Company registration number 04993825 (England and Wales)
CLIPPER U.K. LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CLIPPER U.K. LTD
COMPANY INFORMATION
Directors
P Puig
X Puig
Secretary
P Puig
Company number
04993825 (England and Wales)
Registered office
14A Phoenix House
Phoenix Business Park
Christopher Martin Road
Basildon
Essex
SS14 3EZ
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
CLIPPER U.K. LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
CLIPPER U.K. LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activities of the business continued to be that of distributor and supplier of disposable lighters and smokers' accessories.
Principal activities
Review of the business
The Company's key financial and other performance indicators during the year were as follows:
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Profit for the financial year | | | | | | | |
Turnover decreased during the year by 6.95%. This is as a results of the price increases and changes to promotions during the year.
Operating profit decreased by 36.46%. This was the first year in which the group started taking out the derivatives instead of Clipper UK meaning exchange rate gains and losses are now included within admin expenses.
Profit after tax has increased by 128.43% this is a result of cost of sales reducing by a greater margin than that experienced in turnover.
Principal risks and uncertainties
Principal risks and uncertainties
Our board actively monitors evolving challenges, employing proactive measures through strategic planning and robust risk management. The primary risks encompass competitive, legislative, financial, and inflationary factors.
Competitive risk
Despite holding a substantial market share and maintaining strong customer relationships alongside an efficient distribution network, the Board remains vigilant against complacency. Our ongoing strategy prioritizes:
Enhancing product quality
Introducing innovative product lines
Expanding our design range through diversity and creativity
This proactive approach ensures our sustained competitiveness and aligns with evolving customer expectations.
Legislative risk
Adherence to UK safety standards is fundamental to manufacturing our lighters and related products. Changes to these standards or new regulatory directives could impact product supply. To mitigate these risks, we maintain a steadfast commitment to quality and safety, ensuring compliance with:
ISO 9994 – International safety standards for lighters
EN 13869 – Child safety compliance
Our rigorous adherence to these standards ensures that our products consistently meet regulatory requirements, reinforcing our commitment to consumer safety.
CLIPPER U.K. LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Financial risk
The Company strategically addresses financial risks in two key areas:
1. Price Risk: Given our reliance on Euros and U.S. Dollars for product procurement, we are exposed to foreign exchange rate volatility. To counter this risk, we employ forward contracts, which provide stability and consistency in exchange rates for Euro-denominated transactions—an essential component of our annual expenditure.
2. Credit Risk: To mitigate the risk of financial loss due to counterparty default, we implement a comprehensive strategy that includes:
Credit insurance coverage
Strict credit limits and predefined payment terms
Exceptional deviations requiring prior approval from the credit insurance agency
Inflationary Risks
To address inflation-related challenges, the Company has adopted a strategic approach, encompassing:
Cost Analysis & Optimization – Identifying cost structures vulnerable to inflation and optimizing operations through supplier negotiations and alternative sourcing.
Dynamic Pricing Strategies – Implementing flexible pricing models that reflect changing economic conditions.
Long-Term Contracts – Securing extended supplier contracts to stabilize procurement costs and mitigate short-term price fluctuations.
Diversification of Suppliers – Reducing dependency on single suppliers by engaging with vendors across different regions to minimize supply chain risks.
Hedging Strategies – Utilizing financial instruments like futures contracts to hedge against currency fluctuations and commodity price increases.
Investment in Technology – Leveraging automation and advanced technologies to enhance operational efficiency and reduce labour-related costs.
Strategic Inventory Management – Maintaining optimal inventory levels to buffer against price volatility and supply chain disruptions.
Regular Economic Forecasting – Monitoring macroeconomic trends to enable proactive decision-making in response to changing market conditions.
Collaboration with Stakeholders – Engaging with suppliers, customers, and other key stakeholders to collectively navigate inflationary challenges and implement risk mitigation strategies.
By adopting these measures, Clipper U.K. Limited remains well-positioned to navigate market uncertainties while sustaining long-term growth and financial stability.
P Puig
Director
24 April 2025
CLIPPER U.K. LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid (2023: £nil). 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:
P Puig
X Puig
Financial instruments
Use of derivatives
The Company uses foreign currency forward contracts to reduce exposure of the variability of foreign exchanges by fixing the rates of material payments in a foreign currency.
The financial risks and management objectives of the utilisation of these instruments are discussed in the Strategic Report on pages 1 to 2.
Auditor
The auditor, Rickard Luckin Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
P Puig
Director
24 April 2025
CLIPPER U.K. LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures 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 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.
CLIPPER U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLIPPER U.K. LTD
- 5 -
Opinion
We have audited the financial statements of Clipper U.K. Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CLIPPER U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLIPPER U.K. LTD (CONTINUED)
- 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 and the directors' report.
We have nothing to report in respect of the following matters where 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Capability of the audit in detecting irregularity including fraud
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.
CLIPPER U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLIPPER U.K. LTD (CONTINUED)
- 7 -
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; Data Protection Regulations; anti-bribery and corruption legislation; and legislation concerning the handling and shipment of dangerous goods.
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance whith laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular, accruals and rebates provisions;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account and journal entries posted by senior management;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement and the Balance Sheet includes a number of items selected on a random basis; and
Discussions with management.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
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.
CLIPPER U.K. LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLIPPER U.K. LTD (CONTINUED)
- 8 -
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.
Paul Forster (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
12 May 2025
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
CLIPPER U.K. LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,629,415
14,647,343
Cost of sales
(12,114,580)
(13,431,540)
Gross profit
1,514,835
1,215,803
Administrative expenses
(1,349,022)
(954,863)
Operating profit
4
165,813
260,940
Interest receivable and similar income
7
6,854
5,141
Interest payable and similar expenses
8
(10,612)
(198,561)
Profit before taxation
162,055
67,520
Tax on profit
9
(42,384)
(15,130)
Profit and total comprehensive income for the financial year
119,671
52,390
CLIPPER U.K. LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible fixed assets
10
280,356
316,660
Current assets
Stocks
11
3,111,714
2,933,444
Debtors
12
2,407,981
2,338,446
Cash at bank and in hand
340,364
422,991
5,860,059
5,694,881
Creditors: amounts falling due within one year
13
(2,004,202)
(1,966,185)
Net current assets
3,855,857
3,728,696
Total assets less current liabilities
4,136,213
4,045,356
Creditors: amounts falling due after more than one year
13
(240,289)
(269,103)
Net assets
3,895,924
3,776,253
Capital and reserves
Called up share capital
20
180,000
180,000
Profit and loss reserves
3,715,924
3,596,253
Total equity
3,895,924
3,776,253
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
P Puig
Director
Company registration number 04993825 (England and Wales)
CLIPPER U.K. LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
180,000
3,543,863
3,723,863
Year ended 31 December 2023:
Profit and total comprehensive income
-
52,390
52,390
Balance at 31 December 2023
180,000
3,596,253
3,776,253
Year ended 31 December 2024:
Profit and total comprehensive income
-
119,671
119,671
Balance at 31 December 2024
180,000
3,715,924
3,895,924
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
CLIPPER U.K. LTD is a private company limited by shares incorporated in England and Wales. The registered office is 14A Phoenix House, Phoenix Business Park, Christopher Martin Road, Basildon, Essex, SS14 3EZ. The company's principal activities and nature of its operations are disclosed in the strategic report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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, except for derivative financial assets and liabilities which are revalued to fair value at each balance sheet date. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirements of paragraph 52, paragraph 58, the second sentence of paragraph 89, and paragraphs 90,91, and 93 of IFRS 16 Leases.
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures; and
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is a wholly owned by such a member.
Where required, equivalent disclosures are given in the consolidated financial statements of Flamagas S.A. The consolidated financial statements of Flamagas S.A. are available to the public and can be obtained as set out in note 22.
1.2
Going concern
These financial statements have been prepared under the going concern basis.true
The directors have at the time of approving the financial statements, 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.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Turnover is recognised when control of the goods has transferred to the customer, which normally occurs at dispatch, and there is no unfulfilled obligation that could affect the customers acceptance of the goods.
The goods are often sold with retrospective volume discounts based on aggregate sales over a period of 12 months. Revenue from these sales is recognised based on the price specified in the contract net of the estimated volume discounts. Accumulated experience is used to estimate and provide for the discounts using the expected value method and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability (included in accruals) is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with market price.
1.4
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over 10 year lease term
Fixtures and fittings
25% on reducing balance
Computers
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in profit or loss.
1.5
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents include cash in hand.
1.8
Financial assets
Financial assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade debtors). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
The company does not currently apply hedge accounting.
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 inventories or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other tangible fixed assets. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting estimates and judgements
The preparation of the financial statement requires judgements, estimations and assumptions to be made that affect the reported value of assets, liabilities, revenues and expenses. The nature of the estimation means that actual outcomes could differ from those estimates.
Critical judgements
Weighted average borrowing rate
IFRS16 'Leases' requires the company to initially measure the lease liability at the present value of the lease payments not paid at that date. The interest rate used to discount the future rent payments is the company's incremental borrowing rate which was considered to be approximately 3.7%.
Key sources of estimation uncertainty
Valuation of derivative financial instruments
The company makes use of forward currency exchange contracts carried at fair value at the balance sheet date. The fair values were determined using mark to market estimates provided by third party financial institutions applying recognised valuation methods and techniques.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
13,643,504
14,672,767
Discounts allowed
(14,089)
(25,424)
13,629,415
14,647,343
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover
(Continued)
- 18 -
2024
2023
£
£
Other significant revenue
Interest income
6,854
5,141
All sales were made in the United Kingdom in both the current and preceding year.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
176,132
(9,523)
Depreciation of property, plant and equipment
36,845
36,730
Loss on disposal of tangible fixed assets
173
1,080
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
17,750
16,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales staff
6
7
Admin staff
6
6
Total
12
13
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
711,032
554,252
Social security costs
82,201
80,009
Pension costs
16,036
12,887
809,269
647,148
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,854
5,141
Total interest income for financial assets that are not held at fair value through profit or loss is £6,854 (2023 - £5,141).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on overdue taxation
470
532
Interest on other financial liabilities:
Interest on lease liabilities
10,142
8,261
Loss on derivative financial instruments measured at fair value through profit or loss
189,768
Total interest expense
10,612
198,561
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
42,384
20,365
Adjustments in respect of prior periods
-
(5,235)
Total UK current tax
42,384
15,130
The charge for the year can be reconciled to the Statement of Comprehensive Income as follows:
2024
2023
£
£
Profit before taxation
162,055
67,520
Expected tax charge based on a corporation tax rate of 25.00% (2023: 25.00%)
40,514
16,880
Effect of expenses not deductible in determining taxable profit
1,934
1,041
Change in unrecognised deferred tax assets
(64)
3,725
Effect of change in UK corporation tax rate
(1,281)
Under/(over) provided in prior years
-
(5,235)
Taxation charge for the year
42,384
15,130
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
317,069
21,477
18,350
356,896
Additions
714
714
Disposals
(3,486)
(3,486)
At 31 December 2024
317,069
17,991
19,064
354,124
Accumulated depreciation and impairment
At 1 January 2024
18,496
9,331
12,409
40,236
Charge for the year
31,707
3,246
1,892
36,845
Eliminated on disposal
(3,313)
(3,313)
At 31 December 2024
50,203
9,264
14,301
73,768
Carrying amount
At 31 December 2024
266,866
8,727
4,763
280,356
At 31 December 2023
298,573
12,146
5,941
316,660
All figures included above, under the column 'Leasehold land and buildings' relate to right of use assets, recognised as a result of applying the Standard IFRS 16 - Leases. During the year the company cancelled one lease and entered into a new agreement which has been reflected in the value of the right of use asset as at 31 December 2024.
11
Stocks
2024
2023
£
£
Goods in transit
346,295
405,979
Finished goods
2,765,419
2,527,465
3,111,714
2,933,444
The value of stock sold in the year was £11,285,369 (2023: £12,409,587)
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Debtors
2024
2023
£
£
Trade debtors
2,230,458
2,302,394
Provision for bad and doubtful debts
(5,033)
(10,000)
2,225,425
2,292,394
Amount owed by parent undertaking
168,441
35,664
Prepayments and accrued income
14,115
10,388
2,407,981
2,338,446
13
Creditors
Due within one year
Due after one year
2024
2023
2024
2023
Notes
£
£
£
£
Creditors
17
1,573,214
1,484,452
Corporation tax
22,408
20,365
-
-
Other taxation and social security
379,766
433,585
-
-
Lease liabilities
18
28,814
27,783
240,289
269,103
2,004,202
1,966,185
240,289
269,103
14
Liquidity risk
The following table details the maturity profile of the Company's financial liabilities as at 31 December 2024 and 2023 based on contractual undiscounted payments.
3 - 12 months
1 – 5 years
5+ years
Total
£
£
£
£
At 31 December 2023
Lease liabilities
27,783
121,832
147,270
296,885
27,783
121,832
147,270
296,885
At 31 December 2024
Lease liabilities
28,814
126,354
113,935
269,103
28,814
126,354
113,935
269,103
15
Fair value of financial liabilities carried at amortised cost
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
16
Credit risk
There are no significant concentrations of credit risk within the Company unless otherwise disclosed. The maximum credit risk exposure relating to financial assets is represented by carrying value as at the balance sheet date.
The Company has established procedures to minimize the risk of default by trade debtors including credit checks undertaken and credit insurance obtained prior to allowing new customer credit terms. Historically, these procedures have proved effective in minimizing the level of impaired and past due debtors.
17
Creditors
2024
2023
£
£
Trade creditors
100,628
269,440
Accruals and deferred income
1,446,445
1,188,871
Other creditors
26,141
26,141
1,573,214
1,484,452
18
Lease liabilities
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
28,814
27,783
Non-current liabilities
240,289
269,103
269,103
296,886
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
10,142
8,261
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,036
12,887
The company contributes to 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.
CLIPPER U.K. LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
180,000
180,000
180,000
180,000
21
Related party transactions
The company has taken advantage of the exemption under paragraph 8(k) of FRS101 not to disclose transactions with fellow wholly owned subsidiaries. There were no transactions with other related parties during the current or preceding year.
22
Controlling party
The company is majority owned by Clipper 1959, S.L. and its ultimate parent company is Flamasats SL. Both are companies incorporated in Spain.
The ultimate parent company produces publically available consolidated financial statements which are available from C.Metalurgia, 38-42 E08038, Barcelona, Spain.
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