Company registration number 07290447 (England and Wales)
SKANWEAR CLOTHING COMPANY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SKANWEAR CLOTHING COMPANY LTD
COMPANY INFORMATION
Directors
Mr Russell Long
Mr Angus Long
Mr Anthony Long
Mr Richard Long
Company number
07290447
Registered office
Vanern House
Old Bawtry Road
Finningley
Doncaster
South Yorkshire
United Kingdom
DN9 3BZ
Auditor
Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
United Kingdom
DN4 5NU
SKANWEAR CLOTHING COMPANY LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26
SKANWEAR CLOTHING COMPANY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors have pleasure in submitting their strategic report for Skanwear Clothing Company Limited for the year ended 31 December 2024.
Principal activities
The principal activity of the company in the year was that of the global supply of electrical safety clothing, personal protective equipment (PPE) and associated products and services.
Review of the business
The results for the period and financial position of the company are shown in the financial statements.
The company had a further year of strong sales growth, reporting revenue for the year of £22,629,510 (2023: £18,442,239 ) an increase of 22.7% on 2023.
During the year the company invested in systems and processes in order to facilitate the planned growth, this led to an increase in administrative expenses to £4,358,531 (2023: £3,554,686). Administration expenses as a percentage of sales for the year remained consistent with 2023.
The company strengthened its position with an increase in Net Assets of £2,058,814 during the year, increasing to £6,247,872 (2023: £4,189,058).
The directors have outlined a detailed strategic plan for the company through to 2030 and are satisfied that the reported trading performance has realised the 2024 forecasts.
Principal risks and uncertainties
The company maintains a comprehensive risk management strategy that is overseen by the board of Directors. The principle operational and strategic risks are recorded on the company risk register, which is regularly updated and reviewed by the senior leadership team. The directors consider that the following risks could adversely affect the company’s future performance.
Credit Risk: The company is exposed to credit related losses from the non-payment of invoices. To mitigate this risk credit terms are offered to customers following a rigorous verification process in advance of any credit orders being accepted. Customer credit reports are continually monitored for any concerning alterations.
IT and cyber risks: The company continues to invest in training and IT infrastructure to maintain data security, provide business resilience and identify emerging threats. The company has recently received it's ISO 27001 certification.
Key performance indicators
Given the straightforward nature of the business, the company’s directors are of the opinion that analysis of key performance indicators below gives an understanding of the development, performance and position of the business.
Profit and loss analysis (expressed as a percentage of sales)
2024 2023
Gross profit 35.1% 31.6%
Administrative expenses 19.3% 19.3%
Profit for the financial year 11.9% 9.7%
Balance sheet analysis
2024 2023
Current ratio 2.3 : 1 1.9 : 1
Return on capital employed 58.3% 53.1%
SKANWEAR CLOTHING COMPANY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Other performance indicators
As an integral part of our ongoing commitment to excellence and customer satisfaction, we regularly connect with our customers to gain insight into their interactions with our organisation. Through these weekly engagements, we look into every aspect of their journey with us, spanning from order placement to communication, delivery, product quality, and post-sales support.
Our senior leadership team diligently monitors and discusses the Net Promoter Score (NPS) metric on a weekly basis, ensuring that our customers are consistently delighted with the support and solutions we provide.
Stakeholder engagement
As required by Section 172 of the Companies Act 2006 directors of a company must act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its stakeholders. This statement sets out how the company’s directors have met these responsibilities during the financial year.
Shareholders: The company is a wholly owned subsidiary of Vanern Holding LTD. The board, which is made up of executive and non-executive directors, meets regularly to discuss both the financial and operational performance of the company.
Customers: Customer satisfaction is an integral part of the company’s success. The company recognises that customer dissatisfaction would ultimately lead to a downturn in performance. The company utilises in depth customer surveys to determine Customer satisfaction using a net promoter score.
Suppliers: Maintaining a stable and efficient supply chain is imperative to allow the company to service customer’s needs. Regular meetings are held with key suppliers to review relationship performance and address any areas of concern.
Environmental and sustainability: The company understands the importance of reducing it’s impact on the environment and operating in a sustainable manner. During the year the company underwent an Ecovardis assessment, for which it was awarded a Silver rating.
Mr Russell Long
Director
21 May 2025
SKANWEAR CLOTHING COMPANY 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.
Ordinary dividends were paid amounting to £640,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Russell Long
Mr Angus Long
Mr Anthony Long
Mr Richard Long
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Russell Long
Director
21 May 2025
SKANWEAR CLOTHING COMPANY 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;
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.
SKANWEAR CLOTHING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKANWEAR CLOTHING COMPANY LTD
- 5 -
Qualified opinion
We have audited the financial statements of Skanwear Clothing Company Ltd (the 'Company') for the period ended 31 December 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects on the corresponding figures described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company’s affairs as at 31 December 2024 and of the company's 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.
Basis for qualified 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 qualified opinion.
We were not appointed auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stock at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £2,589,372 held at 31 December 2022 by using other audit procedures. Consequently we were unable to determine whether any adjustments to this amount as at 31 December 2022 was necessary or whether there was any consequential effect on the cost of sales for the period ended 31 December 2023. Our audit opinion on the Financial Statements for the period ended 31 December 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.
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.
SKANWEAR CLOTHING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKANWEAR CLOTHING COMPANY LTD (CONTINUED)
- 6 -
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.
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 Statement of Directors' Responsibilities set out on page two, 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 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.
SKANWEAR CLOTHING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKANWEAR CLOTHING COMPANY LTD (CONTINUED)
- 7 -
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 a Report of the Auditors 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:
Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.
As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.
Audit procedures performed by the engagement team include:
Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;
Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Evaluation of management's controls designed to prevent and detect irregularities;
Review of board meeting minutes and meetings of those charged with governance;
Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;
Assessing and evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Review of correspondence with regulators in so far as they are related to the financial statements;
Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
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 Report of the Auditors.
SKANWEAR CLOTHING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKANWEAR CLOTHING COMPANY 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 a Report of the Auditors 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.
Kelvin Fitton BA FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
21 May 2025
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
United Kingdom
DN4 5NU
SKANWEAR CLOTHING COMPANY LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,629,510
18,442,239
Cost of sales
(14,682,707)
(12,612,243)
Gross profit
7,946,803
5,829,996
Administrative expenses
(4,358,531)
(3,554,686)
Other operating income
139,152
15,340
Operating profit
4
3,727,424
2,290,650
Interest receivable and similar income
7
1,181
2,676
Interest payable and similar expenses
8
(66,672)
(22,878)
Profit before taxation
3,661,933
2,270,448
Tax on profit
9
(963,119)
(486,444)
Profit for the financial year
2,698,814
1,784,004
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SKANWEAR CLOTHING COMPANY LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
2,698,814
1,784,004
Other comprehensive income
-
-
Total comprehensive income for the year
2,698,814
1,784,004
SKANWEAR CLOTHING COMPANY LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
156,376
49,945
Tangible assets
13
379,581
273,068
535,957
323,013
Current assets
Stocks
14
4,517,901
4,572,609
Debtors
15
4,632,937
3,822,156
Cash at bank and in hand
1,315,910
160,759
10,466,748
8,555,524
Creditors: amounts falling due within one year
16
(4,609,728)
(4,566,933)
Net current assets
5,857,020
3,988,591
Total assets less current liabilities
6,392,977
4,311,604
Creditors: amounts falling due after more than one year
17
(119,527)
(102,950)
Provisions for liabilities
Deferred tax liability
20
25,578
19,596
(25,578)
(19,596)
Net assets
6,247,872
4,189,058
Capital and reserves
Called up share capital
22
100
100
Capital redemption reserve
600,000
600,000
Profit and loss reserves
5,647,772
3,588,958
Total equity
6,247,872
4,189,058
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
Mr Russell Long
Director
Company registration number 07290447 (England and Wales)
SKANWEAR CLOTHING COMPANY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
600,000
3,014,954
3,615,054
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,784,004
1,784,004
Dividends
10
-
-
(1,210,000)
(1,210,000)
Balance at 31 December 2023
100
600,000
3,588,958
4,189,058
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
2,698,814
2,698,814
Dividends
10
-
-
(640,000)
(640,000)
Balance at 31 December 2024
100
600,000
5,647,772
6,247,872
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Skanwear Clothing Company Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Vanern House, Old Bawtry Road, Finningley, Doncaster, South Yorkshire, United Kingdom, DN9 3BZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33.3% Straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office equipment
25% Reducing balance
Fixtures and fittings
25% Reducing balance
Plant and machinery
25% Reducing balance
Motor vehicles
25% 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 credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (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.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Under section 7 of FRS 102, Skanwear is exempt from filing a cash flow statement as the group cash flow is available in its parent company's financial statements.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Supply of goods
22,629,510
18,442,239
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,228,189
10,103,769
Europe
5,886,777
5,191,822
North America
3,431,477
1,787,504
Rest of World
2,083,067
1,359,144
22,629,510
18,442,239
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 19 -
2024
2023
£
£
Other revenue
Interest income
1,181
2,676
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
70,664
128,873
Research and development costs
378,319
359,309
Fees payable to the company's auditor for the audit of the company's financial statements
13,100
8,600
Depreciation of owned tangible fixed assets
37,292
29,713
Depreciation of tangible fixed assets held under finance leases
69,031
20,508
(Profit)/loss on disposal of tangible fixed assets
(536)
3,219
Amortisation of intangible assets
39,657
18,688
Impairment of stocks recognised or reversed
27,500
71,310
Operating lease charges
113,722
91,569
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Admin
8
7
Commercial
2
2
Compliance
1
2
Customer Service
9
8
Marketing
4
5
Sales
19
14
STRATA
7
5
Supply Chain
4
3
Warehouse
21
18
Total
75
64
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,336,119
1,965,469
Social security costs
227,133
196,974
Pension costs
33,930
28,412
2,597,182
2,190,855
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
63,542
53,852
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,181
2,676
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,181
2,676
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
14,126
17,730
Other finance costs:
Interest on finance leases and hire purchase contracts
27,482
5,148
Other interest
25,064
66,672
22,878
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
904,564
542,935
Adjustments in respect of prior periods
52,573
(56,667)
Total current tax
957,137
486,268
Deferred tax
Origination and reversal of timing differences
5,982
(5,604)
Changes in tax rates
5,780
Total deferred tax
5,982
176
Total tax charge
963,119
486,444
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,661,933
2,270,448
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
915,483
533,555
Tax effect of expenses that are not deductible in determining taxable profit
8,056
4,353
Adjustments in respect of prior years
52,573
Effect of change in corporation tax rate
5,963
Double tax relief
(248)
Permanent capital allowances in excess of depreciation
(11,943)
Depreciation on assets not qualifying for tax allowances
11,183
Under/(over) provided in prior years
(56,667)
Deferred tax adjustments in respect of prior years
(12,745)
Taxation charge for the year
963,119
486,444
10
Dividends
2024
2023
£
£
Final paid
640,000
1,210,000
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Stocks
14
27,500
71,310
Recognised in:
Cost of sales
27,500
71,310
12
Intangible fixed assets
Software
£
Cost
At 1 January 2024
102,540
Additions
146,088
At 31 December 2024
248,628
Amortisation and impairment
At 1 January 2024
52,595
Amortisation charged for the year
39,657
At 31 December 2024
92,252
Carrying amount
At 31 December 2024
156,376
At 31 December 2023
49,945
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
13
Tangible fixed assets
Office equipment
Fixtures and fittings
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
95,266
301,553
156,781
59,784
613,384
Additions
49,556
144,217
23,942
217,715
Disposals
(2,782)
(4,414)
(7,196)
At 31 December 2024
142,040
441,356
180,723
59,784
823,903
Depreciation and impairment
At 1 January 2024
66,260
140,918
111,165
21,973
340,316
Depreciation charged in the year
14,049
68,001
14,821
9,452
106,323
Eliminated in respect of disposals
(2,317)
(2,317)
At 31 December 2024
77,992
208,919
125,986
31,425
444,322
Carrying amount
At 31 December 2024
64,048
232,437
54,737
28,359
379,581
At 31 December 2023
29,006
160,635
45,616
37,811
273,068
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Fixtures and fittings
176,522
123,825
Motor vehicles
28,359
37,812
204,881
161,636
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
4,517,901
4,572,609
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,859,036
3,565,618
Other debtors
485,099
58,846
Prepayments and accrued income
288,802
197,692
4,632,937
3,822,156
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
458,808
Obligations under finance leases
19
75,060
50,042
Trade creditors
2,875,177
2,277,436
Corporation tax
566,317
212,575
Other taxation and social security
210,138
281,054
Other creditors
651,862
1,221,754
Accruals and deferred income
231,174
65,264
4,609,728
4,566,933
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
119,527
102,950
18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
458,808
Payable within one year
458,808
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
94,110
65,200
In two to five years
136,171
114,638
230,281
179,838
Less: future finance charges
(35,694)
(26,846)
194,587
152,992
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
25,578
19,596
2024
Movements in the year:
£
Liability at 1 January 2024
19,596
Charge to profit or loss
5,982
Liability at 31 December 2024
25,578
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,930
28,412
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
178,281
144,914
Between two and five years
453,757
599,285
632,038
744,199
SKANWEAR CLOTHING COMPANY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
108,524
25
Directors' transactions
Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors Loan Account
-
391,453
1,134,341
(893,120)
632,674
391,453
1,134,341
(893,120)
632,674
26
Ultimate controlling party
The ultimate parent undertaking of Skanwear Clothing Company Ltd as at 31/12/2024 was Vanern Holdings Ltd which is incorporated in Great Britain.
The registered address for Vanern Holdings Ltd is:
Vanern House
Old Bawtry Road
Finningley
Doncaster
South Yorkshire
United Kingdom
DN9 3BZ
Copies of the group accounts are available to the public and may be obtained from Companies House.
The parent of the largest group in which this company's results are consolidated is Vanern Holdings Ltd.
Largest group
Vanern Holdings Ltd
Smallest group
Vanern Holdings Ltd
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