ACCOUNTS - Final Accounts preparation

OPERATING LOSS

The operating loss is stated after charging:

Registered number: 01967176

DOUGLAS GILL INTERNATIONAL LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

DOUGLAS GILL INTERNATIONAL LIMITED

COMPANY INFORMATION

DIRECTORS	M F Clark
	J D Hibbard
	H C Callow (appointed 1 March 2024)
	I Poore (resigned 29 February 2024)


REGISTERED NUMBER	01967176


REGISTERED OFFICE	Manor House Road
	Long Eaton
	Nottingham
	NG10 1LR


INDEPENDENT AUDITORS	Bishop Fleming Audit Limited
	Chartered Accountants & Statutory Auditors
	Brook House
	Winslade Park
	Manor Drive
	Clyst St Mary
	Exeter
	EX5 1GD

DOUGLAS GILL INTERNATIONAL LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Directors' responsibilities statement	4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Notes to the financial statements	12 - 25

DOUGLAS GILL INTERNATIONAL LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

INTRODUCTION

Douglas Gill International Limited has pleasure in presenting its accounts for the year ended 30 September 2024.

BUSINESS REVIEW

The year to 30 September 2024 continued to bring challenges and changes to the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company is exposed to price risks, credit risk, overstock risk and cash flow risk. Prices are fixed with suppliers and the associated currency exposure is managed as below. Cashflow is managed from working capital and an invoice discounting facility.

The Company manages its exposure to fluctuations in currency exchange by the use of natural hedging supplemented by the use of forward exchange contracts to minimise uncertainty.

FINANCIAL KEY PERFORMANCE INDICATORS

Sales decreased due to lower sales to the US with overstock in one of the largest customers in that market, and also due to the impact of an element of overstock within the outdoor market.
Sales for the year to September 2024 decreased from £12.1m to £10.6m and the operating loss for the year increased from £1.1m to £3.4m. The operating loss of £3.4m consists of trading losses of £1m and a provision against inter-company debt of £2.4m.
Profit margin at a product cost level reduced from 47% to 45%, impacted by some clearance activities of products aimed at the broader outdoor market.

GOING CONCERN

The company had a net loss for the year of £3.4m comprised of trading losses of £1m and a provision against inter-company debt of £2.4m. Results remained under pressure into the year to September 2025. There have been significant changes in the wider outdoor recreation market, and also in sales channels, and internally, in the product mix and branding and marketing. The company is beginning to see the impact of these changes. Post year end the company received additional cashflow via the holding company of £1.3m to facilitate stock purchasing, in part made earlier to avoid additional tariff costs moving stock into America. The directors are confident of returning to a profitable position, and being able to cover future working capital without any additional funding.
The company is reliant on support from its parent company who has confirmed its intention to provide further financial resources necessary to assist the company meeting its liabilities as and when they fall due to the extent that money is not otherwise available to meet such liabilities.
Based on their review, the Directors have concluded that the Company will be able to meet its debts as they fall due and have prepared the accounts on a going concern basis.

This report was approved by the board on 21 October 2025 and signed on its behalf.

J D Hibbard

Director

Page 1

DOUGLAS GILL INTERNATIONAL LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

RESULTS AND DIVIDENDS

The loss for the year, after taxation, amounted to £3,426,549 (2023:loss £943,172).

The loss for the year of £3,426,549 consists of a trading loss of £1,053,605 before an inter-company debt provision of £2,372,944.
The Company did not pay any dividends during the year (2023: £Nil).

DIRECTORS

The directors who served during the year were:

M F Clark

J D Hibbard

H C Callow (appointed 1 March 2024)

I Poore (resigned 29 February 2024)

FUTURE DEVELOPMENTS

The directors expect the company to continue in its focus on cost base and returing to a profitable position, without any additional funding.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 2

DOUGLAS GILL INTERNATIONAL LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

J D Hibbard

Director

Date: 21 October 2025

Manor House Road

Long Eaton

Nottingham

NG10 1LR

Page 3

DOUGLAS GILL INTERNATIONAL LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.

Page 4

DOUGLAS GILL INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOUGLAS GILL INTERNATIONAL LIMITED

OPINION

We have audited the financial statements of Douglas Gill International Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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 30 September 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Page 5

DOUGLAS GILL INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOUGLAS GILL INTERNATIONAL LIMITED (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 6

DOUGLAS GILL INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOUGLAS GILL INTERNATIONAL LIMITED (CONTINUED)

AUDITORS' 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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance;
• the results of our enquiries of management and the directors about their own identification and assessment of the risk of irregularities;
• any matters we identified having obtained and reviewed the Company’s documentation of its policies and procedures relating to:
o identifying, evaluating, and complying with laws and regulations and whether management were aware of any instances of non-compliance;
o detecting and responding to the risk of fraud and whether management had knowledge of actual, suspected, or alleged fraud; and
o the internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102, UK tax legislation and overseas tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company ability to operate or to avoid a material penalty. These included data protection regulations, health and safety regulations, environmental legislations and employment legislation.
Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
• enquiring of management and the directors concerning actual and potential litigation claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud;

Page 7

DOUGLAS GILL INTERNATIONAL LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOUGLAS GILL INTERNATIONAL LIMITED (CONTINUED)

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
• communicating relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.

Fleur Lewis FCA (Senior statutory auditor)

for and on behalf of

Bishop Fleming Audit Limited

Chartered Accountants

Statutory Auditors

Brook House

Winslade Park

Manor Drive

Clyst St Mary

Exeter

EX5 1GD

22 October 2025

Page 8

DOUGLAS GILL INTERNATIONAL LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	2024	2023
Note	£	£


Turnover	4	10,626,357	12,173,258
Cost of sales		(7,339,349)	(7,111,849)
Gross profit		3,287,008	5,061,409
Distribution costs		(1,247,744)	(1,438,102)
Administrative expenses		(3,081,793)	(3,802,172)
Other exceptional items	10	(2,372,944)	(976,733)
Operating loss	5	(3,415,473)	(1,155,598)
Tax on loss	9	(11,076)	212,426
Loss for the financial year		(3,426,549)	(943,172)

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 25 form part of these financial statements.

Page 9

DOUGLAS GILL INTERNATIONAL LIMITED

REGISTERED NUMBER:01967176

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	11		155,600		165,246
Tangible assets	12		335,857		353,610
			491,457		518,856
Current assets
Stocks	13	2,510,549		2,945,072
Debtors: amounts falling due within one year	14	9,917,407		12,647,130
Cash at bank and in hand	15	532,665		1,013,779
		12,960,621		16,605,981
Creditors: amounts falling due within one year	16	(1,024,128)		(1,270,338)
Net current assets			11,936,493		15,335,643
Total assets less current liabilities			12,427,950		15,854,499

Net assets			12,427,950		15,854,499

Capital and reserves
Called up share capital	18	15,407	15,407
Share premium account	19	84,487	84,487
Profit and loss account	19	12,328,056	15,754,605
		12,427,950	15,854,499

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

J D Hibbard

Director

Date: 21 October 2025

The notes on pages 12 to 25 form part of these financial statements.

Page 10

		DOUGLAS GILL INTERNATIONAL LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 October 2022	15,407	84,487	16,697,777	16,797,671
Comprehensive income for the year
Loss for the year	-	-	(943,172)	(943,172)

At 1 October 2023	15,407	84,487	15,754,605	15,854,499
Comprehensive income for the year
Loss for the year	-	-	(3,426,549)	(3,426,549)
At 30 September 2024	15,407	84,487	12,328,056	12,427,950

The notes on pages 12 to 25 form part of these financial statements.

Page 11

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.	GENERAL INFORMATION

Douglas Gill International Limited is a private company, limited by shares, incorporated in England and Wales. The Company's registered number is 01967176. The address of its registered office is Manor House Road, Long Eaton, Nottingham NG10 1LR.
The principal activity of the company for the current and preceeding year was the sale of marine and leisurewear.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Paddle Holdings Limited as at 30 September 2024 and these financial statements may be obtained from Companies House.

Page 12

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.3

GOING CONCERN

The directors acknowledge that the Company has generated a loss and less turnover in the period.
Results remained under pressure into the year to September 2025. There have been significant changes in the wider outdoor recreation market, and also in sales channels, and internally, in the product mix and branding and marketing. The company is beginning to see the impact of these changes , and the directors are confident of returning to a profitable position, and being able to cover working capital without any additional funding.
When making an assessment of the Company’s ability to continue as a going concern, management considers various factors, including current trading and market conditions, funding requirements, the expectation of future trading and the ability of the group to operate within available funding facilities, and any other relevant circumstances. This assessment covers at least twelve months following the date of approval of the financial statements.
The company is reliant on support from its parent company who has confirmed its intention to provide further financial resources necessary to assist the company meeting its liabilities as and when they fall due to the extent that money is not otherwise available to meet such liabilities.
Consequently, the Directors conclude that, whilst there remains a reliance on continued shareholder support to finance business operations in the short term, the Company will be able to meet its debts as they fall due and have prepared the accounts on a going concern basis.

2.4

REVENUE

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

RESEARCH AND DEVELOPMENT

Expenditure incurred in the development of new products is written off in the profit and loss account in the period in which it is incurred.

Page 13

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.6

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.7

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

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

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

2.8

EXCEPTIONAL ITEMS

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

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DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.9

INTANGIBLE ASSETS

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Website design costs	-	3	years
Software	-	2	years
Customs Warehouse	-	10	years
Trademarks	-	10	years

2.10

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.

Land is not depreciated. Depreciation on other assets 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:

Freehold property	-	2%
Motor vehicles	-	25%
Fixtures and fittings	-	25%
Computer equipment	-	20%

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.11

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.12

DEBTORS

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

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DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.13

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.

2.14

CREDITORS

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

2.15

PROVISIONS FOR LIABILITIES

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

Increases in provisions are generally charged as an expense to profit or loss.

2.16

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.16

FINANCIAL INSTRUMENTS (CONTINUED)

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

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

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Accounting Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet data and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from the those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements.
Stock
The carrying amounts of the Company's stock is reviewed for impairment where events or changes in circumstances indicate that the carrying amount of the stock may not be recoverable. Judgement is applied to identify any indications of impairment. If any such indication exists, the stock recoverable amount is estimated. An impairment or write-off loss is recognised in the profit and loss account.
Useful Economic Life of Intangible Assets
The directors use the best available inormation to estimate the useful economic lives of the intangible assets.
Debtors Recoverability
At the year end the Directors review the recoverability of debtors and where there is doubt over the balances, provisions are made to bring the balances to the amounts considered recoverable.

Page 17

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

TURNOVER

The whole of the turnover is attributable to the sale of sport and leisurewear.

					2024	2023
					£	£

United Kingdom	3,949,109	4,692,935
Rest of the world	6,677,248	7,480,323
	10,626,357	12,173,258

Research & development charged as an expense	52,087	57,532
Exchange differences	542,991	(461,835)
Depreciation of tangible fixed assets	45,901	57,580
Amortisation of intangible assets	64,801	38,841
Other operating lease rentals	46,162	50,741
Defined contribution pension cost	143,353	202,950
Other exceptional items	2,372,944	976,733

Fees payable to the Company's auditors for the audit of the Company's financial statements

16,750

26,950

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Wages and salaries	1,790,372	1,896,419
Social security costs	175,234	177,430
Cost of defined contribution scheme	143,353	202,950
	2,108,959	2,276,799

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

	2024	2023
	No.	No.

Distribution	10	10
Administrative	35	37

	45	47

8.	DIRECTORS' REMUNERATION
		2024	2023
		£	£

Directors' emoluments	269,497	437,046
Company contributions to defined contribution pension schemes	14,366	25,609
	283,863	462,655

	During the year retirement benefits were accruing to 2 directors (2023:3) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £95,000 (2023:£197,040).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £6,532 (2023:£15,261).

Page 19

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

CORPORATION TAX
Current tax on profits for the year	-	(219,701)
Adjustments in respect of previous periods	-	9,412
	-	(210,289)

TOTAL CURRENT TAX	-	(210,289)

DEFERRED TAX
Origination and reversal of timing differences	11,076	(2,137)
TOTAL DEFERRED TAX	11,076	(2,137)


	TAX ON LOSS	11,076	(212,426)

Loss on ordinary activities before tax

(3,415,473)

(1,155,598)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023:25%)	(246,193)	(254,232)
EFFECTS OF:
Expenses not deductible for tax purposes	3,636	2,532
Capital allowances for year in excess of depreciation	957	(597)
Adjustments to tax charge in respect of prior periods	-	9,412
Movement in deferred tax not recognised	253,519	-
Remeasurement of deferred tax	(843)	(254)
Adjustments to brought forward values	-	(4,072)
Lossess carried back	-	34,785
TOTAL TAX CHARGE FOR THE YEAR	11,076	(212,426)

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 20

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

10.	EXCEPTIONAL ITEMS
		2024	2023
		£	£

Exceptional foreign currency loss/(gain)	-	976,733
Intercompany debt provision	2,372,944	-
	2,372,944	976,733

In 2024, the Company recognised an exceptional charge of £2,372,944 relating to an intercompany provision. This provision was established following a review of the recoverability of balances due from Gill North America Inc, where indicators of impairment were identified following a review of the financial position and future cashflow expectations of Gill North America Inc.
The impairment is considered exceptional due to its materiality and non-recurring nature.

11.	INTANGIBLE ASSETS

	Customs Warehouse	Website	Trademarks	Computer software	Total
	£	£	£	£	£
COST
At 1 October 2023	2,025	630,008	82,891	24,455	739,379
Additions	-	48,020	7,135	-	55,155
At 30 September 2024	2,025	678,028	90,026	24,455	794,534
AMORTISATION
At 1 October 2023	111	539,527	19,725	14,770	574,133
Charge for the year on owned assets	203	45,790	13,510	5,298	64,801
At 30 September 2024	314	585,317	33,235	20,068	638,934
NET BOOK VALUE
At 30 September 2024	1,711	92,711	56,791	4,387	155,600
At 30 September 2023	1,914	90,481	63,166	9,685	165,246

Page 21

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.	TANGIBLE FIXED ASSETS

	Freehold property	Motor vehicles	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£
COST OR VALUATION
At 1 October 2023	382,363	21,000	576,527	232,529	1,212,419
Additions	-	-	12,518	15,630	28,148
At 30 September 2024	382,363	21,000	589,045	248,159	1,240,567
DEPRECIATION
At 1 October 2023	88,189	21,000	535,179	214,441	858,809
Charge for the year on owned assets	4,008	-	26,539	15,354	45,901
At 30 September 2024	92,197	21,000	561,718	229,795	904,710
NET BOOK VALUE
At 30 September 2024	290,166	-	27,327	18,364	335,857
At 30 September 2023	294,174	-	41,348	18,088	353,610

The net book value of land and buildings may be further analysed as follows:
	2024	2023
	£	£

Freehold	290,166	294,174
	290,166	294,174

13.	STOCKS
		2024	2023
		£	£

Finished goods and goods for resale	2,510,549	2,945,072
	2,510,549	2,945,072

Page 22

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.

DEBTORS

					2024	2023
					£	£


Trade debtors	745,690	1,340,387
Amounts owed by group undertakings	8,657,174	10,934,046
Other debtors	1,424	81,519
Prepayments and accrued income	290,648	110,143
Corporation Tax	222,471	169,959
Deferred taxation	-	11,076
	9,917,407	12,647,130

15.	CASH AND CASH EQUIVALENTS
		2024	2023
		£	£

Cash at bank and in hand	532,665	1,013,779
	532,665	1,013,779

16.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2024	2023
		£	£

Trade creditors	737,955	798,258
Other taxation and social security	34,402	63,889
Other creditors	21,655	16,229
Accruals and deferred income	230,116	391,962
	1,024,128	1,270,338

17.	DEFERRED TAXATION

		2024
		£

	At beginning of year	11,076
	Charged to profit or loss	(11,076)
	At end of year	-

Page 23

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

17.DEFERRED TAXATION (CONTINUED)

The deferred tax asset is made up as follows:
	2024	2023
	£	£

	Accelerated capital allowances	-	11,076
		-	11,076

18.	SHARE CAPITAL
		2024	2023
		£	£

ALLOTTED, CALLED UP AND FULLY PAID

14,427 (2023:14,427) Ordinary shares of £1.00 each	14,427	14,427
980 (2023:980) Ordinary B shares of £1.00 each	980	980

	15,407	15,407

19.

RESERVES

Share premium account

The share premium account is a non-distributable reserve and represents the amount above the nominal value received for shares issues, less any transaction costs associated with the issuing of shares.

Profit and loss account

The profit and loss accounts represents cumulative profits and losses of the Company.

20.	CONTINGENT LIABILITIES

The Company has given a guarantee to Yorkshire Bank plc in favour of HM Revenure and Customs. The amount of the guarantee at 30 September 2024 was £260,000 (2023: £260,000).
At the balance sheet date the Group had $1,000,000 (2023: $2,000,000) on an open dollars purchasing contract.

21.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £143,353 (2023: £202,950) . Contributions totalling £11,568 (2023: £6,138) were payable to the fund at the reporting date and are included in creditors.

Page 24

DOUGLAS GILL INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Not later than 1 year	55,438	56,804
Later than 1 year and not later than 5 years	129,768	178,127
	185,206	234,931

23.

RELATED PARTY TRANSACTIONS

As a wholly owned subsidiary of Paddle Holdings Limited, the company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" in not disclosing intra group transactions where 100% of the voting rights are controlled within the group.
Key Management Personnel
The Company directors are the key management personnel. Their remuneration has been disclosed in note 8.

24.	CONTROLLING PARTY

Gill Marine Holdings Limited is the immediate parent company and the controlling party of Douglas Gill International Limited. The results of the company are consolidated in Paddle Holdings Limited. Consolidated financial statements are available to the public and may be obtained from the Registrar of Companies, Crown Way, Maindy, Cardiff, CF14 3UZ under Paddle Holdings Limited, company number 13764165.
The ultimate controlling parent is considered to be the protector committee of the Myers Purpose Trust.

Page 25