised within cost of sales in the Statement of Comprehensive Income.

- 28 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

14.


Debtors

2024
2023
£
£



Trade debtors
1,621,006
1,886,855

Amounts owed by parent undertakings
2,159,939
2,231,939

Other debtors
5,000
5,000

Prepayments and accrued income
1,927,004
2,655,388

Tax recoverable
527,430
-

6,240,379
6,779,182


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


15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
7,341,437
7,223,430



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
3,738,991
4,448,646

Corporation tax
-
191,036

Other taxation and social security
884,544
1,156,256

Other creditors
37,600
50,211

Accruals and deferred income
1,101,020
1,512,723

5,762,155
7,358,872


- 29 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
(134,373)
(79,453)


Charged to profit or loss
(111,961)
(54,920)



At end of year
(246,334)
(134,373)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
251,582
167,639

Short term timing differences
(5,248)
(33,266)

246,334
134,373


18.


Provisions




Dilapidation provision

£





Charged to profit or loss
101,790



At 30 June 2024
101,790


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8,511 (2023 - 8,511) Ordinary shares of £1.00 each
8,511
8,511
2,719 (2023 - 2,719) A Ordinary shares of £1.00 each
2,719
2,719

11,230

11,230

The A Ordinary shares rank above Ordinary shares for return of capital. All shares have equal voting rights and dividend rights in accordance with the Articles of Association.


- 30 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

20.


Reserves

Share premium account

The share premium account includes the premium on issue of equity shares, net of issue costs. The share premium account is a non distributable reserve.

Capital redemption reserve

The capital redemption reserve contains the nominal value of own shares that have been acquired by the Company and cancelled. The capital redemption reserve is a non distributable reserve.

Profit & loss account

The profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £109,382 (2023: £100,638). Contributions totalling £20,993 (2023: £19,389) were payable to the fund at the reporting date and are included in creditors.


22.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
769,110
585,360

Later than 1 year and not later than 5 years
1,728,333
1,443,333

Later than 5 years
1,017,188
-

3,514,631
2,028,693

- 31 -

 
JOE BROWNS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

23.


Related party transactions

During the year services were provided to the Company by a related party of £22,500 (2023: £16,288). The amount payable at the year end was £Nil (2023: £4,350).
During the year services were provided to the Company by key management personnel of £47,808 (2023: £Nil). The amount payable as at the year end was £5,702 (2023: £Nil).
The Company has taken advantage of the exemption conferred by FRS 102 Section 33 not to disclose transactions with wholly owned members of the group headed by Kandy Works Properties Limited.


24.


Controlling party

At the year end the ultimate parent company was Kandy Works Properties Limited, a company registered in England and Wales. It is also the immediate parent company and the smallest and largest entity into which the Company's results are consolidated.
As at 30 June 2024, S F Brown is no longer the ultimate controlling party. As at the date of approval of these financial statements, the directors do not believe there is a single ultimate controlling party.

 
- 32 -