ACCOUNTS - Final Accounts

Creditors: Amounts falling due within one year

Registered number: 02709007

ET BROWNE (MIDDLE EAST) LIMITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 28 FEBRUARY 2025

ET BROWNE (MIDDLE EAST) LIMITED

REGISTERED NUMBER: 02709007

STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2025

	28 February	29 February
	2025	2024
Note	$	$

Fixed assets
Tangible assets	4		70,659		48,029
			70,659		48,029
Current assets
Debtors: amounts falling due within one year	5	499,752		576,744
Cash at bank and in hand		508,659		285,558
		1,008,411		862,302
Creditors: amounts falling due within one year	6	(4,966,108)		(4,326,200)
Net current liabilities			(3,957,697)		(3,463,898)
Total assets less current liabilities			(3,887,038)		(3,415,869)

Net liabilities			(3,887,038)		(3,415,869)

Capital and reserves
Called up share capital	7	144	144
Profit and loss account		(3,887,182)	(3,416,013)
		(3,887,038)	(3,415,869)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

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

R C Neis	T Wiberg
Director	Director

Date: 28 August 2025	Date:28 August 2025

The notes on pages 3 to 9 form part of these financial statements.

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ET BROWNE (MIDDLE EAST) LIMITED

REGISTERED NUMBER: 02709007

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 28 FEBRUARY 2025

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

1.	General information

The principal activity of E.T Browne (Middle East) Limited ("the Company") throughout the year continued to be the marketing of cosmetic products in the Middle East.
The Company is limited by shares and is incorporated in England and Wales.
The registered office is 35 Ballards Lane, London, N3 1XW.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
As at the reporting date, the Company incurred a loss after tax of $471,170 (2024: $407,841), and had net liabilities of $3,887,038 (2024: $3,415,869).
The ultimate parent undertaking, E T Browne Drug Co. Inc., who have loaned $4,431,961 (2024: $3,826,158) to the Company, have indicated that they will continue to support the Company, providng additional amounts to the Company where necessary in order to allow the Company to pay its debts as and when they fall due and not seeking repayment until the Company is in a position to make repayment, and accordingly the above basis is considered appropriate.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is USD.

Transactions and balances

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

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

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

2.4

Turnover and revenue recognition

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

Turnover comprises commission receivable by the Company and income from sales of goods. All of the commission receivable is attributable to geographical markets outside of the UK.
Revenue for commissions is recognised one week prior to the point that a sales order is dispatched.
Revenue for the sale of goods is recognised when the goods are delivered to the destination port of the customer.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.

2.6

Leasing and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Income and Retained Earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

2.8

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery	-	20%	straight line
Motor vehicles	-	25%	straight line
Fixtures and fittings	-	20%	straight line
Office equipment	-	20%	straight line
Computer equipment	-	33%	straight line

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

2.9

Cash and cash equivalents

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

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtor and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade debtors, other debtors and accrued income, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Income and Retained Earnings.
(ii) Financial liabilities
Basic financial liabilities, including amounts owed to group undertakings, obligations under finance lease and hire purchase contracts and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.

Employees

The average monthly number of employees, including directors, during the year was 10 (2024 - 10).

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		ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025

	4.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Computer equipment	Total
	$	$	$	$	$	$
Cost or valuation
At 1 March 2024	55,372	206,640	77,288	31,567	77,231	448,098
Additions	12,500	28,243	-	6,799	2,844	50,386
Disposals	-	(27,100)	-	-	-	(27,100)
At 28 February 2025	67,872	207,783	77,288	38,366	80,075	471,384
Depreciation
At 1 March 2024	55,372	184,940	69,668	18,953	71,136	400,069
Charge for the year on owned assets	2,500	17,138	1,784	1,554	4,780	27,756
Disposals	-	(27,100)	-	-	-	(27,100)
At 28 February 2025	57,872	174,978	71,452	20,507	75,916	400,725
Net book value
At 28 February 2025	10,000	32,805	5,836	17,859	4,159	70,659
At 29 February 2024	-	21,700	7,620	12,614	6,095	48,029

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

Debtors

					28 February	29 February
					2025	2024
					$	$


Trade debtors	451,547	494,042
Other debtors	9,877	9,877
Prepayments and accrued income	38,328	72,825
	499,752	576,744

Amounts owed to group undertakings	4,440,802	3,834,999
Accruals and deferred income	525,306	491,201
	4,966,108	4,326,200

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Allotted, called up and fully paid

144 (2024 - 144) Ordinary shares of £1.00 each	144	144

8.	Pension commitments

The Company operates a defined contribution pension scheme. Amounts payable at year end were $Nil (2024: $Nil).

9.	Related party transactions
	The Company has taken advantage of the exemptions conferred under section 33.1A of FRS 102 not to disclose transactions with wholly-owned group undertakings.

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ET BROWNE (MIDDLE EAST) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

10.	Controlling party

The ultimate parent undertaking is ET Browne Drug Co. Inc., a company incorporated and registered in
the USA and based in New Jersey.
ET Browne Drug Co. Inc. is controlled by A H Neis.
ET Browne Drug Co. Inc prepare consolidated accounts which are available at its registered office.

11.	Auditors' information

The auditors' report on the financial statements for the year ended 28 February 2025 was unqualified.

The audit report was signed on 29 August 2025 by Myfanwy Neville FCA (Senior statutory auditor) on behalf of BKL Audit LLP.

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