Company registration number 04207389 (England and Wales)
STRETCHLINE UK
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
STRETCHLINE UK
COMPANY INFORMATION
Directors
C A Lambert
X J A Vidal
Company number
04207389
Registered office
6th Floor
Manfield House
1 Southampton Street
London
WC2R 0LR
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
Business address
Wilsthorpe Road
Long Eaton
Nottingham
NG10 3JW
STRETCHLINE UK
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Notes to the financial statements
8 - 19
STRETCHLINE UK
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of manufacturer of woven and knitted elastics and the preparation and spin of elastomeric yarns and application of silicone. The company also provides services for its joint venture companies operating in Sri Lanka, Indonesia, Mexico, China, Honduras, Hong Kong and the USA.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C A Lambert
X J A Vidal
Future developments

Management continue to work closely with our customers in our business creating innovative products of the highest quality and value. The company is developing new products that it hopes to develop into fully established brands in the industry in order to further develop the business. Consequently, management expect to maintain the current levels of performance.

Statement of directors' responsibilities

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:

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.

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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

STRETCHLINE UK
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
On behalf of the board
C A Lambert
X J A Vidal
Director
Director
6 April 2025
STRETCHLINE UK
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRETCHLINE UK
- 3 -
Opinion

We have audited the financial statements of Stretchline UK (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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:

STRETCHLINE UK
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRETCHLINE UK (CONTINUED)
- 4 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considerred capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

STRETCHLINE UK
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRETCHLINE UK (CONTINUED)
- 5 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Mantel (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
7 April 2025
STRETCHLINE UK
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2024
operations
operations
2023
Notes
$
$
$
$
$
$
Turnover
3,846,728
-
3,846,728
3,835,053
2,456,164
6,291,217
Cost of sales
(2,951,820)
-
0
(2,951,820)
(2,921,621)
(1,503,913)
(4,425,534)
Gross profit
894,908
-
894,908
913,432
952,251
1,865,683
Distribution costs
(948,134)
-
0
(948,134)
(1,989,035)
(2,695,220)
(4,684,255)
Administrative expenses
(1,081,112)
-
0
(1,081,112)
(786,108)
(285,810)
(1,071,918)
Other operating income
165,627
-
0
165,627
303,202
-
0
303,202
Exceptional item
3
(761,667)
-
0
(761,667)
-
0
-
0
-
0
Operating loss
(1,730,378)
-
(1,730,378)
(1,558,509)
(2,028,779)
(3,587,288)
Interest receivable and similar income
-
0
-
0
-
0
503
430
933
Interest payable and similar expenses
5
(88,577)
-
0
(88,577)
-
0
-
0
-
0
Loss before taxation
(1,818,955)
-
0
(1,818,955)
(1,558,006)
(2,028,349)
(3,586,355)
Tax on loss
12,787
-
0
12,787
254,219
-
0
254,219
Loss for the financial year
(1,806,168)
-
0
(1,806,168)
(1,303,787)
(2,028,349)
(3,332,136)
Other comprehensive income
Currency translation gain taken to retained earnings
24,191
146,398
Total comprehensive income for the year
(1,781,977)
(3,185,738)
STRETCHLINE UK
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 7 -
2024
2023
Notes
$
$
$
$
Fixed assets
Intangible assets
7
95,308
-
0
Tangible assets
8
616,671
242,317
Investments
9
583,594
1,353,858
1,295,573
1,596,175
Current assets
Stocks
1,136,809
1,159,085
Debtors
10
1,123,914
1,603,055
Cash at bank and in hand
508,842
1,472,192
2,769,565
4,234,332
Creditors: amounts falling due within one year
11
(4,190,009)
(3,970,805)
Net current (liabilities)/assets
(1,420,444)
263,527
Total assets less current liabilities
(124,871)
1,859,702
Provisions for liabilities
12
(964,139)
(1,166,735)
Net (liabilities)/assets
(1,089,010)
692,967
Capital and reserves
Called up share capital
110,534
110,534
Profit and loss reserves
(1,199,544)
582,433
Total equity
(1,089,010)
692,967

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

The financial statements were approved by the board of directors and authorised for issue on 6 April 2025 and are signed on its behalf by:
C A Lambert
X J A Vidal
Director
Director
Company registration number 04207389 (England and Wales)
STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
1
Accounting policies
Company information

Stretchline UK is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, Manfield House, 1 Southampton Street, London, WC2R 0LR. The principal place of business is Wilsthorpe Road, Long Eaton, Nottingham, NG10 3JW.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The functional currency of the company is sterling. The financial statements are prepared in dollars. Management have agreed a presentational currency of dollars to align with the presentational currency of the group accounts. 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.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

The UK has been negatively affected by the impacts of Brexit, the Russia/Ukraine war impact on energy prices and the reduction of PPE demand following the easing of the global COVID restrictions. Action has been taken to restructure the company in the wake of these factors which, despite a reduction in revenue and one-time restructuring costs in the short-term, will generate longer-term benefits from a rationalised fixed cost base and single centre of excellence within the UK.true

 

As part of the wider Stretchline Group we will continue to foster innovation, target new sectors and increase our customer base. Therefore, at 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, with the support of the Holding company. 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.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

 

 

Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 9 -

Other operating income is derived from management fees and recharges billed to group companies and these are recognised on an accrual basis.

Dividend income from the company's investments in joint venture companies is recognised when the shareholder's right to receive payment has been established.

1.4
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
4 years
1.5
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 improvements
Over the length of lease - 3 years
Plant and equipment
12.5% on cost
Fixtures and fittings
10% - 25% on cost
Computers
25% on cost
Motor vehicles
25% on cost

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 10 -

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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.

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.

Fair value measurement of financial instruments

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other shot-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
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.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

 

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

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 of if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

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.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
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 {#tErmh2). 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
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.17
Government grants

Government grants received are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grans will be received. Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

1.18
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 the profit or loss.

1.19

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

 

  1. the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

  2. the company and the party are subject to common control;

  3. the party is an associate of the company or a joint venture in which the company is a venturer;

  4. the party is a member of key management personnel of the company or the company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

  5. the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

  6. the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company.

 

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Inventories

Inventories are valued at the lower of cost and estimated selling price less costs to complete and sell. Estimated selling price less costs to complete and sell includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Inventory provisioning

The company operates in the textiles industry and this industry is subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory and historical trends, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

Investments

The company has interests in subsidiary and joint venture entities. These are measured at cost less any accumulated impairment losses. At each reporting date management assess the investments for impairment. When management makes its assessment it considers whether there are any indications of impairment through reviewing trading performance and anticipated future performance and plans.

Dilapidation provision

The company has closed two of its sites and has recognised a dilapidation provision in respect of these properties the company has vacated. At the reporting date the best estimate of the expenditure required to settle the dilapidation obligation has been made but the estimate of repair costs involves inherent uncertainty due to factors such as the property's condition, the nature of repairs needed and prevailing market rates for the restoration costs.

3
Exceptional item
2024
2023
$
$
Expenditure
Impairment of fixed asset investment
761,667
-

A group reorganisation occurred at the beginning of 2022. Expenses relating to services carried out in the year ended 31 December 2021 in respect of the restructure were recognised as exceptional costs. The group reorganisation and sale agreement occurred on 7 January 2022.

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
31
66
5
Interest payable and similar expenses
2024
2023
$
$
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
88,532
-
0
STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
6
Discontinued operations

Closure of two sites

As part of a major re-organisation during the prior year the company closed its sites at Sherston and Whetstone centralising all operations at its remaining site at Long Eaton. In addition to the 'site' closures, some operations were not transferred to Long Eaton and were discontinued.

7
Intangible fixed assets
Other
$
Cost
At 1 January 2024
-
0
Additions
97,336
At 31 December 2024
97,336
Amortisation and impairment
At 1 January 2024
-
0
Amortisation charged for the year
2,070
Other movements
(42)
At 31 December 2024
2,028
Carrying amount
At 31 December 2024
95,308
At 31 December 2023
-
0
STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
8
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
$
$
$
$
$
$
Cost
At 1 January 2024
-
0
1,418,892
227,950
183,097
44,952
1,874,891
Additions
435,288
7,513
-
0
7,735
-
0
450,536
Exchange adjustments
-
0
(25,125)
(4,037)
(3,243)
(796)
(33,201)
At 31 December 2024
435,288
1,401,280
223,913
187,589
44,156
2,292,226
Depreciation and impairment
At 1 January 2024
-
0
1,204,301
218,649
164,867
44,757
1,632,574
Depreciation charged in the year
12,007
47,655
2,965
10,590
196
73,413
Exchange adjustments
(242)
(22,287)
(3,932)
(3,174)
(797)
(30,432)
At 31 December 2024
11,765
1,229,669
217,682
172,283
44,156
1,675,555
Carrying amount
At 31 December 2024
423,523
171,611
6,231
15,306
-
0
616,671
At 31 December 2023
-
0
214,591
9,301
18,230
195
242,317
9
Fixed asset investments
2024
2023
$
$
Shares in group undertakings and participating interests
583,594
1,353,858
STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Fixed asset investments
(Continued)
- 17 -
Movements in fixed asset investments
Shares in subsidiaries and associates
$
Cost or valuation
At 1 January 2024
1,353,858
Fx revaluation
(23,972)
At 31 December 2024
1,329,886
Impairment
At 1 January 2024
-
Impairment losses
746,292
At 31 December 2024
746,292
Carrying amount
At 31 December 2024
583,594
At 31 December 2023
1,353,858
10
Debtors
2024
2023
Amounts falling due within one year:
$
$
Trade debtors
592,610
737,738
Corporation tax recoverable
-
0
161,855
Amounts owed by group undertakings and undertakings in which the company has a participating interest
207,996
163,272
Other debtors
323,308
540,190
1,123,914
1,603,055
STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
$
$
Bank loans and overdrafts
19,495
-
0
Trade creditors
500,276
1,508,886
Amounts owed to group undertakings and undertakings in which the company has a participating interest
3,486,609
2,119,231
Corporation tax
-
0
581
Other taxation and social security
25,340
60,781
Other creditors
158,289
281,326
4,190,009
3,970,805
12
Provisions for liabilities
2024
2023
$
$
Sherston closure
964,139
1,166,735
Movements on provisions:
Sherston closure
$
At 1 January 2024
1,166,735
Additional provisions in the year
25,043
Reversal of provision
(201,840)
Exchange difference
(25,799)
At 31 December 2024
964,139

During the prior year the company closed its sites at Sherston and Whetstone. The company has a present obligation to restore the sites to their original state, however negotiations over the Sherston site remain ongoing at the year end and no agreement has been made. The movement in the year represents the adjustment to recognise the most up to date estimate of the obligation in relation to that site.

STRETCHLINE UK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
13
Operating lease commitments
Lessee

Due to the closure of two of the company's locations, both the operating leases have been written off as onerous leases and included as part of the dilapidation cost.

 

In the prior year, the lease for the Long Eaton site was in negotiation but had expired. This was finalised in the current year and the commitments have been reflected below accordingly.

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
$
$
541,530
-
0
14
Related party transactions
2024
2023
Amounts due to related parties
$
$
Entities with control, joint control or significant influence over the company
2,463,230
1,928,671
Other related parties
1,030,989
190,560

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
$
$
Other related parties
207,996
163,272
15
Parent company

The immediate and ultimate parent company is Stretchline Holdings Ltd, a company registered in Hong Kong.

In the opinion of the directors, there is no ultimate controlling party.

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