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Registered number: 02447885










CONCEPT 2 LIMITED










Annual report and financial statements

for the year ended 31 December 2024

 
CONCEPT 2 LIMITED
 

Company Information


Directors
Robert B Bearman (resigned 7 November 2024)
Alexander D Dunne 
Glenn M Dwyer (appointed 7 November 2024)




Company secretary
Alexander D Dunne



Registered number
02447885



Registered office
Queens Drive Industrial Estate




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
CONCEPT 2 LIMITED
 

Contents



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24


 
CONCEPT 2 LIMITED
 

Strategic report
for the year ended 31 December 2024

Introduction
 
The Directors present their Strategic Report for the year ended 31 December 2024.

Business review

The core business remains the sale of market-leading fitness and rowing equipment in the UK and Republic of Ireland. 
In 2024, the company experienced a return to growth as economic conditions continued to improve and the post-Covid downturn relented. The easing of inflationary pressures and stronger consumer confidence contributed to a more favourable business environment. The return to gyms and fitness facilities remained a key trend, while home fitness continued to sustain demand as consumers prioritised health and wellbeing.
Despite lingering global uncertainities, including geopolitical conflicts and supply chain pressures, the business demonstrated resilience, maintaining robust sales and operational efficiency.
Overall, 2024 was a year of stabilisation and renewed momentum, positioning the Company well for continued growth in the coming years.

Principal risks and uncertainties
 
The Company continues to operate in a complex economic landscape, shaped by post-pandemic market adjustments, ongoing geopolitical tensions, and fluctuations in consumer spending. While inflationary pressures have eased, external uncertainities - such as potential supply chain disruptions and shifts in global trade - remain factors to monitor.
Tariff uncertainity remains a key risk, particularly as international trade agreements evolve. Any changes in import/export duties on fitness equipment could impact pricing and procurement strategies. The Company continues to monitor developments closely and remains agile in its approach to sourcing and distribution.
The Windsor Framework also presents challenges in serving Northern Ireland, with  new regulatory requirements creating additional complexity in shipping goods across the Irish Sea. The Company is proactively adapting to these changes, ensuring compliance while striving to maintain efficient and cost-effective service to customers in the region.
Despite these challenges, the Company's strong brand presence, diversified customer base and strategic adaptability provide confidence in its ability to navigate uncertainities. 

Financial key performance indicators
 
The company’s performance is largely measured by the following KPIs:
- Units sold: 25,536 (2023: 22,230)
- Turnover: £20,712,431 (2023: £17,961,284)
- Gross margin: 13% (2023: 12.7%)
- Profit before taxation: £1,442,085 (2023: £1,087,579)


This report was approved by the board and signed on its behalf.



Alexander D Dunne
Director

Date: 3 April 2025

Page 1

 
CONCEPT 2 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' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the Company was that of the sale of exercise and fitness equipment and related accessories.

Directors

The directors who served during the year were:

Robert B Bearman (resigned 7 November 2024)
Alexander D Dunne 
Glenn M Dwyer (appointed 7 November 2024)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
CONCEPT 2 LIMITED
 

 
Directors' report (continued)
for the year ended 31 December 2024


Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Alexander D Dunne
Director

Date: 3 April 2025

Page 3

 
CONCEPT 2 LIMITED
 

 
Independent auditors' report to the members of Concept 2 Limited
 

Opinion


We have audited the financial statements of Concept 2 Limited (the 'Company') for the year ended 31 December 2024, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
CONCEPT 2 LIMITED
 

 
Independent auditors' report to the members of Concept 2 Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the 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 the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


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 Directors' responsibilities statement set out on page 2, 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.


Page 5

 
CONCEPT 2 LIMITED
 

 
Independent auditors' report to the members of Concept 2 Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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

Based on our understanding of the company and industry, we identify the key laws and regulations affecting the company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

management bias in respect of accounting estimates and judgements made;
management override of control;
posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:

enquiry of management and those charged with governance around actual and potential litigation and claims;
reviewing minutes of meetings of those charged with governance where available;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular, the calculation of pension liabilities.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 6

 
CONCEPT 2 LIMITED
 

 
Independent auditors' report to the members of Concept 2 Limited (continued)


Use of our report
 

This report is made solely to the Company's members in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.





Julie Stringer (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

3 April 2025
Page 7

 
CONCEPT 2 LIMITED
 

Profit and loss account
for the year ended 31 December 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,712,431
17,961,284

Cost of sales
  
(18,029,197)
(15,675,540)

Gross profit
  
2,683,234
2,285,744

Administrative expenses
  
(1,753,198)
(1,700,705)

Other operating income
 5 
512,682
491,727

Operating profit
 6 
1,442,718
1,076,766

Interest receivable and similar income
  
5,076
13,714

Interest payable and similar expenses
  
(5,700)
(2,901)

Profit before tax
  
1,442,094
1,087,579

Tax on profit
 10 
(361,614)
(257,216)

Profit for the financial year
  
1,080,480
830,363

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of comprehensive income has been presented.

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
CONCEPT 2 LIMITED
Registered number: 02447885

Balance sheet
as at 31 December 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
78,392
103,823

Current assets
  

Stocks
 12 
1,379,931
1,733,633

Debtors: amounts falling due within one year
 13 
2,311,981
1,621,951

Cash at bank and in hand
  
3,293,573
2,202,127

  
6,985,485
5,557,711

Creditors: amounts falling due within one year
 14 
(1,376,796)
(1,048,963)

Net current assets
  
 
 
5,608,689
 
 
4,508,748

Total assets less current liabilities
  
5,687,081
4,612,571

Provisions for liabilities
  

Deferred tax
  
(17,188)
(23,158)

Net assets
  
5,669,893
4,589,413


Capital and reserves
  

Called up share capital 
 16 
100
100

Profit and loss account
 17 
5,669,793
4,589,313

  
5,669,893
4,589,413


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Alexander D Dunne
Director

Date: 3 April 2025

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
CONCEPT 2 LIMITED
 

Statement of changes in equity
for the year ended 31 December 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
100
6,194,175
6,194,275



Profit for the year
-
830,363
830,363

Dividends: Equity capital
-
(2,435,225)
(2,435,225)



At 1 January 2024
100
4,589,313
4,589,413



Profit for the year
-
1,080,480
1,080,480


At 31 December 2024
100
5,669,793
5,669,893


Page 10

 
CONCEPT 2 LIMITED
 

Statement of cash flows
for the year ended 31 December 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,080,480
830,363

Adjustments for:

Depreciation of tangible assets
31,648
32,844

Loss on disposal of tangible assets
-
1,518

Interest paid
5,700
2,901

Interest received
(5,076)
(13,714)

Taxation charge
361,614
257,216

Decrease in stocks
353,702
757,972

(Increase) in debtors
(690,030)
(87,578)

Increase/(decrease) in creditors
273,006
(323,976)

Corporation tax (paid)
(312,757)
(279,765)

Net cash generated from operating activities

1,098,287
1,177,781


Cash flows from investing activities

Purchase of tangible fixed assets
(6,217)
(27,937)

Sale of tangible fixed assets
-
882

Interest received
5,076
13,714

Net cash from investing activities

(1,141)
(13,341)

Cash flows from financing activities

Dividends paid
-
(2,435,225)

Interest paid
(5,700)
(2,901)

Net cash used in financing activities
(5,700)
(2,438,126)

Net increase/(decrease) in cash and cash equivalents
1,091,446
(1,273,686)

Cash and cash equivalents at beginning of year
2,202,127
3,475,813

Cash and cash equivalents at the end of year
3,293,573
2,202,127


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,293,573
2,202,127


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
CONCEPT 2 LIMITED
 

Analysis of Net Debt
for the year ended 31 December 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

2,202,127

1,091,446

3,293,573


2,202,127
1,091,446
3,293,573

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

1.


General information

Concept 2 Limited ("the Company") is a limited liability company incorporated and domiciled in England and Wales, United Kingdom. The address of its registered office and the company registration number is disclosed on the Company Information page of these financial statements. The principal activity of the Company is given in the Director's Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are prepared in sterling which is the functional currency of the Company and are rounded to the nearest £1. 
The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of exercise and fitness equipment is recognised when all of the following conditions are satisfied:
 
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

This is usually upon despatch of goods.

 
2.3

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the length of the leasehold
Plant and machinery
-
20% straight line
Motor vehicles
-
20% straight line
Fixtures and fittings
-
20% - 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.10

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.



 
Page 15

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

2.Accounting policies (continued)


2.10
Financial instruments (continued)

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary                                                             course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 16

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

2.Accounting policies (continued)

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange at the balance sheet date. 

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The directors make estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the Company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In preparing these financial statements, the directors are of the opinion that there are no key assumptions or other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities.


4.


Turnover

The whole of the turnover is attributable to the sale of exercise and fitness equipment and related accessories.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
18,995,424
16,342,863

Republic of Ireland
1,717,007
1,618,421

20,712,431
17,961,284


Page 17

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

5.


Other operating income

2024
2023
£
£

Consultancy income
512,682
490,607

Other income
-
1,120

512,682
491,727



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
31,648
32,844

Exchange differences
45,162
22,221

Other operating lease rentals
83,916
77,632


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,640
12,400


8.


Employees

2024
2023
£
£

Wages and salaries
794,438
846,299

Social security costs
96,239
102,594

Cost of defined contribution scheme
70,180
80,142

960,857
1,029,035


The average monthly number of employees, including directors, during the year was 14 (2023: 14).

Page 18

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
166,949
161,015

Company contributions to defined contribution pension schemes
28,652
27,640

195,601
188,655


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
366,992
256,880

Adjustments in respect of previous periods
592
695


Total current tax
367,584
257,575

Deferred tax


Origination and reversal of timing differences
(5,970)
(359)

Total deferred tax
(5,970)
(359)


Taxation on profit on ordinary activities
361,614
257,216
Page 19

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,442,094
1,087,579


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
360,524
255,805

Effects of:


Expenses not deductible for tax purposes
481
989

Adjustments to tax charge in respect of previous periods
592
695

Fixed asset differences
17
(251)

Remeasurement of deferred tax for changes in tax rates
-
(22)

Total tax charge for the year
361,614
257,216


Factors that may affect future tax charges

There are no factors that may affect future tax charges. 

Page 20

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

11.


Tangible fixed assets





Leasehold improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 January 2024
62,736
53,798
74,280
115,304
306,118


Additions
-
1,432
1,724
3,061
6,217



At 31 December 2024

62,736
55,230
76,004
118,365
312,335



Depreciation


At 1 January 2024
28,580
18,899
60,312
94,504
202,295


Charge for the year
6,274
10,357
6,168
8,849
31,648



At 31 December 2024

34,854
29,256
66,480
103,353
233,943



Net book value



At 31 December 2024
27,882
25,974
9,524
15,012
78,392



At 31 December 2023
34,156
34,899
13,968
20,800
103,823


12.


Stocks

2024
2023
£
£

Finished goods and goods for resale
1,379,931
1,733,633


Page 21

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

13.


Debtors

2024
2023
£
£


Trade debtors
1,627,545
1,455,409

Amounts owed by group undertakings
512,682
22,949

Other debtors
105,629
74,307

Prepayments and accrued income
66,125
69,286

2,311,981
1,621,951



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
59,013
49,483

Amounts owed to group undertakings
234,252
121,572

Corporation tax
166,706
111,879

Other taxation and social security
605,323
473,246

Other creditors
120,874
119,650

Accruals and deferred income
190,628
173,133

1,376,796
1,048,963



15.


Deferred taxation




2024
2023


£

£






At beginning of year
(23,158)
(23,517)


Charged to profit or loss
5,970
-


Utilised in year
-
359



At end of year
(17,188)
(23,158)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
(19,010)
(25,334)

Short term timing differences
1,822
2,176

(17,188)
(23,158)

Page 22

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

16.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares shares of £1.00 each
100
100



17.


Reserves

Profit and loss account

Profit and loss reserves are all other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.


18.


Pension commitments

The Company operates a defined contribution pension scheme for the benefit of the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge for the period represents contributions payable by the Company to the fund and amounted to £70,180 (2023: £80,142). Contributions totalling £8,702 (2023: £5,925) were payable to the fund at the balance sheet date and are included in other creditors.


19.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£
Not later than 1 year

82,201

93,679
 
Later than 1 year and not later than 5 years

180,269

348,552
 
262,470

442,231
 


20.


Related party transactions

The Company is a wholly owned subsidiary of Concept 2 Inc. and as such has taken advantage of the exemption permitted by Section 33.1A of FRS 102, not to provide disclosures of transactions entered into with other wholly owned members of the group. 
The Company considers those people having authority and responsibility for planning, directing and controlling the activities of the Company to be key management personnel. Key management personnel remuneration during the year totalled £166,427 (2023: £262,110) for short term employment benefits and £28,652 (2023: £45,218) for post-employment benefits. 

Page 23

 
CONCEPT 2 LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2024

21.


Post balance sheet events

On 1 January 2025 there was a change in the shareholding of Concept 2 Inc, the immediate parent undertaking. From 1 January 2025 Concept 2 Purpose Trust became the ultimate controlling party by virtue of its shareholding. The Concept 2 Purpose Trust is governed by an elected group of trustees; there is no single controlling individual or beneficial owner


22.


Controlling party

As at the balance sheet date, the immediate and ultimate parent undertaking was Concept 2 Inc, a company registered in the USA. The ultimate controlling parties were Richard A Dreissigacker and Peter D Dreissigacker by virtue of their shareholding in Concept 2 Inc.

Page 24