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REGISTERED NUMBER: 10883556 (England and Wales)















REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

PERFECT MOMENT (UK) LIMITED

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024




Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 3

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


PERFECT MOMENT (UK) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: Mr M A Gottschalk
Mrs J E Gottschalk





REGISTERED OFFICE: Larch House
Parklands Business Park
Denmead
Hampshire
PO7 6XP





REGISTERED NUMBER: 10883556 (England and Wales)





AUDITORS: Gibson Whitter Limited
Statutory Auditors
Larch House
Parklands Business Park
Denmead
Hampshire
PO7 6XP

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

DIRECTOR
Mr M A Gottschalk held office during the whole of the period from 1 April 2023 to the date of this report.

Other changes in directors holding office are as follows:

Mrs J E Gottschalk was appointed as a director after 31 March 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Gibson Whitter Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





Mr M A Gottschalk - Director


7 August 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PERFECT MOMENT (UK) LIMITED

Opinion
We have audited the financial statements of Perfect Moment (UK) Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss 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 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 Auditors' 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.

Emphasis of matter
We draw attention to Note 2 in the financial statements, which indicates that the company incurred a net loss during the year ended 31 March 2024 and, as of that date, the company's current liabilities exceeded its total assets by £14,666,469. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PERFECT MOMENT (UK) LIMITED


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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has 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 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; or
- the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PERFECT MOMENT (UK) LIMITED


Auditors' 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:

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:

- We obtained an understanding of the legal and regulatory framework in which the company operates. The key laws considered included the Companies Act 2006. We have corroborated our enquiries through review of Board minutes.
- We have evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override of controls and the application of revenue recognition at cut-off and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year. We have addressed this by assessing journal entries as part of our planning audit approach
- We have enquired of management and those charge with governance in respect of known or suspected instances of non-compliance with laws and regulations.
- We have also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PERFECT MOMENT (UK) LIMITED


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 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.




Linda Gibson FCA CTA (Senior Statutory Auditor)
for and on behalf of Gibson Whitter Limited
Statutory Auditors
Larch House
Parklands Business Park
Denmead
Hampshire
PO7 6XP

7 August 2025

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   

TURNOVER 3 9,360,370 8,028,361

Cost of sales 6,903,413 5,887,729
GROSS PROFIT 2,456,957 2,140,632

Administrative expenses 8,645,427 7,203,798
(6,188,470 ) (5,063,166 )

Other operating income 1,019,373 879,283
OPERATING LOSS 5 (5,169,097 ) (4,183,883 )

Interest receivable and similar income 511 -
(5,168,586 ) (4,183,883 )

Interest payable and similar expenses 6 11,369 17,128
LOSS BEFORE TAXATION (5,179,955 ) (4,201,011 )

Tax on loss 7 100,385 (100,614 )
LOSS FOR THE FINANCIAL YEAR (5,280,340 ) (4,100,397 )

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   

LOSS FOR THE YEAR (5,280,340 ) (4,100,397 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(5,280,340

)

(4,100,397

)

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

BALANCE SHEET
31 MARCH 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 426,384 716,789
Tangible assets 9 32,296 23,558
458,680 740,347

CURRENT ASSETS
Stocks 10 1,597,728 1,839,254
Debtors 11 779,865 488,083
Cash at bank 744,467 1,604,344
3,122,060 3,931,681
CREDITORS
Amounts falling due within one year 12 18,247,209 14,058,157
NET CURRENT LIABILITIES (15,125,149 ) (10,126,476 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(14,666,469

)

(9,386,129

)

CAPITAL AND RESERVES
Called up share capital 15 100 100
Other reserves 16 544,355 298,449
Retained earnings 16 (15,210,924 ) (9,684,678 )
SHAREHOLDERS' FUNDS (14,666,469 ) (9,386,129 )

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 7 August 2025 and were signed on its behalf by:





Mr M A Gottschalk - Director


PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 April 2022 100 (5,496,865 ) 211,033 (5,285,732 )

Changes in equity
Total comprehensive income - (4,100,397 ) - (4,100,397 )
Share based compensation - (87,416 ) 87,416 -
Balance at 31 March 2023 100 (9,684,678 ) 298,449 (9,386,129 )

Changes in equity
Total comprehensive income - (5,280,340 ) - (5,280,340 )
Share based compensation - (245,906 ) 245,906 -
Balance at 31 March 2024 100 (15,210,924 ) 544,355 (14,666,469 )

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (3,488,098 ) (4,761,928 )
Taxation refund - 100,614
Net cash from operating activities (3,488,098 ) (4,661,314 )

Cash flows from investing activities
Purchase of intangible fixed assets (177,975 ) (183,150 )
Purchase of tangible fixed assets (24,821 ) (17,085 )
Interest received 511 -
Net cash from investing activities (202,285 ) (200,235 )

Cash flows from financing activities
Intercompany loans advanced in year 5,145,814 9,215,126
Intercompany loan repayments (2,303,939 ) (3,414,474 )
Interest paid (11,369 ) (17,128 )
Net cash from financing activities 2,830,506 5,783,524

(Decrease)/increase in cash and cash equivalents (859,877 ) 921,975
Cash and cash equivalents at
beginning of year

2

1,604,344

682,369

Cash and cash equivalents at end of
year

2

744,467

1,604,344

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.24 31.3.23
£    £   
Loss before taxation (5,179,955 ) (4,201,011 )
Depreciation charges 444,863 439,151
Loss on disposal of fixed assets 39,600 -
Effect of exchange rate non trade - (97,907 )
Finance costs 11,369 17,128
Finance income (511 ) -
(4,684,634 ) (3,842,639 )
Decrease/(increase) in stocks 241,526 (771,851 )
(Increase)/decrease in trade and other debtors (291,782 ) 187,010
Increase/(decrease) in trade and other creditors 1,246,792 (334,448 )
Cash generated from operations (3,488,098 ) (4,761,928 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 744,467 1,604,344
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,604,344 682,369


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank 1,604,344 (859,877 ) 744,467
1,604,344 (859,877 ) 744,467
Total 1,604,344 (859,877 ) 744,467

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

Perfect Moment (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has incurred recurring losses since incorporation including in the year to 31 March 2025. Management information for the year ended 31 March 2025 also reports a significant loss.

The company has net liabilities and net current liabilities at 31 March 2024 of £14,666,469 and £15,125,149 respectively.

During the year ended 31 March 2024 the company saw cash outflows of £3,488,098 from operating activities.

The company is dependent on the continuing support of its Parent Company, Perfect Moment Ltd (a US registered company), and its wider group who have provided net cash inflows to the company of £2,841,875 in the year ended 31 March 2024. At 31 March 2024 the amounts owed to Group companies was £15,120,117. The company has received a letter of support from Perfect Moment Ltd, dated 7 August 2025, stating that it will not seek repayment of this amount during the next twelve months and will continue to provide financial support to the company.

The Group, overall, is also loss making and has funded its operations with proceeds from share issues, including from initial public offerings, alongside existing trade, invoice and shareholder financing arrangements.

In its financial statements for the year ended 31 March 2025 the Group has stated these factors raise substantial doubt about the Group's ability to continue as a going concern for the foreseeable future i.e. at least 12 twelve months from the date those financial statements were issued, being 30 June 2025.

The Group's, and therefore the company's, ability to continue as a going concern is dependent upon management of its expenditure and its ability to obtain necessary financing to meet its obligations and pay its liabilities as they fall due and ultimately having profitable operations.

The Group's financial statements for the year ended 31 March 2025 further state that its future capital requirements will depend on many factors, including production costs and planned growth. In order to finance these opportunities and associated costs, it is possible that the Group would need to raise additional financing if working capital is insufficient to support its business needs. While there can be no assurances, the Group intends to raise such capital through additional short-term loan issuances, debt factoring, and additional equity raises. If additional financing is required from outside sources, the Group may not be able to raise it on terms acceptable to it or at all. If the Group is unable to raise additional capital on acceptable terms when needed, its product development, results of operations and financial condition would be materially and adversely affected.

Should the Group not be able to raise the additional financing noted above this will materially and adversely affect the company's ability to meet its obligations and pay its liabilities as they fall due.

The company has also received correspondence from HM Revenue & Customs recently stating that they intend to start winding up proceedings against the company if it does not settle the amount owed to them of £283K by 8 August 2025. The directors are confident that they can satisfy HM Revenue & Customs requirements to prevent them issuing a winding up petition against the company.

The directors have determined that, in their opinion, it is appropriate to prepare these financial statements on the going concern basis but note that the above conditions do give rise to substantial doubts about whether the company will be able to continue as a going concern for the foreseeable future i.e. twelve months from the date of approval of these financial statements. These financial statements do not include any adjustments relating to the recovery of assets or the recognition of liabilities that might be necessary should the company be unable to continue as a going concern.

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with parent and other group companies.

Critical accounting 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.

There are no judgements made by the directors in the application of these accounting policies that have a significant effect on the financial statements or estimates with a significant risk of material adjustment in the next year.

The following have been identified as areas that involve some degree of estimation but are not considered to be at significant risk of material adjustment:

-Assumptions for valuations used in impairment testing
-Inventory valuation and provision
-Returns provision

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

Turnover is stated net of returns provisions. Returns provisions are calculated using average returns data on a rolling 12 month basis.

Other operating income
Other operating income represents personnel costs recharged to other group entities in the current year. Personnel recharges are recognised on a receivable basis.

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

Trade marks are being amortised evenly over their estimated useful life of ten years.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost
Computer equipment - 33% on cost

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

Stock is valued on the first in first out basis.

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
Financial assets, other than investments and derivatives, are initially measured at transaction price (including transaction costs and subsequently held at amortised cost, less any impairment.

Financial liabilities and equity
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Financial liabilities, excluding convertible debt and derivatives, are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company which is wholesale and retail sales of skiwear as outerwear.

An analysis if turnover by geographical market is given below:
31.3.2431.3.23
££

United Kingdom3,103,8992,542,983
Rest of World6,256,4715,485,378
9,360,3708,028,361


PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

4. EMPLOYEES AND DIRECTORS
31.3.24 31.3.23
£    £   
Wages and salaries 2,610,006 2,113,586
Social security costs 311,316 248,612
Other pension costs 19,532 14,403
2,940,854 2,376,601

The average number of employees during the year was as follows:
31.3.24 31.3.23

Administration 30 21

31.3.24 31.3.23
£    £   
Director's remuneration 100,457 48,868

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

31.3.24 31.3.23
£    £   
Other operating leases 312,583 136,039
Depreciation - owned assets 16,083 11,584
Trade marks amortisation 9,636 9,636
Computer software amortisation 419,144 417,931
Auditors' remuneration 9,000 8,400
Foreign exchange differences (183,122 ) 365,598

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.24 31.3.23
£    £   
Other loan interest 11,369 17,128

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
31.3.24 31.3.23
£    £   
Current tax:
Research and development tax
credit 100,385 (100,614 )
Tax on loss 100,385 (100,614 )

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

7. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.24 31.3.23
£    £   
Loss before tax (5,179,955 ) (4,201,011 )
Loss multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

(1,294,989

)

(798,192

)

Effects of:
Expenses not deductible for tax purposes 10,086 -
Depreciation in excess of capital allowances 60,509 43,563
Losses carried forward 1,224,394 754,629
R&D claims for earlier years - (100,614 )
R&D claims for earlier years repayable to HMRC 100,385 -
Total tax charge/(credit) 100,385 (100,614 )

8. INTANGIBLE FIXED ASSETS
Trade Computer
marks software Totals
£    £    £   
COST
At 1 April 2023 96,263 1,355,275 1,451,538
Additions - 177,975 177,975
Disposals - (39,600 ) (39,600 )
At 31 March 2024 96,263 1,493,650 1,589,913
AMORTISATION
At 1 April 2023 13,014 721,735 734,749
Amortisation for year 9,636 419,144 428,780
At 31 March 2024 22,650 1,140,879 1,163,529
NET BOOK VALUE
At 31 March 2024 73,613 352,771 426,384
At 31 March 2023 83,249 633,540 716,789

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

9. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 April 2023 1,713 46,446 48,159
Additions 1,383 23,438 24,821
At 31 March 2024 3,096 69,884 72,980
DEPRECIATION
At 1 April 2023 470 24,131 24,601
Charge for year 850 15,233 16,083
At 31 March 2024 1,320 39,364 40,684
NET BOOK VALUE
At 31 March 2024 1,776 30,520 32,296
At 31 March 2023 1,243 22,315 23,558

10. STOCKS
31.3.24 31.3.23
£    £   
Stocks 1,597,728 1,839,254

11. DEBTORS
31.3.24 31.3.23
£    £   
Amounts falling due within one year:
Trade debtors 333,331 112,062
Other debtors 165,505 314,011
Accrued income 29,557 -
Prepayments 221,773 62,010
750,166 488,083

Amounts falling due after more than one year:
Other debtors 29,699 -

Aggregate amounts 779,865 488,083

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Trade creditors 1,013,254 857,826
Amounts owed to group undertakings 15,120,117 12,278,242
Tax 100,385 -
Social security and other taxes 303,667 66,006
VAT 335,294 56,888
Other creditors 861,394 484,811
Deferred income 251,806 131,096
Accrued expenses 261,292 183,288
18,247,209 14,058,157

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.24 31.3.23
£    £   
Within one year 329,735 199,553

14. FINANCIAL INSTRUMENTS

The company's financial instruments may be analysed as follows:

31.3.24 31.3.23
£ £
Financial assets
Financial assets measured at amortised cost 1,273,002 2,030,417
Financial liabilities
Financial liabilities measured at amortised cost 17,256,057 13,804,167

Financial assets measured at amortised costs comprise cash, trade debtors and other debtors.

Financial liabilities measured at amortised costs comprise trade creditors, amounts owed to group undertakings, other creditors and accrued expenses.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.24 31.3.23
value: £    £   
100 Ordinary £1 100 100

PERFECT MOMENT (UK) LIMITED (REGISTERED NUMBER: 10883556)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

16. RESERVES
Retained Other
earnings reserves Totals
£    £    £   

At 1 April 2023 (9,684,678 ) 298,449 (9,386,229 )
Deficit for the year (5,280,340 ) (5,280,340 )
Share based compensation (245,906 ) 245,906 -
At 31 March 2024 (15,210,924 ) 544,355 (14,666,569 )

Other reserves arose as a result of the employee remuneration schemes settled via the issue of shares in the company's parent company, accounted for as a capital contribution. Perfect Moment Ltd (ultimate controlling party) has entered into an agreement with various employees of the company, whereby the employee would be granted shares in Perfect Moment Ltd if certain performance conditions are met. Those conditions were met in the year ended 31 March 2024 and share rights have been accrued to the employees.

17. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 1,192,611 (2023 - £ 1,133,868 ) was paid.

Key management personnel compensation totalling £836,251 (2023 - £879,283) was recharged to/from other group entities.

The net key management personnel costs to the company was therefore £356,360 (2023 - £254,585).

18. ULTIMATE CONTROLLING PARTY

The immediate parent company is Perfect Moment Asia Ltd, a Hong Kong registered company.

The ultimate parent company is Perfect Moment Limited, a US registered company.

There is no ultimate controlling party as no one individual has a greater than 50% shareholding.