REGISTERED NUMBER: 12892286 (England and Wales)

Financial Statements for the Year Ended 31 December 2024

for

GENTLEMEN'S HARDWARE INTERNATIONAL

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

T D Harris

S J Moore

G W Panagiotis

G S Jones

SECRETARY:

Rwk Company Services Limited

REGISTERED OFFICE:

2 New Bond Street Buildings

Bath

BA1 1BL

REGISTERED NUMBER:

12892286 (England and Wales)

AUDITORS:

Richardson Swift Audit Ltd

Chartered Accountants

Statutory Auditor

11 Laura Place

Bath

BA2 4BL

FIXED ASSETS

Intangible assets

4

95,025

209,055

Tangible assets

5

556,559

29,859

651,584

238,914

CURRENT ASSETS

Stocks

6

3,089,597

1,868,965

Debtors

7

3,569,488

2,799,154

Cash at bank

213,348

659,558

6,872,433

5,327,677

CREDITORS

Amounts falling due within one year

8

3,541,134

1,854,085

NET CURRENT ASSETS

3,331,299

3,473,592

TOTAL ASSETS LESS CURRENT LIABILITIES

3,982,883

3,712,506

CREDITORS

Amounts falling due after more than one year

9

476,019

-

NET ASSETS

3,506,864

3,712,506

CAPITAL AND RESERVES

Called up share capital

10

10,000

10,000

Share premium

5,061,147

5,061,147

Retained earnings

(1,564,283

)

(1,358,641

)

SHAREHOLDERS' FUNDS

3,506,864

3,712,506

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2025 and were signed on its behalf by:

G S Jones - Director

1.	STATUTORY INFORMATION

Gentlemen's Hardware International Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The provisions of FRS102 with regards to the capitalisation of leases have been early adopted.

The financial statements of the company have been prepared on the accrual basis which means that revenues are recognized when earned and expenses are recorded when incurred.

Going Concern

The financial statements show an accumulated loss over the first years of trading. The company has net assets because of investments received from the parent company. Budgets and forecasts have been prepared which show that the company expects trading to become profitable in the coming years. The parent company and group have confirmed that they expect to continue to provide support in the interim period, and at least for the twelve months following the approval of the financial statements.

On this basis the directors are satisfied that the company is a going concern and so the financial statements have been prepared on a going concern basis.

Significant judgements and estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United Kingdom (UK GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Key judgements and estimates in these financial statements include the deferred tax asset balance.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company recognizes revenue only when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectability is reasonably assured. All products are sold on a non-returnable basis. Billed freight consists of shipping charges billed to customers and is recorded as revenue upon shipment of products and the related freight costs are classified as selling expenses.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets

The company's policy is to capitalize all capital expenditures of £1,000 or more.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Improvements to property

10% straight-line

Fixtures and fittings

20% straight-line

Computer equipment

33% straight-line

Stocks

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, loans from banks and other third parties.

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

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

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

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under leases are capitalised in the balance sheet and depreciated over their estimated useful economic lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit over the relevant period. The capital element of the future payments is treated as a liability.

As the provisions of FRS102 regarding capitalisation of leases previously classed as operating leases have been early adopted, this approach applies to all leases in the current year. In the comparative year rentals paid under operating leases were charged to the profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2023 - 21 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2024

and 31 December 2024

570,150

AMORTISATION

At 1 January 2024

361,095

Amortisation for year

114,030

At 31 December 2024

475,125

NET BOOK VALUE

At 31 December 2024

95,025

At 31 December 2023

209,055

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Long

to

and

Computer

leasehold

property

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

-

12,537

13,904

31,057

57,498

Additions

532,385

40,090

16,494

10,915

599,884

Disposals

-

-

(4,550

)

(15,578

)

(20,128

)

At 31 December 2024

532,385

52,627

25,848

26,394

637,254

DEPRECIATION

At 1 January 2024

-

2,031

1,983

23,625

27,639

Charge for year

42,878

12,963

4,621

7,402

67,864

Eliminated on disposal

-

-

-

(14,808

)

(14,808

)

At 31 December 2024

42,878

14,994

6,604

16,219

80,695

NET BOOK VALUE

At 31 December 2024

489,507

37,633

19,244

10,175

556,559

At 31 December 2023

-

10,506

11,921

7,432

29,859

6.

STOCKS

2024

2023

£

£

Stocks

3,089,597

1,868,965

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,161,319

525,781

Amounts owed by group undertakings

1,683,031

1,690,689

Other debtors

725,138

582,684

3,569,488

2,799,154

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

1,039,341

-

Finance leases

50,082

-

Trade creditors

351,555

272,065

Amounts owed to group undertakings

1,071,525

957,717

Taxation and social security

275,309

165,789

Other creditors

753,322

458,514

3,541,134

1,854,085

Within Bank loans and overdrafts is £736,045 that is secured by a debenture and a guarantee from US Bank NA, and £303,296 which is secured by fixed and floating charges over the assets of the Company.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Finance leases

476,019

-

Amounts falling due in more than five years:

Repayable by instalments

Finance leases

257,235

-

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

10,000

Ordinary

£1

10,000

10,000

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Catherine Edwards BSc FCA (Senior Statutory Auditor)

for and on behalf of Richardson Swift Audit Ltd

12.	RELATED PARTY DISCLOSURES

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

At the year end the company owed £45,054 (2023: £34,118) to a fellow group company which is not a wholly owned subsidiary.

13.	PARENT COMPANY

The parent company is Gentlemen's Hardware Global LLC, a company based in the USA.

The ultimate parent company is Designworks Investments LLC.