Registration number:
for the
Year Ended 31 December 2024
Clubsport Skechers Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Clubsport Skechers Limited
Company Information
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Directors |
C R A Crook S A Hussey S P Mifflin M T Powell |
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Company secretary |
G M Hussey |
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Registered office |
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Auditors |
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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
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:
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
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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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:
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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 |
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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
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• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
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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:
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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; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Clubsport Skechers Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
(As restated) |
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Turnover |
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|
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Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
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Administrative expenses |
( |
( |
|
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Other operating income |
|
|
|
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Operating profit |
2,093,027 |
2,485,368 |
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|
Other interest receivable and similar income |
|
|
|
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Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
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
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Note |
2024 |
2023 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
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Current assets |
|||
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Stocks |
|
|
|
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
|
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Net current assets |
|
|
|
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Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
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
Director
Clubsport Skechers Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Retained earnings |
Total |
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|
At 1 January 2024 |
|
|
|
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Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
Prior period adjustment |
- |
( |
( |
|
At 1 January 2023 (As restated) |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
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
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Note |
2024 |
2023 |
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Cash flows from operating activities |
|||
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Profit for the year |
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|
|
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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|
|
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Loss on disposal of tangible assets |
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|
|
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Finance income |
( |
( |
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Income tax expense |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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Increase in stocks |
( |
( |
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Increase in trade debtors |
( |
( |
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Increase in trade creditors |
|
|
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Increase in provisions |
|
- |
|
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Cash generated from operations |
|
|
|
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
|
|
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Cash flows from investing activities |
|||
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Interest received |
|
|
|
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Acquisitions of tangible assets |
( |
( |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Repayment of other borrowing |
|
|
|
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Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
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
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
|
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
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2 |
Accounting policies (continued) |
Reclassification and restatement of comparative amounts
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
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
Recognition and measurement
Impairment
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.
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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 |
|
|
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Management charges receivable |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
(As restated) |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
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 |
2023 |
|
|
Retail Management |
|
|
|
Sales Assistants |
|
|
|
Administration and support |
|
|
|
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
- |
|
542,167 |
564,234 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
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
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
|
Tax decrease from other tax effects |
- |
( |
|
Total tax charge |
|
|
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 |
|
|
|
|
2023 |
Liability |
|
Fixed asset timing differences |
|
|
|
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Improvements to property |
Furniture, fittings and equipment |
Computer Equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
( |
( |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Stocks |
|
2024 |
2023 |
|
|
Goods for resale |
|
|
|
Debtors |
|
2024 |
2023 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2024 |
(As restated) |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax liability |
(94,092) |
278,376 |
|
|
Directors' loan accounts |
|
|
|
|
|
|
|
Deferred tax and other provisions |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 January 2024 |
|
- |
|
|
Additional provisions |
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|||
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
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 £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1,000 |
|
1,000 |
|
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.
|
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 |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2024 |
2023 |
|
|
Dividends paid |
400,000 |
100,000 |
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
Summary of transactions with key management
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
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)
|
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 |
|
1,021,897 |
|
|
|
|||
Clubsport Skechers Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
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 |
|
Parent and ultimate parent undertaking |
The company is controlled by S A