Registration number:
Stance (Europe) Limited
for the Year Ended 31 December 2024
Registration number:
Stance (Europe) Limited
for the Year Ended 31 December 2024
Stance (Europe) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Statement of Financial Position |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Stance (Europe) Limited
Company Information
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Directors |
Mr M Hutchins Mr David Tichiaz |
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Company Number |
07640224 |
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Registered office |
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Business address |
Unit M1, Hilton Park |
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Auditors |
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Stance (Europe) Limited
Strategic Report for the Year Ended 31 December 2024
Strategic Overview
The directors present their strategic report for the year ended 31 December 2024.
Principal activities
The principal activities of the company are the retail, wholesale and distribution of socks and apparel throughout UK and Europe, via a network of own branches, partner retail sites and an ecommerce platform. Stock is procured via the global parent company and shipped direct from international manufacturing plants to distribution sites in the UK and Holland.
Strategy and Model
Stance has a strong and dedicated customer base and loyalty to the brand is high, with a @55% repeat purchase across DTC sales. Significant, targeted investment in performance marketing activities including social media and google ppc activity has enabled the acquisition of new business and encouraged repeat purchases from existing customers.
While growth of ecommerce is a focus of the business, fueled by a targeted media approach and a substantial growth in consumer demand for online shopping, there is also considerable investment to energize the wholesale channel, with strategic review of the top accounts and “win with the winners”. The rate of growth has slowed post Covid 19 pandemic, however this was predicted, and FY24 growth was in-line with expectations.
Business Performance
Position at year end
During 2024 there continued to be fluctuating consumer confidence across Europe with an associated impact on retail spending. Total revenue was down 5.0%, with much of the decline coming from the decision to exit own door retail with the closure of the Gunwharf store in February 2024. Wholesale declined by 4.1%, driven by lower consumer footfall. This was partially offset by the successful expansion of the Amazon channel, growing at 2.0% There has been a strategic reduction of smaller wholesale doors, and the brand will continue its expansion of its ecommerce and Amazon offering. There are no immediate plans to re-enter the retail market, but the brand will continue to actively review potential opportunities.
Gross Margin
Gross Margin declined to 55% vs 61% LY. This was driven by the weakening of Sterling vs. USD driving exchange rate revaluation losses on the Inter-company account with Stance Inc, together with an increase in purchase price of product via the US. This is marginally offset by a reduction in royalty payments due to a strategic move to reduce licensed products within the product mix.
Administrative Expenses
Operational expenses represent 61% of Sales, vs. 62% in FY23. The decrease is driven by the removal of rental and ancillary costs for Gunwharf and the continued tight control of the overall cost base. Obtaining an operational OPEX base of 50% NS remains a key strategic aim of the Senior team.
Stance (Europe) Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
Balance Sheet and Cashflow
Stock levels have increased by 52% YoY driven by the early receipt of spring product both in stock and in transit. The brand continues to have a very strong inventory management program that has utilized older stock, together with the active review of forward purchase for new seasons. Tight inventory control with a focus on product mix and purchasing based on pre-order demand and nimble reforecasting remains a key priority for the brand.
Cash receipts have remained strong despite the external challenges and the debtor book closed at 36 days, with minimal aged debt. Cash at the bank increased by £0.4M year on year as the brand has tactically taken advantage of the weakened value of sterling at year end to delay repayments to the US parent company, Stance Inc and minimize exchange rate losses. The reduction and ultimate removal of the inter-company balance remains a core objective in the forthcoming years.
Over the past three years, the primary aims of the brand have been to protect cash reserves and liquidity, and to develop a suitable business structure such that the brand could survive and thrive in the post pandemic environment.
Debtor collection and cash reserves remain strong, and in FY24 the brand made a positive EBITDA before inter-company charges.
Business Environment
Risks in the Wider Business Environment
The Economy
During 2024 the impact of the “cost of living crisis” continued to be felt, with confidence on the high street remaining low. Stubbornly high food and fuel prices have persisted, and Interest rate rises have been used to dampen inflation and bring levels down. UK Interest rates have climbed from a low of 0.1% in December 2021, rising to 5.25% in August 2023 and dropping marginally to 4.75% in December 2024, with pressure remaining on the disposable income of many.
Sterling VS USD rates fluctuated during the year with the USD/Sterling exchange opening at 1.27 in January 2024 and closing at 1.25 in December 2024, making stock purchases and repayments more expensive, particularly in the final quarter. These currency fluctuations were a factor in the EBITDA results of the brand in FY24 as the intercompany charges became more expensive. The brand is working closely with the US parent company to mitigate and minimize risks and costs and streamline stock management to minimize the impact on the P&L. Any strengthening of Sterling will generate positive results in FY25 due to the intercompany balance.
The brand has worked hard to mitigate the cost of rising prices within OPEX and has made efficiency savings and strategic choices to maintain targeted %NS.
General and Operational Risk
The 2020 upgrade to the wholesale inventory software platform merged it with the cloud-based inventory solution running the DTC business and the B2B platform was upgraded at the same time. These cloud-based solutions allow for an easy extension to the European based 3PL warehouse and provide a seamless technological transition. The brand intends to move it’s UK warehouse operation to a 3PL in June 2025 to take further advantage of these synergies.
Stance (Europe) Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
Governance, Risk and Succession Planning
The company maintains, enforces and monitors a wide range of policies aimed at minimizing operational risk and achieving regulatory compliance.
The company has a governance plan consistent with its size and complexity and takes appropriate steps to maintain and update its governance structures to match future needs. A full review of GDPR responsibilities was completed with an external provider during 2021. Investment in core teams continues to be made to reflect the increased scale of the business and to increase resilience.
Approved and authorised by the
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Stance (Europe) 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:
Dividends
The directors do not recommend the payment of a dividend.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and 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 the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that;
• so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and
• they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Westcotts as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
Stance (Europe) Limited
Directors' Report for the Year Ended 31 December 2024 (continued)
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Stance (Europe) Limited
Independent Auditor's Report to the Members of Stance (Europe) Limited
Opinion
We have audited the financial statements of Stance (Europe) Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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.
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.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Stance (Europe) Limited
Independent Auditor's Report to the Members of Stance (Europe) Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | 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 [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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit. |
Stance (Europe) Limited
Independent Auditor's Report to the Members of Stance (Europe) Limited (continued)
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The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to many other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including employment, anti-bribery, anti-money laundering and certain aspects of companies legislation. |
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We have assessed the susceptibility of the entities financial statements to material misstatement, including how fraud might occur from stock misappropriation or fraud in revenue recognition. |
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Stance (Europe) Limited
Independent Auditor's Report to the Members of Stance (Europe) Limited (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 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
3 Longbridge Road
Plymouth
Marsh Mills
Devon
PL6 8LT
Stance (Europe) Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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|
|
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
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|
Other operating income |
- |
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|
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Operating loss |
( |
( |
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|
Other interest receivable and similar income |
|
|
|
|
4,577 |
4,348 |
||
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Loss before tax |
( |
( |
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Loss for the financial year |
( |
( |
|
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Retained earnings brought forward |
(3,454,734) |
(3,280,075) |
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|
Retained earnings carried forward |
(4,211,017) |
(3,454,734) |
Stance (Europe) Limited
(Registration number: 07640224)
Statement of Financial Position 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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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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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
|||
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Called up share capital |
|
|
|
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Profit and loss account |
( |
( |
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Shareholders' deficit |
( |
( |
Approved and authorised by the
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Stance (Europe) 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 |
(756,283) |
(174,659) |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
134,100 |
134,289 |
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Loss/(profit) on disposal of tangible assets |
408 |
(7,532) |
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Finance income |
(4,577) |
(4,348) |
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(626,352) |
(52,250) |
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Working capital adjustments |
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(Increase)/decrease in stocks |
(820,399) |
874,651 |
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Increase in trade debtors |
(192,901) |
(23,154) |
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(Decrease)/increase in trade creditors |
(44,629) |
206,800 |
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Cash generated from operations |
(1,684,281) |
1,006,047 |
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Finance income |
4,577 |
4,348 |
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Net cash flow from operating activities |
(1,679,704) |
1,010,395 |
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Cash flows from investing activities |
|||
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Acquisitions of tangible assets |
(38,709) |
(47,458) |
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Proceeds from sale of tangible assets |
5,258 |
7,816 |
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Net cash flows from investing activities |
(33,451) |
(39,642) |
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Cash flows from financing activities |
|||
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Amounts due to related parties |
2,115,395 |
(2,114,386) |
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Net increase/(decrease) in cash and cash equivalents |
402,240 |
(1,143,633) |
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Cash and cash equivalents at 1 January |
3,510,360 |
4,653,993 |
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Cash and cash equivalents at 31 December |
3,912,600 |
3,510,360 |
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Stance (Europe) 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 United Kingdom.
The address of its registered office is:
Principal activity
The principal activity of the company is retail, wholesale and distribution of socks and apparel throughout UK and Europe, via a network of own branches, partner retail sites and an ecommerce platform
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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 prepared in sterling which is the functional currency of the entity.
Going concern
Despite the £756,283 loss before tax for the year, and the net liabilities of £4,210,917, the directors have prepared the accounts on a going concern basis. They believe that this basis is appropriate, as a fellow group company, Stance Inc, has indicated to the directors that it is willing to provide support to enable the company to continue to meet its obligations as they fall due for a period of at least 12 months from the date of signing these financial statements. Having regard to the ability and intent of the company to provide that support, the directors believe that it is appropriate to prepare the accounts on a going concern basis but recognises that there can be no certainty.
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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2 |
Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. |
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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2 |
Accounting policies (continued) |
Inventory provisioning
The company operates as a clothing distributor, specialising in socks and is subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods. See note 13 for the net carrying amount of the inventory and associated provision.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of leasehold land and buildings, plant and machinery, fixtures and fittings and motor vehicles, and under accounting policies for the useful economic lives for each class of assets.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.
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 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.
Foreign currency transactions and balances
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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2 |
Accounting policies (continued) |
Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the
reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at
the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax
losses and other deferred tax assets are recognised to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is
measured using the tax rates and laws that have been enacted or substantively enacted by the
reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
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:
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Asset class |
Depreciation method and rate |
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Fixtures, fittings and equipment |
33% straight line |
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Motor vehicles |
33% straight line and over the lease term |
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Computer equipment |
33% straight line |
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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2 |
Accounting policies (continued) |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
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:
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Asset class |
Amortisation method and rate |
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Goodwill |
10 years |
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, 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. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Cost of sales expense recognition
Point of sale display stands and fixtures are classified by the company as a cost of goods sold as the stands are given to resellers and are outside of the company's control. The costs associated are prepaid over the expected life of the stands.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Turnover |
The analysis of the company's turnover 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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Management charges |
|
|
|
|
|
The analysis of the company's sale of goods for the year by market is as follows:
|
2024 |
2023 |
|
|
Sale of goods, UK |
3,499,840 |
3,905,193 |
|
Sale of goods, Europe |
8,469,370 |
8,512,268 |
|
Sale of goods, rest of world |
703,445 |
949,665 |
|
Management charges, UK |
534,619 |
532,843 |
|
13,207,274 |
13,899,969 |
|
Other operating income |
|
2024 |
2023 |
|
|
Government grants |
- |
|
|
Operating loss |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Loss/(profit) on disposal of tangible fixed assets |
|
( |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
86,082 |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales |
|
|
|
Distribution |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to pension schemes in respect of qualifying services |
|
|
|
205,250 |
171,468 |
Remuneration of the highest paid directors in respect of qualifying services:
|
2024 |
2023 |
|
|
Aggregate remuneration |
|
|
|
Company contributions to pension plans in respect of qualifying services |
|
|
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Fees payable to Westcotts (SW) LLP |
||
|
Fees payable for the audit of the financial statements |
8,150 |
5,725 |
|
Fees payable to the company's auditors and its associates for other services |
|
|
|
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:
|
2024 |
2023 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
|
|
|
Total tax charge/(credit) |
- |
- |
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
|
Tangible assets |
|
Fixtures, fittings and equipment |
Computer equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
Disposals |
( |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
( |
|
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
- |
|
|
|
|
At 31 December 2023 |
- |
|
|
|
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Stocks |
|
2024 |
2023 |
|
|
Stock in transit |
1,139,876 |
956,441 |
|
Finished goods and goods for resale |
1,253,409 |
616,445 |
|
2,393,285 |
1,572,886 |
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Trade creditors |
|
415,769 |
|
|
Amounts due to related parties |
|
8,303,440 |
|
|
Social security and other taxes |
|
205,297 |
|
|
Accruals |
|
1,053,897 |
|
|
|
9,978,403 |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Reserves |
Profit and loss account
This reserve records retained earnings and accumulated losses.
Stance (Europe) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
- |
|
|
|
|
|
Analysis of changes in net debt |
|
At 1 January 2024 |
Financing cash flows |
At 31 December 2024 |
|
|
Cash and cash equivalents |
|||
|
Cash |
3,510,360 |
402,240 |
3,912,600 |
|
Debt due within one year |
(8,303,440) |
(2,115,395) |
(10,418,835) |
|
(4,793,080) |
(1,713,155) |
(6,506,235) |
|
|
( |
( |
( |
|
|
|
|||
|
Related party transactions |
As Stance (Europe) Limited is wholly owned subsidiary of Stance Inc, the company has taken advantage of paragraph 33.1A of FRS 102 and opted not to disclose these group transactions.
|
Parent and ultimate parent undertaking |
The parent company is Stance Inc, a company incorporated in America. The registered office of Stance Inc is 193 Avenida La Pata, San Clemente, California 92673