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Registered number: 04291534
HARRYS OF LONDON LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 JANUARY 2025
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HARRYS OF LONDON LIMITED
REGISTERED NUMBER: 04291534
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2025
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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HARRYS OF LONDON LIMITED
REGISTERED NUMBER: 04291534
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2025
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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:
The notes on pages 3 to 13 form part of these financial statements.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
Harrys of London Limited (registered number 04291534) is a private company limited by shares incorporated in England. The address of its registered office is, 13 Old Burlington Street, London, W1S 3AS.
The addresses of its principal place of business are:
14 Motcomb Street, London, SW1X 8LB
29 Savile Row, London, W1S 2EY
The principal activity of the Company during the year was the retail and wholesale of men's footwear.
The financial statements are presented in Sterling, which is also the functional currency of the Company.
The figures in the financial statements are rounded to the nearest £1.
2.Accounting policies
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Basis of preparation of financial statements
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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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The Company has made a net loss of £1,906,059 for the year ended 31 January 2025 and its liabilities exceed its assets by £36,167,154. It has therefore been important to consider the ability of the Company to continue as a going concern.
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
Additionally C S Cohen, the ultimate controlling party of the Company, has provided the Company with additional funding during the year and further amounts post year end. Therefore the Directors have an expectation that the Company will have access to adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Company continues to adopt the going concern basis in preparing the annual report and financial statements.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
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.
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:
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Long-term leasehold property
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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.
Investments in subsidiaries are measured at cost less accumulated impairment.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
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 first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
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.
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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Cash and cash equivalents
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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.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position 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.
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.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
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.
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Website Development Costs
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Website development costs are capitalised as a tangible fixed asset with any maintenance and
operating expenditure being charged to the profit and loss account. An annual impairment review is then carried out on carrying value of the capitalised costs.
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The average monthly number of employees, including directors, during the year was 12 (2024 - 13).
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Long-term leasehold property
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Website development costs
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Charge for the year on owned assets
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Investments in subsidiary companies
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Raw materials and goods for resale
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Due after more than one year
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Included in other creditors is £9,029,977 (2024: £8,111,701) of accrued preference share dividends.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Creditors: Amounts falling due after more than one year
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Share premium treated as debt
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Share capital treated as debt
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Due to uncertainties surrounding the company’s ability to generate future taxable profits, no deferred tax asset has been included within the financial statements.
If a deferred tax asset had been included it would have amounted to £5,815,429 (2024 - £5,562,206), being £5,830,155 (2024 - £5,586,577) calculated at 25% (2024 - 25%) of the taxable losses carried forward of £23,320,622 (2024 - £22,346,307), and a liability of £14,727, (2024 - £24,371) calculated at 25% (2024 - 25%) of the other temporary timing differences.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Shares classified as equity
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Allotted, called up and fully paid
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4,089,723 (2024 - 4,089,723) Ordinary shares of £0.00100 each
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Shares classified as debt
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Allotted, called up and fully paid
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300,000 (2024 - 300,000) Employee shares of £0.00100 each
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120,660,689 (2024 - 120,660,689) A Preference shares of £0.00100 each
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38,157,077 (2024 - 38,157,077) B Preference shares of £0.00100 each
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2,813,000 (2024 - 2,813,000) B1 Preference shares of £0.00001 each
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2,813,000 (2024 - 2,813,000) A1 Preference shares of £0.00001 each
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Share capital (continued)
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Voting rights and class rights
The voting rights attached to each class of Share shall be set out in this article:
∙On a show of hands, every Shareholder (other than in respect of any Employee Shares subject to a Conversion Condition and/or any A1 Preference Share and/or any B1 Preference Shares which have not fully vested in accordance with any Restricted Share Award Agreement(s)) holding one or more Ordinary Shares, Preference Shares or Employee Shares, who (being an individual) is present in person or by proxy or (being a corporation) is present by a duly authorised representative or by proxy, shall have one vote;
∙On a poll, every shareholder (other than in respect of any Employee Shares subject to a Conversion Condition and/or any A1 Preference Shares and/or B1 Preference Shares which have not fully vested in accordance with any Restricted Share Award Agreement(s)) holding one or more Ordinary Shares, Preference Shares or Employee Shares, who (being an individual) is present in person or by proxy or (being a corporation) is present by a duly authorised representative or by proxy, shall have one vote each Ordinary Share, one vote for each Preference Share and one vote for each Employee Share of which he is the holder; and
∙The Deferred Ordinary Shares shall carry no voting rights.
A1 and B1 preference shares
The A1 and B1 preference shares are all restricted shares. The award shares will vest and cease to be restricted shares as follows:
∙40% of the Award Shares shall vest and cease to be restricted shares on the second anniversary of the award.
∙A further 20% of the Award Shares shall vest and cease to be restricted shares on the third anniversary of the award.
∙A further 20% of the Award Shares shall vest and cease to be restricted shares on the fourth anniversary of the award.
∙The final 20% of the Award Shares shall vest and cease to be restricted shares on the fifth anniversary of the award.
In the event of a sale, any award shares that remain restricted shares will, immediately prior to the sale event, vest and cease to be restricted shares.
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. Contributions totalling £2,270 (2024 - £1,531) were payable to the fund at the balance sheet date and are included in creditors.
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HARRYS OF LONDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Commitments under operating leases
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At 31 January 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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C S Cohen provided the Company with new loans of £948,818 (2024 - £1,129,500) during the year. As at 31 January 2025 the Company owes C S Cohen £14,709,200 (2024 - £13,760,382). The loan is interest free and is repayable on demand.
Flag Clothing Limited, a company under common ownership, owed to the Company an amount of £242,622 (2024 - owed by the Company £45,048) as at 31 January 2025. The balance is interest free and repayable on demand.
In the opinion of the Directors, C S Cohen, is the ultimate controlling party due to his majority shareholding in CSC Harrys of London LLC, the parent company. CSC Harrys of London LLC is registered in the United States of America and does not prepare consolidated financial statements.
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