The directors present the strategic report for the year ended 31 January 2025.

Following the comprehensive restructure completed on 31 January 2024, the company has transitioned to a performance-led strategy with a clear focus on Return on Investment (ROI) and debt management. The restructure was designed to streamline operations, eliminate inefficiencies, and redeploy capital to areas with the greatest potential for value creation.

Outlook

Looking ahead, the company will continue to build on the early momentum from these initiatives. Specific focus areas for the coming year include:

• Further optimisation of stock across the company’s distribution network

• Expansion of cost-control measures into new functional areas

• Strategic reinvestment of savings to support ROI-led decision making

• Continuous assessment of product and customer profitability to enhance margin delivery

1. Economic Pressures

   The UK market saw continued inflationary trends, interest rate uncertainty, and suppressed consumer spending, especially in mid-year quarters.

2. Freight Disruption & Increased Costs

   Ongoing global shipping issues, including congestion at ports and higher container fees, directly impacted margin and inventory availability.

3. Customs & Regulatory Complexity

   EU border compliance remained a time- and cost-intensive challenge, particularly with evolving packaging and labelling regulations under EU green initiatives.

4. Labour & Logistics Cost Inflation

Domestic warehousing and logistics costs continued to rise, necessitating further efficiency investments and lean stock strategies.

The company, in line with businesses in many industries, has been impacted by these measures but as demonstrated in the profitability, they are taking steps to manage this and working towards increasing the return on investment for the period to January 2026.

The company finances its short to medium term funding requirements through a combination of third-party bank funding (net nil overdraft facility with sister companies), invoice discounting, import loan facilities and government backed loan. The company has taken a number of measures following detailed focus on the profitability within each segment in the business and continues to review and react to the changing environment to ensure it continues to grow the strength of the business with each change.

The company has completed a base case forecast based on its continued bank facilities. As noted above, the company has fully repaid the RLS and taken a huge step in minimising net debt. A reverse stress test is not considered appropriate given headroom in place. There is of course a credit risk associated with the company’s debtor book but the directors have some credit insurance in place, have diversified the risk where possible and continue to monitor closely.

In reviewing the company's performance, management regularly review and, at brand level, consider the company's sales achievements, forward order levels, purchasing costs including production, importing, storage and distribution and profit generation. At corporate level the Group reviews revenues, overall profitability, working capital and cashflow on a regular basis.

With the exception of the financial key performance indicators listed above, there are no other key performance indicators of the company.

The board of directors of GL Dameck consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in 172(1)(a) to (f) Companies Act 2006) in doing so have regard (amongst other matters) to:

•    the likely consequences of any decisions in the long-term

•    the interests of the company’s employees

•    the need to foster the company’s business relationships with suppliers, customers and others

•    the impact of the company’s operation on the community and environment

•    the desirability of the company maintaining a reputation for high standards of business conduct

•    the need to act fairly as between shareholders of the company.

The directors fulfil these duties through the following:

As we grow, we have approved a business plan to January 2026 to allow the board to manage and evaluate the business, to ensure we can control both our resources and costs to meet the continued growth within the business. Our business and risk environment evolves with the growing economic and regulatory changes we face. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to develop and adapt our approach to risk management to meet the company’s needs.

For details of our principal risks and uncertainties and how we manage our risk environment, please see page 2.

The company is committed to being a responsible business. People are at the heart of our business and for our business to succeed we need to manage our people’s performance and develop and bring through talent while ensuring we operate as efficiently as possible. We must also ensure we share common values that inform and guide our behavior so we achieve our goals in the right way.

Our continued growth of the business is driven off the development and nurturing of existing relationships together with the expansion of new relationships both with customers, suppliers and business partners.

Community and Environment

The company continues to support its people to create positive change for the people and communities with which we interact. We try to minimise our environmental impact and the company have taken measures to utilise alternative carbon neutral sources of energy within the head office and continues to monitor opportunities to limit our environmental impact. The company has actively participated in charitable donations of excess, out of season and out of licence stock product to encourage the reuse of product that otherwise may have contributed to landfill.

Shareholders

As the Board of Directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.

On behalf of the board

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

The principal activity of the company during the year continued to be that of designing, importing, wholesale and retail of branded footwear and clothing.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Going Concern

The company has completed scenario forecasting and stress testing for the period to 31 January 2027. As part of this exercise the directors have assessed that the banking facilities available and the actions and strategies available to them to mitigate business threats under stress testing. The forecasts demonstrate that the group could operate within its available funding arrangements.

The directors have assessed the company's ability to be able to continue as a going concern. In their opinion adequate facilities are in place at present, and there is no reason to expect that adequate facilities will not continue to be in place following the facility review in January 2027.

Considering this, and all other factors, the directors have concluded that the going concern basis of preparation of the accounts is appropriate and thus the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business.

On the basis of their assessment of the company's financial position, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future (more than 12 months). Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, MHA, previously traded through the legal entity Macintyre Hudson LLP. In response to regulatory changes, Macintyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put at a General Meeting.

The directors are responsible 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 group and company, and of the profit or loss of the group 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of GL Dameck Limited (the 'company') for the year ended 31 January 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 January 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

As explained more fully in the directors' responsibilities statement, 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management, those charged with governance around actual and potential litigation and claims;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

• Reviewing minutes of meetings of those charged with governance;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

GL Dameck Limited is a private company limited by shares incorporated in Scotland. The registered office is Yard Road, Blairgowrie, Perthshire, PH10 6NW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, unless otherwise stated in the accounting policies below. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Dameck Holdings Limited. These consolidated financial statements are available from its registered office.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The ultimate parent undertaking is Dameck Holdings Limited, a company registered in Scotland, with their registered office being Yard Road, Blairgowrie, Perthshire, PH10 6NW.

The company, in line with businesses in many industries, has been impacted by these measures but as demonstrated in the profitability, they are taking steps to manage this and working towards increasing the return on investment for the period to January 2027.

The company finances its short to medium term funding requirements through a combination of third-party bank funding (net nil overdraft facility with sister companies), invoice discounting, import loan facilities and government backed loan. The company has taken a number of measures following detailed focus on the profitability within each segment in the business and continues to review and react to the changing environment to ensure it continues to grow the strength of the business with each change.

The company has completed a base case forecast based on its continued bank facilities. As noted above, the company has fully repaid the RLS and taken a huge step in minimising net debt. A reverse stress test is not considered appropriate given headroom in place. There is of course a credit risk associated with the group’s debtor book but the directors have some credit insurance in place, have diversified the risk where possible and continue to monitor closely.

Turnover is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration receivable takes into account returns, trade discounts, settlement discounts and volume rebates.

When the company acts as an agent in a principal and agent relationship with another party, the company only includes in turnover the amount of its commission. The amounts collected on behalf of the principal are not recognised in revenue and costs.

The company recognises revenue when all of the following conditions are satisfied:

• the significant risks and rewards of ownership have been transferred to the buyer;

• the company retains no continuing involvement or control over the goods;

• the amount of revenue can be measured reliably;

• it is probable that future economic benefits will flow to the company; and

• when the specific criteria relating to each of the company's sales channels have been met.

The specific criteria of the company's sales channels are described below.

Sale of goods - retail

Turnover from the sale of retail goods is recognised on sale to the customer, which is considered the point of delivery.

Sale of goods - internet based transactions

Turnover from the sale of goods via the internet is recognised when the risks and rewards of the goods is passed to the customer. For goods that are delivered to the customer this is the point of acceptance of the goods by the customer, and for 'click and collect' transactions this is the point of collection by the customer.

Provision is made for credit notes where required based on the actual return levels since the financial year end and on estimated return levels calculated based upon historical experience.

Sale of goods - wholesale

Turnover from wholesale sales is recognised when the risks and rewards of the goods is passed to the customer, which is usually at the point of dispatch of the goods.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The company designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Sponsorship costs

The company sponsored a number of sports teams from which it then generated wholesale turnover.

The sponsorship costs for these relationships were recognised in accordance with the teams season to which they relate. Costs were split into two parts, apparel and advertising rights, with the former being determined by the calculation of a fair gross margin for each club based on estimated sales and the balance being allocated to advertising rights. The relevant costs were allocated on the following basis:

Apparel rights - these costs are spread over the period in which apparel sales occurred;

Advertising rights - these costs are allocated to the period in which their benefit is deemed to be received.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In preparing these financial statements, the directors have made the following judgements:

• Determine whether leases entered into by the company, either as lessor or lessee, are operating leases or finance leases. These decisions consider the duration of the lease and whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

• Consider whether there are any indications of impairment to tangible and intangible assets. Factors taken into consideration include the economic viability and expected future financial performance of the asset where it is a component of a larger cash generating unit .

• Determine the apportionment of sponsorship costs into apparel costs and advertising costs. These decisions depend on such factors as the calculation of a fair gross margin for each club and other such factors as detailed in the terms and conditions of each individual agreed contract.

• Intangible assets relating to licence fees are recognised when a payment is made to secure the licence fee for a number of years. The intangible asset is then amortised over the useful life of the agreed licence which is typically five to seven years.

The following judgements and key sources of estimation uncertainty have had the most significant effect on amounts recognised in the financial statements.

Recoverability of trade debtors are evaluated and provisions for doubtful debts are made where appropriate. Provisions are based on experience, the age of debt, customer relations and payment history. The actual level of debt collected may differ from the estimated level of recovery and can therefore impact future operating results.

Stocks are valued at the lower of cost and net realisable value (NRV). Cost is calculated by establishing the cumulative value of the weighted average purchase price, the cost of duty, commission and shipping. These costs are reassessed regularly. NRV is calculated as the resale price less any expected further sales costs and discounts.

The stock provision is calculated using estimates and judgements by management. The provision is calculated to provide for prior season stock, slow moving stock, stock selling at a loss and out of license products.

All turnover is attributable to that of designing, importing, wholesaling and retailing of branded footwear and clothing.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The directors have considered the key management personnel of the business and have concluded that the key management personnel are limited to the board of directors. The total key management personnel remuneration for the year amounted to £nil (2024: £Nil).

Other interest relates to interest payable on related party loans and borrowings.

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

On 31 January 2024 the company transferred the business relating to certain sports brands to a fellow subsidiary company of the Dameck Holdings group, Ardblair Sports Importers Limited. The company also entered into an arrangement with a third party relating to its sponsorship business.

Details of the company's subsidiaries at 31 January 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Details of the company's associates at 31 January 2025 are as follows:

On 21 September 2023 the company acquired 500 ordinary shares in Diamond Icon Ltd. Income is recognised in line with the equity accounting method.

Financial instruments measured at fair value through the Statement of Comprehensive Income comprise cash flow hedges for foreign currency forward contracts recognised as derivative financial instruments.

Stock is held after provisions for impairment of £577,142 (2024 - £577,142). The movement on the stock impairment provision is recognised through cost of sales.

Bank loans

Included within bank loans is a RLS loan with a balance of £983,330 (2024: £3,633,332). This loan is repayable in monthly installments of £116,667 over 5 years following a 12 month capital payment holiday and interest is being charged at 4.25% over the Bank of England base rate. The company accelerated their loan repayments in the year with a large repayment of £1.4m in July 2024.

The company has a Trade Import line facility with HSBC Bank PLC for a total value of £3,000,000 (2024: £6,000,000) to assist the company with its overseas purchases. Interest is charged at 2.95% above the Bank of England base rate. The facility balance at 31 January 2025 was £52,247 (2024: £771,881) and is included in bank loans above.

Bank overdrafts

Bank overdrafts represent the overdraft facility in place with HSBC. The company is part of a group which have a net nil overdraft facility in place with HSBC. The company was utilising £7,540,452 (2024: £5,872,316) of the facility at the year end.

Other loans

Other loans represent the invoice finance facility in place with HSBC. The company has a facility of £1,500,000 (2024: £7,500,000) of which £0 (2024: £1,110,052) was drawn down at the year end. The facility carries an interest charge of 2.45% above the Bank of England base rate and the facility is secured over trade debtors.

The company is party to a multilateral agreement with its bankers for guarantees provided in respect of the bank borrowings of Ardblair Sports Importers Limited, Dameck Holdings Limited, GL Dameck Limited, ASI Brands Limited, Diamond Sport Retail Limited, Swallowtail Lifestyle Limited and Amplified Clothing Limited.

HSBC UK Bank PLC holds a floating charge over the all assets of the company in respect of loans and a security over trade debtors in respect of the invoice finance facility.

HSBC UK Bank PLC holds a fixed charge over cash deposits in respect of all amounts owed.

The following are the deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The unpaid contributions outstanding at period end amounted to £nil (2024 - £nil)

At the reporting end date there were letters of credit outstanding to the value of £289,714 (2024 - £750,077).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

On 31 January 2024 the company transferred its shareholding in the subsidiary undertakings, GLD Brands Limited, Swallowtail Lifestyle Limited and Addict Holdings Limited to a fellow subsidiary company of the Dameck Holdings group, Ardblair Sports Importers Limited.

On 31 January 2024 the company transferred certain elements of its business to a fellow subsidiary company of the Dameck Holdings group, Ardblair Sports Importers Limited and its subsidiaries. This included stock net of provisions totalling £3,837,146, debtors totalling £969,466 and creditors totalling £153,664. Intangible assets with a net book value of £12,333 were disposed of for a consideration of £12,133 and tangible fixed assets with a net book value of £9,167 were disposed of for a consideration of £4,766 to Ardblair Sports Importers Limited and its subsidiaries.

The directors are of the opinion that all other related party transactions are conducted under normal market conditions and on an arm's length basis.