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Registration number: 08647261

Clubsport Skechers Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2024

 

Clubsport Skechers Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

Clubsport Skechers Limited

Company Information

Directors

C R A Crook

S A Hussey

S P Mifflin

M T Powell

Company secretary

G M Hussey

Registered office

1-3 Church Street
Kington
Herefordshire
HR5 3AZ

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Clubsport Skechers Limited

Strategic Report for the Year Ended 31 December 2024

The directors present their strategic report for the year ended 31 December 2024.

Principal activity

The principal activity of the company is retailing of shoes.

Fair review of the business

The results for the year which are set out in the profit and loss account show turnover of £23,904,160 (2023 - £20,690,951) and an operating profit of £2,093,027 (2023 - £2,485,368). At 31 December 2024 the company had net assets of £5,459,546 (2023 - £4,243,541). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£'000s

23,904

20,691

Gross profit margin

%

33

34

Refunds

£'000s

1,032

817

Conversion rate is a measurement of converting interest to sales. The conversion rate for the current year was 11.80% compared to 11.17% in the prior year

The mystery shopper survey results measures staff and store responsiveness to customers. The target rate is 85% with a rate of 86% being achieved in the current year compared to 83% in the prior year.

Principal risks and uncertainties

In assessing the key business risks of the company, the directors consider that these relate to employee recruitment and retention, product availability, energy costs and the economic state of the country.

Approved by the Board on 4 August 2025 and signed on its behalf by:


S A Hussey
Director

 

Clubsport Skechers Limited

Directors' Report for the Year Ended 31 December 2024

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

Directors of the company

The directors who held office during the year were as follows:

C R A Crook

S A Hussey

S P Mifflin

M T Powell

Employment of disabled persons

The company gives full consideration to applications for employment for disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions with any support needed and to provide training and career development and promotion to disabled employees wherever appropriate.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to operate for the foreseeable future.

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources available to continue in operational existence for at least 12 months from the date of approval of the financial statements.

On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Employee involvement

Clubsport Skechers Limited is committed to equality of opportunity for all current and prospective colleagues regardless of age, disability, race, religion or belief, sexual orientation, pregnancy and maternity, marriage and civil partnership and gender reassignment. We are an equal opportunity employer and support a culture of diversity and inclusion.

The directors engage with employees and have regard to employee interest on an ongoing basis. The emphasis is on keeping open lines of communication, so that employees can be consulted on a regular basis, and their views taken into account in decision making.

Future developments

The company plans to continue expanding its store network, with four new openings scheduled for 2025. This includes our first store in Scotland, marking a significant step in our growth into new regions. The additional three stores will further strengthen our presence in key locations across the UK, supporting our aim to reach more customers with continued growth.

Financial instruments

Objectives and policies

The company's financial instruments comprise cash and liquid resources, and various other items such as trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the group.

 

Clubsport Skechers Limited

Directors' Report for the Year Ended 31 December 2024

Price risk, credit risk, liquidity risk and cash flow risk

Cash flow risk
Cash flow risk is the risk that inflows and outflows of cash and cash equivalents will not be sufficient to finance day-to-day operations of the company. The directors constantly monitor cash flows to ensure that the company has sufficient liquid resources to meet is operational requirements.

Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. The company does not sell on credit meaning its exposure to credit risk is limited.

Liquidity risk
Liquidity risk is the risk that the entity will encounter difficulty in meeting obligations associated with its financial liabilities. The company has no borrowings with external parties meaning that it's exposure to liquidity is limited.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 4 August 2025 and signed on its behalf by:


S A Hussey
Director

 

Clubsport Skechers Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

Opinion

We have audited the financial statements of Clubsport Skechers Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

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 5, 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

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 is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this 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.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

4 August 2025

 

Clubsport Skechers Limited

Profit and Loss Account for the Year Ended 31 December 2024

Note

2024
£

(As restated)

2023
£

Turnover

3

23,904,160

20,690,951

Cost of sales

 

(16,056,243)

(13,637,874)

Gross profit

 

7,847,917

7,053,077

Administrative expenses

 

(5,781,007)

(4,576,417)

Other operating income

4

26,117

8,708

Operating profit

5

2,093,027

2,485,368

Other interest receivable and similar income

6

154,586

29,349

Profit before tax

 

2,247,613

2,514,717

Tax on profit

9

(631,608)

(611,572)

Profit for the financial year

 

1,616,005

1,903,145

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Clubsport Skechers Limited

(Registration number: 08647261)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

10

2,537,577

2,172,814

Current assets

 

Stocks

11

4,559,069

4,094,771

Debtors

12

762,525

618,699

Cash at bank and in hand

13

4,844,533

3,822,636

 

10,166,127

8,536,106

Creditors: Amounts falling due within one year

14

(6,698,252)

(6,169,114)

Net current assets

 

3,467,875

2,366,992

Total assets less current liabilities

 

6,005,452

4,539,806

Provisions for liabilities

9

(545,906)

(296,265)

Net assets

 

5,459,546

4,243,541

Capital and reserves

 

Called up share capital

17

1,000

1,000

Retained earnings

 

5,458,546

4,242,541

Shareholders' funds

 

5,459,546

4,243,541

Approved and authorised by the Board on 4 August 2025 and signed on its behalf by:
 


S A Hussey
Director

 

Clubsport Skechers Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

Share capital
£

Retained earnings
£

Total
£

At 1 January 2024

1,000

4,242,541

4,243,541

Profit for the year

-

1,616,005

1,616,005

Dividends

-

(400,000)

(400,000)

At 31 December 2024

1,000

5,458,546

5,459,546

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

1,000

3,386,546

3,387,546

Prior period adjustment

-

(947,150)

(947,150)

At 1 January 2023 (As restated)

1,000

2,439,396

2,440,396

Profit for the year

-

1,903,145

1,903,145

Dividends

-

(100,000)

(100,000)

At 31 December 2023

1,000

4,242,541

4,243,541

 

Clubsport Skechers Limited

Statement of Cash Flows for the Year Ended 31 December 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,616,005

1,903,145

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

446,325

348,616

Loss on disposal of tangible assets

226

12,513

Finance income

6

(154,586)

(29,349)

Income tax expense

9

631,608

611,572

 

2,539,578

2,846,497

Working capital adjustments

 

Increase in stocks

11

(464,298)

(122,432)

Increase in trade debtors

12

(143,826)

(178,563)

Increase in trade creditors

14

901,424

86,441

Increase in provisions

15

160,200

-

Cash generated from operations

 

2,993,078

2,631,943

Income taxes paid

9

(914,635)

(96,067)

Net cash flow from operating activities

 

2,078,443

2,535,876

Cash flows from investing activities

 

Interest received

6

154,586

29,349

Acquisitions of tangible assets

(811,315)

(649,882)

Net cash flows from investing activities

 

(656,729)

(620,533)

Cash flows from financing activities

 

Repayment of other borrowing

 

183

197

Dividends paid

20

(400,000)

(100,000)

Net cash flows from financing activities

 

(399,817)

(99,803)

Net increase in cash and cash equivalents

 

1,021,897

1,815,540

Cash and cash equivalents at 1 January

 

3,822,636

2,007,096

Cash and cash equivalents at 31 December

 

4,844,533

3,822,636

 

Clubsport Skechers Limited

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

 

1

General information

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

The address of its registered office is:
1-3 Church Street
Kington
Herefordshire
HR5 3AZ
England

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Clubsport Skechers Limited

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

 

2

Accounting policies (continued)

Reclassification and restatement of comparative amounts

During the year, the directors reviewed the allocation of expenditure in the profit and loss account to ensure that it appropriately reflect the operations of the company. Accordingly, cost of sales have been restated by £4,346,934 from £9,290,940 to £13,637,874 and administrative expenses restated by £4,346,934 from £9,350,869 to £5,003,935.

In addition to the above, there has been a reclassification of the existing release of rental incentives from other operating income to administrative expenses to reflect the impact of the accounting adjustment more reliably, this amounted to £266,813 in the prior year.

During the current financial year, management identified that further rent-free lease incentives relating to property lease agreements have not been appropriately accounted for in prior periods. Under FRS102, lease incentives such as rent-free periods should be recognised on a straight-line basis over the lease term as a reduction to lease expense.

The omission resulted in an overstatement of lease expenses in the prior year of £160,705 and an understatement of accrued lease incentives in the prior year of £1,077,732. A prior year adjustment has been processed to recognise the cumulative impact of the rent-free periods from the lease commencement dates to the beginning of the current financial year. The prior year adjustment posted to the year ended 31 December 2023 was £1,238,437. The tax affect relating the to prior year adjustment is a reduction in tax payable of £291,287, this has also been processed as a prior year adjustment, resulting in a net adjustment of £947,150.

This adjustment has been made retrospectively in accordance with FRS102, and comparative figures have been restated where necessary. The adjustment does not impact cash flows but ensures that the financial statements more accurately reflect the economic substance of the lease arrangements.

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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Clubsport Skechers Limited

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

 

2

Accounting policies (continued)

Foreign currency transactions and balances

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

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

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered on current or future taxable profit.

Tangible assets

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

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

Depreciation

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

Asset class

Depreciation method and rate

Improvements to property

Over the term of the lease

Plant and machinery

15% of cost

Furniture, fittings and equipment

20% of cost

Motor vehicles

25% reducing balance

Computer equipment

33% of cost

Cash and cash equivalents

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

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Clubsport Skechers Limited

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

 

2

Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

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

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

 

Clubsport Skechers Limited

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

 

2

Accounting policies (continued)


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations which all arises in the UK is as follows:

2024
£

2023
£

Sale of goods

23,904,160

20,690,951

 

Clubsport Skechers Limited

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

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Management charges receivable

7,988

7,278

Miscellaneous other operating income

18,129

1,430

26,117

8,708

 

5

Operating profit

Arrived at after charging/(crediting)

2024
£

(As restated)

2023
£

Depreciation expense

446,325

348,616

Operating lease expense - property

1,710,806

1,381,365

Operating lease expense - plant and machinery

3,174

4,004

 

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

154,586

29,349

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

5,145,908

4,134,732

Social security costs

339,241

252,519

Pension costs, defined contribution scheme

82,378

61,608

5,567,527

4,448,859

 

Clubsport Skechers Limited

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

 

7

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Retail Management

157

133

Sales Assistants

172

171

Administration and support

7

6

336

310

 

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

12,500

16,672


 

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

498,940

564,234

UK corporation tax adjustment to prior periods

43,227

-

542,167

564,234

Deferred taxation

Arising from origination and reversal of timing differences

89,441

47,338

Tax expense in the income statement

631,608

611,572

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

2,247,613

2,514,717

Corporation tax at standard rate

561,903

591,487

Increase/(decrease) in UK and foreign current tax from adjustment for prior periods

43,227

(5,429)

Tax increase from effect of capital allowances and depreciation

26,478

29,625

Effect of expense not deductible in determining taxable profit (tax loss)

-

33,689

Tax decrease from other tax effects

-

(37,800)

Total tax charge

631,608

611,572

 

Clubsport Skechers Limited

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

 

9

Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

385,706

385,706

2023

Liability
£

Fixed asset timing differences

296,265

296,265

 

Clubsport Skechers Limited

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

 

10

Tangible assets

Improvements to property
£

Furniture, fittings and equipment
 £

Computer Equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2024

2,096,197

816,762

237,491

115,691

3,266,141

Additions

426,846

258,268

54,828

71,373

811,315

Disposals

(12,885)

(66,220)

(1,262)

-

(80,367)

At 31 December 2024

2,510,158

1,008,810

291,057

187,064

3,997,089

Depreciation

At 1 January 2024

442,073

437,221

167,072

46,961

1,093,327

Charge for the year

234,434

140,371

49,615

21,905

446,325

Eliminated on disposal

(12,885)

(65,993)

(1,262)

-

(80,140)

At 31 December 2024

663,622

511,599

215,425

68,866

1,459,512

Carrying amount

At 31 December 2024

1,846,536

497,211

75,632

118,198

2,537,577

At 31 December 2023

1,654,124

379,541

70,419

68,730

2,172,814

 

Clubsport Skechers Limited

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

 

11

Stocks

2024
£

2023
£

Goods for resale

4,559,069

4,094,771

 

12

Debtors

2024
£

2023
£

Trade debtors

861

654

Other debtors

131,363

13

Prepayments

630,301

618,032

762,525

618,699

 

13

Cash and cash equivalents

2024
£

2023
£

Cash at bank

4,844,533

3,822,636

 

14

Creditors

Note

2024
£

(As restated)

2023
£

Due within one year

 

Trade creditors

 

2,166,083

1,513,072

Social security and other taxes

 

401,814

476,085

Outstanding defined contribution pension costs

 

16,633

11,765

Other payables

 

3,540,293

3,296,002

Accruals

 

664,490

590,965

Corporation tax liability

9

(94,092)

278,376

Directors' loan accounts

 

3,031

2,849

 

6,698,252

6,169,114

 

15

Deferred tax and other provisions

Deferred tax
£

Other provisions
£

Total
£

At 1 January 2024

296,265

-

296,265

Additional provisions

89,441

160,200

249,641

At 31 December 2024

385,706

160,200

545,906

 

Clubsport Skechers Limited

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

 

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £82,378 (2023 - £61,608).

Contributions totalling £16,633 (2023 - £11,765) were payable to the scheme at the end of the year and are included in creditors.

 

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       
 

18

Reserves

Called up share capital

Represents the issued equity share capital of the company.

Profit and loss account

Represents cumulative profits or losses, net of dividends paid and other adjustments.

 

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:
 

2024
£

2023
£

Not later than one year

1,929,312

1,752,500

Later than one year and not later than five years

3,011,683

3,341,841

Later than five years

192,000

76,008

5,132,995

5,170,349

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,145,219 (2023 - £1,808,883).

 

20

Dividends

2024
 £

2023
 £

Dividends paid

400,000

100,000

 

Clubsport Skechers Limited

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

 

21

Related party transactions

Summary of transactions with key management

Directors are remunerated by a company under common control

Dividends of £398,800 (2023 - £99,700) were declared and paid to the directors during the year ended 31 December 2024

 

Summary of transactions with entities with joint control or significant interest

During the year ended 31 December 2024, the company incurred management charges of £988,490 (2023 - £630,320) and recharged wages and carriage cost £7,988 (2023 - £59,245) from companies under common control.

At 31 December 2024, balances due to companies under common control were £4,232 (2023 - £115,540) and balances due from companies under common control were £nil (2023 - £654)

 

 

22

Analysis of changes in net debt

At 1 January 2024
£

Cash flow
£

At 31 December 2024
£

Cash

3,822,636

1,021,897

4,844,533

Net Debt

3,822,636

1,021,897

4,844,533

 

Clubsport Skechers Limited

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

23

Prior period adjustment

During the current financial year, management identified that rent-free lease incentives relating to a property lease agreements have not been appropriately accounted for in prior periods. Under FRS102, lease incentives such as rent-free periods should be recognised on a straight-line basis over the lease term as a reduction to lease expense.

The omission resulted in an overstatement of lease expenses in the prior year of £160,705 and an understatement of accrued lease incentives in the prior year of £1,077,732. To correct this, a prior year adjustment has been recorded to recognise the cumulative impact of the rent-free periods from the lease commencement dates to the beginning of the current financial year. The prior year adjustment posted to the year ended 31 December 2023 was £1,238,437. The tax affect relating the to prior year adjustment is a reduction in tax payable of £291,287, this has also been processed as a prior year adjustment, resulting in a net adjustment of £947,150.

This adjustment has been made retrospectively in accordance with FRS102, and comparative figures have been restated where necessary. The adjustment does not impact cash flows but ensures that the financial statements more accurately reflect the economic substance of the lease arrangements.

In addition to the above, there have been two presentational adjustments, including the reclassification of wages costs, where £4,346,934 has been reclassified from administration expenses to cost of sales as this more accurately reflects the operations of the company.

Plus reclassification of the existing release of rental incentives from other operating income to rental expenditure to reflect the impact of the accounting adjustment more reliably, this amounted to £266,813 in the prior year.

Prior period adjustments has been processed to correct errors in respect of the following:

Profit and loss:

As previously reported

Adjustments

As restated

£

£

£

Cost of sales

(9,290,940)

(4,346,934)

(13,637,874)

Administrative expenses

(9,350,869)

4,774,452

(4,576,417)

Other operating income

275,521

(266,813)

8,708

Operating profit

2,324,663

160,705

2,485,368

Profit before tax

2,354,012

160,705

2,514,717



Balance sheet:

As previously reported

Adjustments

As restated

£

£

£

Other Creditors

(2,218,270)

(1,077,732)

(3,296,002)

Corporation tax liability

(569,663)

291,287

(278,376)

Net assets

5,029,986

(1,077,732)

3,952,254

Profit and loss account b/fwd

3,386,546

(947,150)

2,439,396

 

24

Parent and ultimate parent undertaking

The company is controlled by S A Hussey