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Registration number: 02708706

Paramo Limited

Financial Statements

for the Year Ended 31 July 2024

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Paramo Limited

Contents

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3 to 8

 

Paramo Limited

Company Information

Directors

Mr A Arnold

Mr A Beaumont

Mr R Pyne

Registered office

Unit F
Durgates Industrial Estate
Wadhurst
East Sussex
TN5 6DF

Auditor

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Paramo Limited

Statement of Financial Position as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

7

93,390

33,300

Current assets

 

Stocks

8

3,192,057

2,507,254

Debtors

9

533,013

492,590

Cash at bank and in hand

 

122,230

239,079

 

3,847,300

3,238,923

Creditors: Amounts falling due within one year

10

(3,634,917)

(2,857,399)

Net current assets

 

212,383

381,524

Total assets less current liabilities

 

305,773

414,824

Creditors: Amounts falling due after more than one year

10

-

(1,137)

Net assets

 

305,773

413,687

Capital and reserves

 

Called up share capital

361

361

Share premium reserve

58,468

58,468

Capital redemption reserve

13

13

Retained earnings

246,931

354,845

Shareholders' funds

 

305,773

413,687

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’.

The directors have elected not to include a copy of the Income Statement within the financial statements, in accordance with the special provisions relating to companies subject to the small companies regime within the Companies Act 2006, section 444.

Company registration number: 02708706

Approved and authorised by the Board on 22 April 2025 and signed on its behalf by:
 

.........................................

Mr A Beaumont

Director

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit F
Durgates Industrial Estate
Wadhurst
East Sussex
TN5 6DF

The principal activity of the company is that of the design and sale of clothing, mainly for the outdoor leisure market.

2

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 22 April 2025 was Martin Widdowson, who signed for and on behalf of Brebners.

3

Accounting policies

Statement of compliance

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' Section 1A and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The company made a loss for the year ended 31 July 2024 but had net assets of £305,773, including cash at bank of £122,230 at that date.

The company's cashflow forecasts show that the company has sufficient working capital for a period exceeding 12 months from the date of approval of the financial statements.

The directors have a reasonable expectation that the company has adequate resources to remain in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Revenue recognition

Turnover compromises the fair value of the consideration received or receivable for the sale of clothing and associated items in the course of the company's normal activities. Turnover is shown net of sales/ value added tax, returns, rebates and discounts.

Turnover is recognised at the point of sale for retail sales and the point of despatch for online and wholesale sales.

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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 taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

Straight line over the lease term

Fixtures and fittings

Straight line over 3-8 years

Motor vehicles

Straight line over 4 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the the type of inventory class, Paramo Limited state this to be the weighted average cost.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

4

Staff numbers

The average number of persons employed by the company during the year, was 48 (2023 - 45).

5

Auditor's remuneration

2024
£

2023
£

Audit of the financial statements

7,000

6,000


 

6

Loss before tax

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

9,905

6,029

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

7

Tangible assets

Leasehold Improvements
£

Furniture and Fittings
 £

Total
£

Cost or valuation

At 1 August 2023

85,641

160,317

245,958

Additions

55,391

14,604

69,995

At 31 July 2024

141,032

174,921

315,953

Depreciation

At 1 August 2023

79,899

132,759

212,658

Charge for the year

2,929

6,976

9,905

At 31 July 2024

82,828

139,735

222,563

Carrying amount

At 31 July 2024

58,204

35,186

93,390

At 31 July 2023

5,742

27,558

33,300

8

Stocks

2024
£

2023
£

Stock

3,192,057

2,507,254

9

Debtors

Note

2024
£

2023
£

Trade debtors

 

198,321

223,402

Amounts owed by group undertakings

13

168,215

62,525

Other debtors

 

166,477

206,663

 

533,013

492,590

Other debtors includes an amount of £32,500 (2023 - £30,000) recoverable in greater than one year secured in favour of the landlord.

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

10

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Loans and borrowings

11

460,663

493,375

Trade creditors

 

66,457

94,610

Amounts owed to group undertakings

 

2,632,728

2,009,425

Taxation and social security

 

163,229

59,002

Other creditors

 

311,840

200,987

 

3,634,917

2,857,399

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Loans and borrowings

11

-

1,137

11

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Loans and borrowings

1,136

6,668

Bank overdrafts

459,527

427,251

Other borrowings

-

59,456

460,663

493,375

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

-

1,137

Bank overdrafts and similar facilities are secured by a fixed charge over certain book debts and a fixed and floating charge over the other assets and undertakings of the company.

Obligations under finance leases are secured on the assets concerned.

12

Financial commitments, guarantees and contingencies

The total future minimum lease payments under non-cancellable operating leases not included in the statement of financial position amounts to £201,417 (2023 - £343,500).

The company has guaranteed the bank borrowings of other group companies. At 31 July 2024 the net amount outstanding was £1,552,201 but no obligation is expected to arise. The guarantee is secured by a fixed charge over certain book debts and a fixed and floating charge over the other assets and undertakings of the company.

 

Paramo Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

13

Related party transactions

Exemption has been taken under FRS 102 Paragraph 1AC.35 not to disclose transactions or amounts due with companies that are wholly owned within the group.

14

Holding Company

The smallest group preparing group accounts including the results of the company is headed by Gearform Trustees Ltd.

The registered address of Gearform Trustees Ltd is Unit F, Durgates Industrial Estate, Wadhurst, East Sussex. TN5 6DF.