Registration number:
Cove Brands Limited
for the Year Ended 31 December 2024
Cove Brands 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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Statement of Comprehensive Income |
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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 |
Cove Brands Limited
Company Information
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Directors |
Kenneth Bryan Kryzda Brian Lang Harwitt Graham Kohan David Kaplowitz |
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Registered office |
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Auditors |
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Cove Brands 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 trading in the sector of online retail.
Fair review of the business
2024 presented continued challenges both from macroeconomic and company-specific perspectives, following the 2023 downturn in the e-commerce industry post-COVID. The parent company, Cove Brands Inc., entered a Chapter 11 restructuring process in the United States, which, while causing significant business disruptions, served as a pivotal moment for the company to adapt its business model to post-restructuring realities.
This transformation occurred primarily through strategic product selection and inventory management decisions, resulting in a more resilient business model. We anticipate and have begun to observe positive trends, particularly following the completion of the Chapter 11 restructuring in February 2024 and the continued sell-through of unprofitable inventory, which has yielded promising results.
Operational Strategy Post-Restructuring
Following restructuring, we have fundamentally reconsidered our UK and EU operations strategy. We have shifted focus from maintaining a large product catalog aimed solely at top-line revenue growth to managing a more focused product portfolio with higher margins and profitability emphasis. While this transition necessitates a period of challenging financial results, reflected in negative 2024 KPIs as we dispose of legacy inventory (incurring £2,260,909 in disposal costs), the company will emerge in a significantly healthier position.
The management changes implemented during the Chapter 11 process have established a more consistent focus on stability and going concern across all subsidiaries. Within the increasingly competitive Amazon marketplace, our enhanced operational efficiency has enabled us to streamline our product catalog, reduce warehouse inventory levels, and reallocate resources more effectively
The key financial indicators used by management to monitor and manage the business during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Turnover |
£ |
4,099,429 |
11,033,229 |
|
Gross Margin (before inventory disposals) |
% |
3 |
3 |
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Operating Margin |
% |
(71) |
(15) |
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Stock |
£ |
1,402,025 |
4,298,888 |
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Cash |
£ |
2,974,792 |
251,354 |
While acknowledging significant metric deterioration, it is important to note that this trend is temporary and directly attributable to strategic restructuring decisions. The Chapter 11 process restructured all parent company debts, positioning the parent company to support Cove Brands Limited through 2024 and beyond. The continued sell-through of impaired inventory has substantially improved liquidity, which together with the receipt of a VAT refund (which will be paid out at a later date) has meant the cash balance has increased by £2,723,438 (1,084%) compared to year-end 2023.
Cove Brands Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
Our retail business faces multiple risk categories: macroeconomic risks including shipping channel disruptions; microeconomic risks as our non-essential goods are vulnerable to reduced discretionary spending; regulatory risks given our global manufacturing footprint's exposure to tariffs and compliance changes; currency exchange risks from market volatility affecting both manufacturing costs and multi-geography sales; and platform risk from our Amazon dependency. Our focus on non-essential goods heightens exposure to both micro and macroeconomic factors.
Financial risk management objectives and policies
The group is exposed to moderate levels of risk mentioned earlier in this document and manages these risks by financing its operations through retained profits to fund expansion or growth initiatives.
The management objectives are to retain sufficient liquid funds to enable it to meet its day-to-day requirements, minimize the group's exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the group's trading activities.
Approved and authorised by the
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Cove Brands 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:
Information included in the Strategic Report
The company has chosen in accordance with the Companies Act 2006, s. 414C(11) to set out in the company’s strategic report information required by Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the directors’ report.
Going concern
The company is exploring potential options in respect of the restructuring of the group and its operations. One of these options which is under consideration is a transfer of the trade, assets and liabilities of the company to a fellow group subsidiary which would potentially result in the company ceasing trade. It is noted that it is the intention for the trade of the company to carry on, albeit within a separate entity. The options available are in the exploratory stage with no action yet confirmed.
Due to the nature of the current plans being exploratory with no action confirmed, the company is still a going concern and these accounts have been prepared on a going concern basis.
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
Williamson & Croft Audit Limited were appointed as the group and company’s auditors during the year. In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Williamson & Croft Audit Ltd as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
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Cove Brands 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.
Cove Brands Limited
Independent Auditor's Report to the Members of Cove Brands Limited
Opinion
We have audited the financial statements of Cove Brands Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, 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 (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 loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
Cove Brands Limited
Independent Auditor's Report to the Members of Cove Brands Limited
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. We draw attention to Note 2 in the financial statements, which states that the company is exploring potential options in respect of the restructuring of the group and its operations. One of these options which is under consideration is a transfer of the trade, assets and liabilities of the company to a fellow group subsidiary which would potentially result in the company ceasing trade. It is noted that it is the intention for the trade of the company to carry on, albeit within a separate entity. The options available are in the exploratory stage with no action yet confirmed.
As stated in Note 2, these events or conditions, along with the other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included assessing the future profitability of Cove Brands Limited and its ability to meet its financial obligations when they become due. We noted the signed letter of confirmation from the parent company stated its intention to support Cove Brands Limited and not recall the creditor within 12 months of the date on which the financial statements have been signed. We reviewed the 12-month cash flow forecasts for the group to assess the group’s ability to support Cove Brands Limited.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Based on the work we have performed, we have not identified any other 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:
Cove Brands Limited
Independent Auditor's Report to the Members of Cove Brands Limited
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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:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We obtained an understanding of the legal and regulatory frameworks applicable to the Company through discussions with management and determined that the most significant are the Companies Act 2006, the Consumer Rights Act 2015, the Consumer contracts Regulations, Employment Law and Health and Safety Regulations. |
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Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the documented policies and procedures, legal costs incurred during the period and discussions with the Board of Directors and key management personnel. |
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We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements. We assessed this risk as low due to oversight by management and by the Board of companies holding a participating interest in the entity. |
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We have reviewed the Company’s control environment and assessed that it is adequate for a Company of its size and nature. |
Cove Brands Limited
Independent Auditor's Report to the Members of Cove Brands Limited
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We designed our audit testing to review the presumed risk under ISA (UK) 240 that that revenue may be misstated due to the improper recognition of revenue and that management over-ride of controls is present in all entities. |
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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 our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
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For and on behalf of
20 York Street
Manchester
M2 3BB
Cove Brands Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Exceptional inventory disposals |
(2,260,909) |
(1,191,398) |
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
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Operating loss |
(2,909,064) |
(1,689,978) |
|
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Other interest receivable and similar income |
- |
|
|
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Interest payable and similar expenses |
( |
|
|
|
(233,884) |
532,704 |
||
|
Loss before tax |
( |
( |
|
|
Loss 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.
Cove Brands Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
|
2024 |
2023 |
|
|
Loss for the year |
( |
( |
|
Total comprehensive income for the year |
( |
( |
Cove Brands Limited
(Registration number: 10111465)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
|||
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Intangible assets |
|
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Tangible assets |
|
|
|
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||
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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 |
|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net (liabilities)/assets |
( |
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Capital and reserves |
|||
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Called up share capital |
2,000,002 |
2,000,002 |
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Retained earnings |
(4,650,841) |
(1,507,893) |
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Shareholders' (deficit)/funds |
(2,650,839) |
492,109 |
Approved and authorised by the
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Cove Brands Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
|
( |
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Loss for the year |
- |
( |
( |
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At 31 December 2024 |
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( |
( |
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Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
|
( |
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Loss for the year |
- |
( |
( |
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At 31 December 2023 |
2,000,002 |
(1,507,893) |
492,109 |
Cove Brands 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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Loss for the year |
( |
( |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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Finance income |
- |
( |
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Finance costs |
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( |
( |
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Working capital adjustments |
|||
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Decrease in stocks |
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Decrease/(increase) in trade debtors |
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( |
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(Decrease)/increase in trade creditors |
( |
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Cash generated from operations |
|
( |
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Income taxes received/(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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Cash flows from financing activities |
|||
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Interest paid |
( |
( |
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Repayment of bank borrowing |
( |
( |
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Proceeds from other borrowing draw downs |
|
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Net cash flows from financing activities |
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Net increase/(decrease) in cash and cash equivalents |
|
( |
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Cash and cash equivalents at 1 January |
|
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Cash and cash equivalents at 31 December |
2,974,792 |
251,354 |
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Cove Brands 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:
United Kingdom
These financial statements were authorised for issue by the
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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 that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company.
Going concern
The company is exploring potential options in respect of the restructuring of the group and its operations. One of these options which is under consideration is a transfer of the trade, assets and liabilities of the company to a fellow group subsidiary which would potentially result in the company ceasing trade. It is noted that it is the intention for the trade of the company to carry on, albeit within a separate entity. The options available are in the exploratory stage with no action yet confirmed.
Due to the nature of the current plans being exploratory with no action confirmed, the company is still a going concern and these accounts have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
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.
Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
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.
Tangible assets
Tangible assets are stated in the balance sheet 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:
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.
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 (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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.
Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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 subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
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Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
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2024 |
2023 |
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Sale of goods |
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The analysis of the company's turnover for the year by market is as follows:
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2024 |
2023 |
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UK |
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Europe |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2024 |
2023 |
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Miscellaneous other operating income |
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Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Operating loss |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
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Depreciation expense |
|
|
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Amortisation expense |
|
|
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Exceptional inventory disposals |
|
|
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Other interest receivable and similar income |
|
2024 |
2023 |
|
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Interest income on bank deposits |
- |
|
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Interest payable and similar expenses |
|
2024 |
2023 |
|
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Interest expense on other finance liabilities |
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Foreign exchange gains/losses |
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( |
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( |
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Staff costs |
The average number of persons employed by the company (including directors) during the year, was
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Directors' remuneration |
The directors' remuneration for the year was nil.
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Auditors' remuneration |
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2024 |
2023 |
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Audit of the financial statements |
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Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Taxation |
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:
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2024 |
2023 |
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Loss before tax |
( |
( |
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Corporation tax at standard rate |
( |
( |
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Tax increase (decrease) from effect of capital allowances and depreciation |
|
( |
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Tax increase (decrease) from effect of unrelieved tax losses carried forward |
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- |
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Tax increase (decrease) arising from group relief |
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Total tax charge/(credit) |
- |
- |
The company has taxable losses carried forward for utilisation against future trading profits of £3,748,245 (2023: £768,887). No deferred tax asset has been recognised in respect of these losses due to uncertainty over when they can utilised.
Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Intangible assets |
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Other intangible assets |
Total |
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Cost or valuation |
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At 1 January 2024 |
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At 31 December 2024 |
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Amortisation |
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At 1 January 2024 |
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Amortisation charge |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Tangible assets |
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Other tangible assets |
Total |
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Cost or valuation |
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At 1 January 2024 |
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At 31 December 2024 |
|
|
|
Depreciation |
||
|
At 1 January 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
|
Stocks |
|
2024 |
2023 |
|
|
Finished goods and goods for resale |
|
|
Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The profit and loss shows exceptional inventory disposals of £2,260,909 (2023: £1,191,398) which resulted from a change in operational strategy to reduce overall stock levels.
|
Debtors |
|
Current |
Note |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
Amounts due from group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Income tax asset |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
- |
|
|
|
Trade creditors |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
|
Amounts owed to group undertakings |
|
|
|
|
22,339,533 |
19,923,793 |
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary of £1 each |
2,000,002 |
2,000,002 |
2,000,002 |
2,000,002 |
Cove Brands Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Loans and borrowings |
|
2024 |
2023 |
|
|
Non-current loans and borrowings |
||
|
Other borrowings |
|
|
|
2024 |
2023 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
- |
|
Bank borrowings
|
The loan is secured by a fixed and floating charge over the assets of the company. |
|
Related party transactions |
The company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33.1A from the requirement to disclose transactions with group entities that are wholly owned members of the group.
|
Financial instruments |
Categorisation of financial instruments
|
2024 |
2023 |
|
|
Financial assets measured at fair value through profit or loss |
|
|
|
Financial liabilities measured at fair value through profit or loss |
|
|
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is
The principal place of business of Cove Brands Inc is 55 Broadway, Suite 401, 3rd Floor, New York, NY, 10006
The registered office address of Cove Brands Inc, is:
16192 Coastal Highway, Lewes, Delaware, United States