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Registered number: 04104163










CITIZEN WATCH UNITED KINGDOM, LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
COMPANY INFORMATION


Directors
H Utsunomiya 
Y Yajima 




Company secretary
B P Gillingham



Registered number
04104163



Registered office
Citizen House
7 Ashville Way

Wokingham

Berkshire

RG41 2PL




Independent auditor
Shaw Gibbs (Audit) Limited

Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
CITIZEN WATCH UNITED KINGDOM, LTD
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Statement of Income and Retained Earnings
 
10
Statement of Financial Position
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 28


 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Principal activity
 
The principal activity of the company is the sales and distribution of watches.

Business review
 
Our 2024/25 report highlights the ongoing success of our group brands. During 2024/25, we observed robust brand growth and a notable increase in profit compared to the previous year. We are pleased to announce a turnover of £33,964,715 for the 2024/25 financial year (Year Ending 31st March 2024: £32,247,760).
With Citizen celebrating its 100th anniversary since the launch of the first watch, and the consumer continuing to seek out true horological brands, we were able to build on the previous year's successes. By utilising strong, compelling marketing and sales strategies, we saw retailer partners focusing and investing in our brands, which in turn delivered record numbers for the group.
During 2024/25, we made a significant investment in both point-of-sale display materials and digital assets to ensure all our main stories excited both the consumer and our retail partners. Further investment is planned for 2025/26. 
As revenue increased and expenses remained tightly controlled, the company's profit rose to £2,263,524 (2023/24: £1,249,242).
The results for the year are shown in the income statement on page 10.

Financial key performance indicators
 

Year ended 31 March  2025
Year ended 31 March 2024
Change
Change
        £
        £
        £
        %
Revenue

33,964,715

32,247,760

1,716,955
 
5
 
Operating (loss)/profit

2,263,524

1,249,242

1,014,282
 
81
 

The directors use revenue and operating profit to assess the performance of the company. 

Page 1

 
CITIZEN WATCH UNITED KINGDOM, LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

2025/26 Outlook
 
As Bulova celebrates 150 years, we remain cautiously optimistic about the year ahead. Despite expecting challenges related to political and economic factors, we continue to focus on investing in our brands, our people, and our retail partners. 
We have an exciting product launch calendar across all our brands and innovative marketing initiatives, including our new sponsorship: The official Timekeeper of the Hundred Cricket Competition, which we believe will propel our sales to new levels of growth.
The UK management team recognises the importance of investing in the future, especially considering several key projects and priorities for the forthcoming year. Our sales and marketing initiatives are central to this strategy, along with in-store branded furniture and IT and digital capabilities.
The ongoing success of the business is a testament to the drive and passion of our people. The Directors wish to express their gratitude for their exceptional dedication and support. Furthermore, the contribution and backing of our retail partners and key suppliers has been instrumental in the company's continued achievements.

Objectives and strategies

TThe company's objective is to continue offering long-term value to its customers and shareholders by increasing business turnover and profitability.
The company's strategy is to sustain and grow the business and increase our market share wherever possible, including new sales channels.

Principal risks and uncertainties
 
The market for wrist-watches remains a highly competitive market and is a continuing risk for the company,
which could result in it losing sales to its key competitors. The company manages this risk by providing added
value service to its customers, having fast response times not only in the supplying of products but in customer
service, and by maintaining strong relationships with customers. 

Page 2

 
CITIZEN WATCH UNITED KINGDOM, LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Financial instruments

Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales. It is the
company policy to assess the credit risk of new customers before entering contracts. Each new customer is
analysed individually for creditworthiness before the company's standard payment and delivery terms and
conditions are offered. Purchase limits are established using Graydon finance reports and financial statements
for each customer, which represents the maximum open amount without requiring approval.
A monthly review of trade receivables' ageing analysis is undertaken and customers' credit is reassessed
periodically. Existing customers that become "high risk" as a result of the periodic reassessment are placed in a
restricted customer list and future credit sales are only made with the approval of the local management,
otherwise payment in advance is required.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For
banks and financial institutions, only independently rated parties with minimum rating "A" are accepted.
Liquidity risk
Liquidity risk arises from the company's management of working capital. It is a risk that the company will
encounter difficulty in meeting its financial obligations as they fall due.
In order to maintain liquidity to maintain sufficient funds are available for ongoing operations and future
developments, the company maintains sufficient cash balances and monitors its cash on a timely basis.
Market risk
Market risk arises from the company's use of foreign currency financial instruments. It is the risk that the fair
value or future cash flows or a financial instrument will fluctuate because of changes in foreign exchange.
Foreign exchange risk
Foreign exchange risk arises when the company enters into transactions denominated in a currency other than
its functional currency.
The company is predominantly exposed to currency risk on purchases made from a major intercompany supplier based at the group headquarters in Japan. Purchases from this supplier are made in US dollars.


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



H Utsunomiya
Director

Date: 8 August 2025

Page 3

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

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.

Results and dividends

The profit for the year, after taxation, amounted to £1,828,178 (2024 - £1,047,842).

No dividends have been paid in the year nor have any been recommended (2024- £Nil)

Directors

The directors who served during the year were:

H Utsunomiya 
Y Yajima 

Matters covered in the Strategic Report

The company has chosen, in accordance with s414C(11) Companies Act 2006, to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.  It has done so in respect of future developments and financial instruments.

Page 4

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

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





B P Gillingham
Secretary
Date: 8 August 2025

Page 5

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITIZEN WATCH UNITED KINGDOM, LTD
 

Opinion


We have audited the financial statements of Citizen Watch United Kingdom, Ltd (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows 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 March 2025 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's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Page 6

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITIZEN WATCH UNITED KINGDOM, LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual 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.


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 4, 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 7

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITIZEN WATCH UNITED KINGDOM, LTD (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. 
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above 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 would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditor's Report.


Page 8

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITIZEN WATCH UNITED KINGDOM, LTD (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 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.





Mr Stephen South (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

8 August 2025
Page 9

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
33,964,715
32,247,760

Cost of sales
  
(20,161,647)
(20,275,635)

Gross profit
  
13,803,068
11,972,125

Administrative expenses
  
(11,539,544)
(10,722,883)

Operating profit
 5 
2,263,524
1,249,242

Interest receivable and similar income
  
238,319
109,026

Other finance charges
  
(74,221)
54,136

Profit before tax
  
2,427,622
1,412,404

Tax on profit
 9 
(599,444)
(364,562)

Profit after tax
  
1,828,178
1,047,842

  

  

Retained earnings at the beginning of the year
  
16,627,018
15,579,176

  
16,627,018
15,579,176

Profit for the year
  
1,828,178
1,047,842

Retained earnings at the end of the year
  
18,455,196
16,627,018
The notes on pages 14 to 28 form part of these financial statements.

Page 10

 
CITIZEN WATCH UNITED KINGDOM, LTD
REGISTERED NUMBER: 04104163

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 10 
2,179,096
2,429,828

  
2,179,096
2,429,828

Current assets
  

Stocks
 11 
11,202,280
11,649,109

Debtors: amounts falling due within one year
 12 
4,420,279
4,094,877

Cash at bank and in hand
  
8,459,545
8,724,348

  
24,082,104
24,468,334

Creditors: amounts falling due within one year
 13 
(6,337,206)
(9,001,710)

Net current assets
  
 
 
17,744,898
 
 
15,466,624

Total assets less current liabilities
  
19,923,994
17,896,452

Provisions for liabilities
  

Deferred tax
 14 
(307,377)
-

Other provisions
 15 
(461,421)
(569,434)

  
 
 
(768,798)
 
 
(569,434)

Net assets
  
19,155,196
17,327,018


Capital and reserves
  

Called up share capital 
 16 
700,000
700,000

Profit and loss account
 17 
18,455,196
16,627,018

  
19,155,196
17,327,018


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 August 2025.




H Utsunomiya
Director

The notes on pages 14 to 28 form part of these financial statements.

Page 11

 
CITIZEN WATCH UNITED KINGDOM, LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
1,828,178
1,047,842

Adjustments for:

Depreciation of tangible assets
761,428
683,704

Loss on disposal of tangible assets
-
123,376

Interest received
(238,319)
(109,026)

Taxation charge
599,444
364,562

Decrease/(increase) in stocks
446,829
(930,719)

(Increase)/decrease in debtors
(681,352)
33,272

Increase in creditors
519,569
1,366,100

(Decrease)/increase in amounts owed to groups
(3,120,189)
-

(Decrease) in provisions
(108,013)
(159,365)

Corporation tax received
-
3,500

Finance charge
-
(54,136)

Net cash generated from operating activities

7,575
2,369,110


Cash flows from investing activities

Purchase of tangible fixed assets
(510,627)
(1,617,506)

Sale of tangible fixed assets
(69)
-

Interest received
238,319
109,026

Net cash from investing activities

(272,377)
(1,508,480)


Net (decrease)/increase in cash and cash equivalents
(264,802)
860,630

Cash and cash equivalents at beginning of year
8,724,347
7,863,718

Cash and cash equivalents at the end of year
8,459,545
8,724,348


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
8,459,545
8,724,348

8,459,545
8,724,348


The notes on pages 14 to 28 form part of these financial statements.

Page 12

 
CITIZEN WATCH UNITED KINGDOM, LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025




At 1 April 2024
Cash flows
At 31 March 2025
£

£

£

Cash at bank and in hand

8,724,348

(264,803)

8,459,545

Debt due within 1 year

(26,385)

(2,093)

(28,478)


8,697,963
(266,896)
8,431,067

The notes on pages 14 to 28 form part of these financial statements.

Page 13

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

Citizen Watch United Kingdom, Ltd (04104163) is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The registered office is Citizen House, 7 Ashville Way, Wokingham, Berkshire, RG41 2PL.  The nature of the company's operations and its principal activity are set out in the strategic 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 presentational and functional currency of these financial statements is GBP. Values are rounded
to the nearest pound.

The following principal accounting policies have been applied:

 
2.2

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.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.3

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 goods 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

 
2.5

Interest income

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

 
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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
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 reporting 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 reporting date, 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 reporting 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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 16

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

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 lease term
Plant and equipment
-
20%
per annum
Fixtures and fittings
-
20%
per annum
Computer equipment
-
20%
per annum
Point of purchase displays
-
3 years

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. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.
 
2.14

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.

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.

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 creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the
Page 18

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.14
Financial instruments (continued)

derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.  The estimates and underlying assumptions are based upon 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. 
The following key sources of estimation uncertainty have had the most significant effect on the amounts recognised within the financial statements:
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Stock provision
Stocks provisions are held against the brands. The Citizen and Bulova stock are provided for when ageing is over 3 years. 
Warranty provision
The warranty provision is calculated by estimating the number of watches that will be returned within their warranty period by customers to the company and then calculating an expected total cost to the business to rectify any issues. To assess the provision that is required the directors are required to assess a variety of factors, including historical return trends, expected repair costs and likelihood of returns being accepted as valid.
Dilapidation provision
The dilapidation provision represents the dilapidation costs payable at the end of the property lease. 

Page 19

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

4.


Turnover

Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
29,159,538
28,080,236

Rest of Europe
4,648,395
3,993,532

Rest of the world
156,782
173,992

33,964,715
32,247,760



5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Depreciation
761,428
683,706

Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
29,120
30,285

Fees payable to the company's auditor for non-audit services
3,523
4,285

Exchange differences
6,501
(18,617)

Operating lease rentals
491,249
565,428

Loss/(gain) on forward contracts
-
36,882

Page 20

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

6.


Employees

Staff costs were as follows:


2025
2024
£
£

Wages and salaries
3,398,525
3,237,686

Social security costs
396,265
382,409

Cost of defined contribution scheme
190,141
176,563

3,984,931
3,796,658


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Sales staff
13
13



Office and management
52
52

65
65


7.


Directors' remuneration



The directors' are remunerated by the immediate holding company, Citizen Watch Company of America
Inc. and the ultimate holding company, Citizen Watch Company Limited.


8.


Finance income/(charges)

2025
2024
£
£



Foreign exchange movements
(74,221)
91,018

Loss on forward contracts
-
(36,882)

(74,221)
54,136

The finance income/(charge) relates to foreign exchange gains or losses on an intercompany loan denominated in US dollars as well as bank balances denominated in US dollars, Euros and Swiss Francs. 
The loss on forward contracts in 2024 relates to forward contracts to purchase US dollars. The company did not benefit from favourable exchange movements between the approval of the contracts and statement of financial position date, and thus recognised a loss. There were no forward contracts at the 2025 year end.

Page 21

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

9.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
16,444
-

Adjustments in respect of previous periods
-
396


16,444
396


Total current tax
16,444
396

Deferred tax


Origination and reversal of timing differences
41,367
103,676

Taxable losses
541,633
260,490

Total deferred tax
583,000
364,166


Tax on profit
599,444
364,562

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
2,427,622
1,412,404


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
606,906
353,099

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,254
3,501

Capital allowances for year in excess of depreciation
43,385
12,457

Utilisation of tax losses
(636,630)
(265,755)

Adjustments to tax charge in respect of prior periods
-
396

Changes in provisions leading to an increase (decrease) in the tax charge
529
374

Deferred tax movement
583,000
260,490

Total tax charge for the year
599,444
364,562

Page 22

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
 
9.Taxation (continued)


Factors that may affect future tax charges

The company has trading losses carried forward of approximately £NIL (2024 - £2,160,000) available to offset against future profits from the same trade. A deferred tax asset of £NIL (2024 - £541,633) has been recognised in respect of these losses based upon the expectation of realisable taxable profits in the short term.

Page 23

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

10.


Tangible fixed assets





Leasehold improvements
Plant and equipment
Fixtures and fittings
Point of purchase displays
Total

£
£
£
£
£



Cost or valuation


At 1 April 2024
1,966,744
1,817,889
310,614
1,891,999
5,987,246


Additions
-
89,398
2,282
418,947
510,627


Disposals
-
(121,567)
(2,950)
(467,071)
(591,588)



At 31 March 2025

1,966,744
1,785,720
309,946
1,843,875
5,906,285



Depreciation


At 1 April 2024
704,114
1,550,792
294,645
1,007,867
3,557,418


Charge for the year on owned assets
100,116
90,252
5,617
565,443
761,428


Disposals
-
(121,567)
(2,950)
(467,140)
(591,657)



At 31 March 2025

804,230
1,519,477
297,312
1,106,170
3,727,189



Net book value



At 31 March 2025
1,162,514
266,243
12,634
737,705
2,179,096



At 31 March 2024
1,262,630
267,097
15,969
884,132
2,429,828


11.


Stocks

2025
2024
£
£

Finished goods and goods for resale
11,202,280
11,649,109


Page 24

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

12.


Debtors

2025
2024
£
£


Trade debtors
4,070,037
3,595,433

Amounts owed by group undertakings
120
120

Other debtors
36,828
35,642

Prepayments and accrued income
313,294
188,059

Deferred taxation
-
275,623

4,420,279
4,094,877



13.


Creditors: Amounts falling due within one year

2025
2024
£
£

Forward contract liability
-
36,882

Trade creditors
550,180
695,668

Amounts owed to group undertakings
3,419,152
6,539,341

Corporation tax
16,444
-

Other taxation and social security
445,280
165,173

Other creditors
157,201
136,203

Accruals and deferred income
1,748,949
1,428,443

6,337,206
9,001,710


Page 25

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

14.


Deferred taxation




2025


£






At beginning of year
275,623


Charged to profit or loss
(583,000)



At end of year
(307,377)

The deferred taxation balance is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(328,377)
(286,991)

Tax losses carried forward
-
541,633

Other short term timing differences
21,000
20,981

(307,377)
275,623


15.


Provisions




Dilapidation
Warranty provision
Total

£
£
£





At 1 April 2024
183,094
386,341
569,435


Charged to profit or loss
(120,514)
12,500
(108,014)



At 31 March 2025
62,580
398,841
461,421


16.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



700,000 (2024 - 700,000) ordinary shares of £1.00 each
700,000
700,000


Page 26

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

17.


Reserves

The company's capital and reserves are as follows:

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other
adjustments.


18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £190,141 (2024 - £176,563). Contributions totalling £28,478 (2024 - £26,385) were payable to the fund at the reporting date and are included in creditors.


19.


Commitments under operating leases

At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
286,858
220,328

Later than 1 year and not later than 5 years
916,669
1,057,322

Later than 5 years
1,698,543
1,904,427

2,902,070
3,182,077


20.


Related party transactions

The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
Key management personnel include all senior managers across the company who together have authority and responsibility for planning, directing and controlling activities of the company. The total compensation paid to key management personnel for services provided for the company was £691,651 (2024 - £694,038).

Page 27

 
CITIZEN WATCH UNITED KINGDOM, LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

21.


Controlling party

The company is a wholly owned subsidiary undertaking of Citizen Watch Company of America Inc.incorporated in the United States of America. Their registered office is 350 Fifth Avenue, 29th Floor, New York, NY10118.
The ultimate controlling party of the group is Citizen Watch Company Limited incorporated in Japan. Copies of the group accounts can be obtained from The Government Publications Service Centre,
Kasumigaseki, Japan. 

 
Page 28